Capital Expansion of CDM Landfill Gas Flaring and Electricity Generation William Ko, BA (Oxon) Director PT Gikoko Kogyo Indonesia May 27 th , 2009 gikoko@gikoko.co.id www.gikoko.co.id T BLI Conference ASIA 2009 in Yokohama

Summary of Content Gikoko LFGTE Business Model & Financial Projection Investor Participation

Gikoko

LFGTE Business Model & Financial Projection

Investor Participation

Gikoko 宜興行 “ Easy to develop & grow” 100% Family Owned and Managed Established in 1936 in Japan Exporting Japanese Capital Equipment to Indonesia since 1960’s Business Ventures in Indonesia since 1970’s Metal Fabricator since 1985 EPC Contractor in Biomass Combustion Technology since 2001

“ Easy to develop & grow”

100% Family Owned and Managed

Established in 1936 in Japan

Exporting Japanese Capital Equipment to Indonesia since 1960’s

Business Ventures in Indonesia since 1970’s

Metal Fabricator since 1985

EPC Contractor in Biomass Combustion Technology since 2001

Certified Qualification and Best Practice ISO 9001 OHSAS 18001 ASME “S” “U” Stamps - Power Boiler and Vessels; “R” and “NB” - Alteration and Repair

ISO 9001

OHSAS 18001

ASME “S” “U” Stamps - Power Boiler and Vessels; “R” and “NB” - Alteration and Repair

Signature Project Biomass Power plant 4MWe. UNFCCC no.1635 US$ 6million Gikoko EPC contractor

Gikoko 宜興行 Project Entity – 4 CDM LFG Methane Abatement Projects since 2007 … . 2010 and beyond…

Project Entity – 4 CDM LFG Methane Abatement Projects since 2007

… . 2010 and beyond…

Market Leader; Gikoko Reference LFG Abatement Projects TPA Batu Layang, Pontianak TPA Sumur Batu, Bekasi TPA Sukawinatan, Palembang TPA Tamangapa, Makassar Bekasi Pontianak Palembang Makassar IBRD 200,000 57,000 ADB 140,000 44,000 IBRD 250,000 63,000 IBRD 200,000 40,000 Buyer ERPA CO2e/yr

Trusts and Recognitions Due diligence with ADB, WB for financial, social and environment for obtaining ERPA ADB, WB providing quasi-equity (Upfront Payment) Long Term Concessions from four Municipalities Central Government (Public Works ） providing additional funding for Landfill improvement APFED Ryutaro Hashimoto Silver Prize 2008 Ernst & Young Entrepreneur of the Year Finalist 2008

Due diligence with ADB, WB for financial, social and environment for obtaining ERPA

ADB, WB providing quasi-equity (Upfront Payment)

Long Term Concessions from four Municipalities

Central Government (Public Works ） providing additional funding for Landfill improvement

APFED Ryutaro Hashimoto Silver Prize 2008

Ernst & Young Entrepreneur of the Year Finalist 2008

Environment Minister attended the opening ceremony of Bekasi Landfill CDM

Hot, moist tropical condition, coupled with high organic contents are ideal for LFG generation

LFG Contained , Collected and Destroyed (Bekasi landfill)

Gikoko 宜興行 … . 2010 and beyond…

… . 2010 and beyond…

LFGTE Business Model and Financial Projection

Target Project Medium Scale Landfill Project in tender process Project Cost US$12million Preliminary estimate of Carbon revenue 200,000ton CO2e /year and 4MW electrical output Annual surplus cash generation of US$2million

Medium Scale Landfill Project in tender process

Project Cost US$12million

Preliminary estimate of Carbon revenue 200,000ton CO2e /year and 4MW electrical output

Annual surplus cash generation of US$2million

Gas Engine Flaring Landfill Demister Fan Monitoring Electricity Supply LFG Flow Community Development Landfill Management CH4 CH4 LFG to Energy 4MWe Power Plant Power & carbon income streams 4 MW Power meter Power meter Flow meter Flow meter ExcessCH4

LFGTE Plus CERs Generates US$0.11/kWh

LFGTE 4MWe Timeline for Investment to Revenue Local Municipal Government Gikoko BOO Project Developer UNFCCC process Month: 1 13 16 28 $$$$ Electricity Generation off take sales $$$ Flare Fabrication Concession Award 6 Construction Cell $$$Verification for CER$$ Validation DNA Approval Registration Gas Engine Installation

Risks Mitigated Feedstock Delivery Municipality Gas Generation In-house landfill management know-how Power Generation Favorable Government Energy Policy Dual Income Stream PPA = State Electricity Company (PLN) ERPA = World Bank, ADB

Feedstock Delivery Municipality

Gas Generation In-house landfill management know-how

Power Generation

Favorable Government Energy Policy

Dual Income Stream PPA = State Electricity Company (PLN) ERPA = World Bank, ADB

Scalability Gikoko is currently bidding in one tender and in discussion with another municipality Over 90 municipalities in Indonesia

Gikoko is currently bidding in one tender and in discussion with another municipality

Over 90 municipalities in Indonesia

Investor Participation

Leveraging on Success LFG Concessions Winner CDM Registration Plant construction and operation of LFG flare/methane capture and abatement Quasi-equity (upfront payment) from ADB/WB as investment capital Collateralized Loan from Commercial Bank PPA…

LFG Concessions Winner

CDM Registration

Plant construction and operation of LFG flare/methane capture and abatement

Quasi-equity (upfront payment) from ADB/WB as investment capital

Collateralized Loan from Commercial Bank PPA…

The Financial Gap Up to US$5 million per project at the time concession won Commitment (Letters of Intent) from investors NOW Financial Structures for discussion

Up to US$5 million per project at the time concession won

Commitment (Letters of Intent) from investors NOW

Financial Structures for discussion

2010 and beyond… Leverage our expertise in CDM Landfill Projects to become a major renewable energy power utility company Thank you

Leverage our expertise in CDM Landfill Projects to become a major renewable energy power utility company