Ukrainian commercialization & technology transfer center

Complex for the production of synthetic fuels and electricity based on deep processing of brown coals

49000, Ukraine, Dnepropetrovsk, Karl Marks av., 81 • www.cctt.com.ua • e-mail: cctt@cctt.com.ua • tel. +38(056)376-10-70

Problems - fuel

Wholesale prices, $/t Imports,kt

Domestic production,

kt

TOTAL,kt

Light petroleum: 2244 5232 7476

including petrol 11300(UA)/11000(FOR) 1200 2664 3864

including diesel fuel 9600 1056 2712 3768

actual data

forecast to 2015(01.01.2006)

forecast to 2015(01.01.2010)

Oil price forecast to 2015

The structure of consumption in Ukraine, per year

Problems - electricity and natural gasDynamics of the purchase price for Russian gas 2006-2011, $/thousand m3

Cost of production (TPP) 0,10

Purchase price of the energy market 0,40 - 0,50

Retail price for legal entities 1,20 - 1,75

Electricity, UAH/kWh Natural gas, UAH/m3

Cost of purchases in Russia (TPP) 2,08

Public price 0,75 - 1,20

Price for legal entities 2,50 - 2,95

Proposed solution

Proposed solution

Worldwide Gasification Capacity (cumulative by year)

Worldwide Gasification Capacity (cumulative by feedstock)

Worldwide Gasification Capacity (cumulative by product)

Structure of production of gasoline and diesel fuel in Ukraine (2010)

Ukrainian refineries Kremenchug Lisichansk Drogobych Nadvornaya Odessa Shebelinka GPP TOTAL

Designed capacity of processing, kt 18600 16000 3300 2600 2800 1000 44300

The volume of raw materials, kt 3400 4813 372,9 189,9 1448 660,2 10884

Using the design capacity, % 18 30 11 7 52 66 20

Gasoline, kt 1056 1322 94,5 37,5 204,9 368,9 3083,8

Change in comparison with 2009, % 2,70% -13% -5,40% 10% -24,20% -13% -8,70%

Diesel fuel, kt 1227 1299 128,4 66,8 459,5 172,5 3353,2

Change in comparison with 2009, % 21% -6,30% -12,20% 20% -30,30% -9,20% -3%

Counterfeit, kt 1287,4

Ukrainian refineries produce petroleum in the amount of 20% of installed capacity.Refineries suffer multimillion damages in connection with:- obsolete industrial base and high energy production,- the ever-increasing prices for raw materials,- rigid regulatory policy of the state in establishing retail prices for petroleum products.

Appearance of the gasification plant

Existing projects

Great Plains Synfuels Plant(USA)

Daily productivity of approximately 160 million m3 of synthesis gas. Recycles 18,000 tons of lignite per day.

Technology. Upperground coal gasification (CTL).

Products. Fuel oil, phenol, fertilizers, cresylic acid, liquid nitrogen, methanol, kerosene, krypton, xenon.

Alaska Coal Gasification Plant

(USA)

Recycles 11,700 tons of lignite per day.

Technology. Upperground coal gasification (CTL).

Products. 14,600 bbl/day of liquid fuels (5.3 million bbl/year). By-product - electricity - 45,5 MW, sulfur -18 tons/day.

API Energia(Italy)

IGCC process, 2 productions: production of synthesis gas (SMPP), a plant with combined cycle electricity generation.

Technology. Upperground coal gasification (IGCC).

Products. Electricity production. Capacity of 280 MW.

Existing projects

ENEL Viesgo Puertollano(Spain)

The plant was built by Siemens. The plant burns 2,600 tons per day of mixed fuel (coal + petroleum coke).

Technology. Upperground coal gasification (IGCC).

Products. Electricity production. Capacity of 330 MW.

Sasol’s Secunda Plant(South Africa)

Burns 30 million tons of coal per year.

Technology. Upperground coal gasification in syngas and electricity by CTL&GTL technology.

Products. Production of electricity - 900 MW. GTL-fuels production - 160,000 barrels per day.

Vresova IGCC Power Plant(Czech Republic)

The plant was built by «Sokolov Coal Corporation». Consumption 2000 tons of lignite per day.

Technology. Upperground coal gasification (IGCC).

Products. Electricity production. Capacity of 400 MW.

Vresova IGCC Power Plant (Czech Republic)

• 26 LurgiGasifiers- dry coal feed - lignite- consumption - 2000 tons per day

• 1 Siemens SFG-200 gasifier- feedstock: phenols, tars, petrol, etc. created during gasification- oxygen blown

• 2 combustion turbines• 1 steam turbine

• Power generation- Combustion turbine 309 MWe- Steam turbine 114 MWe- Internal load -25 MWe - Net output 398 MWe

• Plant startup- 1970 towngas- 1996 converted to IGCC- 2007 added Siemens gasifier

Technology and equipment providers

Name Country Services, equipment

GermanyEngineering and supply of equipment: gas turbines, steam turbines, generators, gasifiers, the system delay of CO2, combined-cycle energy companies, management system.

GermanyConsulting, engineering, construction services, management of energy companies, specialty - gas processing into petroleum products, polymers, biofuels, etc. It has its own patented technologies.

USAEngineering and supply of equipment: gas turbines, steam turbines, generators, gasifiers, the system delay of CO2, combined-cycle energy companies, management system.

South AfricaThe Corporation is engaged in engineering, plant construction, the complex delivery of equipment, also it is using CTL and GTL technology in the Middle East (Qatar), Iran, Nigeria, Germany, Slovakia, USA, China, Uzbekistan.

Australia The company is engaged in engineering, plant construction, the complex delivery of equipment for the underground coal gasification (UCG) worldwide, including Uzbekistan.

Potential partners

Name Country Description

Great Britain

One of the largest global engineering companies. It has offices in 25 countries. It has vast experience of technological expertise (about 140 enterprises) in the energy sector. 18 projects in CTL - GTL segment.

USA

Group of design engineering and manufacturing companies in the U.S.. One of the main activities is the development and introduction of advanced technological systems in oil and gas industry. About 80 projects in the energy sector.

Australia One of the largest engineering companies in Australia. It’s a leading provider of consulting services in energy and mining and mineral processing.

GermanyEngineering company with a worldwide reputation. 129 gasifiers worldwide (South Africa, USA, Germany, China). 14 patented technologies in the field of coal gasification.

Name Amount

Coal consumption 2 419 355 t per year

The main product - a synthetic fuel (petrol) 375 000 t per year

By-product - sulfur 2 992 t per year

By-product - liquefied petrogas 42 614 t per year

By-product - Argon 32 912 t per year

Electricity production 20 MW

Productivity of planned enterprise

Requirements for deposit

Reserves of brown coal in Ukraine

Specifications for the brown coal deposits

Region Deposit name Reserves, million tons

Dnepropetrovsk Verhnedniprovske 146

Dnepropetrovsk Karnauhovskoe 203

Dnepropetrovsk Novo-Aleksandrovskoe 82

Kharkiv Novodmitrievskoe 390

Name of indicator Required valueReserves, million tons, at least 60

Ash, %, max 12-28Mass fraction of sulfur, %, max 4,5

Mass fraction of chlorine,%, max 0,6Mass fraction of arsenic, %, max 0,02

Key economic parameters

Name AmountCapital investments, $ mln 1 232,00

Annual income, $ mln 474,99Borrowed capital return, years 5,00

ROI, % 39%

Integral indicators of the project

Annual financial results of the project

Product Volume Incomes, $ mln Expenses, $ mln Profit, $ mln

Synthetic fuel 375 000 t 539,06 111,98 427,09

Electricity (20 MW) 131 400 MWh 7,39 3,00 4,39

Sulfur 2 990 t 0,66 - 0,66

Liquefied petrogas 42 615 t 34,62 - 34,62

Argon 32 920 t 8,23 - 8,23

TOTAL 589,96 114,98 474,99

The main stages of the project

Stage Works Investor Financialtool

Amount, $ mln Terms

IPreliminary assessment of the projectObtaining a license and mining leaseLand issuesPermit the design and constructionFeasibility study

Ukrainian company

Shareholder equity 2 2011-2012

IIDevelopment of the plant construction projectCareer development projectCareer constructionSupply of mining equipmentBuilding works at the plant site

Banks,funds

Shareholder equity

or credit30 2012-2013

IIIEquipment deliveryCommissioningStart of production

Banks,funds Credit 1 200 2014-2015

TOTAL 1 232 5 years

Special tax treatment

Electricity production Liquid fuels production

• Enterprise profit is exempted from taxes in the capital costs for construction and upgrading of power grids.

• Enterprise profit is exempted from business income taxes, resulting in the simultaneous production of electricity and heat until January 2020.

• The goods importing transactions of raw materials, equipment and components for the production of alternative energy sources (including from brown coal) into the customs territory of Ukraine are exempted from taxes.

• The importing transactions of materials, equipment, components used to produce energy-efficient equipment and materials, products, operation of which provides savings and rational use of energy resources into the customs territory of Ukraine are exempted

from VAT.

Thank you for your attention!

Ukrainian commercialization & technology transfer center

Contact personOksana DukhonchenkoChief of Marketing&Sales Departmente-mail: doa@cctt.com.uaph.: +38(056)3761079mob.: +38(050)4214302

49000, UkraineDnepropetrovskKarl Marx ave., 81www.cctt.com.uae-mail: cctt@cctt.com.uaph.: +38(056)376-10-70