Synthetic Materials - SynmatSynthetic Materials - SynmatHistoryHistory

Founded 1994Founded 1994

Mission: Acquire and develop Mission: Acquire and develop sources of synthetic gypsumsources of synthetic gypsum

SynmatSynmat

Dewater, transport and market in excess Dewater, transport and market in excess of 2.5 million tons of synthetic gypsum in of 2.5 million tons of synthetic gypsum in 20062006

Greater than 20% of all synthetic gypsum Greater than 20% of all synthetic gypsum that is consumed in the U.S.that is consumed in the U.S.

5.0 million tons of synthetic gypsum under 5.0 million tons of synthetic gypsum under contract 2010contract 2010

Facility DescriptionFacility Description

Receive scrubber bleed from scrubberReceive scrubber bleed from scrubber

Return effluent to scrubberReturn effluent to scrubber

Produce treated discharge streamProduce treated discharge stream

Horizontal vacuum belt filter systemHorizontal vacuum belt filter system– Wallboard Grade GypsumWallboard Grade Gypsum

Product – 8% moisture maxProduct – 8% moisture max– Reserve recovery from Gypsum StackReserve recovery from Gypsum Stack

TransportTransport

ConveyorConveyor– On site wallboardOn site wallboard

Barge Barge – 400 TPH Loading Rate400 TPH Loading Rate– 350 Barge Loadings Annually350 Barge Loadings Annually

Rail Rail TruckTruck– CakeCake– DriedDried

Synmat - DesignSynmat - Design

Synmat – DesignSynmat – Design

Truck LoadingTruck Loading

Barge LoadingBarge LoadingCumberlandCumberland

Agricultural SalesAgricultural SalesSynmat ExperienceSynmat Experience

Truck load – localTruck load – local– SoybeansSoybeans– Golf CoursesGolf Courses– AquacultureAquaculture

Barge load – riverBarge load – river– Through DistributorThrough Distributor

Agricultural productAgricultural product– Fertilizer FillerFertilizer Filler

Distribution HurdlesDistribution Hurdles

Economic Transport DistanceEconomic Transport Distance– OTR, $0.10 - $0.12 per ton mile (+ fuel)OTR, $0.10 - $0.12 per ton mile (+ fuel)

Seasonal VariationsSeasonal Variations– Two peak seasonsTwo peak seasons

Stockpiling near usage pointStockpiling near usage point

Handling IssuesHandling Issues– Modifications to broadcast systemsModifications to broadcast systems

Business HurdlesBusiness Hurdles

Large Industrial Sales TypicalLarge Industrial Sales Typical– Gypsum WallboardGypsum Wallboard

350,000 – 900,000 tons350,000 – 900,000 tons

– Portland CementPortland Cement35,000 – 200,000 tons35,000 – 200,000 tons

Cooperative ApproachCooperative Approach– Pool Local Users Through CooperativePool Local Users Through Cooperative

Targets for Future SalesTargets for Future Sales

Utility must see economic benefit to salesUtility must see economic benefit to sales– Direct and Indirect Investment in ResearchDirect and Indirect Investment in Research

EPRIEPRI

University GrantsUniversity Grants

Aggressively develop local marketAggressively develop local market– 50 to 100 mile radius around utility50 to 100 mile radius around utility

End-user must see long-term value to gypsumEnd-user must see long-term value to gypsum– Investment in gypsum must generate positive ROIInvestment in gypsum must generate positive ROI