Delivering transformational, energy-saving technology to dramatically improve access to clean water

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1 Delivering transformational, energy-saving technology to dramatically improve access to clean water Destination Innovation May 15, 2012 Karen D. Sorber, CEO Cell:

2 Access Environment Wicked Problem Security Cost 2

3 Desalinates water sea, turbid, brackish, industrial waste Removes most metals and corrosives bacteria and fungi Two pending patents 3

4 * Mini-tornado atomizes water, shedding solids * Rapid evaporation * Low pressure and low-temperature * No membranes, filters, chemicals * Highly resistant to corrosion * Easy to operate and maintain 4

5 Total Dissolved Solids > 66,000 ppm < 60 ppm Turbidity Biologics From murky to clear Contaminant Pre-test Post-test Bacteria Coliforms Positive Negative E. Coli Positive Negative Fungal count 140 No growth Removes Most Chemicals Before After 5

6 6

7 15000 RO Plants >70 M 3 /day ~ $10B Market Military $100M/year Federal Water Treatment $2.5B Market 7

8 Competition: Left in the Dust (Positive attributes in green) Company Portable? Membrane Required? Chemicals Required? Large Footprint? Skilled Staff Required? Altela No Advantageous Systems Yes Varies NanOasis Technologies Yes Oasys Water Yes MICRONIC Yes 1/3 rd the energy ~ 1/10 th the footprint ~ Minimal operating costs 8

9 Financial Projections Unit Sales Revenues (R&D, License, Sales) 5 $375,000 Unit Sales 100 $7,500,000 Unit Sales 1000 $75,000,000 Unit Sales 3000 $225,000,000 Costs $(800,000) $(950,000) $2,500,000 $20,000,000 $60,000,000 Profit $(800,000) $(575,000) $5,000,000 $55,000,000 $165,000,000 9

10 Funding to date: $500,000 Planned 2012 Round: $2M Development Objectives Industrial prototype Maximize throughput Zero liquid discharge 100% heat recapture Scalability Production ready Pilot(s) 3 rd Prototype Licensing/ Sales 10

11 *Karen Sorber Majority owner and CEO; 35 years in government and industry consulting and procurement *Klaus Schafer, M.D. President; Brig Gen, USAF (Ret). Experienced startup and growth. Former DoD Dep Sec for Chem/Bio. *Kelly P. Rock Chief Technology Officer; MicroDesal inventor; 21 patents; 35 years R&D and prototyping *Howard Sorber Director of Operations, 30 years experience in owning/operating businesses. *Tamim Younos, Ph.D. Consultant; Ph.D., Env Eng; Exec VP and Res. Dir, Cabell Brand Center. Develops test plans. *William E. Roper, Ph.D., P.E. Consultant; Prof, GMU and Johns Hopkins. Prev Dir Env Svs (Arl, VA); Director US Army Corps of Engineers R&D. 11

12 QUESTIONS? 12

13 * Forward operating bases often have no potable water * Local-theater water sources contain chemical and microbiological contaminants * 65-90% of Afghanistan s ground water contaminated with bacteria, e.g., E. Coli and Leptospira * Current forward RO transportable systems challenge platoons on the move 13

14 * $500,000/day for 20,000 troops * Costs are unsustainable * Convoys subject to security risks * Storage issues; bacteria can develop * Litter issues; toxic emissions from burning * 2011 US waste bottles could wrap earth 190 times * Mobility impacted by carrying bottled water * Represents >50% of logistics cargo weight 14

15 * World population doubling since 1960s with diminishing water supply diminishing a water crisis * Contaminated source water: oceans, streams, lakes, rivers, aquifers some with high total dissolved solids * Pathogens, chemicals, and contaminants of emerging concern, e.g., PPCPs * Footprint, cost, discharge, and public resistance preclude ubiquitous use of reverse osmosis 15

16 High Cost ROWPU Many personnel to operate Requires XX kw to operate Many hours to set up/tear down LWP Low Cost Fixed Facility Portable, but MicroDesal TM Purifies water from ANY source Weighs less than 250 lbs Only one person to operate No water storage required Low power required Portable

17 *Scalability: *Function of air/water interaction, pressure, temperature, unit configuration, etc. *Research and engineering studies planned *Goal: soldier- and truck/air-portable units, plus shipboard and fixed-location units DoD photos, for concept only. 17

18 Meco LWP unit LWP: Heavy, fills a Humvee bed, needs assembly on site MicroDesal TM : Light, compact, can be operated in truck bed if desired 18

19 Industrial cooling water Great Salt Lake water Myrtle Beach, SC, seawater Manufactured water Fairfax County, VA, tap water Potomac River water Ariel 12/8/2011 Turbidity Test Before After 19

20 RECYCLED AIR DEMINERALIZED WATER PRESSURE CONTROL WATER SEPARATOR POST- TREATMENT (IF NECESSARY) PRODUCT WATER FEED WATER PUMP EVAPORATO R ENERGY RECOVERY CONDENSER Y STRAINER CONCENTRATE DISCHARGE BRINE SEPARATOR LOW PRESSURE AIR RECIRCULATION PUMP 20

21 Authorized by Rebecca G. Abdelnour Certificate No AQ-USA-ANA An ISO 9001:2008 Certified Laboratory 21