Advanced Coal Technologies (ACT), LLC “Coal21st” Coal Refining Process

March 2007

ENERGY SYSTEMATICSPRIMARY ENERGY SYSTEMS

Molecular (burning fossil fuels, producing ethanol from biomass)

Atomic/Nuclear (fission and fusion)

Solar (solar electric, solar thermal, wind)

SECONDARY ENERGY SYSTEMS Hydrogen systems

Electron systems (electricity)

ACT Coal 21st Process Inputs and Outputs

(Benzene, Toluene, and Xylene) at 75 tpd

1000 tpd

6 MwInternally Generated

(140 tpd)

160 tpd

32 tpd

6 tpd

370 tpd

40 tpd

Naphtha

Value of 100 tpd Coal 21st Coal Refinery Products

Price Quantity Daily Value Annual Value

LED 500 $/ton 14 tons $ 7,000 $ 2,172,,000

BTX 1,000 $/ton 8 tons $ 8,000 $ 2,482,000

naphtha 500 $/ton 3 tons $ 1,500 $ 465,000

fuel oil 500 $/ton 16 tons $ 8,000 $ 2,482,000

NH3 300 $/ton 1 tons $ 300 $ 93,000

sulfur 100 $/ton 4 tons $ 400 $ 124,000

Char Price 60 $/ton 37 tons $ 2,220 $ 689,000

Total

252. $/ton 83 tons $ 27,420 $ 8,507,000

Ultimate Integrated Coal Refining Process FlowAIR SEPARATION

NITROGENOr CO2 OXYGEN

PARTIAL OXIDATION

POXREACTOR

COALPREPARATION

AND FEED

INERTGAS FOR

DRY FEED

HDPREACTOR

ANDCHAR

STEAM

Optional H2, COGas

Separation for hydro-treatment

1600 F to 2200OFHOT POX

GAS

CO / CH4 RICH RECYCLE GAS

COOLING,LIQUIDS

CONDENSATION,AMMONIARECOVERY

AROMATIC s, OILSAND

SYNGASES

WATER QUENCH

ACID GASREMOVAL

AGR

H2

CLOSE COUPLEDEXISTING PC, BOILER,OR CFBC, OR PCFBC

SYNGAS

FISHER TROPSE (FT)

SYNTHESIS OFHIGH VALUE

DIESEL

FT DIESEL

$$$

OPTIONALSHIFT AND / OR

STEAMREFORM REACTOR

SYNGAS

STEAM

OR OILINJECTED TO

PRODUCEMORE

SYNGAS

SULFUR OR SULFURIC ACID

AMMONIA

OPTIONAL RECYCLE AROMATIC OILS

ON SITEUSE

YES

MAKE UP BFW SLAG

POWER FOR COAL REFINERY

EXCESS POWERTO GRID

TRANSMISSIONTOWERS

OPTIONALRECOVERY

ORRECYCLE

PRODUCE PITCHOR BINDERWITH CHAR

RECOVERHYDRO

TREATEDOILS

HOTCHAR

(LOW S&N)

NO

BTX

NAPHTHA

FUEL OIL

OPTIONAL OIL QUENCH OILS

H2

RECYCLE

SWEET GAS

STEA

M

AROMATIC OILS

SYNTHETICCOAL$$$ TRAIN

ACT proprietary InformationHydrodisportionation (HDP) operation and designOptimization of Flash Hydropyrolysis conditionsSeparation of char from gasSlot/star feed system for fast pressurized non-agglomerating feed of coalRecycle of methane to POX for hydrogen conservation and H2 and CO production to initiate Flash Hydropyrolysis Integration of ACT Flash Hydropyrolysis system with oil refinery downstream system.Production of syngas for SASOL conversion to low emission diesel.

Example of what an ACT Coal 21st Coal

Refinery would look like (Using the DOE/SC Power System

Development Facility for Scale)

Fuel Handling

ACT 100 tpd Optimization Plant Specifications

Confidential information in a separate document provided to interested parties

Coal21st: Economic BenefitsHigh value chemicals produced: primarily benzene with some toluene and xylene (BTX) for chemical processing facilities.

Benzene is a raw material for production of phenol, malic acid, caprolactam, alkylbenzene, styrene, and dye stuff intermediates. Toluene (Methylbenzene) is a Solvent for paint and rubber, and Raw material for toluene di-isocyanate, benzoic acid, and dye stuff intermediate. Xylene is solvent for paint and insecticide, and raw material for paraxylene, orthoxylene, and ethylbenzene

Naphtha as N-dodecane with boiling point (bp) of 4210 F Fuel Oil as N-pentadecane with bp of 5190 FOther oils like thiophene with some sulfur (bp 1830 F) pyrrole with some nitrogen (bp 2660 F), heavy oils like chrysene (bp 8260 F)Low sulfur diesel, methanol, or other chemicals from residue syngas. Low sulfur, low nitrogen, high Btu solid fuel-Char

Why ACT’s Coal 21st Coal Refining Process?Highest throughput (lowest residence time 0.1 to 3.0 seconds) of all synfuels process resulting in lowest capital cost (HDP should be factor of >10 times cheaper than equivalent sized gasifier with residence times in the minutes).Coal 21st maximizes yield of high value aromatics as BTX plus naphtha and fuel oils (can be used directly or refined further into diesel fuel, gasoline)Low emissions of CO2 as BTX when converted primarily into paint and plastics traps about 8% of the carbon. Low emission diesel (LED) has a Cetane number of 78, twice that of conventional diesel. This increases miles per gallon and reduces CO2 another 0.7%. The result is a total potential reduction of about 8.7% over burning the coal for electricity. Potential to be a more flexible and robust design with possible recycle of aromatics, steam reforming of aromatics into syngas, conversion of syngas into multiple productsLow sulfur solid fuel (char) produced as compliance solid fuel for existing and new coal fired power plantsHigh Return on Equity (24% for 100 tpd to 232% for 30,000 tpd) is possible due to the low cost of the HDP, high throughput. (assuming $30 per ton for coal and > $250 per ton for products).

Coal21st Societal & Environmental BenefitsTwenty 30,000 tpd Coal21st Coal Refineries would generate char for 25,000 MW of clean power and produce 640,000 bbl/day of very low sulfur liquids thereby decreasing dependence on imported or domestic oil.Burning char instead of coal reduces SOx (>85%) and NOx (65%), toxics (mercury, chlorine, etc. total), particulates (2.5-10 microns) without flue gas desulfurization for SOx or SCR for NOx

Low emissions of CO2 as BTX when converted primarily into paint and plastics traps about 8% of the carbon. Low emission diesel (LED) has a Cetane number of 78, twice that of conventional diesel. This increases miles per gallon and reduces CO2 another 0.7%. The result is a total potential reduction of about 8.7% over burning the coal for electricity.Syngas produced by Fisher-Tropsch (FT) yields low emission diesel (LED) with 1 ppm sulfur (exceeds new EPA standards) plus low sulfur naphtha and high value lubricants.Coal refineries can use any local, poor quality, high cost coals (insensitive to coal prices).Coal refineries will draw other petrochemical industries to the location spurring economic development

Total Investment Costs

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

- 5.0 10.0 15.0 20.0 25.0 30.0 35.0

Coal Input 1,000 tpd

Ca

pit

al p

lus

ID

C in

$m

illio

n

SWA

US

Initial 100 tpd is estimated to cost $21 million

($10million equity) in Asia

IDC is Interest During Construction

Return on Equity with 60% Debt at 7%/year

30.0 , 232%

5.0 , 153%

0.30 , 58%

0.15 , 41%

0.10 , 24%

30.0 , 139%

5.0 , 88%

0.30 , 32%

0.15 , 22%

0.10 , 11%

0%

50%

100%

150%

200%

250%

- 5.0 10.0 15.0 20.0 25.0 30.0 35.0

Coal Input in 1,000 tpd

RO

E in

%/y

ear

Base

2X capital

100 tpd is estimated to yield 24% ROE

Potential Competitive Coal Conversion Technologies for FT diesel production

International production from associated natural gas (flare gas) and FT diesel synthesis using Gas to Liquids (GTL Processes) requires mega gas fields. Encoal mild gasification produces a char and a reduced sulfur residual fuel oil at high costDomestic production of FT diesel from GTL synthesis with natural gas (which is not economic with high natural gas prices in the US).Coal gasification for FT diesel production (like the Gilberton project in Pennsylvania) which is higher in capital cost and lower in ROE than Coal 21st coal refining process.Headwaters’ Hydrogen Technology’s expensive but high yield coal gasification to GTL or direct coal hydro-cracking with recycled heavy process liquids and use of external hydrogen (currently being licensed in China). Lower ROE than Coal21st.

Shell Gasification Markets are Really Coal to Chemicals in China?