An Overview of the SkyMine TM Process. David St. Angelo Vice President Skyonic Corporation Austin, Texas

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An Overview of the SkyMine TM Process David St. Angelo Vice President Skyonic Corporation Austin, Texas

Houston, we have a problem. Worsening Climate Change, Increasing Pollution More Emissions Expanding Demand for Acid Rain, Water Pollution - Carbon Dioxide (CO 2 ) - Nitrous Oxide (NO x ) - Oxides of Sulfur (SO x ) Electricity - Mercury and other metals

Actually, Houston cancel that. Capitalism is coming to the rescue. Skyonic SkyMine TM Process Sell safe chemicals Sell emissions compliance Profit from being green Capture CO 2 as a solid Capture SOx, NOx, Hg Worsening Climate Change, Acid Rain, Water Pollution Increasing Pollution - Carbon Dioxide (CO 2 ) - Nitrous Oxide (NO x ) More Emissions Expanding Demand for Electricity - Oxides of Sulfur (SO x ) - Mercury and other metals

Other Ways of Reducing Greenhouse CO 2 Improved Combustion Absorption + Gaseous Sequestration Strategy Improve Combustion Efficiency i.e. produce less carbon monoxide and carbon dioxide per BTU Scrubbing the sulfur and nitrous oxides has been largely implemented. Experimenting with other fluids Compress CO 2 ; transport and inject into wells, ocean floors, etc. to absorb CO 2 (Amines, Chilled NH3) Status Achieved a 20% increase in BTU efficiency in 25 years It s all played out And the world is moving to crummier fuels Can be 100% effective, but: Increase electric generation costs 84% Raise plant capital costs 90% Works only in certain locations Difficult retrofit Source: EPA Survey 2002

About Skyonic Founded and Incorporated in 2005 by Joe David Jones Headquartered in Austin, Texas Developed SkyMine to capture & sequester CO 2 in solid form Development partner Southwest Research Institute Process Development with LCRA Fayette - 2006 TXU / Luminant Big Brown - 2007 Goal was to develop and deploy a technology that is: Retrofitable Repeatable Deployable Profitable 5

Big Brown SES

What does SkyMine do? Captures carbon dioxide (CO 2 ) in solid form Captures acid gasses (SO 2, NO 2 ) Captures heavy metals such as mercury Produces electrolytic grade hydrogen Sale Clean energy Produces electrolytic grade chlorine Plastics Drinking water Eliminates hundreds of millions of dollars in CapEx and ongoing expense for additional scrubber technologies. Three-fer

Process Overview Solid Sequestration Sale or Peak Power Generation Sale Clean Plant Green Hydrogen Green Chlorine Removes mercury & heavy metals Se, As, Cr, etc Removes acid gasses, SO 2, NO 2 Converts CO 2 to sodium bicarbonate (edible baking soda) Energy that can be transferred from off-peak to on-peak $66B domestic hydrogen market Replaces methane as source for hydrogen Can be sold to $7B domestic chlorine market Displaces highenergy chlorine production

The Skyonic SkyMine TM Process Solution (greatly simplified) Carbon Plant Flue gas Heat Exchange Packed Column Scrubber Gaseous CO 2 is bubbled through a sodiumhydroxide/water solution Sodium-bicarbonate Mine Fill Heat Water Sodium-hydroxide Significant $ Enhanced Oil Recovery Benefit Electricity Salt and water ELECTROLYSIS CELL - + Cl 2 Chlorine (Cl 2 ) (Commercial grade) HCl Frees Up Natural Gas 25% Increase U.S. Na + Selective Membrane $Output Chemicals >> $Input Chemicals Hydrogen (H 2 ) (Compressed Gas) Hydrogen Economy Process Feed Ammonia Plastics Fuels

Impact Minimally invasive requires access to flue gas Onsite footprint dependent on design factors. Chemical production can be operated off-peak to bank chemicals for use during peak times. Sell hydrogen and increase methane availability Sodium bicarbonate disposal in landfill or mine fill. Chemicals (H 2, Cl 2 ) sold through a chemical partner. 10

Sequesters as a solid. Benefits Simplifies disposal No long term liability from gaseous injection Environmental responsibility Leadership in environment Positions for future requirements Retrofittable to existing plants Not dependent on new plants or designs. Profitable On-peak hydrogen return has greater value, off-peak power used Chemical sales generate cash flow to pay for investment and operation Is a profit center! Enables fly-ash sales Uses established unit operations and chemistry Edisonian 11

Results Achieved > 80%-92% CO 2 solid conversion SO X removal 100% & NO 2 99.x% Mercury capture > 97% Produced electrolytic grade H 2 and Cl 2 Unified Process Demonstration (GE Intellution) Confirmed mass and energy balances Waste heat used for anolyte and catholyte heating