Clatrhrate Desalination Technology Inventor s name Tretyakov K Telephone

Clatrhrate Desalination Technology Inventor’s name: Tretyakov K. Telephone: +38 050 4525530 E-mail: tretyakov_k@rambler. ru Yuzhnoye State Design Office City: Dnepropetrovsk Confidential 1

Proprietary information statement • The slides contain confidential and proprietary information for use in patenting the technology. • The technology material presented is available for licensing or joint product development. Confidential 2

Problem Description & Market Need · World needs for fresh water grow. · In the market energy saving, universal and inexpensive desalination technologies are necessary. · Throughout the world 26 countries feel deficiency of fresh water, in 13 countries it is sharp. 1 Confidential 3

Distribution of renewable fresh water resources, m 3/(year person) Necessary minimum - 1700 m 3/(year person) Confidential 4

Existing water-desalinating capacities m 3/(year person) Confidential 5

Demanded water-desalinating capacities m 3/(year person) Confidential 6

Technical Merits • Expenses of the electric power less than 100 J/kg per a product. • Tolerance to the dissolved substance level in initial sea water or wastewater. • Cost of the freshened water at level 1. 5 -3 $/m 3. • High quality of the freshened water. Confidential 7

Technology Description • Initial sea water moves to a bottom part of the apparatus where it is agitated with the special agent under action of ultrasound. Thus the hot ice (clathrate) is formed. • The formed suspension is moved by a pump in the evaporator of a freezing machine which is located inside of the apparatus and in which heat leaves, evolved in reaction. • Hot ice crystals are separated from suspension on the filter located above the evaporator, and move upwards for washing. • Cooled water moves in a crystallizing tank. • Hot ice crystals are melted in a melter-condenser and fresh water is separated from special agent and it is transported to consumer. Confidential 8

Advantages • Conditions for carrying out this process are approximated to normal ones (pressure not above 3 atm. and temperature in the range from 0 to 30 С). • Simple hardware equipment. • Water with the small contents of heavy isotopes Н 2, H 3 and O 18. Confidential 9

Advantages • Low energy consumption on desalting of high salty water without its preliminary treatment. Confidential 10

Experimental Results • Energy consumption on producing of 1 kg of desalinated water depending on the degree of extraction of fresh water from an initial brine and its salinity Confidential 11

Stage of Development · The pilot unit is developed. · Properties of the clathrate are investigated. Confidential 12

Next Steps for Development · Development of the commercial plant concept and patenting in the USA by the results of works performed (STCU project 3515). · Search of the partner in the USA together with the collaborator. · Development of the commercial plant (for example, IPP project). Confidential 13

Development Costs 2 • • • Demonstration plant at any location to produce 36, 000 gallons/day [136 m 3/day] or 40 acre-feet/year [49300 m 3/year] if operated continuously Commercial plant at unspecified location to produce 3. 6 million gallons/day [13600 m 3/day] or 4, 000 acre-feet/year [4. 93 million m 3/year] Commercial. plant at unspecified location to produce 7. 2 million gallons/day [27300 m 3/day] or 8, 000 acre-feet/year [9. 87 million m 3 /year] Confidential $60, 000 $1, 432, 000 $2, 303, 000 14

Commercial Potential The general world market of fresh water makes 500 billion $ per year. Nearby 1 billion persons in the world require potable water. Confidential 15

Commercial Potential 10 countries: UAE (Commercial Potential = 1), Kuwait, Israel, Denmark, Saudi Arabia, Oman, Libyan Arab Jamahiriya, Tunisia, Algeria, Jordan. Confidential 16

Targeted Market Segment Commercial product is a potable water. · Potable water now in the countries without deficiency of fresh water is on sale at the price of from 50 up to 200 $ per 1 m 3. · The commercial price of the water produced by our technology is no more 5 $ per 1 m 3. Confidential 17

Competitors • • • • Company American Engineering Services Anglian Water PLC Ansaldo SPA Aqua Chem, Inc. Aqua Design (Ionics) ASI Cayman Water Company, Ltd. Culligan Water Technologies, Inc. Degremont SA (now Suez) Dow Chemical Company (Film. Tec) E. I. Dupont De Nemours and Company Fluid Systems Ham RO Systems, Inc. Headquarters USA United Kingdom Italy USA USA British West Indies USA France USA USA • • Hydranautics, Inc. Hydropure, Inc. Ionics, Inc. Israel Desalination Engineers USA USA Confidential 18

Competitors Company Headquarters • • • • France USA USA USA France USA (France) France USA Scotland Lyonnaise Des Eaux-Dumez (now Suez) Mechanical Equipment Co. Memtec America Osmonics Polymetrics Seawater Systems Source, Inc. Suez (Ondeo) Trisep Corp. United Water Resources (Suez) US Filter (now owned by Vivendi) US Water (Suez) Vivendi Environnement Water Equipment Technology The Weir Group PLC Confidential 19

The technological competitor • Richard A. Mc. Cormack. (Ramco, Inc. , San Diego, Calif. ). • Michael D. Max. (Marine Desalination Systems, L. L. C. , Washington, DC). 3 Confidential 20

Competitive Matrix Important product or technology characteristics Clathrate Reverse Osmosis Distillation Energy consumption, k. J/kg fresh water (initial water – 2 % Na. Cl) <100 >300 Energy consumption on producing of desalinated water depending on initial brine salinity depends weakly depends strongly depends weakly Preliminary water treatment not required Salt content in water produced, g/liter 1— 3 <1 0 Content of heavy isotopes Н 2, H 3 and O 18 reduced without changes reduced Confidential 21

References 1. 2. 3. James E. Miller. Review of Water Resources and Desalination Technologies. SAND REPORT 2003 -0800. Unlimited Release. Printed March 2003 Richard A. Mc. Cormack. Clathrate desalination plant preliminary research study. Water Treatment Technology Program Report No. 5 June 1995 Patent 6, 158, 239 USA. Desalination through gas hydrate/ Michael D. Max, Dec. 12, 2000 Confidential 22