Page 8 - Parkside Gasification & Pellet Plant Report 081117_Neat

Maintenance

With 12 x CHP units running together for 7000 hours / p.a. maintenance costs will have to be
considered as well. Spare parts and wear & tear for each machine is approximately $70,000 p.a.
$16,000 of this cost is provision for replacement engine after 50,000 hours and generator after
70,000 hours.

Labour required to operate

7 gasifiers will require 1.5 - 2 persons per shift. Assume 2. Running for 3 shifts is 6 persons.

CPM pellet press will require 1 person to operate / monitor. 1.5 when stacking consumer pellets
onto pallets.
Drier and RUF briquette press will require 1 person to operate / monitor.

Further Engineering

Should Parkside Group wish to pursue this project further detailed engineering studies need to be
undertaken to verify the calculations, ensure equipment flow is system matched with the
specifications, firm up vendor prices and execute equipment design layout options.

NOTES:

#1 This figure is the profit from operations – not the gross revenue. For the pellet production see
the separate ROI sheet. This profit figure is calculated using the pellet production for packaged
pellets only and absorbing 100% of the operating costs, including financing charges, for the entire
CPM pellet system. In other words, the fuel pellets produced are no cost.

#2 included in the gasifier costs are the engineering specifications to design the complete system,
installation supervision and commissioning by Burkhardt / RTG.
#3 Grid connection costs and any associated equipment have been excluded as we are not yet aware
of the Queensland energy distributor requirements.