We are initially focusing on renewable energy incineration projects in Ukraine, starting with “Waste to Energy” (WTE) Combined Heat and Power (CHP) plants for the Kiev region. Each plant is projected to incinerate up to 1,000 tons per day (TPD) of municipal solid waste (MSW), with emission standards which exceed current EU requirements.

We are initially focusing on renewable energy incineration projects in Ukraine, starting with “Waste to Energy” (WTE) Combined Heat and Power (CHP) plants for the Kiev region each plant is projected to incinerate up to 1,000 tons per day (TPD) of municipal solid waste (MSW), with emission standards well in line with EU requirements

The initial projects to be built in the Kiev region, have strong state support as well as strong local support from the municipalities, which have both designated land for the plants. The Lord Mayor of Kiev, Mr. Klitschko, has provided letters of support for the projects.

In Ukraine, the issue of utilization of new technologies in the field of municipal waste recycling is not resolved. Sorting covers no more than 1-3% of waste and does not provide effective recycling. Waste is primarily delivered to landfills, poisoning air, land and water. The major cities are in desperate need of a speedy resolution of the issue of MSW recycling and for this they plan to use well-proven WTE experience and technology. Mayors of Kiev and Odessa have signed guarantee letters expressing their support for Cindrigo WTE projects implementation.

We have completed initial feasibility and environmental studies for our proposed WTE plants. We have understandings with China Energy covering its full “Turn-Key” responsibility for the projects, including engineering, procurement and construction (“EPC”) as well as the facilitation of the funding of the projects in Kiev and Odessa. China Energy is a subsidiary of China Energy Engineering Group,a leading Fortune 500 company in the construction and energy industry.

We have good partnerships with leading international companies in addition to China Energy. On the EPC side we also have good relationships with China National Technology, Export & Import corporation (“CNTIC”), China Western Power Development Co (“CWPC”)

We believe that China Energy will secure debt financing through Chinese banks (e.g. Industrial Commercial Bank of China (ICBC), China Construction Bank (CCB), etc.) and Insurance through China Export & Credit Insurance Corporation (“Sinosure”).

Each plant will be operated by separate operating subsidiaries, i.e. Kiev Plant 1 by Kiev Bioenergy LLC. China Energy has the right to purchase up to 15% of the equity interest in these operating subsidiaries