An opportunity for qualifying investors to
profit from landfill diversion and renewable energy

+33.0% NET GROWTH SINCE LAUNCH IN JULY 2008

The Investment Objective

The investment objective is to aim to provide long term growth by investing directly or indirectly in Recycling Facilities in the United Kingdom and in the development of such facilities, Recycling Facilities being defined for this purpose as industrial facilities for the processing and treatment of waste, including the recycling of waste, the treatment of waste, the preparation of waste for use in waste to energy and the conversion of waste to energy by any means.

Performance

Development Programmes

New Earth Solutions has fou>r operational waste treatment facilities (Canford, Blaise, Sharpness and Cotesbach) with combined potential processing capacity of nearly 225,000 tpa and is growing organically by winning Local Authority waste treatment contracts which underpin the development of new plants. A further two facilities (Willow and Avonmouth) with a combined capacity of 250,000 tpa, each supported by Local Authority waste contracts, are expected to open in 2011 and 2012. Planning permission on Longwood (in Lincolnshire) was achieved in 2009 and this site will be developed subject to securing an underpinning waste contract. Returns for investors in The New Earth Solutions Recycling Facilities Investment Sub-Funds are driven by 5 factors:

1. Income in the form of a base rent plus a share of gate fees
2. Capital appreciation on the underlying value of the long term local authority contracts and the hard
assets such as plant and equipment
3. Indirect benefit of capital allowances which should mean that the Joint Venture Companies (which own
the assets) should not pay corporation tax for 9/10 years
4. Senior debt repayment, which increases the investor equity as debt is repaid
5. A share of the revenues from electricity and heat generation (where applicable)

New Earth Solutions Recycling Facilities Energy Process – Turning waste into power!
Pyrolysis is an Advanced Thermal Conversion process. It entails the transformation of a solid compound into a fuel gas, through the application of heat in an oxygen-free environment. The resulting heat is a valuable by-product of the process. There are three key stages in converting untreated waste into heat and electricity:

1. Processing of waste off-site to create feedstock
2. Pyrolysis which turns the feedstock to fuel gas
3. Gas refining which removes any remaining impurities before combustion in the engines

The fuel gas that is formed from the pyrolysis process is a high energy gas, rich in hydrogen. Once refined to remove particulates and any oils, the gas can be used to feed conventional gas engines to convert its energy into electrical power.
1 tonne of compost per hour produces 1 MW which would supply electricity to 1,000 households for a year. New Earth Solutions will be installing power stations of between 1MW and 10MW over the coming months.

Scottish Borders

Following New Earth’s recent appointment as preferred bidder for the 24-year Scottish Borders Council waste treatment contract, the Company is preparing for the commencement of initial recycling and composting services in April and the development of a new facility on Council land at Galashiels in 2012.

Work has begun on a detailed planning application for a new Mechanical Biological Treatment (MBT) facility on the Council-owned site. Outline permission already exists for a waste treatment facility and New Earth is applying to amend that to a full permission, submitting detailed designs for its enclosed MBT solution. Following this, a further application will be submitted to add a 3MW low-carbon, renewable energy plant to the facility.

Tendering

The New Earth tendering team has had a particularly busy month, with local authority bids submitted to Central Bedfordshire (short -listing for a new service to manage 75,000 tonnes per annum for up to 25 years) and Dorset (final tender for a new 6 year contract for Canford). They have also submitted the latest set of bid documents as part of the ongoing procurement process with Blackburn where they are one of two left in the running for a long term contract.

Contracts won & Pipeline

Interesting to see that the “Secured/Awarded” contracts have increased by +24% from September 2010’s figure whilst the “Advanced Pipeline” opportunities have jumped by +225%. There’s a lot happening!

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The next dealing date for the Fund is Tuesday 1st March

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