Arterran Renewables

Lloyd DavisHead of Research

Arterran Renewables

Arterran Renewables

Arterran is the culmination of a 5 year

research and development process.

Arterran Renewables

The research and development was

based on the question:

“Is it possible by the use of pressure,

chemistry and time to modify the

structure of cellulose (C6H10O5) and

create a superior solid biofuel?”

Arterran Renewables

Our answer is

Yes, it is possible!

Arterran Renewables

Our result is

Arterran’s Solid

Biofuel.

Arterran Renewables

Our Technology

Arterran Renewables

Arterran’s process is best

described as

ThermoCatalytic

Transformation.

Arterran Renewables

Using a proprietary recyclable catalyst, our

process takes cellulosic feedstock and in less

than 120 minutes produces Arterran’s energy

dense biofuel.

Arterran Renewables

Arterran Solid Biofuel is a “Drop In”replacement for thermal coal!

Arterran Renewables

Drop In means similar energy content,

size, weight, grindability, weather

resistance and chemical stability when

compared to coal.

Independent Testing

by Britley Coal and

Mineral Testing, a

subsidiary of Gwil

Industries, verified a

significant increase in

the energy density.

Over 10,900 Btu/lb.

Arterran Renewables

Independent Testing

by Powertech Labs,

a subsidiary of BC

Hydro, verified a

significant increase

in the energy density.

Over 12,000

Btu/lb.

Test Report

Arterran Renewables

Arterran Renewables

So what is the significance of

our successful R&D?

Thermal coal is used to produce heat and/or electricity in coal fired power

plant all over the world.

Arterran Renewables

Renewable solid biofuels are used to reduce a portion of the thermal coal

used to produce heat and or electricity.

This reduces the toxic emissions and GHG produced from burning coal.

Arterran Renewables

Renewable solid biofuels like white wood pellets currently dominate the

Coal Replacement Market.

Arterran Renewables

White wood pellets have an energy density of 7,500± Btu per pound or

4.83 Megawatt hours per tonne.

Arterran Renewables

In 2013, 24± million tonnes of industrial

wood pellets were sold into the Coal

Replacement Market for

$5 Billion USD.

Arterran Renewables

That Coal Replacement Market and

Industrial Wood Pellet sales are

estimated to grow to

$8 Billion USD

by 2020

Arterran Renewables

Wood Pellets have an energy density of 4.8 Megawatt/hours per tonne.

A MW/h from biomassis traded as a commodity on

a number of Exchanges.

Arterran Renewables

One MWh from biomass

was trading at

34.10 bid - 34.52 ask fob Vancouver

Argus Biomass Markets August 6, 2014.

Argus is the leading Biomass Report

Arterran Renewables

Converting that to USD the revenue from 7,500 Btu wood pellets would be

$164.70 to $166.73 per tonne fob Vancouver.

Arterran Renewables

So that’s the Thermal Coal Replacement Market in a nutshell. So where does

Arterran fit into it?

Arterran Renewables

Arterran’s process produces biofuel pellets have an energy density of

12,200± Btu per pound or 7.83 Megawatt hours per tonne.

Arterran Renewables

Converting to USD per tonne and using the same $ per MWh’s as wood pellets the revenue from

12,200 Btu biofuel pellets would be $268.37 to $271.67 per tonne

fob Vancouver.

Arterran Renewables

The difference in revenue between Arterran and wood pellets would be

$103.66 to $104.94 per tonne fob Vancouver.

Arterran Renewables

Wood Pellets

4.83 MWh’s per tonne

X 34.10 = $164.70

fob Vancouver

Arterran Pellets

7.87 MW/h’s per tonne

X 34.10 = $268.37

fob Vancouver

Arterran Renewables

Arterran’s biofuels sell for the exact

same price as wood pellets or any

biomass used as a coal replacement.

The Arterran biofuel we created is just

more energy dense.

Arterran Renewables

Wood Pellets

Not Drop in

CapEx: $600,000 per

MWh of capacity to add

Arterran Pellets

Drop in replacement

No additional CapEx to

add Arterran Biofuel

So what are Arterran’s Advantages?

Arterran Renewables

This is the Drax Power

plant in Selby, England. At

4,000 MWh’s it produces

7% of the UK’s power.

Adding wood pellets cost

£900 Million in CapEx.

So what are Arterran’s Advantages?

Arterran Renewables

Wood Pellets

Cofiring: per MWh of capacity

CapEx: $600K/t

Covered Storage

and Handling: OpEx: $18/t

Shipping: OpEx: $27/t

Transport-Covered: OpEx: $7/t

Covered Storage

at Power Plant: OpEx: $8/t

So what are Arterran’s Advantages?

Arterran Pellets

Cofiring:

No Additional CapEx

Open Storage

and Handling: OpEx: $6/t

Shipping: 40% denser OpEx: $16/t

Transport Open: OpEx: $5/t

Open Storage

at Power Plant: OpEx: $0/t

Arterran Renewables

Handles

Grinds

Ships

Stores

Burns

Hydrophobic

Arterran Biofuel

like Thermal Coal

Arterran Renewables

Arterran Biofuel has

Compared to Wood Pellets

Better Grindability

No Off Gassing

Lower Handling Cost

Lower Moisture Content

Arterran Renewables

Wood Pellets are by their name limited

to wood as a feedstock.

Arterran Biofuel is not limited.

Any substance with a suitable amount

of cellulosic material can be

Catalytically Transformed.

Arterran Renewables

Arterran Biofuels can be made from:

Wood and Wood Waste

Agricultural Residues

40% of Municipal Solid Waste

Animal Manures

Arterran Renewables

All without the

toxic pollution and

GHG’s from coal.

Arterran Renewables

Thank You

for your attention and

consideration