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Review by the CEO

Götaverken Miljö AB - acquired by Babcock & Wilcox Vølund A/S
I am happy to report on
en eventful year 2009 with Babcock & Wilcox Vølund A/S acquiring all the shares of Götaverken Miljö AB. With the acquisition, Babcock & Wilcox Vølund, based and headquartered in Esbjerg, Denmark, has taken a major step forward in the company's strategic focus on both growth and development of the company's global product and service offerings within the Cleantech sector. Götaverken Miljö AB will continue its activities with the current management, staff and company name.

The acquisition was motivated by the following: "We have for many years known Götaveken Miljö as a very competent, respected and highly specialised company - and the company has been involved in several of our projects around the world as provider of flue gas cleaning technology and energy recovery applications. Götaverken Miljö fits perfectly into the Babcock & Wilcox Vølund strategy and organisations. Together with Götaverken Miljö our product offerings will be expanded with in-house resources and competencies of the highest standards in the world within the Cleantech industry. Therefore, it is a pleasure for all of us to welcome our new Swedish colleagues in Gothenburg to a new and exciting future", said John Veje Olesen, Managing Director at Babcock & Wilcox Vølund A/S and the new chairman of GMAB.

For us at Götaverken Miljö the acquisition by Babcock & Wilcox Vølund means that we have got a powerful industrial owner with a well developed international network well suited to support the marketing and sale of our products on new markets.

Our strategy to be technology and competence leader for wet flue gas cleaning and flue gas condensation for waste fired energy from waste (EfW) plants is steadily valid, as our goal to be a spearhead solution provider when it comes to dioxin and mercury removal. Being a subsidiary of Babcock & Wilcox Vølund has made us a stronger, and an even more interesting, partner in the long run.


Development of our international network
We have for quite some time declared the good properties and feasibility of the ADIOX®-material for removal of dioxin at incineration of various kinds of waste. Since the introduction of the ADIOX® technology, now around 85 incineration lines worldwide are using this solution with an excellent result. Based on these reference facilities we have established a network of agents and distributors in a number of selected countries as for example France, Italy, Holland/Belgium, South Korea and India. Our goal is to intensify our selling efforts on the local market of predominantly ADIOX® material but also of larger undertakings where the resources of Babcock & Wilcox Vølund will be of great benefit.

Cleantech - our incentive to development

Our core operations, cleaning of environmentally hazardous emissions as well as energy recovery to save limited resources, are important parts of what today is known as the Cleantech industry. This industry has attracted increasing interest in recent years from environmentalists, politicians, media and the public a large. The Copenhagen Environmental summit in December 2009 was one example of the question in focus, but sadly enough not resulting in as far reaching responsibilties for individual countries as many had hoped for..

Nevertheless we have continued to develop our solutions for the purpose of minimizing emissions and enhancing energy savings. One example is our new complementary product, aiming at reducing the dioxin formation and corrosion problems in waste-fired boilers. Technology-wise we also believe that we are well prepared to meet the increased challenges to win the few projects that anyhow will be awarded.

New technology for reduction of corrosion and dioxin formation in waste-fired boilers

The new product is designed to reduce the formation of dioxin and corrosion problems in waste-fired boilers by modifying the incineration technology. The technology has been demonstrated within Waste Refinery, a Swedish Centre of Excellence focusing on optimum conversion of waste material. Its research work is performed in collaboration with 20 stakeholders and with a SEK 15 million annual budget at its disposal. We are also receiving development subsidy from ProEnviro. The research programme of ProEnviro supports small and medium sized companies with the airm at stimulating development of competitive and innovative products, production processes and services for improved enviromental performance during their entire life cycle. Behind ProEnviro stands the Foundation for Strategic Environmental Research. Full scale tests were carried out during 2009.


The project activities

The order from Renova, Göteborg, Sweden, worth approximately SEK 35 million, for cleaning of the flue gases from the incineration lines 1 and 2 is progressing as planned since November 2009. The delivery means that Renova can decrease its already low emissions of mainly sulphur in the flue gases to levels far below existing emission requirements. Renova can also increase the energy production from waste incineration, which will replace other means of energy production and hence reduce emissions from other sources in the region.

The flue gas condensation to Halmstads Energi och Miljö, Halmstad, Sweden, was handed over to the client at the end of 2009. The delivery included energy recovery by an ADIOX® scrubber condenser along with an absorption heat pump to recover another 10 MW heat to be delivered to the district heating customers.

The project for removal of sulphur dioxide in a foundry for a customer within the Swedish automotive industry has been fine tuned and handed over to the client.

The delivery of ADIOX® scrubber condensers to Affald Varme Århus, Denmark, was our third energy recovery order in a short time to waste incineration plants in Denmark. By condensing the flue gas in the scrubber condenser, another 2 x 3 MW heat from the waste incineration can now be recovered for delivery to the municipal district heating customers. Also this project was handed over to a very pleased client in the autumn of 2009.

Götaverken Miljö is a long-term partner

To be able, at all times, to fulfil the expectations of our customers and others around us in terms of environmental improvements and energy recovery is an appreciated challenge for us. Our aim is therefore to develop even more climate-smart and energy efficient products to reduce negative impact on the environment. Supplying in the promised timescale, and delivering facilities and services of good quality have been and are important for the thrust shown in us by our customers. As employees of Götaverken Miljö, we feel very proud to be contributing to this work.

Lennart Gustafsson