PAYBACK: Ensuring delivery of CERs

1. PAYBACK: Ensuring delivery of CERs 4th February, British Embassy, Tokyo Dr Euan Low

2. Presentation outline Mott MacDonald and services in carbon Examples Suggested cooperation to ensure payback

3. Iceland St Petersburg Stavanger Moscow Warsaw Dublin Calgary Utrecht Cork Vancouver Prague Croydon Surgut Montreal Kiev Kyzlorda Seattle Mississauga Budapest Sakhalin Shymkent Albany Bucharest Buffalo Portland Belgrade Boston Alma Ata Sofia Barcelona Cleveland Pleasanton New York Tashkent Beijing Akron Ankara Provo Lisbon Istanbul Millburn Pittsburgh Sacremento Freehold Tokyo Lahore Monroe Cape May Shanghai New Delhi Houston Kuwait San Diego Doha Crestview Tripoli Cairo Abu Dhabi Panama City Mobile Taipei Shenzhen Karachi Nassau Bahrain Pensacola Muscat Dhaka Dubai Hong Kong Jeddah Mumbai Bangkok Manila Port of Spain Mysore Lagos Phnom Penh Kuala Lumpur Caracas Addis Ababa Port Harcourt Singapore Kampala Jakarta Darwin São Paulo Brisbane Johannesburg Perth Santiago Adelaide Auckland Maseru Sydney Melbourne Canberra Wellington Mott MacDonald is an Independent Management, Engineering & Development Consultancy >12,000 staff working in > 130 countries, turnover >US$1 billion

4. re Mott MacDonald Services in Structured Finance Government Customers Policy development; Support of Parliamentary Acts; Establishment of Service Level Agreements, Privatization Affordability Studies Market Study & Analysis, Master Plans; Procurement Strategies; Demand Forecasting; Independent Review; Contract Preparation; Independent Checking Engineer; Independent Technical Auditor; Independent Validation & Verification; Cost Control; Off-take Agreements Local Department/ Public Corp./ Private Co. Carbon Offtakers PDD, ERPA, Compliance Lenders/ Investors Consortia Design; Detailed Specification; Owner’s Engineer, Risk Management; Social & Environmental Impact Assessment; Contract Preparation; Contract Audit, PDD Special Purpose Co. Market Conditions; Lender’s Engineer; Technical Due Diligence; Social & Env. Due Diligence; Asset Valuation Designer Operator EPC Contractor Asset Management Planning, Investment Planning, Cost Optimization, Monitoring, Auditing, Operational Maintenance Planning & Procurement EPCM, Cost Control, Design & Construction Management Obtaining Permissions & Consents, Survey,Detailed Design Manufacturer Safety cases; Reliability, Availability, Maintenance & Safety Review

5. Project Development Services • ENGINEERING PROJECT DEVELOPMENT: • Feasibility Studies • Lender’s Engineer • Owner’s Engineer • CARBON PROJECT DEVELOPMENT: • Carbon advisory work • Technical design/analysis for owners • Market studies • Investigation of energy efficiency & emission reductions • Conceptual Design • Plant Engineering and Specification • Contract award (Bid Evaluation) • Risk analysis, due diligence for lenders • Construction Monitoring • Operation Monitoring Project Development Project Development Conceptual & Feasibility Stage Operation Construction • Development of New Methodology • Development of PDD • Support with verification & certification • Construction monitoring for carbon funds • Analysis of the host country institutional CDM organisation • Capacity building of national CDM authority (DNA) (Training & workshops) • Identification of country-specific project potentials • Project screening and preliminary selection • Formulation of PIN • Project registration probability • Search for Investors • Procurement of buyers sellers • ERPA signature

6. Technologies

11. What makes Mott MacDonald different? • We provide you with technical leadership and enhance your capabilities in all relevant technologies and sectors • We are experienced in ensuring delivery in both the carbon market and infrastructure project development • We provide you with global coverage support and access to an extensive client network This combination provides direct value to your business and makes MM different from our competition and so a preferred choice for many clients

12. Presentation outline Mott MacDonald and services in carbon Examples Suggested cooperation to ensure delivery

13. HFC23 Incineration, China • Client: Carbon Investor • Phase 1 Scope: Risk analysis and due diligence: • Technical review of existent chemical plant (analysis of process flow diagrams, maintenance, capital investment programmes, etc) • Functional specification for incinerator (capacity, environmental regulations, safety issues, site issues (space), storage) • Analysis of CDM methodology • Engagement of validator • Problems: • Lack of information on markets and contractual issues – recommended a market study • Lack of monitoring data – calculation of HCF23 from first principles • Cultural issues – Chinese team

14. HFC23 Incineration, China • Phase 2: Identification of technology supplier and EPC contractor • Development of all tender documentation • Identification of long list of technology suppliers and EPC contractors • Tender evaluation • Tender award • EPC contract negotiations • Problems: • Division of risks between carbon investor, host and EPC contractor – close collaboration with all parties • Phase 3: Construction monitoring – on-going • Local support team

15. Biomass plant, Eastern Europe • Biomass cogeneration project fired on forestry waste, steam used for district heating – 200ktCO2/yr • Client: Carbon Investor • Scope: Risk analysis and due diligence: • Technical review of existent plant - complex project with three sub-projects: power expansion, district heating and fuel conversion) analysis of process flow diagrams, maintenance, capital investment programmes, etc) • Contractual analysis: EPC contract, O&M contract, fuel contracts • Project participant capabilities • Analysis of financial model • Environmental review • Problems: • Lack of capability of EPC contractor: suggested possible mitigation strategies: contingency, partnership, recruitment.

16. Waste water treatment – South-East Asia • Waste water treatment through a biodigestor to generate electricity – a number of projects across the region varying in size (avg. 100kt/COP2) • Client: Carbon Investors, and project owner (own origination) • Scope: • Risk analysis and due diligence: • Technical review of host plant (tapioca factory) • Technical review of proposed biodigestor • Electricity grid connections • Contractual analysis: EPC contract, O&M contract, fuel contracts • Project participant capabilities • Analysis of financial model • Environmental review • CER estimation • CDM registration • Problems: • Control over host process and aligning incentives between host and carbon off-taker

17. Examples of CDM/JI • Bio-diesel production facility in Brazil – Carbon investor • Portfolio of heat recovery plants from coke and steel manufacturing – China – Carbon investor • Portfolio of heat recovery projects from cement plants in China: Advisor to carbon investors • CDM registration of 4 wind projects in Cyprus - Lenders • Windfarms in China: DD for investors and CER buyers • Rice Husk Power Plant, Thailand: Advisor to investor on DD and CDM approval

18. Examples of CDM/JI • Cassava Waste Anaerobic Biodigester, Thailand: Technical, commercial and CDM feasibility study • Bagasse-fired CHP Plant, Belize: Technical, commercial and CDM feasibility study • Bagasse and wood-chip and bamboo-fired CHP Plant, Ecuador: Technical, commercial and CDM feasibility study • Design of a methodology for gas company in Ukrainian, collaborating with QT • Several Waste to Energy projects in India as CDM advisors

19. Examples CDM/JI • Pipeline of own originated project with potential for 1m t/CO2 per year spread across a number of countries and covering different sectors, including the development of new methodologies.

20. Presentation outline Mott MacDonald and services in carbon Examples Suggested cooperation to ensure delivery

21. Suggested areas of cooperation • Carbon Advisory Services • Technical & Commercial Advisory Business • Owner’s Engineering / Project Management Consultancy

22. Thank you Consultancy services with a technical edge Isabel.Boira-Segarra@mottmac.com Euan.low@mottmac.com