A secure investment that has returns that are indexed linked and guaranteed by the UK Government for 20 years.

1. An investment
opportunity in
Biomass boilers and
the Renewable Heat
Incentive (RHI).
Constant Energy Ltd
Magnetic House
Media Village
The Quays
Manchester,
M50 3XW
Philip R.Smith-­‐Lawrence
Office: +44 (0)161 813-­‐1768
Website: www.constantenergy.co.uk
Email: psl@constantenergy.co.uk

2. CONTENTS PAGE
EXECUTIVE SUMMARY
THE MARKET
BIOMASS OVERVIEW
BIOMASS BOILERS
HOW DO MODERN BIOMASS BOILERS WORK?
RENEWABLE HEAT INCENTIVE (RHI)
HOW DOES THE RHI WORK?
HOW LONG WILL THE RHI PAYMENTS LAST?
WHO WILL THE RHI PAYMENTS COME FROM?
WILL THE RHI TARIFFS BE CHANGED OR REDUCED?
IF THE RHI TARIFFS CHANGE, WILL MY PAYMENTS CHANGE?
BIOMASS ENERGY CABINS.
THE INVESTMENT OPPORTUNITY.
MAINTENANCE COSTS.
BIOMASS BOILER SPREADSHEET.
ABOUT US.

3. EXECUTIVE SUMMARY
The Introduction of the Renewable Heat Incentive (RHI) from November 2011 creates an opportunity
for a FREE BIOMASS BOILER business model aimed at UK based industrial, commercial and public
sector organisations.
The RHI encourages businesses to replace fossil fuel heating systems such as oil, coal and gas with
one of the supported renewable technologies, in this case a biomass heating system.
Constant Energy Ltd will supply public and private organisations with a FREE biomass boiler
system, under contract for 20 years, to include operations and maintenance. The fuel will be
purchased as part of the contract to ensure continued usage or a PPA can be put in place. Constant
Energy Limited will be paid an agreed fee per site for facilitating this process.
The benefit to the user is a significant reduction in their carbon footprint as well as reduced fuel and
heating costs over a twenty year period -­‐ up to 40% if currently using oil and reduced CO2 emissions.
The benefit to the fund (Biomass Boiler Owner) is receipt of the RHI payments for 20 years and the
carbon credits generated. These payments are guaranteed and increase each year in line with the RPI
index. Capital costs will be recovered in 5 to 6 years and an IRR of minimum 28% achieved.
A typical installation of a 190kW biomass boiler will cost £120,000 inc VAT, plus installation costs,
which could attract a payment of circa £556,802 from the RHI over a twenty year period.
An opportunity now exists for investors to invest in the 'Free Biomass Boiler' model operated by
Constant Energy Limited and receive the RHI and Carbon Credits. There are also a number exit routes
available to the investor for the onward sale of the completed installation receiving the RHI and
Carbon Credits. The onward sale price of a typical biomass boiler installation is normally calculated at
fours years RHI income plus installation costs.
.
THE MARKET
The market for the Constant Energy Free Biomass initiative covers mainly industrial and public sector,
with a certain market sector to be targeted. Bio-­‐energy already provides the majority of renewable
energy worldwide and is considered to have the potential to provide a large fraction of world energy
demand over the next century. At the same time, if Biomass systems are managed properly, Bio-­‐
energy will contribute to meet the requirement of reducing carbon emissions.
In the EU, Bio-­‐energy contributes only 3.7% of the total primary energy supply, however, it plays a
considerable role in several European countries such as Finland and Sweden for instance, where its
contribution amounts respectively to 20% and 16% of the gross inland consumption.
In Scandinavia alone there have been over 100,000 installations within the last 10 years.

4. BIOMASS OVERVIEW
Biomass is a renewable energy source that is obtained from living or once living material including
wood, grass, wheat or suitable waste materials. Biomass is mostly used in the production of heat and
the generation of electricity. When burnt, biomass sources release CO2, equivalent to the amount that
a plant would release when it dies and decomposes.
Hence, the carbon released has a limited effect on the environment as it is a part of the natural
carbon cycle. This is unlike fossil fuels which continually increase the carbon levels in the environment
when burnt. The history of biomass heating is mainly based on basic biomass log stoves which were
very high maintenance and not very energy efficient for the amount of warmth that they generated.
Technological advancements have seen major improvements to these biomass devices which are now
capable of operating at efficiency levels of over 95% which is comparable to modern oil-­‐fired and gas-­‐
fired boilers.
If oil is currently used to fire a central heating boiler, biomass is the closest alternative renewable
technology as the appliances operate in a very similar way but with lower CO2 emissions and residues.
Biomass for heating can take many forms but the main ones are likely to be wood chip or wood pellet.
People have been producing energy from biomass for centuries, and in many parts of the world it is
still the principle source of heat. However modern technologies are far more efficient and cleaner
than the traditional open fire and there are an increasing number of fuels are being used namely logs,
wood chips, wood pellets and wood briquettes.
Energy from biomass refers to energy produced from organic matter of recent origin. This excludes
fossil fuels which have taken millions of years to evolve. Biomass is also referred to as -­‐ or
(in terms of renewable energy).
However, we are only concerned with woody biomass. Producing energy from wood brings
environmental and economic advantages both nationally and locally and has considerable potential
within the UK. Biomass heating systems, unlike other renewable energy sources, do emit carbon
dioxide. However, it is the carbon dioxide (CO2) taken from the atmosphere by trees for
photosynthesis that is released during burning. This closed CO2 cycle means that biomass heating is
considered a renewable energy source, and therefore eligible for the Renewable Heat Incentive (RHI).
For sustainably managed woodland, or energy crops, the process is similar. Wood is never removed
faster than it is added by new growth, therefore the CO2 released when the wood fuel is burned is
never more than the CO2 absorbed by new tree growth. Biomass heating systems in reality create
small net emissions of CO2 to the atmosphere through operations including harvesting, transport,
processing and the construction and commissioning of the boiler. Wood fuel emits 25 grams of CO2
per kilowatt-­‐hour (g/kWh); Wind Energy emits 8g/kWh; gas emits 194g/kWh; oil emits 265g/kWh and
coal emits 291g/kWh.

5. BIOMASS BOILERS
Biomass boilers generate hot water in the same way as conventional fossil fuel boilers and may
therefore be used in much the same way with respect to boiler temperatures and pressures. Because
they have a live fire within the combustion chamber, which cannot be turned on and off like a gas-­‐
fired boiler, they require a heat sink in which to dissipate excess heat when the demand is no longer
there. It is therefore usual to combine biomass boilers with an accumulator, or buffer tank, which
absorbs the energy from the biomass boiler and firing of the biomass boiler, is controlled by the rate
at which energy is taken from the buffer tank.
The use of a buffer tank also allows the biomass boiler to be sized according to the maximum heating
load which might be expected for, say 90% of the heating season, with the remainder of the heat load
during peak demand times being met from the buffer tank. Other fuels are possible, such as
miscanthus or oil seed rape cakes, and boilers are available which are capable of being adapted to
different fuels, but care should be taken in considering such flexibility as it adds to the cost of the
plant and conversion from one fuel to another will normally require re-­‐commissioning.
Biomass boilers require a conventional chimney flue, which can either be a simple stainless steel flue
taken through the roof, or connected into an existing brick chimney, as long as it complies with
statutory requirements. Bio-­‐energy is expected to play a key role in our ability to meet the 2020
renewables target as well as longer term carbon reduction targets to 2030 and 2050. Our analysis
suggests that Bio-­‐energy could account for up to half of the renewable energy required to meet the
2020 renewables target.
Two 20ft Eco-­‐Cabins housing the Biomass Boiler

6. HOW DO MODERN BIOMASS BOILERS WORK
In the case of wood chip and wood pellet boilers, the fuel is fed automatically into the boiler from the
fuel store using an auger screw system. The fuel then burns in the combustion chamber, where a
regulated flow of oxygen ensures a clean and efficient combustion process. The resulting hot gases
then heat water in a heat exchanger which feeds the hot water storage tank, or for smaller stoves a
back boiler, and ultimately the heating circuit (radiators in most cases).
Biomass boilers are as controllable as modern gas condensing systems; heating controls allow the
user to adjust all personal parameters for the central heating and domestic hot water. Some controls
even allow the user to switch on the boiler remotely via text messaging.
Basic operation of a wood pellet and wood chip boiler

7. RENEWABLE HEAT INCENTIVE (RHI)
The Renewable Heat Incentive Scheme provides businesses and the public sector with cash back for
the generation of renewable heat. It is a government-­‐backed measure, which was introduced in July
2011, to make production of heat through renewable means more financially attractive. The scheme
was developed as a result of the Renewable Energy Strategy consultation in 2008 and was announced
by the Department of Energy and Climate Change (DECC) during the passage of the 2008 Energy Act.
It was further announced, in October 2010, as part of the spending review, that the Renewable Heat
Incentive will go ahead in July 2011.
The Renewable Heat Incentive Scheme will represent over £860m of investment over the spending
review period, driving a more-­‐than-­‐tenfold increase of renewable heat over the coming decade and
shifting renewable heat from a fringe industry firmly into the mainstream. This is with the ambition of
increasing the total heat produced from renewable sources from 1% to 12% by 2020. This would save
about 60 million tonnes of CO2 by 2020, helping to minimise heating effects on climate change.
The United Kingdom (UK) is committed, by international law, to achieving these targets under the
Kyoto agreement on climate change. Failure to meet the targets will result in financial penalties for
the UK.
Every country in the European Union (EU) has its own targets to meet but the could be one of
the toughest, simply because so little (less than 1%) of its energy currently comes from renewable
sources. It will take a massive effort in terms of building awareness, educating users and investing in
technology and infrastructure in order to drive the cultural shift required in the minds of consumers,
the public sector and industry.
HOW DOES THE RHI WORK?
The Renewable Heat Incentive Scheme works by encouraging users to replace existing fossil fuel
heating systems such as oil, coal and gas with one of the supported renewable technologies which
includes Ground Source Heat Pumps, Solar Thermal Panels, Biomass Boilers and Bio-­‐methane. The
onus is on the user to pay for and install the new technology and then register the system with
Ofgem. Only industrial, commercial and public sector organisations in the UK are eligible for the
scheme, providing they meet certain eligibility criteria. The amount of RHI payment is set at time of
registration and will be adjusted upwards for inflation. Payments are then made quarterly for the next
20 years.
HOW LONG WILL THE RHI PAYMENTS LAST?
As part of the scheme the wood pellet user will be eligible for RHI payments over a guaranteed period
of 20 years. The payments will be made on a quarterly basis each year taking into account the level of
heat generated by the renewable technology. The tariff is fixed for this period and will only be
adjusted annually in line with the retail price index. However, the RHI in its current form is very
generous for early adopters. Tariff levels for new installations will reduce over time as a result of
increased uptake.

8. WHO WILL THE RHI PAYMENTS COME FROM
Although widely debated during the initial stages, it has been confirmed that the RHI will be paid
directly by the Treasury. The scheme administrator OFGEM is responsible for making sure that
payments are made and that compliance is maintained at all times by those within the RHI. OFGEM
will ensure that the rules and conditions of the scheme are followed in order to earn the RHI
payments. The payments will then be made to the recipients installation owners, quarterly for 20
years.
WILL THE RHI TARIFFS BE CHANGED OR REDUCED?
The Renewable Heat Incentive provides a financial incentive to promote the use of renewable heating
technologies in England, Scotland and Wales. As part of the scheme commercial and public sector
users will be paid a certain amount of money depending on how much heat they produce. This will
then be paid on a quarterly basis for a set period of 20 years.
The Government decided on a tariff to ensure an adequate rate of return for each technology and
size. The aim was to provide an estimated 12% annual rate of return for most types of system.
The following tariffs have been set for wood pellets (as of 1st April 2012):
Tariff Name Eligible Technology Eligible Sizes Tariff Rate (p/kwh)
Small Biomass Solid Biomass Less than 199kWth Tier 1: 8.3, Tier 2 2.1
For small and medium biomass boilers the tariff tables are split into two tiers. Once the system
reaches a certain point under the Tier 1 payment structure then it diverts down to Tier 2. This is
designed to provide a good level of support without over-­‐supporting systems which have a relatively
high load factor.
Once signed up to the RHI your tariff rate is secured. The payments are made for a guaranteed 20 year
period and are index linked. This means that each year the level of tariffs will be adjusted in line with
the retail price index. For people that already signed up to the RHI, the tariff levels will be
reviewed in 2014 or earlier under an approach called degression. This means that support levels will
be reviewed if uptake is greater than anticipated.

9. IF THE RHI TARIFFS CHANGE, WILL MY PAYMENTS CHANGE?
The short answer is no. Any changes made to the tariff levels will only affect new projects and will not
influence the payment levels set before this. This is one of the reasons why we are recommending
that people take up the RHI now, as the tariff levels currently proposed are generous and are unlikely
to stay this high. By applying now you can set your tariff levels at this higher figure for the next 20
years.
The Department of Energy and Climate Change are likely to consider the tariffs during a
review in late 2012. It is anticipated that the current generous tariff levels will not be maintained so
early adopters of the RHI stand to receive the largest financial support.
A typical Biomass Boiler

10. BIOMASS ENERGY CABINS
Constant Energy has partnered with one of the leading biomass boiler installers. Established in
1951, our partners have produced an innovative solution to the problem of retro fitting biomass
boilers into, already cramped plant rooms.
The Energy Cabins house the biomass boiler and the fuel store in either 1 x 20ft, 2 x 20ft containers,
dependent on boiler size. The Energy Cabins can be powder coated or clad to compliment the
surround environment, and blend in with the existing building.
As the Energy Cabins are classed as a temporary structure no planning permission is needed.
Fuel monitoring levels are fully automated allowing for automated fuel deliveries, thus reducing the
need for staff monitoring. Full training is provided to the existing maintenance and operation staff
where needed, and is included in the overall costs.
Restocking of Wood Pellets

11. THE INVESTMENT OPPURTUNITY
Constant Energy Limited has partnered with one of the leading biomass boiler manufacturers and
installers, with stable fuel supplies, and who between them have some 200 years experience in the
boiler industry and meet all the DECC and regulatory requirements. Constant Energy Limited will
procure the sites, put in place the contract between the site and the investor, project manage the
supply and installation of biomass boiler, apply for the RHI on behalf of the investor -­‐ a 10%
management fee applies.
Constant Energy Limited has identified a number of market sectors that, along with the investment
fund, will benefit under the Free Biomass Boiler model. We are now seeking interested parties to set
up a fund and then to enter into a contract with Constant Energy Limited for the procurement of the
sites supply, installation and commissioning of Biomass Boiler for the sites.
WHAT IS THE PROCEDURE?
Procurement: 1-­‐2 weeks.
Stage 1.
The site procurement entails contacting the relevant parties that have the authority to
enter into a contract for the installation of a Free biomass boiler, outline the process and
benefits and sign the contract.
Stage 2.
Undertake a site survey and produce a full report.
Cost of procurement stage 1 & 2 £12,000 +VAT = 10% of total costs.
Stage 3.
Boiler ordering: 6-­‐8 weeks.
The boiler is ordered based on the survey report being compiled.
Cost of boiler ordering, typically £54,000 +VAT = 45% of total costs.
Energy cabin construction and delivery to site: 3-­‐4 weeks.
Once the boiler has been received the Energy Cabin will be built to the specifications of the
survey report and delivered to the site. During the ordering and Energy Cabin construction
phases all additional site works will be completed.
Stage 4.
Installation: 1 week.
The Energy Cabin will be installed at the site.
Cost typically £54,000 + VAT = 45% of total costs.
Commissioning: 2 weeks.
In this time the boiler will be fully operational but we monitor its performance to make
final adjustments to suit the system. Then all relevant performance certificates will be
issued.
RHI application:
Constant Energy Limited, on behalf of the investor, will apply for the RHI, and will retain a
fee equal to 10% of the RHI payment.
Facilitation Fee:
Constant Energy Limited will be paid an agreed fee for the facilitation of the process.
MAINTENANCE COSTS
These are calculated at £1.50 per kW installed, per month.

12. BIOMASS SPREADSHEET
Interested parties should contact Phil Smith-­‐Lawrence at psl@constantenergy.co.uk or on
01618131768 or 07748443805

13. ABOUT US
Constant Energy Limited provides a complete and expert turnkey service in the commissioning, design,
finance, installation, management and maintenance of biomass boilers, to the public and private
sectors. We bring together commercial experience, expertise and a unique funding model to biomass
boiler installations, a proven, clean technology fuel, which has been used successfully in the Nordic
countries for many years.
Constant Energy project management includes the full design of your biomass boiler system,
supply and installation of the boiler(s), buffer vessel, fuel store, controls and heat meters, flue and
connection to your existing hot water flow return system. Constant Energy also includes
ongoing monitoring and maintenance of the system, and fuel supply under our long term fuel supply
contracts.
We also finance packages that are tailored to our clients circumstances, be it 100% financing or our
truly Free to Fit model, backed by our investment partners. This enables us to deliver to our clients a
structured and immediate cash flow saving on the biomass boiler system and clients will also benefit
from reduced fuel costs.
Our service takes care of every aspect of biomass boilers from initial consultation through design,
installation, commissioning, ongoing operation and fuelling. Our state of the art systems will monitor
the day to day operation of the system, and will even tell us when fuel levels need replenishing. Our
aim is to make saving money with biomass very straightforward.
Constant Energy Limited only works with experienced market leading partners and sub-­‐contractors
who have completed many biomass boiler installations throughout the UK, including;
Q Hotels -­‐ Norton Park Hotel. 200kW Biomass energy cabin.
Cosmopolitan Housing -­‐ Liverpool. Twin 80kW pellet boilers to heat a social housing project.
Mersey Forest Trust -­‐
Constant Energy Ltd, Magnetic House, Media Village, Salford Quays, Manchester, M50 3XW
Philip R.Smith-­‐Lawrence
Office: +44 (0)161 813 1768
DDI: +44 (0) 161 848 0027
Mobile: 07748443805.
Website: www.constantenergy.co.uk
Email: psl@constantenergy.co.uk