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A Commercialization Case Study of aNew Technology for Conversion of CO2 Emissions to Alcohol Fuels for Stimulating Economic Growth

By

Mark A. Edelman, Ph.D. Iowa State University & AGG LLC,Gary C. Young, Ph.D. P.E. Bio-Thermal-Energy Inc.,

John C. Wooley, EE-CO2 LLC, and Eric Wagner, Ph.D. Technip Stone & Webster Process Technology, Inc.

Presented to:

International Association for Energy Economics

37th Annual IAEE International Conference

Wyndham New Yorker Hotel

481 8th Avenue, New York, NY

June 15-18, 2014

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The Inventor: Dr. Gary C. Young, Ph.D., P.E.

Retired after 40+ years of experience from the oil and gas industry in such areas as R&D in coal gasification, gas processing, enhanced energy recovery, agricultural chemical development, food, chemical, pharmaceutical processing & operations, and process project economics.

Current focus is on the production of Advanced Biofuels from CO2 emission sources using a proprietary CO2 conversion technology that he developed. Has 4 patents & additional patents pending on the BTE technology.

Inventor of 22+ patents of which many are owned by his company, Bio-Thermal-Energy, Inc. (BTE). Licensed professional engineer in the states of: California, Texas, Illinois, Iowa, and Wisconsin.

Author of “Municipal Solid Waste to Energy Conversion Processes: Economic, Technical, and Renewable Comparisons” published by John Wiley & Sons, Inc., 2010. Book covers several topics: Gasification/Pyrolysis and Combustion, MSW Processes to Energy & High Value & Specialty by-products, MSW Gasifiers & Process Equipment, Wind Energy, Hydroelectric Energy, and Waste Heat Recovery.

Native of Nebraska and received B.S., M.S. and Ph.D. degrees in chemical engineering from the University of Nebraska and he presently resides in Cedar Rapids, Iowa.

The Collaborators

� EE-AGG Joint Venture Commercialization Company

� Exclusive license for BTE technology.

� John Wooley, President, experienced business executive based in Austin, TX

� Mark Edelman, Ph.D. ag economist ISU Professor based in Ames, IA & Joint Venture Company Treasurer

� Technip Stone & Webster Process Technology Inc.

� Technip: multi-national engineering firm with projects in over 40 countries & 38,000 employees: http://www.technip.com/en

� Eric Wagner, Ph.D. P.E. Engineering Technical Director based in Claremont, CA

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THERMAL GASIFICATION PROCESS CONVERTS CARBON DIOXIDE (CO2) INTO SYNGAS (CO & H2)

Bio-Thermal-Energy, Inc. (B-T-E) has proprietary process for the conversion of Carbon dioxide (CO2) into synthesis gas “Syngas.”

The Syngas can be converted further into “fuels and chemicals,” for example, Ethanol, Methanol, and Gasoline using commercially available technologies.

CO2 + Carbonaceous Input + Steam→ Syngas(CO & H2) Syngas (CO & H2) → Green Advanced Biofuels

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STEP 1 PROCESS: CONVERSION OF CO2 TO SYNGAS (CO & H2)

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Combines CO2 with carbonaceous inputs and steam using high temperature “non-catalytic” gasification. A simplified representation of B-T-E’s over-all process technology for the conversion of CO2 to SYNGAS is as follows:

CO2 + C (Carbonaceous input) + H2O (Steam) → Syngas(CO & H2)

where Carbonaceous materials could be and/or a mixture of: Coke, Carbon Black, Coal, Charcoal, Wood, Switch Grass, Corn Stover, Tires, Municipal Solids Waste (MSW), Methane (Natural gas), and Steel Mill Gas.

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CO2 to Syngas proprietary process illustrated in block flow diagram (BFD) where the CO2 source is from a Corn-to-Ethanol Plant:

B-T-E'sGASIFICATION

PROCESS(High

Temperature&

Non-catalytic)

SyngasCleanup

&Heat

Recovery

RECYCLE

Syngas(CO & H

2)

COH2

CO2

Vitrified Slag

Carbon dioxide (CO2) - Source

(Corn-to-Ethanol Plant)

H2O/Steam

Oxygen (O2)

Carbonaceous Materialand/or Mixture:

Methane (Natural Gas),Coke,Carbon black,Coal,Charcoal,Wood,Switch grass,Corn Stover,Tires,MSW,Steel Mill Gas,etc.

CO2

CO2 + C (Carbonaceous material) + H2O (Steam) → Syngas (CO & H2)

PROPRIETARY PROCESS “Demonstrated” at Pilot Scale

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Proprietary process demonstrated experimentally at a scale of 12.5 ton per day in private sector pilot plant facilities located in Pennsylvania. Results were verified by 3rd party.

Syngas produced in pilot plant used feed comprising: CO2, Steam, and a carbonaceous inputs.

As a non-catalytic process, a carbonaceous material is fed to a high temperature gasifier which can consist of gases, liquids, solids and/or a mixture.

CO2 feed to the gasifier does not require separation from an industrial gaseous stream. However, impurities in a gaseous stream influence process equipment size and capital costs.

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FOUR CASES CHOSEN TO DEVELOP 3RD PARTY TECHNOLOGY VERIFICATION AND ECONOMIC FEASIBILITY STUDY

Scenarios Examined: Case-A: 100% Coal Case-B: 10% CH4 & 90% Coal Case-C: 50% CH4 & 50% Coal Case-D: 100% CH4

Case-A Case-B Case-C Case-D(lb/hr) (lb/hr) (lb/hr) (lb/hr)

Gasifier Feed:CO2 37,700 37,700 37,700 37,700CH4 * * * *Coal * * * *Steam (H2O) * * * *Oxygen (O2) * * * *

Gasification: (1,832/0.0) (1,832/0.0) (1,832/0.0) (1,832/0.0)

(T- oF / P- psig)

SYNGAS:CO * * * *H2 * * * *CO2 13,406 13,309 12,924 12,441

% CO2 Reduction 64.4 64.7 65.7 67.0

H2/CO-mole ratio 0.394 0.527 1.029 1.595

* Confidential

ETHANOL FINDINGS BASED UPON TECHNIP STUDY, 2014

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Carbon dioxide (CO2) source will be from the fermentors of a Corn-to-Ethanol plant with capacity of 50 million gallons annually. Thus, the carbon dioxide (CO2) feed is at a rate of 37,700 lbs/hr or 18.85 tons/hr. Coal cost at $35-75/ton, natural gas at $3.50-4.50/MMBTU, and electricity at $0.025-0.050/kWh. Results are from a feasibility study by TECHNIP Stone & Webster Process Technology, Inc., Jan. – 2014.

Case Ethanol Production Manufacturing CostCO2-to-Ethanol plant ISBL Estimated RangeNotes - 1 & -3 ($MM) Notes -1, -2, & -3

Case-A, 100%Coal 44.8 million gal/yr $182 $0.89 - $1.20 /gallon

Case-B, 10%CH4 & 90% Coal 47.7 million gal/yr $197 $0.93 - $1.25 /gallon

Case-C, 50%CH4 & 50%Coal 59.3 million gal/yr $256 $1.08 - $1.41 /gallon

Case-D, 100%CH4 73.8 million gal/yr $325 $1.19 - $1.53 /gallon

Current selling price of Ethanol: $1.90 -$2.97 /gallon

Note-1: Assuming an operation at 8,760 hours per year or 100%.Note-2: Includes Total CAPEX (ISBL & 50% of ISBL as OSBL and OPEX including Labor & Maintenance.Note-3: Based upon CO2 conversion rates to Syngas of 65 – 70%. This process has not been optimized to higher CO2 conversion rates and savings from heat recovery has not been included.

CO2 + C (Carbonaceous material) + H2O (Steam) → Syngas (CO & H2) → Bio-chemical Process → Ethanol

METHANOL FINDINGS BASED ON TECHNIP STUDY, 2014

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Carbon dioxide (CO2) source will be from the fermentors of a Corn-to-Ethanol plant with capacity of 50 million gallons annually. Thus, Carbon dioxide (CO2) source is at a rate of 37,700 lbs/hr or 18.85 tons/hr. Coal cost at $35-75 /ton, natural gas at $3.50-4.50/MMBTU, and Electricity at $0.025-0.050/kwh. Results of a feasibility study by TECHNIP Stone & Webster Process Technology, Inc., Jan. 2014.

Case Methanol Production Manufacturing CostCO2-to-Methanol plant ISBL Estimated RangeNotes -1 & -3 ($MM) Notes -1, -2 & -3

Case-F, 100%Coal 78.3 million gal/yr $209 $0.64 - $0.84 /gallon

Case-G, 100%CH4 183.3 million gal/yr $381 $0.63 - $0.79 /gallon

Methanol Price Assumed: $1.90 /gallon

Note-1: Assuming an operation at 8,760 hours per year or 100%.Note-2: Includes Total CAPEX (ISBL & 50% of ISBL as OSBL and OPEX including Labor & Maintenance)Note-3: Based upon CO2 conversion rates to Syngas of 65 – 70%. This process has not been optimized to higher CO2 conversion rates and savings from heat recovery have not been included.

CO2 + C (Carbonaceous input) + H2O (Steam)→ Syngas (CO & H2)→ F-T Type Process→ Methanol

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GASOLINE findings based upon TECHNIP Study - 2014

Carbon dioxide (CO2) source from the fermentors of a Corn-to-Ethanol plant with capacity of 50 million gallons annually. Thus Carbon dioxide (CO2) feed is at a rate of 37,700 lbs/hr or 18.85 tons/hr. Coal cost at $35-75/ton, natural gas at $3.50-4.50/MM Btu, and electricity at $0.025-0.050/kWh. Results of a feasibility study by TECHNIP Stone & Webster Process Technology, Inc., Jan. 2014.

Case Gasoline Production Manufacturing CostCO2-to-Gasoline plant ISBL Estimated RangeNotes -1 & -3 ($MM) Notes -1, -2 & -3

Case-D 100%CH4 98.4 million gal/yr $422 $1.25 - $1.58/gallon(6,418 barrels/day)

Note-1: Assuming an operation at 8,760 hours per year or 100%.Note-2: Includes Total CAPEX (ISBL & 50% of ISBL as OSBL and OPEX including Labor & Maintenance)Note-3: Based upon CO2 conversion rates to Syngas of 65 – 70%. This process has not been optimized to higher CO2 conversion rates and savings from heat recovery have not been included.

CO2 + C (Carbonaceous input) + H2O (Steam)→ Syngas (CO & H2)→ F-T Type Process → Gasoline

What happens if electricity and natural gas prices double?Sensitivity Analysis Assumptions: Natural Gas at $9/MMBTU,

Electricity at $0.10/kwh, & Coal at $50/MT

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Case A, 100% Coal Ethanol Production Cost $0.97/gallon

Case B, 10% Coal + 90% CH4 Ethanol Production Cost $1.15/gallon

Case C, 50% Coal + 50% CH4 Ethanol Production Cost $1.70/gallon

Case D, 100% CH4 Ethanol Production Cost $2.15/gallon ------------- ----------

Case F, Coal Methanol Production Cost $1.00/gallon

Case G, CH4 Methanol Production Cost $1.45/gallon

Conclusions:

1. The BTE technology appears to have potential for being competitive without government subsidy as strategy for using waste CO2, but also for using natural gas, biomass, MSW, and coal for production transportation fuels and higher value products.

2. Further engineering development and commercialization would appear to be warranted due in part to feedstock and product flexibility.

3. Potential factor limiting development is capex for pioneer plant.

4. Electricity and natural gas sourcing and infrastructure limitations may limit deployment at some locations. However CO2 to Ethanol production can be a net supplier of electricity.

5. Far from natural gas sources, coal may be a potential competitive option—something of interest to coal suppliers & users.

6. Adaptation for coal-fired power plant emissions.13

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Corn-to-Ethanol Plant

B-T-E & Bio-chemical Process(s):CO2-to-Syngas-to-Ethanol Plant(s)

Carbon dioxide, CO2

50,000,000Gallons/year

Ethanol

50,000,000Gallons/year

Ethanol

And/or OtherC (Carbonaceous

Materials)

Natural Gas (CH4)

PICTORIAL REPRESENTATION OF TECHNOLOGY FOR THE CONVERSION OF CO2 EMISSIONS FROM A CORN-TO-ETHANOL PLANT TO ETHANOL:

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EXAMPLE OF COMMERCIAL SCALE EQUIPMENT FOR GASIFICATION: G-65 WPG GASIFIER, AIR PRODUCTS’ TEES VALLEY RENEWABLE ENERGY FACILITY AT TEESSIDE, UK

1,000 TPD MSW TO 50 MW ELECTRICITY (COMMISSIONING, 2014)

http://i1.gazettelive.co.uk/incoming/article4034462.ece/ALTERNATES/s2197/zz300513air-2-4034462.jpg

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Thanks for you Attention

For More Information Contact:

Mark A. Edelman, Ph.D.

Cell: 515-298-1871

Email: MarkE1871@gmail.com