1) Use of fuel in the engines produces SOx, NOx and particulates in the exhaust.

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2 2) Sea water is pumped to the scrubber where calcium carbonate in the water absorbs all the SOx from the exhaust to produce harmless calcium sulphate. 1) Use of fuel in the engines produces SOx, NOx and particulates in the exhaust. 3) Sea water in the scrubber also removes most of the particulates that are then stripped from the discharge water in a powerful water processing plant.

3 Krystallon Scrubber on Funnel Deck, Pride of Kent 18/12/05

4 Water treatment Cyclonic filtration test rig installed to evaluate performance of this filtration method Everything above 2.5 microns removed Developed novel GRE based separation system The water treatment plant will typically produce approximately 20% of the vessels usual oily waste. This waste will go into the vessels normal oily waste sludge tank and will be disposed of in exactly the same manner. IMO already classifies this waste as oily waste, it is not classed as hazardous waste

5 1 m towards bow depth [m] depth [m] depth [m] Centreline depth [m] depth [m] depth [m] Detailed Environmental Impact Assessment ph O 2 T Sampling every 1 m x,y & z from centreline of discharge Centreline distance from ship hull [m] Centreline distance from ship hull [m] C distance from ship hull B distance from ship hull [m] B B1 distance from ship hull [m] B distance from ship hull m 2 m m m m from ship hull 3 m bow

6 Performance Monitoring Continuous monitoring of: SO 2 CO 2 NO NO 2 Linked to GPS for ship positioning and data availability Assessment of oil monitor capabilities with sensitivity in the region of ppbillion for water discharge!

7 Pride of Kent Scrubber: Real data from worlds first commercial working unit SOx reduction > 98% NOx reduction < 5% Particulate reduction ~ 80% Within diesel engine backpressure envelope Water discharge already to IMO guidelines (from Environmental Impact Assessment by Terramare Inst + Newcastle University) Installed during normal drydock periods No unplanned stoppage since installation (ten months trouble free operation), Zero crew intervention

8 Zaandam Scrubber for April 2007 Currently able to provide scrubbing to 12MW Commercial units now being installed Design being evaluated to 15 25MW (end 2007) Range 25MW to 50MW probably 2008

9 Current Cost of Scrubbers Dependent upon vessel type and utilisation Cruise Lines (high use and high utilisation) = $40 per tonne over 3 year period (3 year payback) Ferries - $40 - $50 per tonne over 3 years. (Offsetting will potentially halve this number) Container ship consumption = 10,000 tonnes fuel p.a.in auxy engines Cost for 2MW generator set of 4 engines = US$3m Current forward curves showing diff from HSFO to distillate at circa $275 - $300 per tonne, Payback on Auxiliaries versus diesel = 12 months! Current high to low fuel diffs quoted from $15 up to $40 per tonne, $330/tonne for diesel in California (CARB auxy engine rule)

10 500 kw test installation 1MW Ferry installation 12,000 hours operation 2MW Power plant installation 8MW Cruise ship installation Krystallon technology backed by BP Thank you.

11 % SO2 Absorbed What is Seawater Scrubbing? Krystallon seawater scrubbing systems rely on salts dissolved in seawater to scrub and neutralise the acidic gases Research by Krystallon indicates that the scrubber efficiency is a function of the ph of the final wash water Experimental and Theoretical Data Scrubber Exit ph Experimental Aspen Theoretical

12 Krystallon Project Life-cycle phases Pre-Project Project Initiation Project Execution Project Closure Business Development Manager Project Manager Preparation Cost Estimate Project Initiation Review Site Survey / Detailed Estimate Final Cost Submission Contract Agreement Project Execution Stage Gate Project Execution Project Closure Stage Gate Lessons Learned and Closure Business Dev t working with customer Finalising Cost and Scope - Billable Agreed Scope, Cost and timescales prior to start of execution phase. Includes Equipment Order, dry dock, installation and commissioning. Project completion, lessons learned and feedback