Pulp Mill SludgeBIO-REFINERY

PRESENTATION BY

GEORGIA ALTERNATE FUELS, LLC

CO-PRODUCTS – BYPRODUCTS FROM SLUDGEWASTE STREAM

ETHANOL AND PEROXIDEExtracted from 350 tons per day of waste solids

BIO-REFINERY OPPORTUNITY

• PAPER MILLS PRODUCE WASTE FIBER TO SEWER• WASTE FIBER MUST BE PROCESSED FOR DISPOSAL• WASTE WATER TREATMENT COSTS INCREASE• BOD WATER TREATMENT COSTS ARE INCREASING• WASTE SOLIDS MUST BE DISPOSED OF AT SOMECOST TO OPERATIONS

• WHAT CAN BE DONE TO CONTROL THESE COSTS?

BIO-REFINERY JUSTIFICATION

Cost Center: Waste fiber stream processing costs$13,000,000 annually:

Converted To

Profit Center: $64,000,000 annual revenue stream:

NET DIFFERENCE - $77,000,000 ANNUAL ADDEDREVENUE

TYPICAL PAPER MILL OPERATIONSWASTE STREAM COSTS

TYPICAL PAPER MILL OPERATIONSWASTE STREAM REVENUE POTENTIAL

BIO-REFINERY JUSTIFICATION

• COST ESTIMATES ON WASTE SOLIDS DISPOSALTHROUGH WATER TREATMENT, NOT INCLUDINGLANDFILLING SOLIDS IF APPLICABLE

LABOR -CHEMICALS -YIELD LOSS -ELECTRICITY -MAINTENANCE -ESTIMATED LOSS OF +$107.00 PER TON OF WASTE STREAMSOLIDS

BIO-REFINERY JUSTIFICATIONCOST CENTER IS CHANGED TO PROFIT CENTER

• A BIO-REFINERY OFFSETS WASTE STREAM PROCESSINGCOSTS TO PRODUCE VALUABLE BYPRODUCTS

• HOW?– BY CONVERTING A WASTE STREAMS CHEMICALCOMPOSITION INTO USEFUL MATERIALS

– USE SPECAILLY DESIGNED CATALYSIS TO ACCOMPLISHTHE REACTIVE WORK NECESSARY TO ADD CORPORATEINCOME INSTEAD OF COSTS

• A BIO-REFINERY CAN HAVE A DOUBLING AFFECT ONCORPORATE PROFITS, BY CONVERTING A COST CENTERINTO A REVENUE CENTER

BIO-REFINERY JUSTIFICATION

• PAPER MILLS TRADITIONALLY HAVE ONE REVENUECENTER AND ALL OTHER DEPARTMENTS ARE COSTCENTERS

• BIO-REFINERY JUSTIFICATION CONVERTS APLANTS COST CENTER INTO A REVENUE CENTER

• HOW?– SEE THE NEXT SLIDE

BIO-REFINERY JUSTIFICATION

• Convert waste fiber to Glucose Sugars using aspecially designed atmospheric pressure catalysisreactor developed by GEORGIA ALTERNATIVE FUELS(GAF)

• Waste fiber is converted into simple sugar,fermented, and produces (ETHANOL and CARBONDIOXIDE)

• Inert solids pass through the process• CARBON DIOXIDE is captured, catalytically reacted

and converted into additional (augmentation)ETHANOL with a Peroxide water solution byproduct.The techniques are developed using GAF’sHETEROGENEOUS catalysis reactor technology.

BIO-REFINERY JUSTIFICATIONByproduct Value

• Current market price for ethanol ~$4.00 per gallon• Current market price for Peroxide is ~$6.50 per gallon

• Estimated daily byproduct production from 350 tons waste fiber solidsper day

ETHANOL PRODUCT FROM WASTE FIBER• 560,000 pounds fiber solids per day

• Daily Production, approximately– +30,000 gallons of ethanol– Augmented Ethanol 6,000 gallons– Total daily Ethanol +36,000 gallons– Annual Ethanol gallons, ~12,000,000

• Daily Ethanol Value @$4.00 per gallon– $144,000 daily revenue– Cost avoidance also adds an additional $36,000 to Corporate daily

revenue• Total Daily potential revenue from Bio-refinery

$180,000• $63,000,000 annual profit to Corporate Income from existing

waste stream operations

BIO-REFINERY JUSTIFICATIONByproduct - PEROXIDE

• PEROXIDE byproduct is estimated and approximatelyequal to the amount of augmented Ethanol producedfrom Fermentation Carbon Dioxide gas

• Peroxide daily production, estimated at6,000 gallons or 50,000 pounds– This should be sufficient Peroxide to supply+100% of a Newsprint Mills daily productionbleaching needs, at 10 pounds per ton bleachrate

– Based on $6.50 per gallon Peroxide purchaseprice

– PEROXIDE VALUE $39,000 daily or$13,000,000 annually

WASTE STREAM CO-PRODUCTS – BYPRODUCTSREACTION PATHWAYS

WHITE BIRCH - PAPER MILL BIO-REFINERYETHANOL – PEROXIDE BYPRODUCTS

WHITE BIRCH - PAPER MILL BIO-REFINERYJUSTIFICATION SUMMARY

• CONVERT WASTE STREAM INTO VALUABLE PRODUCTS• ADD CASH TO CORPORATE INCOME• REDUCE COSTS• REDUCE CARBON EMISSIONS• OFFSET PETROLEUM USE• GENERATE VALUABLE PULP MILL CHEMICALS AT LOW COST• GENERATE VALUABLE PAPER PRODUCTION CHEMICALS• SIGNIFICANTLY IMPROVE OPERATING MARGINS• CREATE VALUE – ADD VALUE TO EXISTING OPERATIONS• BE A MARKET LEADER• ENVIRONMENTALLY FRIENDLY PROCESSES, PAPER BIO-

REFINERY OF THE FUTURE FROM WASTE STREAM

WHITE BIRCH - PAPER MILL BIO-REFINERYJUSTIFICATION SUMMARY

• ENVIRONMENTAL STEWARDS OF WASTE STREAMS, THE FIRSTSUCH OPERATION IN THE WORLD

• GENERATE $77,000,000 ANNUALLY FROM A COST CENTER,AND REDUCE CARBON FOOTPRINT ~20,000 TONS PER YEAR.REMOVE EQUIVALENT +20,000 CARS FROM THE HIGHWAYPER YEAR

• PRODUCE 12,000,000 GALLONS OF ENVIRONMENTALLYRESPONSIBLE AND FRIENDLY ETHANOL, NOT FROM FOODSOURCES

• PRODUCE 2,100,000 GALLONS OF ENVIRONMENTALLYRESPONSIBLE AND FRIENDLY PEROXIDE ANNUALLY

GEORGIA ALTERNATIVE FUELS, LLCBIOREFINERY

“AN ADVANCED CATALYSIS TECHNOLOGY COMPANY”

TOMORROW’S TECHNOLOGY TODAY

CONTACT INFORMATION:

244 John B. Brooks Road

P.O. Box 169Pendergrass, Georgia 30567

Alan LawsonCEO/President404 735-5866