Environmental Recycling Technologies plc (ERT)

The Powder Impression Moulding (PIM) Process Revolutionising the use of recycled plastics Construction Sector Presentation March 2008 Roger Baynham – Managing Director Richard Bayfield FICE - Consultant

Who is ERT plc?

ERT is a leading developer of innovative technologies specifically focusing on plastic waste recycling.

The company holds the world wide intellectual property rights to a number of technologies related to this sector including the

PIM

Process.

ERT licences the right to use these technologies around the globe.

ERT is listed on AiM (ENRT) in the United Kingdom.

UK Landfill running out fast - Context

• • • • •

Currently there is between 6 and 15 years of landfill space available in the UK The construction industry is responsible for almost 30% of the UK’s total waste (www.defra.gov.uk).

In 2003 the construction industry produced 91 million tonnes of inert material of this just over half was recycled and 44 million tonnes went to waste. (DTI Strategy for Sustainable Construction) Recycling rates are increasing due to increasing landfill tax, new technologies such as PIM etc The acute problem of land fill capacity repeats itself across Europe and many other parts of the world.

The average skip costs almost £200. The average cost of what is being thrown away in that skip is over £1,200 (Source: WWW.CIRIA.ORG).

Construction Waste - Overview

• Challenge - Large “growing” problem unlikely to be solved just by legislation • But legislation will be a driver for change – e.g. Site waste management plans – new act from 6 th April 2008 • Another driver is increasing cost and scarcity of land fill • Opportunity - Need for new technologies • C.f. Value Engineering – 2 nd World War – shortages – alternative materials / technologies • Increasing social / political pressure

Plastic and Construction Sector

• 1 million tonnes of plastics used as construction material per annum by UK Construction Sector (2000) • Estimated 5 million tonnes of plastic packaging sent to landfill each year as unsegregated waste (2004) • 80% of UK Plastic waste is incinerated / exported or dumped as landfill • The PIM process is unique as it is the only process capable of converting non-segregated low hazardous waste materials

What is Powder Impression Moulding (PIM)?

The PIM Process allows businesses to improve their environmental footprint by adding new value to mixed plastic waste streams by conversion into added value products, which in turn can be recycled.

PIM is unique – no segregation

The PIM Process can utilise mixed plastic waste with a high level of contaminants.

Waste plastics require limited to no segregation, reducing costs, providing a low cost raw material which in turn improves product profit margins.

PIM – Process overview

The PIM process works by melting and fusing thermoplastic rich powder. This powder is applied to the open surfaces of heated moulds.

The products made using the PIM Process are themselves recyclable and can be reused as a feedstock to make new products.

PIM – composite technology

A core material of mixed plastics is added along with any further components such as reinforcements or fixings.

On further processing a composite material is formed comprising solid skins fused to a closed cell foam core.

PIM and waste plastics

The PIM Process is having a revolutionary effect on the waste plastics industry as it offers operators a range of benefits for plastic recycling.

Every PIM Process plastic recycling line is custom built to meet our client’s requirements.

PIM Line – modular and flexible

The equipment is designed and supplied in a modular format to allow true flexibility and provide maximum production efficiency.

PIM and Construction

Some materials can exhibit excellent mechanical, thermal and sound insulation properties as well as being light-weight.

This makes it ideal for a number of applications in the Construction Industry.

The waste materials generated on construction sites are often difficult and costly to recycle due to the variety of materials used. However rising landfill cost and new legislation is driving the industry towards change.

The recycling process

First Stage Bulk arrives Second Stage Material crushed Third Stage Powder/ granules

The powder is then used as a raw material feed stock to the PIM Process. This offers a economically and environmentally sustainable process capable of converting

non-segregated

polymer rich recyclate into value added products opening new market opportunities.

UK Construction - overview

• • • •

£100+ Billion per annum £40 Billion – construction materials 2 Million Employed 8 - 9% of GDP

• Specifiers are key – Land Securities / Bovis / Arup etc • Govt. responsible for 40% of overall spend • Opportunities at strategic level for new replacement products using PIM technology • Ongoing drive to reduce waste – landfill cost increasing, new legislation, sustainability targets etc etc

• • • Construction Industry – www.eco-sheet.com

Award winning r eplacement for external plywood sheet, easy Graffiti removal, Flame proof, smooth finish, standard screw fixings etc (also plastic weld) Lower life cycle costs – uses 80% + recycled material & is 100% recyclable 3 rd Party estimate UK market – external plywood use of up to 5 Million sheets p.a as hoarding / shuttering etc Overall UK plywood market – 24 Million sheets p a

Technical & Commercial collaboration - Arup

ERT plc working alongside its technical and commercial partners can offer clients the complete total solution package ranging from material analysis, prototyping, mould design & bespoke production equipment supply.

ERT has a collaboration agreement with Arup ( www.arup.com

) the well known and highly respected Global Engineering Consultancy firm.

PIM Research Opportunities – DTI Advanced Materials / Packaging Waste - 2007:

• • • • • • •

ERT Brunel University Bovis Lend Lease PERA Research Philip Tyler Polymers Severnside Recycling Tesco

ERT - STRATEGY

• ERT is not a manufacturer – it enables others to use and develop the PIM technology.

• This is attractive to organisations that understand the potential for the production, their specialist market places and also know of the distribution and supply chain. • ERT's Business model is to license PIM production and provide technical support in return for fees and royalties. Licences include EPT and 2K Manufacturing ( http://www.2kmanufacturing.info/ )

ERT – STRATEGY (cont.)

• ERT is now looking for further commercial partners and Government agencies to take different products to market.

• ERT will facilitate technical knowledge sharing between interested parties as part of the development process (e.g. Bovis supply chain with technical expertise – Brunel University, Arup Pera, etc)

Contact / web

Environmental Recycling Technologies plc Keble House Church End South Leigh Oxfordshire OX29 6UR United Kingdom Tel: +44 (0)1993 779468 Fax: +44 (0)1993 776480 E-mail: [email protected]

Web: www.ertplc.com

and www.ert4c.com