By Product Recovery Plant Information Table of Contents

5/2/2011

00216 Anco Eaglin - Product Sheet

Anco Eaglin - Plant Layout Anco Eaglin - ANCO Rendering Plant PROPOSAL Anco Eaglin - Rick Eaglin Telecon Anco Eaglin - RE Quotes for a small oil/meal plant Anco Eaglin - Re questions related to salmon byproducts plant Anco Eaglin - Budget Pricing Anco Eaglin - Feb 28 Questions Alfa Laval Condec- BUDGETARY PROPOSAL for 30MT fish bi-product per 24 hrs. Alfa Laval Condec- BUDGETARY PROPOSAL for 180MT fish bi-product per 24 hrs Westfalia - Re: Quote for Package Seafood byproduct Plant

00216A By Product Plant Annual Costs
00216B Cost Elements Jan
00216C Anco Eaglin - Shipping Estimates
00216D Anco Eaglin - By product annual cost

# Fish Rendering Systems

ANCO-EAGLIN, INC. Greensboro, North Carolina

# Rendering System
The most effective and low cost rendering system is the ANCO batch system that utilizes a model 600 series cooker. Material is crushed, dried, and pressed.Depending on the fish species, crushing or pressing may not be required thereby simplifying the process even more.

For higher production, species specific, or optimum meal quality a customer may consider the ANCO Continuous Drying System. This mechanical dewatering rendering system incorporates the model 1600 series cooker, thus allowing a

m ajor portion of the water to be separated by mechanical energy rather than thermal energy. To achieve the correct consistency to press raw fish, the product must be ground and preheated to precise conditions. The press water, which holds the largest percentage of fat, is pumped through a three-phase separator, which divides fat, solid and water parts. Depending on the water volume and the suspended solids, the centrifuge water phase may be further concentrated, thus the fat phase may require additional solid separation. Consult with an A-E engineer for the best options. 

# ANCO-EAGLIN, Inc. is a leading manufacturer of industrial processing equipment for rendering food, chemical, and associated industries. ANCO has provided equipment and
service in these related industries since 1902. Current technological expertise and 100 years of proven reliability have made ANCO the industry’s number one source for batch and continuous processing equipment.

As one of the most reliable and dependable names in the industry, ANCO was acquired in 1993 and ANCO-EAGLIN was established. At our new facility in Greensboro, North Carolina, new equipment and innovative processes have
been introduced to numerous clients worldwide. Emphasis is placed on “know how” and “customer service” to a growing domestic and international
customer base. To learn more about ANCO-EAGLIN please visit our web site www.ancoeaglin.com.

### Anco Batch Rendering System

Crushing
A-E1045 Crushing
A-E 1045

Preheating

A-E 1212

Continuous Drying
A-E 600

Defatting
A-E 3100

Meal Fat Meal Fat 

### Anco Continuous Rendering System

3 Phase Centrifuge Continuous Drying
A-E 1600 Pressing
A-E 3100



### Fat Solids Solids

H 2 0

W ater EvaporatorDesigned in a variety of sizes for large or small rendering capacity. Originally developed for the red meat industry, the 1045 Crusher can be specified for coarse grinding of whole fish or fine grinding as required for “Low Temp” rendering systems. The cutting action of the Crusher is enhanced harden tool steel for extended product life.

This unit provides heating of raw fish meal prior to pressing. Heat is provided by

a combination of indirect and direct steam heat sources. The main vessel is built and jacketed to ASME code allowing a high degree of flexibility.

A PLC control loop allows the product rate and heating temperature to vary for specific industry applications. 

# 1045 CRUSHER 1045 CRUSHER

1212 FISH COOKER CONTINUOUS 

# 1212 FISH COOKER CONTINUOUS

CONTINUOUS 

# 3100 SCREW PRESS 

# 3100 SCREW PRESS



# 600-12 & 1600 DRYER 

# 600-12 & 1600 The 3100 Screw Press is a major development for fish rendering systems. The screw design allows a firm and precise pressure to be applied to the preheated fishmeal. The heavy-duty flights are controlled by a VFD drive that allows an exact pressure to be applied to the protein meal for a more efficient means of removing moisture and fat.

ANCO offers a large selection of drying equipment from the 600-12 Batch to the 1600 Continuous Dryer. Both the 600-12 and the 1600 are steam-heated vessels built to ASME specifications. Rugged construction is a necessity for these drying applications. Designed and cast for durability of the paddles, door assemblies and bearing housings. 

## CONTINUOUS

# AUTOMA AUTOMA TION & TION & ELECTRICAL CONTROL ELECTRICAL CONTROL At our new manufacturing facility in Greensboro, North Carolina, we stock over a half million dollars of replacement parts for related ANCO® equipment. ANCO-EAGLIN is committed to providing
our customers with the highest quality of equipment
and services. Original ANCO stock parts are essential in maintaining peak performance operations. 

# TRANSFER PUMP TRANSFER PUMP

The 1208 Pump provides a great deal of flexibility in transferring product to the rendering operation and within the plant. The 1208 is a closed transfer system, thus alleviating the use
of numerous conveyors that can leak and require maintenance. The closed vessel design vastly reduces odors while providing greater flexibility for plant design. As with all ANCO equipment the 1208 pumps are ruggedly built and can be incorporated with full
automation. 

# ODOR CONTROL ODOR CONTROL

T

oday’s fish rendering plants are not complete without addressing the needs of odor
control. ANCO-EAGLIN offers a series of
V enturi Odor Control Systems. Designed for specific industry applications, the 1320
Packed Bed Scrubber and the 1015
Afterburner utilize direct contact water for a more affordable process. For large air
volumes the 1320 Packed Bed Scrubber offers the best odor removal capacity
available. The 1015 Afterburner is specific for low air volumes and high organic compounds.



### ANCO-EAGLIN offers a full range of products incorporating innovative ideas and common sense solutions; ANCO-EAGLIN can provide the “Know How” for your particular needs. We would appreciate the opportunity to share our experience and product technology in the following areas: 

###  T allow Press Expellers 

###  Screening 

###  Continuous Hydrolyzers 

###  Coagulating 

###  Pressure Coded Vessels 

###  Grinding/ Milling Equipment 

###  Condensing Systems 

###  W aste Heat Recovery 

# SP SP ARE P ARE P AR AR TS TS

The major benefit in having ANCO-EAGLIN develop your automation and electrical control is single source responsibility. By developing the best controls, you are provided with a higher degree of product quality while minimizing system downtime. Controls can be simple, analog, or state of the art PLC with touch screen technology.

# ANCO-EAGLIN, INC.

120 NORTH CHIMNEY ROCK ROAD, GREENSBORO, NORTH CAROLINA 27409 PH. 336.855.7800 • FAX 336.855.7831



### WWW .ANCOEAGLIN.COM email: ancoeaglin@aol.comAPPROVED BY:

DWG. NUMBER DRAWN BY: SRH

DATE: 05-05-10 SCALE: 1:100 FIRST FLOOR LEVEL SALMON CO. LTD. SEATTLE WASHINGTON

REV. D-09-1102-1000 EQUIPMENT LAYOUT MEAL GRINDING SYSTEM

RM-100

SC-101

RM-102

RM-103 SC-105 CO-200 SC-104 TK-107

NX-400 GR-106 PM-108

PX-406 SC-401 SC-204 SC-207 SC-209 MH-300

SC-300 SC-301 HM-303

SC-304 BM-500

SC-208

TK-403.1 TK-403.2 TK-403.3 TK-404

HX-405

MD-108

PM-110 DM-109

SC-205

PM-407 PM-408

PM-409 PM-410

PM-411 SC-206 DR-203

CK-201 SR-600 TK-406

VS-305

ER-203 SB-203

TOLERANCES UNLESS OTHERWISE SPECIFIED: ANGULAR: ± 1° DECIMAL: ± .005" FRACTIONAL: ± 1/32" ANCO-EAGLIN INC.

120 N. CHIMNEY ROCK RD. GREENSBORO, NC 27409 ®REVISIONS NO. DATE DESCRIPTION APP. BY REV. BY NOTES THIS DRAWING IS THE PROPERTY OF ANCO-EAGLIN, INC. UTILIZING, COPYING, OR HANDING IT OVER TO A THIRD PERSON IS NOT ALLOWED WITHOUT THEEXPRESS CONSENT OF ANCOEAGLIN, INC.

DO NOT SCALE THIS DRAWING

USE DIMENSIONS ONLY A B C D

A B C D 1

7 2

3

4

5

6 1

7 2

3

4

5

6 E

E G

G F

F90'-3 1/16" 119'-9 3/8"26'-4"73'-9 1/16"100'-1 1/16"

25'-10"9'-10"

111'-3 3/4"

137'-1 3/4" 17'-4 3/8" OPEN TO BELOWWASHROOMSTORAGE

FINISHED PRODUCT

AREA

SHIPPING &
STORAGE

TUB WASH AREA

HOT PROCESSING
AREA INCOMING RAW MATERIAL TUB WASH

AREA

TUB STORAGE (FISH PARTS VA) 2 ROWS X 2 LAYERS CONTROL ROOM SHIPPING OFFICE/ LUNCH ROOM LOCKER / DRESSING

ROOM

SANITATION MAINTENANCE

SHOP

EXTERIOR HOSE CONN. FOR FISH OIL TANKER

DRY FINISHED PRODUCT BAG STORAGE 2 ROWS X 3 LAYERS HIGH ON RACKS

ELECTRICAL ROOM

OFF OFF OFF
LOCK OFF
LOCKSEE VENT DETAIL AREA TO BE FREE AND CLEAR OF ALL OBSTRUCTIONS TO ALLOW FOR TUBE PULLS

### ANCO Rendering Plant PROPOSAL 

### Prepared for: Seattle Salmon ERG Prepared by: Rick Eaglin
Date: 13 February 2011 Proposal #: 11

‐ 0217

### A tradition since 1902 13 February 2011 • Proposal No. 11-0217• Page 2 of 7

1420 Lorraine Ave, High Point NC 27263 • (336)855- 7800 • Fax (336)855-7831 • Email: ancoeaglin@aol.com 

### Eastern Research Group, Inc. ERG (HEREINAFTER CALLED BUYER) ATTENTION: Ms. Betsy Bicknell email:Betsy.Bicknell@erg.com

ANCO-EAGLIN, Inc. 

### (HEREINAFTER CALLED SELLER) PROP OSES TO FURNISH TO BUYER THE EQUIPMENT AND SERVICES DESCRIBED BELO W AND IN ANY ATTACHED SPECIFICATIONS SUBJECT TO THE TERMS AND CONDITIONS SET FORTH BELOW, AND IN ATTACHMENTS HERETO. GENERAL DESCRIPTION:

ANCO® Low “temp” rendering system for salmon by-product. System is designed to process 1.25 Tons per hour of raw salmon parts or 25 tons per 20 period. AE scope of supply will start at a receiving bin and finished at a bagging scale. Refer to dwg. 11-0217-0000 for details. Yields are estimated below.

1. Itemized equipment list Exhibit A “EXCEL” --- a pproximate total shipping weights 7 truck loads at a nominal 40,000 pound per load and the one AE -260 Drier at 120,000 pounds. 2. Equipment prices (CIF Seattle, WA) Budget $3,900,000 USD 3. Installation requirements (lab or) 3-4 months installation time 4. General equipment layouts for determining building sizes (see dwg 11-0217-0000) 5. Estimated maintenance requirements over the life of the equipment 6. Steam consumption per Ton of raw material

 Cooker 180 kilograms per ton

 Evaporator 223 kilograms per ton

 Drier 271 kilograms per ton

 Heat loss 14 kilograms per ton Total Kilograms per Ton -688

7. Power consumption- see Exhibit A 8. Estimated fishmeal and fish oil yield for 25 tons per day Finished Meal 5,060 kilos Finished Oil 2,840 kilos

A-E Scope: Skidded system with feed hopper, mincer separation equipment and AE 90 dryer. A-E scope includes one Ventruri scrubber, conveyors as required till the discharge of AE90 dryer, pumps related to the process, sensors and other valves required to make the system functional.

Client Scope: • Unloading and setting of equipment

• Utilities to boiler and Control Panel
• Wiring to Control Panel

• Lubricants, boiler chemical and other sanitation supplies
• Customer to provide feeding method to Mincer, containers for discharge oil, meal solids and

wastewater

### A tradition since 1902 13 February 2011 • Proposal No. 11-0217• Page 3 of 7

1420 Lorraine Ave, High Point NC 27263 • (336)855- 7800 • Fax (336)855-7831 • Email: ancoeaglin@aol.com • Boiler utility supply and design
• CIP Source and related equipment for cleaning.

• Waste Water Treatment

Detailed brochures can be downlo aded at www.ancoeaglin.com


### DRAWINGS, INSTRUCTIONS AND FIELD SERVICE: SELLER WILL FURNISH EQUIPMENT DRAWINGS AND OPERATION AND MAINTENANC E INSTRUCTIONS IN DUPLICATE. IF REQUESTED BY BUYER, SELLER WILL PROVIDE FIELD SERVICE IN CONNECTION WITH INSTALLATION AND/OR START UP OF THE EQ UIPMENT IN ACCORDANCE WITH SELLER’S TERMS AND CONDITIONS AND THEN CURRENT CHARGE FOR FIELD SERVICE. SHIPMENT: THE EQUIPMENT DESCRIBED HERE IN WILL BE SHIPPED WITHIN AND ESTIMATED 20-21 WEEKS AFTER RECEIPT OF BUYER’S PURCHASE ORDER, DOWNPAYMENT, SIGNED ACCEPTANCE OF THIS PROPOSAL, APPROVAL OF ANY DRAWINGS AS MAY BE REQUESTED BY EITHER SELLER OR BUYER, AND RECEIPT BY SELLER OF ANY INFORMATION REQUIRED FROM BUYER FO R FABRICATION OF THE EQUIPMENT. PRICE AND PAYMENT TERMS: PRICE FOR THE EQUIP MENT AND ANY SERVICES PROPOSED HEREIN BY SELLER IS:

Equipment, installation and st art-up ................................................... $3,900,000.00

40% down payment with order 30% with fi nal approval drawing 20% with shipping notification/inspection. Balance with 60 days of shipping.



### THE ANNEXED TERMS AND CONDITIONS OF SALE SHALL APPLY TO ALL QUOTATIONS, ORDERS, AND CONTRACTS OF ANCO-EAGLIN, INC. UNLESS OTHERWISE STATED ABOVE; PRICES ARE F.O.B. FACTORY, SUBJECT TO APPROVAL OF SELLERS CREDIT DEPARTMENT. THE PRICE IS INCLUSIVE OF ALL ITEMS OF EQUIPMENT AND SERVICES DESCRIBED HEREIN EXCEPT THOSE PRICED SEPARATELY. IF TE RMS OF PAYMENT ARE NOT SPECIFIED ABOVE, TERMS ARE NET 15 DAYS AFTER SHIPMENT. FREIGHT COST OR CO NTAINER QUANTITIES ARE ESTIMATES AND ARE SUBJECT TO CHANGE WITHOUT NOTICE. FOR ALL LETTER OF CREDIT PAYMENTS, A DD AN ADDITIONAL $800 PROCESSING FEE. DELAYED SHIPMENTS PER CUSTOMER REQUEST WILL BE CHARGE AT $250 PER WEEK PER CONTAINER. NOTE PROVISIONS HEREIN DISCLAIMING ALL EXCEPT EXPRESS WARRANTIES AND LIMITING SELLER’S LIABIL ITY FOR BREACH OF WARRANTY. THIS PROPOSAL IS SUBJECT TO CHANGE OR WITHDRAWAL WITHOUT NOTICE AT ANY TIME PRIOR TO THE RECEIPT OF ACCEPTANCE BY SELLER AT ITS HOME OFFICE, AND SHALL TERMINATE UNLESS ACCEPTANCE IS RECE IVED WITHIN 30 DAYS FROM DATE. ACCEPTED BY:_______________________________________________ PROPOSED BY : ANCO-EAGLIN, INC.
COMPANY

________________________________________ _______________ BY:________________________________
NAME DATE Rick Eaglin, President

### A tradition since 1902 13 February 2011 • Proposal No. 11-0217• Page 4 of 7

1420 Lorraine Ave, High Point NC 27263 • (336)855- 7800 • Fax (336)855-7831 • Email: ancoeaglin@aol.com 

### ***HP requirements subject to change.

EXHIBIT B, PROJECT SERVICES & SCOPE OF SUPPLY

ANCO-EAGLIN WILL SUPPLY THE FOLLOWING SERVICES:

A.) Design and drafting related to the attached drawing list. B.) Project management for the equipment design and layout. C.) Equipment procurement. D.) Two (2) sets of operation and maintenance manuals. E.) Electrical equipment specifications fo r equipment supplied by ANCO. F.) General drawing package to include one or more of the following drawings:

 Electrical Layout, Power Wiring, Control Panel and Control Wiring.

 Elevations, Roof and Wall Openings.

 Process Flow Analysis for ANCO supplied equipment only.

 Sections & Details as required.

 Foundation layouts; suggested placement of ANCO supplied equipment.

ANCO-EAGLIN INC.’s PRICE DOES NOT IN CLUDE UNLESS STATED IN THE PROPOSAL: A.) Start up services for supplied equipment unless specified in the proposal. B.) Turnkey operation services. C.) General building construction, m odification and remodeling of any kind. D.) Building and/or equipment demolition and removal. E.) Any work outside the general boundaries of the plant. F.) Spare parts not specified in the proposal. G.) Required Letter of Credit that is not specified in the proposal. H.) Temporary facilities: office, lavatory, telephone expenses, etc. I.) Any plumbing, process piping, fluid control devices, instrument indicators, etc., unless specified in the initial proposal. J.) Sewer system and related plant cleaning piping. K.) HVAC (Heating, Ventilating and Air Conditioning). L.) Material and construction of rendering equipm ent foundations: anchor bolts, embedded steel and equipment support pads, fasteners & we lding supplies. Steel support stru ctures for elevating equipment or operator access unless specified in the scope of supply. The design of st eel supporting structures. Transition chutes necessary for joining material handling components. M.) Utilities: tap water, pneumatics , hydraulics, lighting, electrical powe r, electrical wiring, steam, cooling water, etc. related to construction and/or plant operat ion not specified in detailed plant layout proposal. N.) Performance and material payment bond if required. O.) Wastewater treatment and any related systems and facilities. P.) Clean up services. Q.) Lubricants, Chemicals, Hydraulic coils, gases and other miscellaneous material required for plant operation. R.) State, Country and local sales taxes. Permits and fees required by customer. S.) Freight delivery services unless specified in the proposal. T.) Importing and Exporting duties. U.) Builders Risk Insurance. Cost associated with air quality permits.

### A tradition since 1902 13 February 2011 • Proposal No. 11-0217• Page 5 of 7

1420 Lorraine Ave, High Point NC 27263 • (336)855- 7800 • Fax (336)855-7831 • Email: ancoeaglin@aol.com V.) Extra costs caused by events that cannot reasonably be anticipated or controlled: strikes, weather, fire, holiday, accidents, acts of God, etc.

TERMS AND CONDITIONS

These terms and conditions apply to all quotations, or ders, and contracts for ANCO-EAGLIN, Inc. Products. As used in these Terms and Conditions of Sale, the word, “Equipment” includes all hardware, components, software and options. DEFINITIONS: (a) A-E ANCO-EAGLIN; (b) User—The company named on this invoice (the original purchaser), (c) Equipment—The items contained in the “Description” portion of this invoice. SALE AND DELIVERY: Unless indicated otherwise on this invoice, the sale and delivery terms are F.O.B. Greensboro, North Carolina or EX Works. User to pa y all freight and insurance charges from F.O.B.or EXW point. All payments shall be made wi thout deduction, deferment set-off, lien, or counterclaim of any nature. All amounts due not paid within 30 days after the date such amounts are due and payable shall bear interest at the lesser of 1.5 percent per month or the maximum rate of interest allowed by law. A-E reserves the right at any time to suspend credit or to change credit terms pr ovided herein, when, in our sole opinion, your financial condition so warrants. Failure to pay invoices when su ch invoices are due and paya ble at our election shall make all subsequent invoices immediately due and paya ble irrespective of terms and A-E may withhold all subsequent deliveries until the full account is settled . A-E shall not in such event be liable for delay of performance or nonperformance of contract in whole or in part subsequent to such event. Payment terms are as listed on proposal, quote, or invoice. All sales are subject to the payment terms listed on accepted proposal contract. Received payments of deposit invoices deno tes acceptance of payment terms listed on invoice which supersedes and rejects all prior agreements, representati ons, discussions or negoti ations, whether written or oral, with respect hereto and any conf licting terms and conditions of User , or any statement therein, whether or not signed by User. A-E will furnish only the quantitie s and Equipment specifically listed on the face hereof or the pages attached hereto. CANCELLATIONS AND CHANGES: Orders which have been accepted by A-E are not subject to cancellation or changes in specification except upon prior written agreement by A-E and upon terms that will indemnify A-E against all losses resulting from or arising out of such cancellation or change in specifications. In the absence of such indemnification we shall be enti tled to recover all damages and costs of whatever nature permitted by the Uniform Commercial Code. TAXES: Any taxes which A-E may be required to pay or co llect under existing or future law upon or with respect to the sale, purchase, delivery, transportation, storage, processing, use or consumption of any of the products or services covered hereby, including all taxes upon or measured by receipts from sales or services, but excluding taxes based on income, shall be for the a ccount of user, and user shall promptly pay the amount thereof to A-E upon demand now or at any time in th e future or you shall provide A-E with a tax exemption certificate acceptable to the appropriate taxing authorities. WARRANTY: A-E warrants equipment of its own manufacture to be free from defects in materials and workmanship for a period of six (6) months from shipment. THIS WARRANTY EXTENDS ONLY TO USER, AND IN NO EVENT SHALL A-E BE LIABLE FOR PR OPERTY DAMAGE SUSTAINED BY A PERSON DESIGNATED BY THE LAW OF ANY JURISDICTI ON AS A THIRD PARTY BENEFICIARY OF THIS WARRANTY OR ANY OTHER WARRANTY HELD TO SU RVIVE A-E’S DISCLAIMER. Replacement parts provided under the terms of this warranty are warranted for the remainder of the warranty period applicable to the equipment, as if such parts were original componen ts of the equipment. With respect to materials, parts and accessories manufactured by others, A-E will unde rtake to obtain for User the full benefits of the manufacturer’s warranties. BUT IN NO EVEN T SHALL USER OR ANY OTHER PERSON HAVE ANY REMEDY AGAINST A-E FOR BREACH OF A MANUFACTURER ’S WARRANTY. A defect in a part shall not

### A tradition since 1902 13 February 2011 • Proposal No. 11-0217• Page 6 of 7

1420 Lorraine Ave, High Point NC 27263 • (336)855- 7800 • Fax (336)855-7831 • Email: ancoeaglin@aol.com condemn all the equipment. THE WARRANTY DESC RIBED IN THIS PARAGRAPH SHALL BE IN LIEU OF ALL OTHER MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. WARRANTY SET FORTH ABOVE IS INAPPLICABLE TO FAILURE BY USER TO FOLLOW ALL INSTALLATION AND OPERATION IINSTRUCTIONS OR MANUALS OR TO PROVIDE NORMAL MAINTENANCE. LIMITATION OF LIABILITY: IN NO EVENT SHALL A-E BE LIABLE FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, OR INDIRECT DAMAGES NOR SHALL A-E BE LIABLE FOR ANY LOSS OF PROFIT, LOSS BY REASON OF PLANT SHUTDOWN, NON-OPERATION OR INCREASED EXPENSE OF OPERATION, LOSS OF PRODUCT OR MATERIALS, WITH RESPECT TO THIS SALE OR ANYTHING DONE IN CONNECTION THEREWITH, WHETHER BASED UPON CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE. THE EQUIPMENT DESCRIBED IN THESE TERMS AND CONDITIONS OF SALE MAY CAUS E INJURY IF NOT OPERATED PROPERLY AND FOR THIS REASON ALL OERATORS SHOULD BECOME THOROUGHLY FAMILIAR WITH THE OPERATING INSTRUCTIONS BEFORE OPERATING THE EQUIPMENT. SHIPMENT: Shipment dates are not guaranteed. A-E shall not be liable for delayed delivery or non-delivery for any reason. Where shipment is deferred at User ’s request for more than 30 days beyond originally scheduled date of shipment, the or der will be subject to invoicing, payment and storage charges from scheduled date of shipment, or in lieu thereof, interest on any unpaid balance at 1-1/2% per month. In no event shall A-E be liable for any damages or penalties whatsoever, or however designated resulting from our failure to perform or delay in performing for any reason. SECURITY INTEREST: User represents that the equipment is to be used for business, and shall remain personality. User grants A-E security interest in the equipment to secure the payment of the purchase price. User will not sell, lease, transfer or encumber the eq uipment and will keep it free from any and all liens and security interests until A-E has been pa id in full. Upon default, A-E shall have all the remedies available to it under the Uniform Commercial Code and other applicable laws of the state in which the equipment is located and shall be entitled to all legal costs, reasonable atto rney’s fees, and all other reasonable expenses and costs permitted by law which are incurred by A-E in enforcing its remedies. In addition to its other remedies, A-E may require User to make the Equipment available at a place designated by A-E, which is reasonably convenient to both parties. PATENTS: A-E agrees to indemnify and hold harmless User from any and all costs, expenses and damages resulting from any and all costs, expenses and damages resulting from any claim of infringement of a United States patent by reason of its use of the Equipment (of A-E’s own designs and in the condition supplied and manner contemplated by A-E) or from any suit resultin g from any such claim, provided the User promptly notifies A-E of any such claim or the institution of any such suit. User shall offer A-E full and exclusive right of defense in any such suit to the Equipment, or to re move it and refund to User the purchased price thereof less fifteen percent (15%) for each full year from the date of shipment of the Equipment. NOTWITHSTANDING THE FOREGOING, A-E’S CU MULATIVE LIABILITY FOR INDEMNIFICATION UNDER THIS PROVISION SHALL NOT EXCEED THE PURCHASE PRICE OF THE EQUIPMENT. This paragraph shall not apply to (a) any foreign patents, (b) apparatus designs modified by User or at its request, © any process in which the Equipment is used, (d) an y product made by User, or (e) any claims or suits involving solely materials, parts or accessories manufactured by others. OSHA LAWS: The Williams-Steiger Occupational Safety and Health Act of 1970 (OSHA) and like state and local laws, and all regulations issued under such laws, ar e designed to assure a safe place to work and apply primarily to the employer, not the eq uipment manufacturer, A-E will work with User to find technically feasible answers to possible compliance problems. A-E has taken OSHA and similar laws into account in the design of its equipment with the objective that when su ch equipment is placed in an appropriate environment it will enable operator or User to comply with the applicable OSHA and simila r requirements. However,

### A tradition since 1902 13 February 2011 • Proposal No. 11-0217• Page 7 of 7

1420 Lorraine Ave, High Point NC 27263 • (336)855- 7800 • Fax (336)855-7831 • Email: ancoeaglin@aol.com because compliance is significantly affected by many factors over which A-E has little control (such as installation, plant lay-out, building ac oustics, materials processed, proces sing procedures and supervision and training of employees), A-E does not represent or warrant that equipment so ld by it complies with OSHA or any like state or local law or regulation, and the cost of modifications and responsibility for compliance are User’s responsibility.

### Page 1 of 3

Project No.: 0172.08.030.033

Project Name: Alaska Seafood Processing

TELEPHONE CALL RECORD Date: 2-18-2011 Time: 11:00 AM – 12:05 PM

Company Name: ANCO-Eaglin, High Point, HC Contact Name: Rick Eaglin

Phone No.: (336)855-7800

Name: Betsy Bicknell & Mark Briggs, ERG Don Anderson , EPA

GENERAL SUBJECT : ANCO-Eaglin costs for 25 MT /day salmon waste byproducts recovery plant



### TOPICS DISCUSSED AND ACTION TAKEN

ERG and EPA arranged to talk to Rick Eaglin about the estimated costs for a 25 MT/day salmon waste byproducts recovery plant that he provided to Bets y Bicknell on Feb 15, 2011. The pur pose of the call was to ensure we understood the scope of hi s costs, what was included and what was not. We also wanted to discuss how to scale the costs and Rick’s ideas methods for transferring waste to the byproducts plant. (note: in the discussion below, c oded numbers, e.g., DM-109, refer to ta g numbers on the Eaglin spreadsheet and equipment layout drawing.)

- Rick confirmed that the capacity for the costed plant is 25 MT (not U.S. tons)

- Rick noted that this design, layout, and cost esti mate are based on work for an un-named client.

- This design assumes that waste arrives at the plant in totes and that hard waste (heads, frames) is separated from soft wast e (guts and slime).

- Dumped waste is conveyed past a metal detector before it is ground (GR-106).

- Ground waste is then heated before entering the dewatering screen. Solids from the screen are discharged to drying and then to th e meal screen. Liquids (water and oi l) are discharged to a centrifuge for separation. The oil fraction is coll ected and sent to a holding tank.

- After the meal screen, meal is dispensed into 1-to n “super sacks” for shipment. This was the packaging system requested by the client.

- The costed design includes a 20,000 cfm wet packed bed scrubber (SR 600) to control dust and odor. The “hot processing area” on the diagram as well as the meal bagging and grinding area would be vented to the scrubber. A but 1⁄4 of the airflow to the scrubber w ould be from the meal area and 3⁄4 from the hot processing area.

- The costed design includes a steam boiler (SB 203) capable of generating 1900 lb/hr steam. Rick said this was a natural gas-fired boiler, but the costs for di esel-fueled boilers are simila r. (note, most areas in AK don’t have access to natural gas and they would typically use diesel fuel).

- The design does not include a diesel storage tank. We would need to add a diesel storage tank to the design.

- The costs and design don’t include ev aluating the water available to f eed to the boiler, or the boiler feedwater conditioning system and supplies.

- The estimated costs do not include installation. Rick noted that within the contiguous U.S. pipefitter costs can vary from $20/hr in NC to $93/hr in Detroit. (we would need Alaska costs)

### Page 2 of 3

- Installation labor will require riggers , pipefitters, and elec tricians. Rick estimated 2 – 3 trades, for 3-4 months to install the equipment.

- Costs also do not include on site wiring and piping.

- Rick noted that the process generates considerable amount of condensate that must be discharged as wastewater. He estimated 1 lb condensate/lb raw feed .This represents the moisture from the fish waste that is evaporated from the drier (DR-203) and condensed in an air-cooled condenser.

- The condensate may have a BOD 5 

### of up to 1,000 mg/L

- The costed design does not include wastewater treatment 1



### .

- The fresher the waste, the less BOD in the wastew ater. The longer the seafood waste sits around in the wastewater, the more material dissolves in the water.

- The costed design includes a standard PLC control system (ANCO PLC on the cost spreadsheet). The control system requires field wiring.

- The designed plant includes a shell and tube evaporator (i ndirect cooling) for the stickwater separated from the fish waste in the tricanter. The evaporator has no cont act cooling water.

- Labor required to operate the plant could include:

o Boiler engineer (depending on local requirements, this may be one person dedicated to operating the boiler, or one operator licensed to operate the boiler who has other responsibilities, e.g., maintenance)

o Raw materials receiving operator/laborer

o Hot processing operator

o Meal grinding operator

o Maintenance

o QC technician

o Manager

- The overall footprint for the building is approximatel y 90’ x 120’. This assume s a stand-alone operation, not integrated with an existi ng seafood processing plant.

- The maintenance shop would need equipment (tools, etc) that are not included in this cost. Because of the remote locations, the AK facilities will likely need more on-site equipment and supplies than facilities in cities in the contiguous U.S., for example.

- CIP system, means “Clean-in-place.” It is a series of tanks and pumps with dosing and pH control used to run sequences of washwater, cau stic, and rinsewater th rough the food processing equipment. It is possible that the CIP system used for a seafood pro cessing plant could be used for the byproducts plant. However, Rick thinks it is not likel y that the CIP system at the proces sing plant could be extended to the new plant. At any rate, the Eaglin co st does not include the CIP system.

- For byproducts plants integrated with an existing seafood processing plan t, instead of transferring waste in totes and using a tote dump er, the facility could pump the waste or use a conveyor.

o For a 10 to 15 foot straight r un, Rick would suggest a conveyor

o For a run more than 15 feet and/or compli cated geometry, Rick would select a pump

o Rick noted that ANCO has a vane pump (type of positive displacement pump) is used for fish parts

- Rick noted that the most expensive single ite m in the plant is the drier, at about $500,000

- After the drier, the centrifuges are the most expensive individual items

1 40 CFR 408.155, NSPS for Subpart O, fish meal processing, are: Max for any 1 day 30 day avg BOD 5 6.7 kg/MT seafood 3.8 TSS 3.7 1.5 O&G 1.4 0.76 (note these are kg/MT seafood, not MT waste)

### Page 3 of 3

- Rick suggested the following “rules of thumb” for scal ing these costs:

o To scale up for plants up to two times the costed plant (i.e., for up to 50 MT/day for this plant)

 C 1 

### = cost one; C 2 

### = cost two

 S 1 

### = size one; S 2 

### = size two

 C 2 

### = 0.75*(S 2 

### /S 1 

### )*C 1



### o To scale down, would not expect costs to be linear. Ri ck recalled scaling a 20 tpd plant to 10 tpd, and the savings was less than $250,000

- Rick noted that equipment is available for a 15 MT/day plant but not smaller.

- Rick noted that the costed plant could run at 24 hr/day for 7 days/week during peak processing times

- The plant could also be operated for a few hours per day during low processing times

- Rick noted that there is no right pump for every a pplication. Pump selection depends on what is to be pumped (e.g., whole fish/heads/ parts) over what distance

- Once fish is ground, use “load” pumps, or pr ogressive cavity, depends on the material.

- Pumps appropriate for transferring fish waste raw material for this plant would likely cost $27,000 to $28,000.

- Rick explained his calculation of KW from the equipment rated HP was KW = HP * 0.7457*0.61

o 0.7457 converts HP to KW

o 0.61 is an “efficiency” factor

o Allows estimation of electricity cost per hour of operation (with known $/KWh)

- Rick noted he is working on another seafood byproduct pr oject. When that project is completed, in 4-5 months, he will be able to shar e the design data with the public.

- Rick noted that he is working on a meal plant in Louisiana

- Rick described an application used by tilapia pr oducers in Honduras. The fi sh meal produced from tilapia processing waste is used for pou ltry feed and sells for about $500/ton.From: Rick Eaglin <r ick@ancoeaglin.com> To: Betsy Bicknell <Betsy.Bicknell@erg.com> Date: 2/2/2011 2:55 PM Subject: Re: quotes for very small salmon oil and meal plants; fish waste pump sizing

Betsy,

This is to confirm receipt of your email.

Rick Eaglin rick@ancoeaglin.com > Phone / 336-855-7800 > Fax / 336-855-7831

ANCO-EAGLIN, Inc. 1420 Lorraine Ave. High Point, NC 27263 www.ancoeaglin.com

On Feb 2, 2011, at 11:27 AM, Betsy Bicknell wrote:

> Rick:

> > I very much appreciate talking with you about costs for very small fish meal/fish oil plants for southeast Alaska. I'm lookin g for a quote in the next week or so.

> > As I mentioned during our call, I work for ERG, a contractor to U.S. Environmental Protection Agency (EPA). EPA is considerin g updates to the seafood waste disposal requirements in certain areas of Alaska. You can learn more about EPA's effort at

> > http://water.epa.gov/scitech/was tetech/guide/seafood_index.cfm

> > Among other things, ERG is supporting this EPA effort by estima ting the costs for alternative waste management strategies, in cluding by-products recovery. I'm developing cost estimates for the same management strategies that EPA investigated 30 years ago. The contractor summary for the by-product plant estimates is included in the att ached pdf (from Reassessment of Effluent Limitations Guideline s and New Source Performance Standards for the Canned and Preserved Seafood Processing Point Source Category; by E.C. Jordan, Inc., Portl and, Maine; December 1979). I'm looking for the same info rmation listed on the top of page 168:

> > 1. Itemized equipment list and approximate total shipping weights > 2. Equipment prices (CIF Seattle, WA) > 3. Installation requirements (labor) > 4. General equipment layouts for determining building sizes > 5. Estimated maintenance requirements over the life of the equipment > 6. steam consumption > 7. power consumption > 8. estimated fish meal and fish oil yield

> > I'd also appreciate an estimate of the minimum amount of waste that could be run through the plant in a day.

> > The quote should be for a complete "package plant" The equipmen t should include odor control. From ANCO-Eaglin product litera ture I assume the equipment will include > cooker > press > drier > oil recovery > evaporator > odor control > instrumentation

> > My concept was to size the plant based on average tons/12 hour day to have capacity for peaking. I recognize that this may be more costly than storing raw material for a short time to equalize material flow . If you size the plants based on average tons/ 24 hour day we w ould need to add costs for bins/hoppers for raw material storage, to equalize raw material flow into the plant.

> > The following assumptions apply: > raw material to be processed: salmon waste (from traditi onal canning, skinless/boneless canning, and fresh/frozen fillets and whole fish) > plant locations: southeast Alaska, Prince William Sound, and Kenai Peninsula> duration of operation: 90 days/year

> > amount of raw material (waste) to process: average tons/day for the peak month range from 15 to 90 U.S. tons/day (e.g., 16, 19, 26, 27, 44, 60, 69, 87 U.S. tpd) > peak day can be 1.7 to 2 times the amount of the average day.

> > The lower ranges assume that each plant has its own by-produc ts plant. The higher range assumes that one plant will be built in each processing center, and waste will be trucked to the combined plant (similar to the arrangement in Kodiak).

> > PUMPS > As I mentioned, I also need to estima te the cost for a screening and off-shore disposal waste management alternative.

> > For this alternative the processing plants would: > - Screen wastewater stream (0.5 to 0.77 mm wedgewire screen) > - Haul retained solids off-shore (fishing skow or tender) > - Monitor screened wastewater for TSS and O&G > - Discharge screened wastewater through existing outfall

> > I assume wastewater will be pumped to rotary a screen from the existing sump using new pumps. For my estimate I'm planning to > - Include costs for 3 pumps > Assume 1 pump will operate for average daily flow > Assume 2 pumps will operate for peak flow > Third pump for back up > Cost positive displacement pumps, e.g., ANCO lamella pump > Assume 30 ft head > Determine maximum wastewat er flow and pounds of solids; size pumps at 1⁄2 max so 2 pumps can handle max; > Estimate required pump horsepower > Estimate operating hours per year to estimate electric power use

> > I have limited and conflicting informati on about the water used by the salmon proce ssing plants (some are canneries and some are small "fresh & frozen" operations. EPA published production normalized flows in 1979

> > hand butchered salmon: ranged from 427 to 2,750 gal/ton of raw produc t, mean 1,250 gal/ton > mechanized salmon (I think this means canneries) 1,700 to 4,900 gal/ton of raw product, mean 3,970 gal/ton

> > EPA's 2010 questionnaire asked for flow rates, but many res pondents did not answer the ques tions. The reported flows don't se en to relate to the plant production. The reported wastewat er flows ranged from 18,000 to 350,000 gal/day (EPA did not ask for the maximum was tewater flow rate).

> > I'd appreciate your thoughts on how to estimate the size of pump required to transfer the wate r/waste to the wedgewire screen . I'm also looking for costs for the pumps and for pumps to transfer the dewatered waste to the disposal vessel.

> > Rick, I look forward to hearing more from you. I know this is a lot of information and I appreciate your help.

> > Betsy

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> > If you'd like to talk some more before you pull the costs together, please feel fr ee to email me (betsy.bicknell@erg.com) or call at (703) 633-1612.

> > Betsy

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> > Betsy Bicknell > Senior Environmental Engineer > Eastern Research Group, Inc. > (703) 633-1612 > betsy.bicknell@erg.com > <1979 cost bkg_1.pdf>From: Rick Eaglin <r ick@ancoeaglin.com> To: Betsy Bicknell <Betsy.Bicknell@erg.com> Date: 2/28/2011 12:51 PM Subject: Re: questions related to salmon byproducts plant costs

Those were values that Scientific gave us.

I suggest you use your values.

Rick Eaglin rick@ancoeaglin.com > Phone / 336-855-7800 > Fax / 336-855-7831

ANCO-EAGLIN, Inc. 1420 Lorraine Ave. High Point, NC 27263 www.ancoeaglin.com

On Feb 28, 2011, at 11:43 AM, Betsy Bicknell wrote:

> Rick:

> > Thanks again for the detailed costs for the salmon byproducts pl ant and the time that you spent on the phone with me, Don And erson, and Mark Briggs on February 18. The notes I wrote up from our talk are a ttached to this message. If you have time, I'd appreciate your c larifications or corrections to these notes.

> > I have a couple of questions that I hope you can help with.

> > Product yield: > you estimated that the yield of fish oil and fish meal would be:

> > meal 5,060 kg/25,000 kg (which is 20.24%) > oil 2,840 kg/25,000 kg (which is 11.36%)

> > The meal yield is consistent with published values I've seen but the oil yield seems quite high. I've seen values more like 2 % of total salmon waste (the yield is higher if it is calcula ted just on heads or other high-oil waste).

> > Clean-in-place system: > we will estimate costs for a stand-alone CIP system for the by products plant. Can you suggest vendors of such systems that we could contact for prices?

> > Thanks again, > Betsy

>

>

>

> > Betsy Bicknell > Senior Environmental Engineer > Eastern Research Group, Inc. > (703) 633-1612 > betsy.bicknell@erg.com > <Rick Eaglin byproducts plant costs 02_18_2011.docx>From: Rick Eaglin <r ick@ancoeaglin.com> To: Betsy Bicknell <Betsy.Bicknell@erg.com> CC: Brian Eaglin <brian@ancoeaglin.com> Date: 2/15/2011 6:48 PM Subject: BUDGET PRICING Attachments: Fish english brochure.pdf; 11-0217Sea ttle Salmon.docx; Part.003; pastedGra phic.tiff; Part.005; 11-0217 Equipment sheet.xls; 11-0217-0000 Salmon.pdf

Ms. Bickell,

The proposed plant is designed for 25 tons per 20 hour day. I have presented the numb ers in manner that should allow you to ad just for a 24 hour day.

Hope this helps. Really appreciate you looking at a USA company!

Rick Eaglin rick@ancoeaglin.com > Phone / 336-855-7800 > Fax / 336-855-7831

ANCO-EAGLIN, Inc. 1420 Lorraine Ave. High Point, NC 27263 www.ancoeaglin.comFrom: Rick Eaglin <r ick@ancoeaglin.com> To: <Anderson.Donaldf@epamail.epa.gov> CC: Betsy Bicknell <betsy.bicknell@er g.com>, <Mark.Briggs@erg.com> Date: 2/28/2011 1:03 PM Subject: Re: questions related to salmon byproducts plant costs Attachments: pastedGraphic.tiff; Part.002

Three persons minimum.

There pay scale will depend on the local manpower. If I had to guess for a $$/ hr ..... $14.00

FYI in South America th at would be per day.

Rick Eaglin rick@ancoeaglin.com > Phone / 336-855-7800 > Fax / 336-855-7831

ANCO-EAGLIN, Inc. 1420 Lorraine Ave. High Point, NC 27263 www.ancoeaglin.com

### Page 1 of 7

February 2 4 , 2011

Betsy Bicknell Senior Environmental Engineer Eastern Research Group, Inc.

Donald F. Anderson Senior Environmental Engineer

, E

. P

. A

. 1200 Pennsylvania Avenue, NW Washington, DC 20460 

# Budgetary E s t i m a t e

- f o r e s t i m a t i n g p u r p o s e s o n l y Type

- Alfa Oil module

- peak production 180 MT fish bi

- product / 24 hrs

Dear Betsy

/ D o n a l d

,

Please see the below BUDGETARY pricing and equipment breakdown

. The p r o p o s e d plant is desi gned to process app roximately 7 .5 metric tons of raw material feed per hour

, with the goal of producing salmon oil and de

- wat ered solid material suitable f o r send i n g to a drying step for fishmeal/etc p r o d u c t i o n

.

The plant has been priced with all listed item s including shredder , Contherm scraped surface & indirect steam heater, 3

- phase decanter, high speed oil purifier (optional) , oil dryer and cooler

, as well as necessary tanks, pumps, automation, engineering, and on

- site start up and commissioning. Solids dryer for fishmeal production is NOT included in price scope. If you like Alfa Laval can provide you with contac ts to provide budget price quoting for this portion of the process.

The quotation includes:

 General Scope

 Price Summary

 Terms and Conditions of Sale

P l e a s e n o t e t h i s quot ation is intended solely for y o u r review and the content is considered confidential unle ss explicitly stated otherwise

. Please don’t hesitate to con tact either myself, Jeff Logan if you have any further questions or need any additional information.

R egards,

Ian Clarke Alfa Laval Inc. Regional Sales Manager ian.clarke@alfalaval.com , ph: 415 297

- 7800

### Page 2 of 7

General Scope

Alfa O il Re covery plant

– Contherm Based Fish Oil recovery from salmon bi

- products

. Includes: Item Description

00

. Shredder 01. Feed pump with mince hopper 02

. Six

- Contherm scrape surface indirect steam heater s 03

. Intermediate tank and pump 04

. NX 438 B

- 11 G

- three phase decanter 05

. Raw oil tank with pump 06

. AFPX 810XGV

- 14 purifier (optional adder for oil polishing) 07

. Sludge and water pump 08

. Finished Oil tank 09. System Automation 10

. Oil Dryer

Engineering Commissioning /

Training

Price Summary

Option 1

- EXCLUDING item 06

. - AFPX 810 high speed oil purifier

Option 2

- INCLUDING item 06

. - AFPX 810 high speed oil purifier

 All parts in contact with the product including bowl shell, hubs and casing are of stainless steel.

 Start up/commissioning provide d as described in plant specification (specification to be provided upon firm proposal). All additional field service support , commissioning and start up assistance at Alfa Laval published rates

PAYMENT CONDITIONS 50% with purchase order 5 0% at shipment from factory Net 30 days Description QTY Unit Price Ext Price Alfa Oil Recovery Plant 7.5 MT raw material/hr 1 1,4 15,000 $ 1,4 15 ,000

Description QTY Unit Price Ext Price Alfa Oil Recovery Plant 7.5 MT raw m a t e r ia l / hr 1 1,5 95,000 $ 1,5 95 ,000

### Page 3 of 7

DELIVERY TIME FCA

. The equipment can be ready for dispatch, FCA , normally within 2 6

- 3 2 weeks after confirmation of order and payment. Exact delivery depends on items ordered and factory production schedule at time of order receipt and will be advised after order has been confimed.

PRICE VALIDITY Pricing is budgetary and for estimating purposes only . Prices are quoted in USD$.

GENERAL CONDITIONS Insofar as they are not contradictory to the provisions of this quotation, the annexed "Alfa Laval Terms and Conditions of Sale Rev 032204", shall apply.

RESERVATION This quotation is valid for 30 days from the date of quotation. Orders are not binding to us before we have confirmed them. Rated throughput and consumption figures indicated above are not in any way or form to be regarded as guarantees but as indicative figures only for initial plannin g purposes.

TERMINATION CLAUSE

- TERMINATION FOR CONVENIENCE A. Buyer shall have the right to terminate for its convenience the further performance of all or any separable part of this Purchase Order at any time by providing written notice to Seller, which notice shall be effective on the date received by Seller. On the date of termination Seller shall 1) discontinue all work pertaining to this Purchase Order or the part thereof referred to in Buyer’s notice; 2) take reasonable steps to assure no addi tional orders for materials or parts related to the terminated work are placed; 3) preserve all relevant work in progress and completed work in Seller's possession; and 4) dispose of same in accordance with Purchaser's instructions.

B. Upon receipt of Bu yer’s notice of termination for convenience as provided, Seller shall prepare and submit an invoice for all work performed and costs incurred by Seller as reasonably determined by Seller, which Buyer shall promptly pay upon receipt.

R egards,

Ian Clarke Alfa Laval Inc. Regional Sales Manager ph: 415 297

- 7800 ian.clarke@alfalaval.com

### Page 4 of 7

### Page 5 of 7

### Page 6 of 7

### Page 7 of 7

### Page 1 of 7

February 2 4 , 2011

Betsy Bicknell Senior Environmental Engineer Eastern Research Group, Inc.

Donald F. Anderson Senior Environmental Engineer 1200 Pennsylvania Avenue, NW Washington, DC 20460 

# Budgetary E s t i m a t e

- f o r e s t i m a t i n g p u r p o s e s o n l y Type

- Alfa Oil module

- peak production 30 MT fish bi

- product / 24 hrs

Dear Betsy

/ D o n a l d

,

Please see the below BUDGETARY pricing and equipment breakdown

. The plant is desi gned to process app roximately 1

- 1.5 metric tons of raw material feed per hour

, with the goal of producing salmon oil and de

- wat ered solid material suitable f o r send i n g to a drying step for fishmeal/etc p r o d u c t i o n

.

The plant has been priced with all listed item s including shredder , Contherm scraped surface & indirect steam heater, 3

- phase decanter, high speed oil purifier ( optional) , oil dryer and cooler

, as well as necessary tanks, pumps, automation, engineering, and on

- site start up and commissioning. Solids dryer for fishmeal production is NOT included in price scope. If you like Alfa Laval can provide you with contacts to provide budget price quoting for this portion of the process.

The quotation includes:

 General Scope

 Price Summary

 Terms and Conditions of Sale

Please don’t hesitate to con tact either myself, Jeff Logan if you have any further questions or need any additional information.

R egards,

Ian Clarke Alfa Laval Inc. Regional Sales Manager ian.clarke@alfalaval.com , ph: 415 297

- 7800

### Page 2 of 7

General Scope

Alfa O il Re covery plant

– Contherm Based Fish Oil recovery from salmon bi

- products

. Includes: Item Description

00

. Shredder 01. Feed pump with mince hopper 02

. One

- Contherm scrape surface indirect steam heater 03

. Intermediate tank and pump 04

. NX3651 B

- 11 T

- three phase decanter 05

. Raw oil tank with pump 06

. AFPX 407 BPT

- 14 purifier (optional adder for oil polishing) 07

. Sludge and water pump 08

. Finished Oil tank 09. System Automation 10

. Oil Dryer

Engineering Commissioning /

Training

Price Summary

Option 1

- EXCLUDING item 06

. - AFPX 407 high speed oil purifier

Option 2

- INCLUDING item 06

. - AFPX 407 high speed oil purifier

 All parts in contact with the product including bowl shell, hubs and casing are of stainless steel.

 Start up/commissioning provide d as described in plant specification (specification to be provided upon firm proposal). All additional field service support , commissioning and start up assistance at Alfa Laval published rates

PAYMENT CONDITIONS 50% with purchase order 5 0% at shipment from factory Net 30 days Description QTY Unit Price Ext Price Alfa Oil Recovery Plant 1

- 1.5 MT raw material/hr 1 $ 795 ,000 $ 795 ,000

Description QTY Unit Price Ext Price Alfa Oil Recovery Plant 1

- 1.5 MT raw m a t e r ia l / hr 1 $ 89 5 ,000 $ 89 5 ,000

### Page 3 of 7

DELIVERY TIME FCA

. The equipment can be ready for dispatch, FCA , normally within 24

- 26 weeks after confirmation of order and payment. Exact delivery depends on items ordered and factory production schedule at time of order receipt and will be advised after order has been confimed.

PRICE VALIDITY Pricing is budgetary and for estimating purposes only . Prices are quoted in USD$.

GENERAL CONDITIONS Insofar as they are not contradictory to the provisions of this quotation, the annexed "Alfa Laval Terms and Conditions of Sale Rev 032204", shall apply.

RESERVATION This quotation is valid for 30 days from the date of quotation. Orders are not binding to us before we have confirmed them. Rated throughput and consumption figures indicated above are not in any way or form to be regarded as guarantees but as indicative figures only for initial planning purposes.

TERMINATION CLAUSE

- TERMINATION FOR CONVENIENCE A. Buyer shall have the right to terminate for its convenience the further performance of all or any separable part of this Purchase Order at any time by providing written notice to Seller, which notice shall be effective on the date received by Seller. On the date of termination Seller shall 1) discontinue all work pertaining to this Purchase Order or the part thereof referred to in Buyer’s notice; 2) take reasonable steps to assure no addi tional orders for materials or parts related to the terminated work are placed; 3) preserve all relevant work in progress and completed work in Seller's possession; and 4) dispose of same in accordance with Purchaser's instructions.

B. Upon receipt of Bu yer’s notice of termination for convenience as provided, Seller shall prepare and submit an invoice for all work performed and costs incurred by Seller as reasonably determined by Seller, which Buyer shall promptly pay upon receipt.

R egards,

Ian Clarke Alfa Laval Inc. Regional Sales Manager ph: 415 297

- 7800 ian.clarke@alfalaval.com

### Page 4 of 7

### Page 5 of 7

### Page 6 of 7

### Page 7 of 7From: "Yanovsky, Vlad S." <Vlad.Yanovsky@geagroup.com> To: Betsy Bicknell <Betsy.Bicknell@erg.com> Date: 1/7/2011 10:11 AM Subject: RE: Quote for package seafood byproducts plant

Betsy:

For fish oil plants equipment include d would be: grinder, pumps, buffer tank, heat exchanger, decanter, sepa rator, clean oil buffer tank, PLC, special decanter/separator tools, engineering

For the small fish meal oil/meal pl ant take the above equipment and add a dryer to the scope of supply:

There is many different ways of doing shipping-I would say delivery could be anywhere and freight cost would be say $10,000-20,000(just a guess)

Best regards,

Vlad S. Yanovsky

GEA Mechanical Equipment

GEA Westfalia Separator, Inc.

555 Baldwin Road

Patterson, CA 95363

Office: (209)-895-6314

Cell: (201)-600-1180

Fax: 1-209-895-6301

e-mail: Vlad.Yanovsky@GEAGroup.com

www.wsus.com <http://www.wsus.com/>

From: Betsy Bicknell [mailto:Betsy.Bicknell@erg.com] Sent: Friday, January 07, 2011 6:12 AM To: Yanovsky, Vlad S. Subject: RE: Quote for package seafood byproducts plant

thanks, Vlad

could you provide a list of the equi pment that would be included?

Also, I'm guessing these estimates don't include shipping. Could you tell me rough weights and locations fr om which the units would need to be shipped?

Betsy

>>> "Yanovsky, Vlad S." <Vlad.Yanovs ky@geagroup.com> 1/7/2011 7:38 AM

>>>Betsy:

As promised-below are rough budget numbers for capital equipment only for Westfalia for production lines sizes requested.

Remember-this is just for the equipm ent/engineering. The end user will need to install it, etc

Up to 3 U.S. ton/hour combined fi sh oil/fish meal plant------ $900K-$1.3 M

1 U.S. ton/hour fish oil plant- $400K-600K

5 U.S. ton/hour fish oil plant- $550K-700K

10 U.S. ton/hour fish oil plant- $700K-1.2M

Best regards,

Vlad S. Yanovsky

GEA Mechanical Equipment

GEA Westfalia Separator, Inc.

555 Baldwin Road

Patterson, CA 95363

Office: (209)-895-6314

Cell: (201)-600-1180

Fax: 1-209-895-6301

e-mail: Vlad.Yanovsky@GEAGroup.com

www.wsus.com <http://www.wsus.com/>

From: Betsy Bicknell [mailto:Betsy.Bicknell@erg.com] Sent: Monday, December 20, 2010 12:19 PM To: Yanovsky, Vlad S. Subject: Quote for package seafood byproducts plant

Vlad I'm glad we talked this af ternoon. I look forward to receiving information from you by January 7. As we discussed, I'm looking for "generic" quotes for package seafood byproducts plants. We discussed

3 U.S. ton/hour combined fish oil/fish meal plant

1 U.S. ton/hour fish oil plant

5 U.S. ton/hour fish oil plant

10 U.S. ton/hour fish oil plantYou will provide estimates for the equipment and specifications, including power requirements and ot her installation requirements.

I look forward to hearing from you next month.

Happy Holidays,

Betsy

Betsy Bicknell Senior Environmental Engineer Eastern Research Group, Inc.

(703) 633-1612 betsy.bicknell@erg.com