Coal Gasification, Liquid

Fuel Conversion (CTL),

and Cogeneration

1

Prepared By: Farid Seif / CEO

DuTemp Corporation

Table of Contents

2

Introduction

Section I

Section IV

Section II

Section III

Section V

Section VI

DuTemp Corporation

Plasma Arc Reactors

Plasma Arc Process

DuTemp Business Model & Costs

DuTemp Plasma Arc Flow Charts

Introduction to Plasma Arc Technology

Current Gasification Technologies

Section VI Case Study – Illinois

Who We Are

DuTemp Corporation provides the owners representative management function normally provided by executives of major oil refining companies addressing all of the applicable and typical issues and phases involved in a project of this nature. Our capabilities come from years of working in refining related areas.

These areas include:

refinery project development;

greenfield and revamped refinery project startup;

crude and product supply and coordination;

refinery operations, maintenance, staffing and organizational development.

With this function, significant expertise is provided in areas of refining markets, grass roots refining configuration and project development, efficient manning and operations, and possibly most important, refining engineering problem solutions not addressed by other engineering firms.

This expertise consists of smaller issue-specialized analytical capabilities derived form former oil executives, refinery managers, engineering managers and project construction executives who are willing to contribute to the project's success. A number of our individuals have prior greenfield refinery project development experience in major refining complexes around the world.

3

DuTemp’s “Performance Guarantee”

DuTemp Corporation will GUARANTEE the Performance of its

Plants against the Benchmarks set by FEED Study;

In the event of Plant Performances not meeting the Benchmarks set

by FEED Study, DUTEMP RETURNS 100% OF INVESTMENT

WITHOUT ANY QUESTIONS;

DuTemp’s Financial Guarantees are Tradable Instrument from “AA”

Rated Bank. The said instrument maybe any of following:

Bank Guarantee (BG)

Bank Promissory Note

Medium Term Note (MTN) with up to 7.5% interest coupon

Equal to Amount of Investment (DuTemp’s Choice)

DuTemp builds its Plants under “Standard Guarantee” requirements

mandated by the Hosting State/Country;

DuTemp Corporation is the ONLY Company in the World that

provides “Performance Guarantee” and “Financial Guarantees”

towards Plasma Arc Reactor.

DuTemp’s Plant’s design exceeds all emission mandates set by US-

EPA, European Union, IMF, World Bank and WTO and will meet all

ISO Certifications.

4

PLASMA ARC TECHNOLOGY

Section I

5

Plasma Arc Technology

WHAT IS PLASMA?

Fourth State of Matter,

Ionized Gas Created by Converting

Electrical Energy into Thermal Energy,

Creates Extremely High Temperature /

Energy Levels,

Thermal Arc at 30,000 to 33,000 Degrees

Fahrenheit,

“Fourth State” of Matter,

Ionized Gas at High Temperature Capable

of Conducting,

Lightening is an Example from Nature.

6

Chemistry

Basic Chemistry

Matter is made up of molecules

Molecules are two or more

atoms held together

Atoms are held together Atomic

Bonds

Atomic Bonds have a certain

amount of energy – the Bond

Energy

If the Bond Energy is exceeded,

the Bond Breaks

Plasma Chemistry

With these high temperatures

(above 2,250 Degree Fahrenheit),

molecules exposed to a plasma are

ionized and broken into individual

atoms.

These atoms can then be re-

combined into simple compounds

when temperature is lowered.

It does not matter what molecule is

exposed to plasma, all will

dissociate.

7

Plasma Arc Technology

PYROLYSIS:

Without Oxygen, materials in furnace don’t combust,

Pyrolysis – Dissociation of Compounds into their elemental atoms

and reforming them into a fuel gas-referred as “Reversed Nano

Gasification”.

Oxygen is a by-product and not part of Process versus

Incineration /Atmospheric Gasifiers that requires Oxygen (all

others).

Oxygen is not part of the process but a by-product.

8

Plasma IS More Efficient

Plasma is more efficient than older methods of gasification.

The Carbon to Carbon Bonds are more difficult to break. This can

not be done easily in conventional Atmospheric Gasifiers due to their

low temperatures – that is why Char is formed. Plasma breaks these

bonds so all of the carbon is converted.

The Plasma Reaction is Endothermic. Therefore, all of the Energy

required for the process is available for recovery later.

9

Plasma Arc Technology Remediation Experience

Heavy Metals

Radioactive Wastes

Industrial Sludges

Municipal Solid Waste

Electric Arc Furnace Dust

Liquid / Solid Organic Wastes

PCB’s

Spent Fuel (Rods)

Asbestos

Chemical Wastes

Medical Wastes

Plastics

Used Tires

Coals (Hi Sulphur / Low Grade)

Heavy Crude Oil

Bio Hazardous

Bio-Radioactive

10

Syngas By-Products

The following is a short list of products directly derived from Syngas:

Middle Distillates:

107 to 125 Octane Near Pure Bio-Gasoline

75 to 77 Cetane Near Pure Bio-Diesel

Jet Fuel 1 to 8 Near Pure Form

Naphtha, Paraffin, LPG

Ammonia

Urea

Ammonium Sulfate

Hydrogen

Dimethyl Ether

Ethanol

Various Ox chemicals Used in Paint Manufacture

Butyraldehyde

Butanol

2-Ethylhexanol

Di-octyl-phthalate

Carboxylic Acids

Polymers: Ethyl, Ethylene, Polyethylene, Propylene, Polypropylene, Styrene, etc..

11

GASIFIFACTION TECHNOLOGIES

Section II

12

How Many Gasification Technologies Are Out

There?

1. ATMOSPHERIC GASIFIER OR HYBRID INCINERATION USING FLAME AND STARVED OF

OXYGEN.

2. ATMOSPHERIC GASIFIER OR HYBRID INCINERATION USES PLASMA TORCH AND STARVED

OF OXYGEN.

3. PLASMA TORCH TECHNOLOGY WITH ENCLOSED REACTORS AND GASIFICATION IN

ABSENCE OF OXYGEN

4. DUTEMP/ATONN SYSTEM: PYROLYSIS IN ABSENCE OF OXYGEN WITHIN ENCLUSED

REACTOR.

13

Atmospheric Gasifier or Hybrid Incineration using Flame

and Starved of Oxygen

Atmospheric Gasifier or Hybrid Incineration using flame and starved of Oxygen manufactured

by: GE, Shell, Conoco, Chevron, Texaco, Sasol, Eastman Kodak, Chinese Low Temp, Gasifier,

(hereinafter: others) cannot meet EPA mandates and requires CO2 sequestering.

Low rate of conversion – up to 32% of Carbon Molecules’.

Operating Temperature is less than 1700 degrees Fahrenheit producing Furans, Dioxins, CO

and CO2 during gasification process.

System could go in reveres at any time that will cause shut down and re-starting.

Requires land-filling, massive scrubbing and gas cleanup.

Produced Syngas is not clean. Use of Amine unit for CO2 separation considered very

challenging/expensive as the impurities in produced Syngas will shut down the Amine Unit.

Finished products contain contamination and not very clean.

14

Atmospheric Gasifier or Hybrid Incineration uses Plasma

Torch and Starved of Oxygen

Atmospheric Gasifier or Hybrid Incineration uses plasma torch and starved of Oxygen

manufactured by: Westinghouse currently owned by “Plasco Energy Group” of Canada and

marketed by “Green Energy Technologies” of Florida, (hereinafter: others) CANNOT meet

EPA mandates and requires CO2 sequestering.

Low rate of conversion- up to 32% of Carbon Molecules’.

Operating Temperatures is about or less than 1700 degrees Fahrenheit producing Furans,

Dioxins CO and CO2 during gasification process.

System could go in reveres at any time that will cause shut down and re-starting.

Requires land-filling, massive scrubbing and gas cleanup. Produced SynGas is not clean.

Use of Amine Unit for CO2 separation considered very challenging/expensive as the impurities

in produced SynGas shut down the Amine Unit.

15

Plasma Torch Technology with enclosed Reactors and

Gasification in Absence of Oxygen

Plasma Torch Technology with enclosed Reactors and Gasification in absence of Oxygen

marketed by others, can meet all EPA mandates and does not require CO2 sequestering.

Excellent systems for small applications when quick “On and Off” (such as Hazmat) is required

Operating temperatures is over 2650 degrees Fahrenheit thus Furans, Dioxins will not form.

Conversion rate of Carbon Molecules’ is 88% or better and does not require land-filling.

All by-products are saleable.

Produced Syngas is very clean and near pure form.

Amine unit works properly to its maximum life expectancy.

System could go in reveres seldom that will cause shut down and re-starting.

16

DuTemp/ATONN Systems: Pyrolysis in absence of

Oxygen within Enclosed Reactor:

ATONN system: Pyrolysis in absence of Oxygen within enclosed reactor, jointly developed in

NASA and U.S Government’s labs. Patents were released by year 2000.

Can meet/exceed all current/future air and water permit requirements/mandates.

Excellent system for large operations where the reactor can stay on continuously for a year or

more.

Conversion rate of Carbon Molecules’ is 98% or better and does not require land-filing.

All by-products are saleable. Produced Syngas is very clean and near pure form therefore

Amine Unit works properly to its maximum life expectancy.

U.S Government has been the primary user of ATONN Reactors with over 30 years experience.

Massive Data for different applications including Coal processing has been collected by DOE,

DOD, EPA, NASA, Los-Alamos Lab. Current use by U.S Government.

17

DuTemp CTL Plants DO NOT Differentiate Between

the Quality of the Coal

DuTemp CTL plants do not differentiate between the quality of coal. Our concern is

the actual chain of Carbon Molecules. Our process is not combustion but Pyrolysis

or the dissociation of molecules or breaking apart of “Molecular Bonds”.

18

PLASMA ARC REACTORS

Section III

19

Standard Atmospheric Gasifier by “Others”,

NOT Plasma Arc Enclosed Reactors

20

Some of the Advantages of Plasma Arc Reactor

DOES NOT Differentiate between the Quality of Feedstock;

ANY TYPE of Carbon is Considered Feedstock;

Moisture in Coal is a Plus in this Process;

Coals BTU’s are NOT Important in this Process since it is NOT Combustion;

In the Absence of Primary Feedstock, Plant can Switch to Other Sources of carbon

base materials

Feedstock without Limitation;

Can Produce Electricity, Liquid Fuels or BOTH;

The Plant can be easily Expanded without Major Transformation of Original

Installations.

21

Plasma Torch in Enclosed Reactor

Can meet the US-EPA Emission Guidelines,

Produces NO Greenhouse Gas,

Produces 10% or more Slag (pending % of in-organics) for

Every Ton of Feedstock that Converts to Rockwool,

Has the Ability to Recover Metals in Slab Form,

$42,000 Per Barrel on Gasifier Only,

Extremely High Maintenance and Expense Due to Short Life

Cycle of Torch,

Operating Cost for MSW is $440 per Ton and for Coal is

$800 per Ton,

Maximum Life Cycles are:

30 Days on Torch to Replace the Copper-Head and

Torch Replacement,

Every 6 to 12 months the Torch must be Revamped,

Every year the Reactor must be Maintained,

Reactor Life-cycle is 30 plus years,

30 Months to Implement

22

Plasma Arc Enclosed Reactors (Controlled Process)

Exceed All the Current US-EPA Emission Guidelines;

Zero Emissions from Reactors, Zero Wastewater Discharges;

Produce 10% b to 30% slag (pending % of in-organics) for every Ton of Coal that

Convert to Rockwool or Gypsum;

Metal Recovery is Viable when its Presence is 2% plus in the feedstock;

Every Liquid fuel/Polymer By-Products from Syngas are Near Pure (with

Exception of Trace Elements of Catalysts from the Conversion of Syngas to Liquid

Forms in PPM/PPB);

Construction cost is $33,000 per Barrel on Reactor Facilities Only;

Extremely Low Maintenance Cost Due to the Long Life Cycle (50 years);

Maintenance Cost Less Than $2.0 Million per Reactor per year (1000 MT/Day);

Operating Cost for MSW is between $17 to $22 per MT and Coal is up to $65 per

MT but can be reduced significantly in larger operations;

Maximum Life-cycle is 50 years before major revamp;

Every 12 to 18 months requires Maintenance and Graphite Rods replacement in a

12 day Maintenance Shut Down;

Manufacturing and Installation is between 24 to 30 Months.

23

Plasma Arc Technology

The End Product from the Reactor are Always the Same. The

Ratios may Vary depending on Changes in Chemistry or carbon

chains.

WHAT GOES IN MUST COME OUT..

ORGANICS: Turn to Syngas as a Fuel or Chemical Raw Material;

INORGANICS: Turn to Vitreous Slag that is Non-Leaching and

exceeds EPA Tests;

METALS: Are Recoverable in Ingots or Billets in Reducing

Environment.

24

Plasma Arc Process and Its Finished Products

SYNGAS: Mainly Hydrogen and Carbon Monoxide.

Significant Raw Material;

SLAG: Can be Spun into Rockwool for Insulation,

Fibers have Multiple Uses (Hydroponics,

Tiles, etc), Turn to Frit for Blasting Media,

Cast into Tiles or Used as Aggregate;

METALS: Pig Iron, Billets. Very Easy to Analyze

and Provide Chemical Certification.

25

Coal the Most Abundant Fossil Fuel in the World..

LOCATION OF THE WORLD’S MAIN FOSSIL FUEL RESERVES

26

PLASMA ARC PROCESS

Section IV

27

Heat Balance

The Carbon content of average Coal (on net basis) will dissociate or thermally

depolymerise into 180,000 to 196,000 cubic feet of synthesis gas per net ton, having an

energy value of 300 BTU per standard cubic foot of gas.

The heat rate for ATONN combined cycle power generating system is expected to be

about 42.277 or lower, generating 8,160 kW per ton of Coal that is processed.

The processing of 1000 tons of Net Coal per day or 41 tons per hour will release 8,118,000

cubic feet of synthesis gas per hour with a total BTU value of 2,435,400,000 BTU/HR.

At a heat rate of 7,277 the ATONN combined cycle gas turbine system will generate a

gross of 334.56 Megawatts of Electricity per hour, twenty-four hours a day.

When we deduct 104 Megawatts of this electric current to maintain the plasma arc and for

other plant requirements, we are left with available supply to the grid of 230.56 Megawatts

per hour (5,533.44 Megawatts per day).

Heat Recovery through Freon Driven Turbines are added value and can increase the power

production between 5% to 7%.

Disclaimer: All above numbers must be verified through FEED Study and Turbine selection.

28

CO2 Capturing

Gas separation occurs 2 times during the Syngas production process: right after

gasification itself and during burning the Syngas for power generation purposes.

DuTemp Reactors will separate most impurities up front during the gasification

itself. Therefore, there are less pollutants in produced Syngas versus the

Atmospheric Gasification which cannot scrub out any impurities during first phase

of gasification and must goes through expensive clean-up in a later phases through

scrubbing techniques that are proven too costly. In the said system (by others),

produced Syngas (only up to 32% conversion rate based on the carbon molecules) is

highly contaminated with all different components including lots of CO, CO2,

Sulphur and Metals due to uncompleted process. The presence of such impurities

make it very difficult and expensive to manage the Syngas Clean Up.

In order to separate the CO2 from the smoke-stack, the plant must be equipped with:

Alkyl base Amine Unit , or

Membrane Base Amine Unit

Both type of Amine Units will shut down with the presence of impurities, especially

metals in the processed gas.

The gases produced in our power plants would not effect the performance or

efficiency of Amine Units as there are no impurities present in the gas (Impurities

are scrubbed out upfront and in the reactor and water filtration). 29

CO2 Capturing (cont’d)

CO2 separation success rate in in ATONN systems' power generation Smoke-Stack

is 98% or better that it is far below US-EPA mandates.

All other known systems including Atmospheric Units (such as GE, Duke, Shell,

Texaco, Sasol, Conoco, Chinese Gasifies, Eastman Kodak) or those using

Atmospheric Units with Plasma Torch (Westinghouse Systems and most others

claiming they are selling Plasma Technologies(, cannot use the Amine Units

efficiently due to impurities in their produced Syngas (first phase) and in their

Smoke Stack (second phase) that will cause Amine shut down quickly. The

captured CO2 requires sequestering process due to hi contaminants and difficulties

with Amine process.

CO2 sequestering is experimental, expensive and not a viable solution for 21st

century.

When the costs of Scrubbing and sequestering are added to a project value

(CAPEX), the project financially is bankrupt.

It is our opinion that the U.S Government shall not be responsible for CO2

Sequestering or its associated costs as it will permit bad practices.

30

How to Eliminate Nox, reduce CO2 Foot Print and Increase

Efficiency in Power Plants?

DuTemp will consider using the following blends of gases in its power

generation units:

40% Syngas

12% Hydrogen

48% Pure Oxygen

No Air is permitted in the Power Plant’s fire chamber thus no Nox.

With Using this Model, your finished products from the Smoke-Stack are:

Near Pure Water that will be recycled back to the Plasma Reactor or Hydrogen

Plant for self consumption;

Steam through use of Freon Driven Turbines, its heat is extracted to produce

electricity and also the steam will be condensed to produce more water.

Near pure CO2 will be captured by Amine Unit for sale. If no market for sale, CO2

will be recycled back to Plasma Reactor.

This balance is not possible with any other fuel for power generation except near

pure Syngas produced in DuTemp’s Reactors.

31

Leach ability of Vitrified Coal Residue (TCLP) by US-EPA

Metal Permissible

Concentration (mg/l)

Measured

Concentration (mg/l)

Arsenic 5.0 <0.1

Barium 100.0 <0.5

Cadmium 1.0 <0.02

Chromium 5.0 <0.2

Lead 5.0 <0.2

Mercury 0.2 <0.01

Selenium 1.0 <0.1

Silver 5.0 <0.5

32

Syngas Properties By US-EPA

Total Vapor

Flow rate Lbmol/hr 3731.9294 3731.9294

Molecular Weight 13.2391 13.2391

Enthalpy Btu/lbmole 473.6162 473.6162

Entropy Btu/lbmo/R 2.4659 2.4659

Cp Btu/lbmol/R 7.0096

Cv Btu/lbmol/R 5.0181

Cp/Cv 1.3969

Density Lb/ft3 0.034993

Z-Factor 1.0005

Flow rate (T-P) Ft3/sec 392.2015

Flow rate (STP) Mmscfd 33.9839

Viscosity cP 0.014973

Thermal Conductivity Btu/ft/hr/F 0.054064

Critical Temperature (Cubic EO) F 705.2

Critical Pressure (Cubic EOS) psia 3198.8

Heating Value (gross) Btu/scf 307.89

Heating Value (net) Btu/scf 277.35

Dew Point Temperature F 100

Bubble Temperature F -379.67

33

Sample Emissions Data From Plasma Treatment Process

DATA OBTAINED FROM PLASMA TREATMENT OF MEDICAL WASTE BY US-EPA

34

TOTAL SUSPENDED PARTICULATE MATTER

0

100

200

300

400

500

600

700

Plasma Terminal

Treatment System

Typical Incinerators US EPA

Regulations

SYSTEM

CO

NC

EN

TR

AT

ION

(m

g/d

sc

m)

BUSINESS MODELS & COSTS

Section V

35

Business Model - I

Coal Conversion Plant through Plasma Arc Reactor to convert 2000 to 3000 MT/day of net

Coal and produce 530 MWH to 720 MWH Electricity, (all numbers are assumptions and not

valid until evaluated through FEED Study);

The Coal Conversion facilities will be designed for 24/7/365 operation by using one spare

additional Reactor for maintenance;

Total Reactors are either 5 x 1000 MT/day or 7 x 1000 MT/day (Size of Reactor’s processing

capacities are based on MSW. When consuming Coal, processing will be reduced by 50% of

its actual feeding capacity but the SynGas production is 4 to 6 times higher);

One Reactor is on Standby for the maintenance of Other Reactors working on-line;

Power Generation Equipment may vary, but for this assumption, we propose 3 x GE Frame-

7FA or Dual GE Frame-9FA Power Plants;

Secondary Power Generation through Freon/Propane Driven Turbines are viable and increases

the yield between 5% to 7% (additional investment required).

36

Business Model - I / Advantages

Near Zero Emission from Plasma Reactors;

Very Low Emissions from the Power Plants;

Zero Fly Ash, No Mercury, etc.

Produced CO2 from burning the Syngas in Power Plant are free of any impurities and 98% of CO2 can be

captured for sale in pure form or can be recycled back into the Plasma Reactor as feedstock in absence of

market demand;

No Land-filling, No Residuals, All By-Products are Marketable;

No need for Cooling Towers and thus, less Water Consumption; Water quality for usage is not important.

50 years Life Expectancy on Plasma Reactors;

Price Tag is about $1.2 Million to $1.4 Million per MW of Power or between $720 Million to $840 Million for

Plant with Power Generation capacity of 530 MWH to 720 MWH (must be verified through FEED Study);

The Cost of Implementation is 1/3 less than IGCC configuration with Atmospheric Gasifier by Others such as

Sasol, Shell, GE, etc..

37

Business Model - II

Two Step Construction of a 250,000 bbl/day Coal to Liquid (CTL) Facility;

Feedstock: “ any types of Coal Deposits”

First Phase: 8000 MT/day Net Coal to produce 50,000 bbl/day Liquid Fuels and

100 MW/HR Electricity for export to the Grid;

Second Phase: Additional 26,000 MT/day Net Coal to produce 200,000 bbl/day of

Liquid Fuels and 300 MWH Electricity;

Types of Fuels in First Phase: All Bio – Diesel, Gasoline, Jet Fuel

Second Phase Fuel Production: Additional Core Products including C-3 to C-15

for secondary manufacturing.

Plant’s required land is between 220 acres to 500 acres with Buffer zone mandated

by Local Codes and State Regulations.

38

Plasma CTL Process by DuTemp

39

DATE

11/01/07

BYJH

PROJECT P102

DuTemp Coal To Liquids Plant

DuTemp Corporation

SIMPLIFIED

PROCESS FLOW DIAGRAM

210-1556

+Coal

Feeder

Slurry

210-1403

FVHP

Steam

210-1

107

FV

TV

FV

Quench

210-1511

CW

21

0-1

20

2

210-1536

210-1326

PV

PV

To Flare

PV

OFFGAS

OFFGAS

210-1537

LV

LV

%

s3015

5,1

82

ID

E

T

a

n

g

e

nt

1 7, 9 5 5

A

1A

2

D

5 1 0

6 1 0

6 1 0

2 4 2 0

1 5 2 5

4 5 5 0

1 5 2 5

B y

B

5

B

2

PSA

ADSORBER

BEDS

PCFCPC

PC

623

660

210-1230

210-1

231

210-1556

210-1

110

CW

210-1385

LV

s1410

210-1555

s1412

210-1335

+ s1419

.

%

LVs1416

s1407

FV

s1421

s1420

11-T-101

11-T-101

11-T-101

11-T-101

MCC

Fame 7FA Steam Turbine

Steam TurbineFame 7FA

Power

Plant

Plasma Unit

Fischer-Tropsch

CCR Platformer

Amine Unit

Compression Unit

Diesel

Gasoline

To Amine Unit

From Amine Unit

Recycle from

FT Reactors

5,1

82

ID

E

T

a

n

g

e

nt

1 7, 9 5 5

A

1A

2

D

5 1 0

6 1 0

6 1 0

2 4 2 0

1 5 2 5

4 5 5 0

1 5 2 5

B y

B

5

B

2

5,1

82

ID

E

T

a

n

g

e

nt

1 7, 9 5 5

A

1A

2

D

5 1 0

6 1 0

6 1 0

2 4 2 0

1 5 2 5

4 5 5 0

1 5 2 5

B y

B

5

B

2

Preliminary Flow

Diagram

Size Does Matter

No Other Company is proposing gasification plants using plasma over 1500

barrels per day production from processing 300 MT/day Coal due to their reactor

size restrictions. Such an operation is not feasible to the market place and does not

impact it in any way or shape.

DuTemp proposes to start with a 50,000 barrels per day production unit through

processing 8000 MT/day of net Coal that can easily be ramped-up to 250,000

barrels per day plants using 33,000 MT/day net Coal. Such an implementation

would gets the market’s attention as it is making a statement with its operational

size.

The most difficult aspect of fuel production after producing near pure Syngas is

the “Compression Units” prior to “FT” process (Liquid Phase). This has been

solved by DuTemp while still a major obstacle for others;

Bigger Plants are more efficient due to the ability to use larger frame power plants.

When comparing the GE LM6000 with Frame-9FA, the Frame-9FA is 300% more

efficient with while consuming the same amount of SynGas.

40

Cost of Construction Per Plant

$33,000+ plus per Barrel on Reactors

$22,000+ plus per Barrel on GTL Vessels

First Phase Investment: $2.45+ Billion

Second Phase: $4.8+ plus Billion

(can be self-financed against the income of first phase after 6 months in

operation)

Total Cost for 250,000 bbl/day: $7.25+ plus Billion

Storage Facilities: 15 days

Storage Target Capacity: 90 Days through additional investment.

41

Conversion on $$ Basis

One Ton of average Quality Coal is up to $50 USD delivered to Plant;

One Ton of Standard Specs Liquid Fuel being made from Crude Oil is about $700

USD/Ton;

One Ton of CTL Fuel with Near Pure Specs is above $1500+ USD/Ton;

GTL Products are being made from Natural Gas (NG) only at this time;

The Three Major Producers of GTL Products in the world are: Qatar, Iran & Saudi

Arabia while U.S. is a net importer of these products at this time,

There has been Limited Production of GTL in the World due to the High Price of NG in

the past;

GTL/CTL Products are Primary Additive Components for Refiners as Octane and

Cetane boosting components;

Octane and Cetane boosting processes in Refineries are the most costly and dangerous

part of refining;

Refiners are the Main Importers of GTL Fuels around the World;

CTL Plant can complement the Refiners Daily Operations and Reduce their cost of

Importation that will be passed to their consumers;

Coal to Liquid Plants compete directly with Gas to Liquid Plants (GTL);

CTL production costs are 1/3 less than GTL production costs due to lower price of

feedstock.

42

Strategic Storage Facilities

If and When the Investor can build and maintain 90 days fuel storage base on 5.0

Million bbls/day usage, it will become a strategic reserve in and around the world;

50 million barrels storage facility would control the prices in the market place,

Governments and Refiners may consider a monthly rental agreement for such

reserves in excess of $10.0 Million plus per month;

Storage Shelf Life: Diesel Gasoline Jet-Fuel

From Refineries: 6 Months 6 Months 6 Months

From CTL Plants: 8 Years 8 Years 8 Years

Biodegradable from Standard Refineries: NO

Biodegradable from CTL Plant: YES

43

Other Components From Syngas Downstream Productions

The ox synthesis process is also known as hydroformylation. It involves

the reaction of CO and H2 with olefinic hydrocarbons to form an

isomeric mixture of normal and isoaldehydes.

It is an industrial synthetic route for the conversion of olefins (in the C3-

C15 range) to produce solvents, synthetic detergents, flavorings,

perfumes and other healthcare products, and other high value commodity

chemicals.

Over 2000 components can be made from these chains;

Toys made from Syngas components are free of all hazardous materials.

This is a $33.0 Billion USD per year industry.

44

Production Costs Comparison

Production Costs Comparable with Saudi Arabia

Saudi Arabia Exxon Valero CTL

Feedstock Costs $2 bbl $18 bbl $65 bbl $7 bbl

Processing Costs $7 bbl $6 bbl $5 bbl $7 bbl

Transportation $4 bbl $3 bbl $0 bbl $1.5 bbl

Total $13 bbl $27 bbl $70 bbl $15.5 bbl

Return on Investment from CTL Plants is minimum 85% per year. This is a A+

rated project.

45

Comparative Diesel Qualities & Standards

Production Ratio from CTL Plant

ITEM Commercial CA CTL Diesel US-EPA 2006

Cetane Index > 32 > 48 > 70 > 46

Aromatics (vol%) < 35 < 100 0 < 35

Sulphur (wt%) < .30 < .050 0 < .0015

Ratio of Products from CTL Plants.

Diesel: 60%

Gasoline: 35%

Jet Fuel: 15%

There are up to 15% other components from FT process such as NAPHTHA and Paraffin that

is being recycled back to the Plasma Reactor in the first phase plant.

Part of the process to remove Sulphur from Coal is through adding Oxidants/Fluxes such as

Lime or Limestone, etc. However, one of the best components for this portion of the process is

the use of sludge from waste water that we hope to be used in our plant.

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DUTEMP’S FLOW CHARTS

Section VI

47

Table of Contents

Bio-Radioactive Waste to Electricity

Coal to Electricity

General Feed Stocks to Liquid Fuels

MSW Tires Oils to Electricity

Coal to Ethanol

Coal to Liquid Fuels

Hudson River Sludge / PCB Mercury Treatment Plant

Municipal Solid Waste of Coal to Diesel via Cobalt Catalyst

Turning Municipal Solid Waste / Tires to Liquid Fuels

Pet Coke Liquid Fuels

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49

50

51

52

53

54

55

56

57

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CASE STUDY: ILLINOIS

Section VI

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Comparative Diesel Qualities & Standards

Production Ratio from Illinois Plant

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Item Commercial California CTL Diesel US-EPA

2006

Cetane Index >32 >48 >70 >46

Aromatics

(vol%)

<35 <100 0 <3

Sulphur

(wt%)

<0.30 <0.050 0 <0.0015

Ratio of Products from Illinois

Diesel: 60%

Gasoline: 35%

Jet Fuel: 15%

There are up to 15% other components from FT process such as

NAPHTHA and Paraffin that is being recycled back to the Plasma

Reactor in the first phase plant.

Part of process to remove Sulphur from coal is through adding

Oxidants/fluxes such as Lime or limestone, etc. However, one of the

best components for this portion of process is the use of sludge from

wastewater plants that we hope to be used in our plant.

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Summary

DuTemp proposes to conduct a Front End Engineering and Design (FEED) study for Illinois Coal,

Part of FEED study would be to gasify 1 Metric Ton of Coal in a Plasma Reactor and log all data,

Produce computer modeling for plants’ operation to verify the viability of processes and set all the performance benchmarks,

Cost to produce the FEED study is equal to 1.5% of project’s value + $2.5 M USD,

To produce the FEED study for Illinois CTL plant’s first phase, a funding requirement of $27.0 M is needed from the Government or others or;

To produce the FEED study for Illinois power plant’s first phase, a funding requirement of $12.0 M is needed from the Government or others ,

Duration for this study is 6 to 8 months,

This study will be conducted by DuTemp and will be re-stamped by Jacob, Fluor or Stone & Webster,

DuTemp will reimburse this cost upon conclusion of financing. However, through support of Coal Bond or Industrial Revenue Bonds, this fee is paid by bonds in advance or;

DuTemp is willing to assume 50% of its cost if the structure is base on JV Partnership with the Government,

DuTemp is open to dialogue. This is just a scenario and it is not final position of DuTemp.

We request a check to DuTemp.

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During the FEED, The Following is Completed:

Process

Major Equipment Definition

Process Simulation and Modeling

Process Flow Diagram Development

Mechanical Equipment Data Sheet Development

Process Written Description

Preliminary Process Data

Preliminary Line List

Develop P & IDs

Piping

Preliminary Estimate of Large Bore Pipe

Participate in P & ID Development

Valve Drag for Estimate

Get Quotes on Pipe and Valves

Mechanical

Prepare RFQ and Issue for Major Equipment

Get Quotes from Vendors on All Major Equipment

Civil

Preliminary Pile Counts

Preliminary Drawings for All Major Structures

Grey Steel Estimate

Cement Estimate

Control Systems

Quotes for DCS and SIS Systems

Quotes on All Inline Instruments

10% Estimate on All Instruments

Electrical

MCC Preliminary Design

Quote from Powel or GE on the Building with All Equipment Inside

Rough Count of All Motors, Cables, and Cable Trays

10% Estimate

Computer Modeling

Computer Modeling will Verify the Performance of All Equipments and Validate the Process in Real Time Operation.

This Report, will establish All Performance Benchmarks, Processing Data, Air Emission, and Water Quality Benchmarks for Permitting to be submitted to EPA.

All Guarantees are Issued based on Results from this Report.

Estimating

Adds Construction Costs, including Labor, Transportation, and All Field Expense Rolls, All Disciplines Estimates to One Total Installed Cost Estimate Including: Engineering, Material Costs and Construction.

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World Energy Facts

There is only one empire in World’s Energy Markets – Middle East

CTL Plants can offset this balance when it reaches the processing capacity of 150,000 plus Metric Ton

Coal per day;

Eventually the current price of Crude will tumble with these new alternative plants;

To permanently defuse OPEC influence in world energy, Investors must investor in one million

barrels per day production of CTL components;

Total fuel consumption will be over 40% Bio-Fuels by year 2020;

Upon the first implementation, the stock market will shift its financial resources toward Coal

Gasification;

We forecast the implementation of over 1.0 Million bbl/day CTL plants by the year 2015 with proper

funding that can consume 150,000 MT/day low quality Coal;

DuTemp has manufacturing capacity to reach this goal by year 2018;

Secondary manufacturing will obsolete China as a major exporter to the U.S;

Investors can offer high paying jobs and still compete with China and S. Korea manufacturers;

Investors will be able to reach the entire North America through its Hub Networks;

Investors combined in CTL projects will create up to 2.0 Million high scale manufacturing jobs by

2018 in other manufacturing sectors when it is planned correctly;

Same combined projects will create additional 6,000,000 jobs in service industry by 2018;

Region’s main income will be based on export and the health of the economy will be guaranteed until

year 2050;

CTL combined projects when all completed, will increase the Export on manufactured products by

30%. 64

Power Generation by Others MORE PROOF THAT COAL AIN’T CHEAP

Duke wins approval for a $3100 / kW Plant

Posted by Sean Casten at 1:54 PM on 27 Nov 2007

From E & E News ($ub req’d): Indiana has approved a $2 Billion, 630 MW integrated gasification / combined

cycle coal plant.

Two Billion divided by 630 MW = $3,174 / kW

If we assume that Coal Equity Investors expect to recover their investment over 20 years with an eleven percent

return, that works out to 5.7 cents / kWh just to pay off the capital for the power plant. Add in another 3 cents or

so for transmission and distribution, and a couple cents for fuel and operating costs, and this plant will work out to

be over 10 cents in retail prices.

This in a state where the current average retail electric rate is 6.79 cents / kWh.

So why was it approved? Simple:

“In the Midwest, Coal is plentiful and low-cost, and finding ways to burn it cleanly is fundamental to

meeting our customers’ demand for power,” Duke Energy Indiana President Jim Stanley said in a

statement. The head spins.

Excerpts of the story below the fold.

Indiana utility regulators approved Duke Energy’s proposed $2 billion coal-fired power plant equipped with

advanced pollution controls about 100 miles southwest of Indianapolis.

The Indiana Utility Regulatory Commission decision followed more than two years of planning by Duke’s Indiana

subsidiary and its predecessor, Cinergy/PSI Indiana, which was acquired by duke in May 2006.

The 630-megawatt, integrated gasification combined cycle (IGCC) plant, which still must obtain permits from the

Indiana Department of Environmental Management, could begin construction in Knox County early next year

with an expected startup in early 2012, Duke Officials said.

Note: Please se financial figures of $3.1 Million USD per MW power plant’s cost but recently was increased

again.

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Thank you for your time…

For additional information contact:

DuTemp Corp.

Phone: 832-358-2600

Email: ceo@dutemp.com

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