BIOMASS GASIFICATION TECHNOLOGIES

Keith PauleyKeith.Pauley@matricresearch.com

800-611-2296 x81

Chemical and Environmental Technologies

Health and Life SciencesAdvanced Engineering

Systemswww.matricresearch.com

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About MATRIC

MATRIC is a 501(c)(3) non-profit research and development corporation formed in 2004

– Reinvest earnings in new research– Offices in Charleston (WV), Morgantown (WV)

and Oak Ridge (TN) and Milan, Italy

Research and engineering staff of nearly 150

– 33 PhD-level researchers– 9 professional engineers + access to

Dow downsized staff– 25+ average years of experience– 2 members of US National Academy of

EngineeringMATRIC has a focus on developing intellectual properties for commercial and industrial customers and adding value throughout the technical services, research, development, engineering and commercialization processes

MATRIC was formed from the downsizing of over

2000 research scientists and engineers located at the Union Carbide Tech

Center, South Charleston, WV from 2001-2008

South Charleston Technology Park Facilities

World-Renowned Research and Development Campus

– 651 acres– Two major chemistry laboratory

buildings– Three major pilot plant

complexes– Major engineering building– Major computer data warehouse

MATRIC currently occupies Building 740

– Over 35 wet chemistry labs– Engineering space– Access to over 32 multi-story

high pressure pilot plant cells

Significant analytical equipment and engineering software

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Significant history of research and development at this site• Over 30,000 international patents• 286 of the largest 500 chemicals in the world were first produced at this site

Professional Engineering to Implement Innovation

(detailed design, construction management, operations training)

Commercialization to Access Markets (license or start-up companies)

Laboratory and Pilot-Scale Research and Development to Create New Innovation

(intellectual property development)

Full Innovation Life-Cycle Service

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MATRIC Enterprise

Non-Profit R&D

Corporation

For-Profit Commercial R&D

Corporation

Holding Company to Commercialize IP

Full Service Professional

Engineering Firm

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MATRIC Full Innovation Life-Cycle Offering in

Europe

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MATRIC/MCR Business Areas

Environmental TechnologiesCarbon dioxide captureWater purificationNatural gas purificationSelenium and metals removalNuclear remediationSoil restoration

Pharma and Fine ChemicalsAPI process developmentMicroreactor systems

Fossil Fuels and ProductsEthane derivatives from Natural GasCoal to LiquidsCoal GasificationIntegrated Gasification Combined CycleCoal to ChemicalsMine safety equipment

Biomass Fuels and ProductsBiodiesel developmentCorn ethanol developmentCellulosic ethanol developmentBiomass gasificationAnaerobic digestionBio-polymers and chemicals

Chemical, Energy and Environmental Technologies: Product Areas

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MATE Capabilities and Skills

Detailed Engineering– Chemical process engineering– Control system engineering– Electrical system engineering– Mechanical engineering– Civil engineering– Drafting

Procurement– Major equipment– Minor equipment– Bulk material

Construction Management– Construction oversight– Process Representation

Operations Training and Start-up– OSHA training– Process operations training– Plant process start-up support

Project Management MATE 8

Overall Research and Engineering Enterprise

Laboratory Research

Conceptual Process Design

Detailed Process Design

Procurement Construction Management

Operations Training and

Start-upContinuous

Improvement

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MATRIC/MCR Capabilities MATE Capabilities

TrainingCost and Schedule Tracking

Procurement Specialists

Design/DraftingCost Estimation

Scheduling

DraftingCost Estimation

Scheduling

Supporting Processes

Mid-Atlantic Holdings

MAH holds and commercializes the intellectual property portfolio of MATRIC through licensing and the creation of technology-based companiesMAH intends to introduce 2 –5 new companies and opportunities per year into its portfolio

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Current Start-up Companies

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CNT Development Corporation, LLCCNT Development Corporation, LLC

• JTC Pharmaceuticals – T-Cell based diagnostic process kits• SGA Chemicals – Bio-based monomer and polymer manufacture• Aither Chemicals – Ethane derivative chemicals• Transparent Armor - Optically transparent and bullet resistant

polymer technology initially focused on the optical lens market.• NG Innovations - Solutions to treat salt water for economical disposal

and remove water, heavy oils, CO2 and N2 from natural gas.• Liberty Hydrologic Systems- Systems to remove selenium and

other heavy metals from environmental water• CxNanoPhysics–Technology to produce carbon nanotubes for

structural and electronic applications• Moonshine Fuel Ethanol - Construction and operation a cellulosic

ethanol facility• Mountaineer Biofuels – Construction and operation of biodiesel and

biomass gasification facilities• Certus Scientific—Partnership with disadvantaged, woman-owned

business to pursue federal research, development and engineering contracts

• AKJ Industries – Royalties received for coal railcar de-icing product based on glycerin license.

BIOMASS GASIFICATION PROCESSES

Pyrolysis and Torrefaction

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General Pyrolysis Systems

Pyrolysis heats biomass in the absence of oxygen– Products: Methane, Bio-oil, Water and Char– Feed: Various biomass (ag waste, wood, switchgrass,

landfill waste, etc.)Projects conducted include:– Worked with BEST Energies on systems in Australia

and Wisconsin– Development of novel variable feedstock pyrolysis

reactor system– Design of 100,000 ton per year pyrolysis system in

West Virginia• Provisional patent on Cascading Baffle Pyrolysis

Reactor Design

Overall MATRIC Pyrolysis Project

Working with major surface mining operations– 100,000 wet tons per year of wood chips available

• 1000 acres of timbered hardwoods– Primary product is electricity

• Will be used in mining operations– Bio-char will be used for on-site soil remediation

Wood chipped in field and hauled to pyrolysis unitBio-oil used as a fuel for combustionBio-gas used with gas turbines

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Pyrolysis Economics

Size of Facility 100,000 wet tons 2.5 MWRevenue 10 MW-hr/yr $350,000/yr @ 0.035$/kw-hr

$0 revenue from biocharOperating expenses 7 staff + utilities $780,000/yrCapital debt ~$25MM ~$4MM/yr

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General Torrefaction Systems

Torrefaction heats biomass in the absence of oxygen at relatively low temperatures (~300 C)– Products: Solids with 95% BTU content of coal, water+low MW

organics– Feed: Various biomass (woodchips, ag waste, wood, switchgrass,

landfill waste, etc.)Projects conducted include:– Development of novel variable feedstock torrefaction reactor

system– Design of 100,000 ton per year torrefaction system in West Virginia

• Provisional patent on Dual Stage Torrefaction System– Separate drying and torrefaction steps

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Overall MATRIC Torrefaction Project

Working with major surface mining operations– 100,000 wet tons per year of wood chips available

• 1000 acres of timbered hardwoods– Primary product is torrefied wood pellets

• Will shipped to Europe for industrial heating use

Wood chipped in field and hauled to torrefaction unitMay be located at coal operation preparation plant to share resources and promote shipment to domestic coal users

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MATRIC Torrefaction System

Wood is chipped in the forestTraditional wood chip drierGravity-fed, counter-flow torrefier2-step emissions control– Mixing organics into combustion feed stream– Traditional scrubbing system

Optional process to form pellets for shipment

Wood Chipper Drier Torrefier Emission

Control Pelletizer

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Torrefaction Economics

Size of Facility 100,000 wet tons 40,000 tons torrefied woodRevenue $2.8MM @ $70/ton (coal price)Operating expenses 7 staff + utilities $780,000/yrCapital debt ~$12MM ~$2MM/yr

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Summary

Biomass gasification is economically challenged– Low price for products does not create significant revenue to justify

risk-based investment– The economics will be significantly impacted by future technology

break-throughs– Carbon taxes may artificially create opportunities for biomass-derived

energy productsMATRIC is a rapidly expanding research, development and engineering organization conducting high-value-added, fast-pace market-driven projects for a variety of global customers– Mature management team and world-class research staff– Unique facilities and significant equipment– State-of-the-art engineering tools and processes

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