Green Capitalism: India, August 7, 2014

globalthermostat Company Confidential

A Solution to Climate ChangeBusiness: Carbon Negative Technology

Global Policy: the Green Power Fund Graciela Chichilnisky – Columbia University NY USA

Green Economics: MEA IIM India August 7 2014

a carbon negative solution

globalthermostat Company Confidential 2

Climate & Industry Face Carbon Challenge

Supply• Natural sources limited,

depleting, and isolated– E.g.: CO2 EOR is concentrated

in Texas• Industrial extraction

processes are expensive, and provide inadequate supply

Transport• Trucking and pipelines not

viable for most applications

Industrial Markets

Food & Beverage

Refrigeration & Greenhouses

Carbonates

Concrete / Cement

Polymers

Formic Acid

Graphene

Oil & GasEnhanced Oil Recovery

Clean-up of Natural Gas Processing

Renewable Fuels

Algae Biofuels

Synthetic Gasoline

Substantial Unmet Demand

1958

1964

1970

1976

1982

1988

1994

2000

2006

300

320

340

360

380

400

CO2 PPM

≈20% increase in atmosphere

in last half-century

Readings hit 400ppm in 2013 for first time

…but huge industrial demand for CO2 remains unmet… …due to two critical issuesAtmospheric CO2

levels rising…

Critical Challenge: Profitably Harnessing Atmospheric CO2 for Productive Industrial Use – creating Abundant, Reliable, Low Cost Supply Wherever Needed


Challenges Must be Overcome, and a Precedent Must be Set, for Governments to Reduce CO2 Emissions

Governments need to standup to help mitigate their countries’ CO2 emissions

Each Government is aware of CO2 emissions levels

Leadership

Cost

Upside

In addition to being able to solve the problem of atmospheric CO2 levels, a new stream of revenue is created

CO2 can be resold and used for industry

GT’s technology provides CO2 for the lowest cost in the world, and can do so practically anywhere, and in whatever amount desired

Our technology is completely modular and easily expandable


Business SolutionCO2 is Both a Challenge to the Global Climate and a Valuable Industrial Gas • US Pentagon recognizes climate change as one of the US’ greatest security threats• CO2 used in a myriad of productive industry applications: beverages, refrigeration, chemical

manufacturing, oil recovery, synthetic- & bio-fuels• Huge unmet demand due to significant shortage of CO2 for use in industry*

No Prior Solution has Solved Key Challenges of Cost, Transport & Availability – offering a Carbon Negative Solution• GT technology actually decreases CO2 in the atmosphere• Current CO2 sources limited to depleting natural reservoirs & costly industrial extraction• Transportation is a key cost & logistical barrier, requiring massive pipeline infrastructure

investment

Global Thermostat Proven Solution Addresses Transportation, Availability & Costs• Breakthrough extraction technology protected by a robust IP portfolio • Demonstration Plants operating since 2010• Significant industry interest from large strategics in Oil & Gas, as well as biofuels arenas• Carbon Negative solution, adding significant social and economic upside

Tremendous Market Opportunity to Disrupt & Expand CO2 Market by Meeting Unmet Demand• Seeking growth equity investment to scale commercial efforts – adding resources to respond

to offers to build GT Plants from large corporates & strategics

* “Carbon Dioxide: A Market Flooded by Demand”, Cryogas International, May 2013.


Global Thermostat - Company Highlights

Disruptive Technology

Addressing >US$1T market opportunity

Disruptive Technology

Addressing >US$1T market opportunity

Highly RecognizedLeadership Team

Including the two co-founders

Highly RecognizedLeadership Team

Including the two co-founders

Proven Process

With 10 Patents and 2 operational Pilot Plants at SRI

Proven Process

With 10 Patents and 2 operational Pilot Plants at SRI

5

2

Well Advanced in Development Pathway

& have raised $22MM to-date

Well Advanced in Development Pathway

& have raised $22MM to-date

1

Modular Design

Allowing great flexibility & scale

Modular Design

Allowing great flexibility & scale

4

Economically Viable

Generating revenues from captured CO2, and licensing

Economically Viable

Generating revenues from captured CO2, and licensing

3

Tier-1 Technology Partners

Including SRI, Corning, BASF, Georgia Tech

Tier-1 Technology Partners

Including SRI, Corning, BASF, Georgia Tech

6

7


Introduction to Global Thermostat

Graciela Chichilnisky, authored the carbon market of the Kyoto Protocol Co-founder & CEO

Peter Eisenberger, Exxon research executive leaderCo-founder & CTO

Edgar Bronfman, Jr., Global business leaderChairman

Leadership

Research partners

Industrial partners


Low-Cost, Breakthrough

Process

Advanced Modular Design

Slashes CAPEX & OPEX; Eliminates Transport Costs

Absorption Regeneration

Low-energy, low-cost

Abundant Supply Location Independent Affordable w/o Subsidies or Carbon Credits

GT’s Proven, Patented Approach: A Truly Disruptive, Proven Solution

CO2 supplied on-site, wherever needed• Eliminates trucks & pipelines

Can be stand-alone, or co-located w/ large emitters• Needs only residual heat, and

electricity • Ideal for remote locations

CO2 drawn directly from air, or from industrial flues

Supplied in any quantity, via totally modular design• Modules capture 50,000

tonnes/yr. each• Can expand as needed, by

adding more modules

Easy to integrate with existing or new-built power plants• Has been done with just one

day of power plant down-time

Small footprint: can fit on land adjacent to industrial facilities

Carbon negative: can capture more CO2 than power plants emit

CO2 remains trapped

• Patented Carbon Sponge: porous “monolith” blocks coated with proprietary amine sorbents

• Ambient Air and/or Flue Gas flows through and binds to sorbent – Structure & process resembles a car’s catalytic converter

3. Monoliths return to air stream; cycle restarts …

2. Low temperature “residual”/ process heat applied, releasing 98% pure CO2 for collection

1. Monoliths lowered into sealed chamber

CO2 Available in atmosphere, unlimited supply

Air or flue gas Air exits w/o CO2


Existing CO2 Capture Alternatives Fall Short

Active CO2 CaptureVia a facilitated industrial

process (multiple methods)

• Energy intensive • Insufficient production• No cost-effective transport

Legacy Flue Gas Capture

CO2 extracted from combustion exhaust gasses

• Legacy methods too costly to build & operate

• Can’t easily be retrofitted to existing facilities

Byproduct of Chemical Manufacture • Energy intensive

• No cost-effective transport• Insufficient production

Extraction from Natural Reserves

Extract CO2 trapped in subterranean caverns

• Geographically stranded – no cost-effective transport outside limited regions*

• Capital intensive (pipelines)• Doesn’t reduce CO2 levels in

atmosphere

* Extraction from natural reserves in Texas an exception. Pipeline constructed to serve EOR market in local geography.

Existing Power Plants & Large Emitters: • No current economically viable solution

– “Business as usual” emissions, with mounting regulatory/financial cost, is a vanishing option

For New-Built Power Plants: • Can try other experimental solutions, but they

impose a large parasitic load– Ex: Texas Clean Energy Project’s coal gasification

plant using Linde’s cryogenic Rectisol™ process

Enhanced Oil Recovery Operators: • Pipelined if available (else $1.5MM/mile to build)• Trucked-in CO2 (at up to $200/tonne)

• Natural CO2 domes (very limited geographically)– Lack of CO2 supply is what has restrained the growth

and spread of EOR

By Customer Segment

Algae Biofuels/Synthetic Fuels Makers: • Pipelined or trucked. Land near emission

sources often too limited and expensive

By Method

Critical Gaps

Co-produced with ammonia & hydrogen manufacture


GT’ Solution is Affordable, Proven, and Commercially Ready to Scale & Penetrate Global Markets

Technology Development, IP

Prototype Demonstration

Next Step: Commercialize & Scale

Technology Fully Baked• Created by Peter Eisenberger

and Graciela Chichilnisky• Tech developed at SRI &

Georgia Tech; Verified by Corning, Linde, Det Norske Veritas

• Operational since 2010

IP Rights Secured• Strong IP portfolio

– 10 patents so far– Worldwide rights

• Freedom To Operate opinion

Prototypes Operational• Two prototypes in Silicon

Valley validate technology & economics

• Performing as modeled; results consistent from bench- to pilot-scale

Design for Manufacturability• Developing engineering plans

for full-scale production units• Already realized large CAPEX

& OPEX reductions vs. pilots• All components fit in standard

shipping containers

Sales • Advanced negotiations with

large industrial partners (underway)

• Contract & Execute projects

IP Commercialization• Advanced IP licensing

negotiations with large strategics (underway)

Seeking growth equity investment for team build-out, tech development, and commercialization activities (investment supplemented by project financing)


Breakthrough Development, Robust IP Portfolio

Strong Technology

Story

Robust IP Portfolio

• IP created by Peter Eisenberger & Graciela Chichilnisky

• Technology was developed & prototyped at SRI & Georgia Tech – Fine-tuning in progress; No new science required

• GT selected as finalist in $25MM Virgin Earth Challenge Prize – 11 finalists selected from more than 2,600 proposals

• Improvements in process & materials represent recent cost breakthrough– 3rd Party reports validate GT technology & costs

• GT has been awarded 9 US patents + 1 in Japan; additional patents and worldwide protection are pending

• Freedom-to-Operate opinion assures no conflict with any others’ existing IP

• GT offers preferential IP treatment to low income nations in somc cases charges no license fees


1st Technical Demonstration

2nd Commercial Demonstration

Two Prototypes Built To-Date…Two Prototypes Built To-Date… … with Strong Results… with Strong Results

Successful Prototype & Plant Development

Application in Industrial setting

Stand-Alone Demonstration

Validated technology’s potential in large-scale

applications

* At 2x 50m2 commercial scale. Costs will fall with scale and experience. **Production based on current design changes. † Fully-loaded cost including consumables/maintenance and CAPEX amortization. Ranges based on embodiment, location, boundary conditions, and cost of funds.

Cost reduction potential verified by Det Norske Veritas – independent 3rd party technology evaluation firm

Validated Economics Est. cost/unit: $0.7-1.2MM*

Est. production: 50k TPY**

Cost/tonne: $10-35/tonne†

These demonstration units already capture the CO2 emissions from SRI’s on-site power plant a well as from air, so could make it Carbon Negative


Graciela ChichilniskyCEO & Founder

• World leading economist, entrepreneur, executive, and inventor in IT, financial instruments, and CO2 capture

• Founder CEO of FITEL and Cross Border Exchange, successful financial services technology companies

• Authored of the Kyoto Protocol’s carbon market legislation (EU ETS)• PhD in Math from MIT and in Economics from UC Berkeley• Tenured Professor Columbia University, previously Harvard and Stanford

Peter EisenbergerCTO & Founder

• Leader and technology innovator in the global energy industry, and CO2 capture

• 20+ year career including heading global R&D at Exxon, and lead scientist at Bell Labs

• Tenured professor and former Vice Provost at Columbia University• Former Director of Columbia University’s Lamont-Doherty Earth

Observatory• Founding Director Princeton University Materials Institute• Founding Director Columbia University Earth Institute

Edgar Bronfman, Jr.Investor & Chairman

• Chairman, Endeavor Global• General Partner at Accretive LLC• Former President and CEO of the Seagram Company• Former Chairman and CEO of the Warner Music Group• Recently successfully sold Warner for US$3.3 billion

Key Advisors

Ed HotardFormer COO, Praxair

Eric (Ric) RedmanPresident, Summit Power

Ron ChanceEmeritus Science Advisor, Exxon

Rocco FiatoAccelergy, Exxon

Michael FleisherBain, Gartner

Sasha MacklerSummit Power

Leadership Team


GT TeamManagement & Technology Team:• Graciela Chichilnisky, Co-founder & CEO• Peter Eisenberger, Co-founder & CEO• Edgar Bronfman, Jr., Chairman• Kenneth Michie, SVP of EOR Operations• Keith Meyer, SVP of Energy & Oil Operations• Jason Offenhartz, Finance & Business Associate

Advisory Board:• Ed Hotard, Former COO Air Products• Eric (Ric) Redman, President, Summit Power • Ron Chance, Science Advisor, Exxon• Rocco Fiato, Accelergy, Exxon• Roger Cohen, Ex-Exxon• Shane Smith, CEO of Vice

Financial & Legal Team:• Corporate Counsel: Mitchell Zucklie, Esq., Chairman of Orrick, Herrington & Sutcliffe• IP Counsel: Paul Sutton, Esq., of Sutton Magidoff (formerly Sr. Partner at Greenberg Traurig)• Investment Bankers: Christopher Carter & Christopher Reynolds, Morgan Stanley UK• Auditors: Citrin Cooperman• Controller: Robert Bernstein, CPA, Esq., of Bernstein & Seidman

• Dr. Eric Ping, Ph.D., Dir. of Technology Development • Tom Miller, Engineer & Project Development• Sharon McIlnay, Contract Attorney• Prof. Chris Jones, Ph.D., Georgia Tech• Dr. Gopala Krishnan, Ph.D., SRI International• Anoop Nagar, SRI International

globalthermostat Company Confidential

GT Technology DescriptionStep 1: Air Input & Carbon Capture

• GT uses stacks of ceramic “monolith” contactors (similar to those in a car’s tailpipe catalytic converter), coated with an amine-based “sorbent,” that together act like carbon sponges – trapping, but not transforming, CO2 it encounters in an oncoming air/gas stream

• Monoliths provide high surface contact areas at low pressure drop (air resistance)– Enables movement of large air volumes with effective contact of CO2 at low cost

• GT’s advanced sorbents were proven highly effective by Georgia Tech, and further confirmed by SRI, and DN Veritas

– Proprietary process bonds sorbent to monoliths’ porous walls, at high loading – This dramatically reduces heat required compared to liquid-based Carbon Capture

• ~1.5-30 minute cycle (depending on embodiment and implementation)Step 2: Regeneration

• CO2-rich monoliths are moved into air-tight, evacuated Regeneration Chamber• Low-temperature residual heat (90°-105°C steam) is applied, stripping CO2 from monoliths• Liberated CO2 is collected and piped away, at atmospheric pressure

– Output is 95-98% pure CO2

– No other inputs are consumed; no other byproducts are released• Now-empty monoliths are raised from the Regeneration Chamber, back into the oncoming

air stream, to repeat the cycle• ~1.5-3 minute cycle

Step 3: Heat Transfer

• Neighboring Regeneration Chambers are kept out of phase with each other, yet are interlinked, allowing steam to pass between them

• As one Regeneration Chamber completes is cycle, the other is just beginning• In the just-completed Chamber, water evaporates from hot monoliths (cooling them to

below the oxygen degradation temperature). That water & steam is piped to the just-beginning Chamber, where water condenses on the cool monoliths, pre-warming them

• Cool monoliths receive 50% of their heat this way, substantially reducing operating costs

GT Module Absorption Phase

Regeneration Phase

Monolith Contactors + Sorbent “Cartridge”

105° SteamCO2 Collection


Regeneration Phase

Ambient AirOR

20:1 Air-Flue Gas Blend


`


Regeneration Phase


Evacuated steam from hot box to

neighboring box/module

14


2010: GT’s 1st Pilot at SRI (Stanford Research Institute)

SRI International333 Ravenswood Avenue

Menlo Park, CA 94025


2013: GT’s 2nd Commercial Demo Plant at SRI

SRI International333 Ravenswood Avenue

Menlo Park, CA 94025

GT Achieved US DOE/DOD Technology Readiness Level 7 - TR7


GT: Carbon Negative Solution, Long-Term Upside

High potential for incremental profit from tax on carbon emissions under current & emerging regulations• Beginning to be applied in some developed countries and likely to spread to others given nature

of climate change debate• Recent EPA legislation demonstrates benefits and upside for Carbon Capture technology

While not considered in any GT business projections, carbon credits & other incentives create significant upside to current opportunity• 26 US Code §45Q provides a CO2 EOR tax credit of ≈$10.75/tonne• Carbon credits in California & EU-ETS trading above $12/tonne today

Independent of a tax on CO2, Governments likely to make grant dollars available to support the development of CO2 capture*

Atmospheric CO2

Captured by GT’s process

Permanently removed or re-used in:

Entire GT Process Carbon

Negative EORIndustry BioFuels

* Draft UN report (1/15/2014) notes global goals to limit CO2 are unlikely to be met without actively removing CO2 from the atmosphere, recommends direct CO2 capture

GT’s Technology Represents an Enormous Opportunity, Irrespective of Regulation


Summary of Global Thermostat

True, proven technical breakthrough

GT proven technology solves critical barriers to productive CO2 application in industry

Enormous market business potential

Large, diverse and unmet market opportunity today

Significant opportunity to expand market, enables new applications – $ Trillions per year opportunity

Commercial readinessand exit paths

Major technical proof-points established and protected with robust IP worldwide

Global Solution to Climate Change

Several paths to both create a big business and reach a liquidity event in 3-5 years

$200 Bn/year Green Power Fund to accelerate deployment of GT plants and other carbon negative technologies

Contact: Graciela Chichilnisky, CEO Global Thermostat O: 1-212-678-1148 C: 1-646-623-3333www. Chichilnisky.com [email protected]


To accelerate carbon negative technologies:

The Green Power Fund• $200 Bn/year Private Public Fund • Financial & Technological solution for Global Climate Change• Quick global deployment of Carbon Negative Power Plants in Developing

Nations• Using funding available from the UNFCCC CDM of the EU ETS• Providing clean power for rapid growth in least developed nations: SIDS,

Africa and LA• Liberating women and children used today as beasts of burden

G20 goals: Solving Global Poverty Achieving Sustainable Development


The Green Power FundGreen Capitalism

Economic Growth and Sustainable Development

Focus on Least Developed Nations• Introduced by the author in Copenhagen COP 15 2009• Supported by H. Clinton US Department of State • Voted partially by UNFCCC in Durban South Africa COP 17 as Green

Climate Fund• Requires only Diplomatic Completion in Lima Peru COP 20 December

2014 • Needs legislative support at global negotiations COP 21 Paris 2015• Led by Monaco with the moral support & votes of 30 SIDS


The Green Power FundHow does it work?

• GPF offers profitable off-takes or PPA – attracting private funding

• High IRR for building Carbon Negative power plants in Africa LA and SIDS

• Adding to CDM funding and funding from sovereign funds


Why a Carbon Negative Technology?

Because it is needed

No solution otherwise (IPCC 2014)


Why LA, Africa & SIDS?

Because they are needed



Why The Green Power Fund?

Because it is needed



A Green Monaco • Could set a global precedent by implementing GT

• becomes the catalyst with UN mandate

for addressing climate change


Next steps1. Leading Global Thermostat to a profitable

deployment of GT plants all over the world

2. UN Legislation for Green Power Fund• Participation of Monaco and AOSIS in UNFCCC COP negotiation

committees• COP 20 Peru December 2014• COP 21 Paris December 2015• The Green Power Fund

Date post:	28-Nov-2014
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Green Capitalism: India, August 7, 2014

Environment