Zero Emission Power Production from gas and coal, today!

1. Zero Emission Power Production from gas and coal, today! January 2008

2. Fuel Electricity Air Contained CO2 Heat Fresh water Seawater • 99% CO2 captured • Less than 5 ppm NOx emitted Gas, Coal or Oil as Fuel • Overall Energy efficiency 94% What We Do

3. Aligning Goals Government target: Economic Growth and Sustainable Development Economic Growth requires increased Utilities Services Increased Utilities Services results traditionally in increased Emissions, not aligned with Sustainable Development. Sargas Technology deliver “Zero Emissions” Utilities Services and Improved Macro Economy • by: • Utilization of Low Cost Fuel (Coal) with CO2 and NOx Capturing • Enhanced Oil Recovery from injection of the captured CO2 • Sale of CO2 quotas under the UN CDM Scheme Sargas Technology supports the Government’s target

4. Technology Sargas Technology has Low Technical and Economical Risk Only Well Proven components allowed, supported by Vendor Performance Guarantees. It works! Technology and system demonstrated in Stockholm, Sweden, December 2007 • Technology Principles: • Combustion in Pressurized Boiler, • High CO2 Partial Pressure gives “Easy” CO2 Capturing (Carbonate Process) • Power Generation by Steam and Gas Turbines • Optimized Heat Recovery • Integrated Desalination by MED Technology Performance: 600 Mw PFBC Plant: 584 Mw El.Power, 91 MG/d Water, 16,000 ton CO2/d Energy Utilization Index: 93% Sargas Technology gives you Best in Class

5. Cost and Benefits Economics : Investment 600 MW FBPC plant w/desalination : M$ 1 800. Cost of CO2 Capture: less than present CO2 quota price < Eur 20 /t. Pay-back time: 6 to 10 years,dependant on UAE market prices for power, water & CO2 Performance Comparison with Taweela A1 Fuel Efficiency : Sargas 27 % better Water Efficiency : Sargas 43 % better Environ. Damage: Sargas 94 % better Macro Economy : Sargas >1400 % better • Sargas Technology gives you International Recognition! • Could be the First Large Scale CO2 Capturing Scheme in the World • Visible Sale of significant CO2 Quotas via International Trading Centers Sargas Technology is Good Business for all Stakeholders

6. Sargas Plants Fuel: Coal RAK NOW ! Water Other Emirates Power Import Export UAE Spine Oil Fields CO2 Sargas Plants Fuel: Gas or Coal AD The UAE Scenario • UAE Need: • More Power • More Fresh water • CO2 for EOR Injection • Sargas Plant: 4 x 100Mw Module • Design : 6 months • Approval Process : 2 years • Construction time : 2 years • Total: 4 – 4 1/2 years • Challenge: • Reduce Approval Process time • Planning & Construction of CO2 Spine Sargas Technology is a Cost Effective Solution

7. UAE Abu Dhabi, RAK Taqa Siemens, Entropie Adnoc, Adwec Adwea, Adwec, Adco Zadco, Masdar Will be involved during HSEIA process Stakeholders we are talking with: Generic Government Investors Technology Providers Fuel Suppliers Clients / Customers / Distributors NGOs Public All Stakeholders very keen on Sargas Technology

8. Highlights Patent granted 2004 Technology verified by Siemens Power 2006, benchmarked by R.S.E (M.I.T), as per the M.I.T. methodology, showing best in class Live demo plant in Stockholm, Sweden, December 2007 First commercial transactions concluded • Next step : • Pre-Contract incl. CO2 logistics and • plant commercial offer Ready Jan 08 Vartan Power Plant, Stockholm, Sweden, Q1 – Q4 2007

9. Contributors Reaction Systems Engineering Boston Alstom Institute for Energy Technology Kjeller Royal Institute ofTechnology Stockholm PsiPro Kristiansand Siemens Power AG

10. Thank You !

11. CO2and NOx scrubbing Steam turbine CO2 removal Heat exchanging Flue Gas El. Generator 80% CO2 Steam N2 Purification Condenser Pump Pressurized combustion chamber Fresh Water Steam MED Desalination Unit Fuel: Coal pasta Sea Water Hot Water Brine Ash Gypsum Air Nitrogen El. Generator 20% Gas turbine Compressor Sargas Pressurized Power Plants with CO2 capture

12. Heat exchanger Gas pre- treatment CO2 capture CO2 1120 t/d ( ~20 MMSCFD) Air 10kg/s Aqueous solution of gas contaminates 165 bara 565C ~68 kg/s 186 bara 280C Fuel gas ~5 kg/s LHV ~49 MJ/kg Hot water 35 bara 565C 80 MW HP LP steam turbine El export 90 MW 92 kg/s 10.7 bara 848C Parasitic El 6 MW 4 MW Fresh water 50,000 t/d 1.5 bara ~95 kg/s 12.0 bara ~300C MED-TVC Unit 20MW Sea water Deaerator Brine Steam 94MW 2 shaft gas turbine Air 95 kg/s 4.6 bara ~200C Purified exhaust 92 kg/s Power Plant with CO2 capture Nominal size 100 MW Base Case: El + fresh water export ©Sargas AS 2007 MED-TVC = Multi Effects Distillation w. Thermal Vapor Compression Typical numbers only. Not optimized for site conditions. Drawing for illustration purposes. Not an engineering PFD. Sargas Thermal Power & Desalination with CO2 capture

13. The Sargas CO2 Capture Process The Benfield capture process is a simple, stable, oxygen tolerant and proven process well suited for the Sargas power plant. Acid Gas Purified Gas Regenerator Absorber Feed Gas Heat

14. Availability The Sargas Solution. Capture of EOR quality CO2 in flue gas from a pressurized combustor. Cost-efficient, compact and proven process includes NOx reduction to 5ppm. The Only Commercially Available Solution NOW! Other Technologies: Post-combustion once-through CO2 capture. Low partial pressure of CO2 = high CO2 capture cost. Requires oxygen sensitive MEA absorbent. Availability: 2010 to 2015 Post-combustion with partial exhaust recycle (semi-closed). Higher partial pressure of CO2. Recycle presents a challenge to the gas turbine. Availability: 2015 to 2020 Pre-combustion de-carbonization (hydrogen plant). High partial pressure of CO2 at the hydrogen production unit. Complex system. Availability: 2015 to 2025 Closed-cycle pure oxygen oxidant (Oxy-fuel). High partial pressure of CO2; easily captured. CO2 motive gas requires new turbine.Availability: 2020 to 2030

15. CO2 cleaning alternatives Amines • More efficient than other absorbents at atmospheric pressure (Fluor Econamine, MHI KS-1). • Challenge: Control of corrosion and amine degradation. • Limited references for this application, at least two major amine vendors remain apprehensive. Carbonates • Stable, simple process. Oxygen tolerant without solution degradation. • Many relevant references, 90 to 99% CO2 absorption possible with standard plant design • Requires pressurized system (10 bara+, partial pressure CO2 0.5 bara+) Amino acids • Old and well known process. Oxygen tolerant, biodegradable. • Not updated/used for this application. A possibility for the future? Physical absorption • Uhde Morphysorb process: Remaining CO2 loading after solvent regeneration too high. • Difficult to achieve 90% CO2 absorption.

16. Performance: TA1 Sargas Fuel Efficiency 11.9 8.6 mmbtu/Mwhdelivered Water Efficiency 3,799 5,417 Gallon/Mwhgross Fuel Efficiency: Sargas 27 % better than TA1 Water Efficiency: Sargas 43 % better than TA1 Economy: TA1 Sargas Total Income 518 1,263 $ x 1000 / 100 mmscf FG Total Expences 498 973 $ x 1000 / 100 mmscf FG Net Result: 19 290 $ x 1000 / 100 mmscf FG Net Result: Sargas 1408 % better than TA1 Comparison between a Conventional Power & Desalination Plant (TA1) with a 100 Mw Sargas Plant