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Technology Development Partner Vann Bush Managing Director, Energy Supply and Conversion August 25, 2015 1 st Clean Coal Industry Forum, Billings, Montana

Company Overview ESTABLISHED 1941 > Independent, not-for-profit established by the natural gas industry > GTI tackles important energy challenges transforming raw technology into practical solutions > Providing energy research, development and technology deployment services, consulting and training to industry and government clients > Offerings spanning the energy value chain Our Staff > Coal technology R&D for over 70 years 2

Three Valleys of Death Mountains to Climb to Reduce Technical Risk 3

Risk Reduction Tools Experienced Development Team Leveraged Facility Assets Disciplined Scale-Up Approach Rigorous Technology Testing Validated Performance Modeling Continuous Improvement Comprehensive team with science, engineering, operations, analytical, and modeling experience Focus investment on the testing the core technology Prudent increments in scale and complexity of operations Full, detailed characterization of potential operating conditions Anchor performance model with quality data Innovate in pilot plant to address deficiencies and opportunities 4

GTI Gasification Development History Development Focus Supply Security Substitute Natural Gas (SNG) Industrial Fuel Gas Biomass, Renewables Syngas to Power - IGCC Syngas to Products Fuels, Chemicals, SNG Flex Fuel and Advanced Gasification Test Facility 2015 CHINA 2000 HYGAS purchased by Chinese chemical company in 2013 U-GAS Pilot Plant and PDU 1970 1980 1990 bluegas coal to SNG China Wanxiang Holdings 800 TPD demo in planning with Yangquan Coal Industry Group Early PDU HYGAS Pilot Plant 1960 1950 1941 Zaozhuang - 2007 Yima - 2012 Lab Facility - 1947 Dr. James L. Johnson EXPERIENCE 5

STEAM-IRON - H 2 HYGAS - SNG U-GAS - Syngas Mild-GAS - Coal-refining RENUGAS - Syngas GTI Energy Development Center : 1951-1996 EXPERIENCE 6

Feed Storage Silo Gasification Pilot-Scale Facilities Gasoline & Waste Water Tanks Cooling Tower Gasoline synthesis Syngas Conditioning Stack Acid Gas Removal Feed System, Gasification, Filtration Feedstock Unloading Syngas Compressor Chiller O 2, N 2, and CO 2 Supply Pilot-Scale Gasification R&D Facilities FACILITIES 7

Clean Coal Development Pathway 10 10 Scaleup 10 9 g 10 6 g 10 3 g Process Design Package for Commercial Plant 10-1 g Pilot-Scale Tests Bench-Scale Gasification Tests Feedstock Properties Tests Modeling / Simulation DISCIPLINED SCALE-UP 8

U-GAS Technology development, improvement, and technical support since 1974 U-GAS technology attributes developed through extensive testing: Gasification modes extended to oxygen- and enriched air-blown Feedstocks extended to all ranks of coal, high ash coals, biomass and wastes Ongoing support for new feedstock qualification Model validated for design First Coal-to-Chemicals 2 x 400 TPD, Zaozhuang Scale-up Coal-to-Methanol 3 x 1200 TPD, Yima Metals Industry 7 gasifiers in Shandong, Shanxi, and Henan First Commercial Reference 6 x 125 TPD, Shanghai TESTING & MODEL VALIDATION 9

GPE bluegas Verification Testing From GPE presentation to DOE Shenhua Group Exchange Program Meeting 6-18-2012 TESTING & MODEL VALIDATION 10

Advanced Gasifier Testing in partnership with 18 tons per day Pilot Plant at GTI started Dec 2009 > Demonstrated performance: 99% carbon conversion High cold gas efficiency Formed protective slag layer Effective particulate removal > Tested 7 feedstocks (including high ash, high AFT Chinese coals) > Verified operating environments > Validated computer models > Obtained preliminary life data > Established operating procedures Injector Gasifier >1100 hours hot-fire testing through June 2015 TESTING & MODEL VALIDATION 11

Integrated Process Testing COAL PETCOKE CONVERSION SYNGAS CLEANUP & CONDITIONING PRODUCTS COAL STORAGE SILO WEIGH HOPPER BED MEDIA MAKEUP WATER ADVANCED SULFUR REMOVAL BLEED COMP ACID GAS ADVANCED CARBON CAPTURE BLEED N 2 RECYCLE TO GASIFIER TAIL GAS TO FLARE STACK N 2 LOCK HOPPER SYNGAS COOLER TIGAS GASOLINE SYNTHESIS FEED HOPPER GASIFIERS: GTI BFB & AR COMPACT HOT GAS FILTER ULTRA HOT GAS FILTER RTI F-T SYNTHESIS CO 2 STEAM CHEMICALS POWER O 2 BED SOLIDS FILTER SOLIDS WASTE WATER GASOLINE, JET FUEL PROCESS INTEGRATION 12

Continuous Improvement Advanced technology Advanced manufacturing Analytical tools Facility capabilities Integrated process testing Advanced compact gasifier Selective laser melting manufacturing of components On-line sampling and continuous monitoring Syngas quality management Piloting syngas production, conditioning, and gasoline synthesis EXAMPLES OF PROGRESS 13

Advanced Clean Coal Gasifier ADVANTAGES Reduced reactor volume by 90% (GTI) Lower capital cost Higher availability (MTBF/MTTR) Lower product cost by 15-25% Less water use by up to 30% High efficiency (99+% carbon conversion) Lower oxygen use Able to gasify all ranks of coal, petcoke Environmentally friendly waste Lower disposal costs INNOVATION Leveraging decades of rocket engine development, gasifier utilizes aerospace inspired injectors and high temperature materials Approach enables gasification temperatures of nearly 1700 C Extreme temperatures enable an ultra-compact design and high efficiency ADVANCING THE STATE-OF-THE-ART STATUS Acquired by GTI from Aerojet Rocketdyne July 2015 Planning 800 TPD Demonstration in cooperation with Yangquan Coal Industry (Group) Ltd - (presentation of Mr. Feng Zhiwu provides details) 14

Experience in Gasifier Development Deploy licensed sold TBD Demonstrate planned* Pilot Develop Invent U-GAS HYGAS GPE bluegas AR Gasifier * Cooperation with Yangquan Coal Industry (Group) Ltd. 15

GTI Clean Coal Power Technology Oxy-PFBC In-bed convective heat exchangers yield an ultracompact combustor Elutriated flow removes ash and sulfur prior to recycle TRL 4: next step pilot plant (20 MW+) demonstration Supercritical CO 2 Cycle Very small systems high efficiency heat transfer at moderate temperatures Allows 2-5x increase in power output for same footprint Lowest increase in electricity cost for carbon capture Produce electric power with near zero emissions Produce pure CO 2 for EOR or storage Rankine or Brayton cycle configurations 16

Carbon Capture Technologies Carbon capture using solid mesoporous sorbents for integrated gasification combined cycle (IGCC) power plants Carbon capture for syngas or flue gas with CarboLock hollow fiber contactor (HFC) technology 17

GTI Experience as Technology Development Partner Technology De-Risking Component development/testing Design, construction, and operation of pilot plant Process Design Packages for FOAK plants Technology Transfer Consulting during detailed engineering Plant commissioning and startup assistance Plant debottlenecking and performance testing Deployment Support Market/opportunity analysis, team building Project management Training/troubleshooting in integrated pilot facility 18

Tackling Important Energy Challenges and Creating Value for Customers in the Global Marketplace Contact information: Vann Bush Gas Technology Institute 847-768-0973 vann.bush@gastechnology.org 19