Innovations in global

desalination

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Company Profile Aqualyng is a global leader in seawater desalination using reverse osmosis technology. With competitive advantage gained via our proprietary technologies and state-of-the-art products & services, we apply our engineering, development, construction management, and operations & maintenance capabilities to produce desalinated water when and where it is most needed across the globe.

Over the past decade, Aqualyng has built and operated desalination plants in 7countries around the world. Our technology solutions and modular desalination water systems have brought about cost efficiencies and reduced assembly times for plants in the GCC, Africa, and China. By applying some of the most advanced engineering know-how in the industry, Aqualyng’s team of industry professionals are dedicated to helping communities, businesses and industries around the world overcome water shortages.

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1989

Bjørn Lyng unveils the Anfi del Mar tourist resort in Gran Canaria

1992

The seed of Aqualyng is sown at Anfi del Mar

1995

Aqualyng is founded in the Canary Islands

1998

Installation of the first commercial desalination plant at Anfi Del Mar

1999

Bjørn Lyng registers Lyng Agua S.L. in Gran Canaria

2002

Aqualyng AS, Aqualyng›s parent company, establishes itself permanently in Vanvikan, Norway

2004

Aqualyng is awarded the prestigious ‹Innovation award› by DNB

2006

The company takes the decision to focus on Build Own Operate desalination projects as a primary business activity

2007

Aqualyng established itself in Dubai

2008

The company takes initial strides into the lucrative Chinese market

2008

Aqualyng is voted the No.2 desalination company in the world

2010

Aqualyng starts construction of 50,000m3/day BOO project in Caofeidian, China

History Aqualyng was founded as a Lyng Group company. The Lyng Group is a renowned Norwegian industrial conglomerate working across sectors in areas as diverse as electronics, energy, and offshore drilling. The company was the brainchild of noted Norwegian industrialist, Mr. Bjørn Lyng, who started Aqualyng to serve water needs at the Anfi del Mar hotel

resort which he had developed in the Canary Islands in the early 1990s. Aqualyng is today owned by Staur Holding AS, The Lyng Group AS, Aqua Venture AS, Pareto and CLSA Capital Partners.

Aqualyng has historically been a provider of advanced technology energy recovery equipment for desalination plants. Today, the company is focused on not just selling this equipment but selling water produced by building, owning, and operating desalination plants employing Aqualyng equipment and technology.

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Aqualyng sets itself apart in the desalination industry by offering our clientele a wealth of business advantages. Our Business Idea The Aqualyng Business Vision is to bring high efficiency, low life-cycle cost, water desalination solutions to places far and wide around the world. In addition to our Fast Water product offerings, we are seeking to sell water under long term contracts, such as BOO and BOOT contract structures, to bulk consumers.

Our Business Idea

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Proven, Patented Technologies We have been installing desalination plants with our own technology since 1998. Our technological innovations and system design are carefully tested through multiple installations, backed up by test results that are unmatched in the industry. Project Development Capabilities With the renewed vision of the company to participate in water industry privatization initiatives around the world and to sell water under long term contracts such as in BOO/BOOT projects, our project development team is supported by the company’s in-house engineering, construction management, and O&M capabilities to devise and

implement customized solutions fit to each consumer’s purpose and consumption parameters. Strength & Flexibility The Aqualyng family comprises top desalination experts from around the world. Our team has the flexibility and inventiveness to tackle minute demands and enter regions sometimes eschewed by mega corporations, while maintaining the strength, structural capabilities and logistical resources to satisfy the most exhaustive client requirements. Proprietary Energy-saving Device Aqualyng is currently the only developer of desalination projects with its own patented energy

recovery system, The Recuperator. Unlike other suppliers who depend on 3rd party energy recovery devices, we have complete control over the process and guarantee record low-energy consumption with significantly reduced costs. An Experienced Team Aqualyng prides itself on having sought out and attracted talented individuals to help us build an in-house team capable to meet our high targets.

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The Water Sales Business Aqualyng is active in identifying and pursuing opportunities to invest shareholder capital in desalination plants employing the company’s own equipmentand proprietary technologies. To this end, the company’s Project Development team targets sales of product water produced utilizing the company’s patented technologies, via BOO (Build, Own, and Operate) contractual structures, under long term water purchase agreements with creditworthy off-takers. The team’s geographical focus spans all five continents, targeting opportunities to form consortia with equity partners and contractors best suited for a given prospect. Whereas the company had traditionally been regarded as a provider of high quality

desalination equipment employing seawater reverse osmosis technology, the company’s renewed focus is to sell not just the equipment, but also the product water. Having assembled a committed in-house technical team of seasoned veterans, with focus on technological advancement and R&D as well as plant design and operations, Aqualyng is able to leverage its superior understanding of the core technology to devise customized solutions around each project’s unique set of requirements. Aqualyng is today able to provide equity, bring in partner equity on a project by project basis, and to arrange third-party financing for projects in the $50MM to $150MM range. Whereas on smaller projects Aqualyng can take the role of the EPC contractor, on medium to larger size

projects, Aqualyng employs turnkey EPC contractors on a case by case basis to manage construction period risks. Following construction, during the commercial operations period, Aqualyng’s operations and maintenance group, provides technical services including inventory management, maintenance planning, and long term parts & services supply to the company’s operating feet. Centralizing the operations management function across the feet allows for better efficiency achieved from improved maintenance and parts inventory management.

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Undoubtedly the main point of difference between our competitors and us. The Recuperator: Our Key Competitive Advantage

The Recuperator is an energy recovery / work exchanger patented and owned entirely by Aqualyng (making us the only water supplier in the world with its own patented energy recovery device).

A compact, tower-like structure, there have been three generations of the Recuperator over the years, each building on the strengths of its predecessor. Aqualyng’s R&D team is passionate about introducing newer features to. The Recuperator. There is a forth generation Recuperator that will be introduced soon. By allowing waste energy recycling up to 98.5%, The Recuperator significantly reduces operating costs.

The Recuperator

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Background From the very beginning, Reverse Osmosis Desalination has been focused on the improvement and development of the membrane elements, which are considered the heart of the process. The ultimate objective in the process is to have membranes, in terms of material and configuration, that feature high productivity; high salt rejection; and resistance to high operating pressures, chemical products and pollutants present in the feed water. The development of Aqualyng’s system design technologies, together with many years of experience in the operation of RO systems, better pre-treatment solutions and the use

of more efficient equipments and better materials, have resulted in a reduction of operating costs as well as an incremental decrease in the system life-cycle costs. Workings The Recuperator uses the saline reject (brine) from the membranes to pressurize pre-treated seawater in a sequential process regulated by the brine flow from the RO membranes. The device consists of vertically standing pairs of duplex stainless steel chambers that work alternatively in a compression-transfer and decompression-discharge sequence. Pre-treated seawater comes from a pressurized feeding tank to keep constant flow and pressure into

the system. The Recuperator allows the pressurized brine to “recycle” itsenergy back to the membranes in conjunction with a booster pump – the brine is replaced with pretreated seawater at an identical flow. Remarkable Efficiencies Via The Recuperator, Aqualyng has brought high-effciency energy recovery to projects in Taiwan, Oman, Egypt and the Canary Islands. The latest Recuperator installment is in a 50,000 m3/day plant currently under construction in China.

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Fast Water is an equally adept solution to meeting temporary as well as longer term water supply needs. Fast Water Modular desalination solutions Fast Water is a series of modular water treatment plants employing Reverse Osmosis (RO) technology. The units are designed to produce potable water at flow rates ranging from 250m3/day to 1000m3/day. This product suite offers an energyefficient, cost effective solution catering to the water needs of the Power, Construction, Oil & Gas, Petrochemicals, Agriculture, Chemicals, Mining & Minerals, Metal Processing, Food & Beverage, Hotel & Tourism and Water Bottling Industries.

Easy to transport, install and operate, Fast Water is an equally adept solution to temporary water supply needs and water supply droughts in arid, desert climates - giving harsh climates a vital, refreshing boost. Compact and mobile, Fast Water can be quickly transported to various environments to service different water needs.

Aqualyng looks after the commissioning, installation, technical assistance, regular servicing and remote monitoring of Fast Water, ensuring fresh water – whenever, wherever.

Fast Water

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Strength • Optimally Sized Fast Water’s compact dimensions allow it to be delivered quickly and at short notice via routine shipping methods. • Flexible The product’s fexible configuration allows for a large range of capacities,to meet wide ranging client requirements. • Easily Operable Easy to install, easy to operate – Fast Water is a no-fuss solution to several industry requirements.

• High Purity Water Fast Water systems remove not only dissolved ions, but also bacteria, pyrogens, organics, particles, colloids, color & oxidizing agents up to 99.9%. • Operationally Efficient Fast Water is energy-efficient, low-maintenance and cost-effective, making it the ideal purchase for large industries and mid-sized factories alike. • Various Options Units can be purchased or leased, and the entire system can also be monitored remotely. Further, clients can choose between customized and off-the-shelf units.

• Reliability With a long history of successful project involvement in the Canary Islands and other developments based around the world, Fast Water has the credibility to deliver on its promises. • Ready Availability Through a well-coordinated network of sub-suppliers and short manufacturing lead times, Fast Water can be delivered as and when customer needs are identified

Fast Water’s compact size allows for quick and low cost shipping. Key Components Fast Water has several unique features that give it a distinct edge in the industrial water desalination space.

• Feed Water Pressure Pumps • Energy Recovery Device • Chlorination / Dechlorination, Antiscalant Dosing and Flocculant Dosing • ORP / Conductivity / Flow / Pressure Instrumentation • Cleaning & Flushing System

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Fast Water

Aqualyng 50 000m3/day Build Own Operate(BOO) desal plant solving water challenges in Caofeidian area. Beginning 2010, Aqualyng China and the Tangshan Caofeidian Infrastructure Construction Investment Co. Ltd. (IIC) set up a joint venture company to construct and undertake the design, operation, ownership and maintenance of a 50,000 m3/day seawater desalination plant in the Caofeidian Industrial Zone. The project is the first phase of a larger development with an expected total size up to 400,000 m3/d. The construction phase of the project was kicked off March 15, 2010, and the first phase 50 000m3/day plant is scheduled for commercial operation Q3 2011. The product water will supply the Caofeidian Industrial Zone 220 km east of Beijing, and is one of first 2 large scale desalination plants in construction as foreign investment in China. The plant is being constructed by HZWT, a leading Chinese water

treatment contractor, and Aqualyng is supplying its patented proprietary energy recovery device, the Recuperator, to the plant. Aqualyng will operate the plant during the 30 year term of the offtake agreement as part of a joint venture with IIC. IIC is wholly owned by the local governing authority in Caofeidian and the project enjoys strong government support. The growing Chinese market for desalination has proven difficult for foreign companies to enter, and it is a source of pride that Aqualyng has been able to develop this project based upon a contractual framework that can serve as a model for future BOO projects in China. Key Information:

Key Information: • RO desaliantion project, supplying water to the Caofeidian Industrial Development Zone, 220 km east of Beijing • Size Phase 1: 50 000 m3/day • Type Of Contract: Build Own Operate Transfer, 30 years • Offtaker: Tangshan Caofeidian Infrastructure Construction Investment Co. • Raw Water Quality: 36 000 TDS • Product Water Quality: Chinese drinking water standard • Configuration: 5 * 10 000 m3/day RO skids • Through the WPC, the offtaker guarantees to buy 90% of produced water • Aqualyng delivers patented ERD, the Recuperator, to ensure lowest possible energy consumption • Commercial operation Q3 2011

www.aqualyng.com