Redbank (CFBT) Power Station Warkworth, Hunter Valley

Redbank is currently Australia’s only generator with circulating ﬂuidised bed technology (CFBT) recognised for its emissions control capability and it’s proven ability to operate on 100% biomass.

Redbank commenced power generation in 2001 at a cost of $200m Current estimated cost to restart Redbank is $60m1 (including and had a major $14m upgrade in 2014 - the existing plant has an contingencies) and is planned to take six to eight months. estimated life expectancy > 25 years. Estimated replacement cost of the plant is $563m2 and, prior to shut-down in 2014, the plant operated proﬁtably generating ~$28m EBITDA per annum over a nine-year period.

Upon restart, Redbank will be one of the largest green baseload renewable energy providers in NSW and the ONLY existing facility capable of providing continuous green 24/7 power with Net Zero CO2 emissions, adding to grid stability. Verdant has options to build other renewable energy sources on the current Redbank site and when combined with Redbank will form the Redbank Green Energy Hub capable of generating 261MW of renewable energy – the second largest renewable generation Click To Waste Biomass feedstock will be obtained from a variety of facility in NSW behind the snowy mountain hydro scheme. Watch Video sources, including forestry waste residues with a medium-term goal of operating on waste biomass sourced from mixed waste timber – provides an important alternative to landﬁll.

Commercial-In-Conﬁdence 1. Plant refurbishment cost estimate provided by Downer EDI – appointed as preferred contractor 8 © Verdant Technologies Australia Ltd 2. The total cost of building a new biomass power plant are based on a report by the CSIRO “Electricity generation technology cost projections” (2017) The Redbank Project Key Project Tasks

DA modiﬁcation Fuel – 100% Debt facility Comprehensive 600-page GE lodged with Singleton renewable waste assessment of report detailing Council to add the biomass residues ▪ Discussions plant completed work requirements ability to operate on underway with for restart program 100% biomass ▪ 100% of eligible several interested fuel sourced parties ▪ Project well Term sheets will be Conditions supported at ▪ ▪ Grid connection Restart work plan signed following precedent likely to Federal, State and progressed with estimated at 6-8 IPO include approval of Council levels of AEMO and Ausgrid months DA modiﬁcation government EPA approval to ▪ and completion of add construction ▪ Estimated 2 to 4 fuel arrangements and demolition month approval which are well in Restart and timber is underway Requested and received EOI for the project timeframe hand (3 similar EPA repurpose of restart work, Downer Engineering preferred approvals have EPCM contractor Redbank been issued)

Commercial-In-Conﬁdence 9 © Verdant Technologies Australia Ltd Forecast Operating Performance Of Redbank Power Station

YEAR CAPACITY NET REVENUE REVENUE REVENUE REVENUE ALL IN OPERATING EBITDA EBITDA USAGE GWH $/MWH $LGC/MWH GATE FEE1 ‘000 FUEL COSTS COSTS ‘000 % $/TONNE ‘000 ‘000 FY221 78% 976 $62 $30 $- $81,100 $35,100 $20,200 $25,800 31% FY232 81% 1,018 $65 $25 $30 $86,400 $33,700 $22,600 $30,100 35% FY24 81% 1,021 $65 $15 $30 $84,100 $27,000 $23,200 $33,900 40%

The assumptions allow for a steady Historic EBITDA averaged $28M Forecast subject to assumptions on long term biomass purchase price, Plant efficiency at consistent recovery from COVID 19 with per annum over a 9 year period, electricity sale price and Large-scale Generation Certificate (LGC) revenue: level (following several major business activity improving into prior to a $17M refurbishment in refurbishment spends $17m in FY23, and FY24. They are similar to 2014 before going into care and ▪ Generation sold @ $62-65/MWh average sale price FY22-FY24, reflecting 2014 and current plan) and Wood Mackenzie forecasts however maintenance. business recovery from COVID impacts and new project delays through overheads based off previous we expect a slightly quicker COVID; operational experience (mostly recovery and are more aggressive in labour and maintenance costs), Revenue from sale of LGCs, current pricing $35/MWh average pricing FY23 and less aggressive in the ▪ plus inflation. assumed $30/MWh for FY22 $20/MWh for FY23 and falling progressively to following years. The FY19 average Forecast EBITDA in the range of NSW National Electricity Market $5/MWh by FY26 for the remainder of the program. Assumed eligibility $25-35M (based on 100% based on fuel used 70% FY22 rising to 75% thereafter. (NEM) price was $88/MW but biomass) for a full year of dropped with COVID effect to operation, post first year. ▪ Gate fees amount per tonne not applied until FY23. Significant revenue $72/MW in FY20. generator over time doubling EBITDA in later years.

Commercial-In-Conﬁdence 1. Based on 11 months operating performance. Includes start-up phase of lower level of operation 10 © Verdant Technologies Australia Ltd 2. Gate fee for acceptance of waste biomass in FY23 applies to 1/5th of fuel used, then building over 6 years The Redbank Green Energy Hub

Verdant will complete feasibility studies and evaluate renewable generating options to compliment Redbank. As part of the staged The resultant Redbank Energy Hub development of a Green Energy Hub, these will comprise 261MW of generation Room for and 50MW of storage, delivering include: Further Development blended, reliable power targeting net zero CO2 emission levels. The installation of a 50MW Battery Facility, to enable improved demand management. Images illustrative only CAPACITY CAPITAL SPEND ANNUAL REVENUE1 ANNUAL EBITDA1 PROJECT MW $M $M $M A 70MW+ Gas Fired Turbine to be fuelled by Redbank 151 60 80-90 25-35 waste mine gas. Gas 70 70 20 15

Solar 40 50 7 6 A 40MW+ Solar Farm on buffer land adjacent to Battery 50 35 9 5 Redbank. Totals 215 116-126 51-61