Phil KithilCEO

Atmocean, Inc.802 Early Street

Santa Fe, NM 87505505-820-1695

www.atmocean.compkithil@earthlink.net

The Atmocean Business Opportunity: Become The Largest Global Supplier of

Carbon Credits.

The Atmocean Social Opportunity: Mitigate Global Warming While Restoring

Health Of The Oceans

Competitive Advantages• By far the least

environmental impact of any other ocean engineering proposal.

• Much more scale-able than other ocean engineering proposals.

• Marginal cost of ~$10 per ton CO2 is much less than geologic sequestration.

How Upwelling = Sequestration

– Pump higher-nutrient water from 200m to the surface using Atmocean’s wave-driven pumps.

– In presence of sunlight, higher nutrients produce more phytoplankton, absorbing dissolved CO2 from upper ocean.

– Phytoplankton is eaten, CO2 converted to carbon fecal pellets

– Pellets are excreted and quickly sink to seafloor - not decomposed by bacteria.

– More CO2 dissolves into upper ocean. The process repeats.

Iron Fertilization • Inexpensive - $5 per ton (?).• Too small-scale.• Harsh.• Unintended consequences (anoxia,

excessive cooling).• Violates UN Law of the Sea.• Extreme opposition by

environmentalists.

Carbon Capture & Sequestration• DOE research support.• EOR potential revenue stream• Very expensive.• Only applies to point sources of

CO2.• Reservoir must be within 75 miles.• Regulatory nightmare.• Land ownership & liability issues.• Opposed by many

environmentalists.

Reforestation• Inexpensive – under $5 per ton CO2

is claimed (?).• Favored by environmentalists.

• Optimum only in tropical & subtropical regions.

• Subject to drought.• Rapid 3rd world population growth is

choosing food supply over rainforest.

Algae Farms• Scale.• Cost.• Land use issues.

Direct Absorption In Air• Scale.• Cost.• Materials availability.

Competition Pro’s & Con’s

Emission Caps and Price

PRICE PER TON

ALLOWED EMISSIONS

10 million tons CO2 emitted in

2006

Example: 4 arrays and PNM is “green”!

Our Carbon Credit Sales Plan: via CCX or Direct To Power Plant Operators

Alliances

• JP Kenney. Global ocean engineering firm.

• A leading aggregator of carbon credits.

• Several ocean research institutions.

• Component suppliers.

• Marketing organization.

Atmocean Rollout Strategy– Design, build, & test full-size pumps, 3m diameter by 200m deep.

$500k, 6 months.– (a) Deploy 25-pump array in North Atlantic for 18 months, (b) Pacific

for 12 months, & (c) Gulf of Mexico for 6 months, to assess net sequestration, environmental, & cooling effects. $7.5 million, 24 months.

– Deploy 100-pump pilot array in North Atlantic to confirm cost & revenue model. $4 million, 18 months.

– Full size array deployed in North Atlantic in 2012. Double number of arrays each year.

2008 2009 2010 2011 2012

1 >>>>>>

2a >>>>>>>>>>>>>>>>>>

2b >>>>>>>>>>>>

2c >>>>>>

3 >>>>>>>>>>>>>>>>>>

4 >>>>>>>>>

Annual Sequestration Per Array

Enhanced Sequestration.………........................…14,500Background ocean sequestration of CO2................2,500Net Additional Sequestration..………….................12,000

Tons of CO2 Per Day Per 100,000 km 2 of open oceanWith 200 growing days/year this equals

2.4 million tons/array/year(About equal to annual CO2 emissions from a 500mw coal-fired plant.)

= 96 tons/pump/year

Revenues & Costs Per Pump/YearVolume/Year 96 tonsAssumed Price $45/tonAnnual Revenues $ 4,320

Annualized Pump Cost $ 999Boat & Sampling 199Science 17S G & A 239Interest 152Total Cost $ 1,606

EBITDA $ 2,714

$(50.0)$-

$50.0$100.0$150.0$200.0$250.0$300.0$350.0$400.0$450.0

Mill

ions

2011 2012 2013

Atmocean Projections

Revenue Expense EBIT

Quickly Becomes A Very Large Enterprise.

Atmocean Revenue Enhancements• Increase net sequestration by pumping the

water part way up (250m to 50m).

Produce More Carbon Credits.

• Increase net CO2 absorption via ocean

alkalinity modification. Produce More Carbon Credits.

• Install wind turbines and Sell Electricity Into The Grid.

• Capture high density ocean data, Sell The Data.

• Catch and Sell The Fish.

Social Benefits

• Sequester carbon on the ocean floor.

• Counteract warming of the upper ocean.

• Restore the ocean food chain.

• Increase the supply of protein from the sea.

• Mitigate sea-level rise.

• Buffer acidification of the oceans caused by CO2.

• Cool the coral reefs to reduce bleaching.

Discussion, Q&A

Thank you for your interest!

Phil KithilCEO

Atmocean, Inc.802 Early Street

Santa Fe, NM 87505505-820-1695

www.atmocean.compkithil@earthlink.net