Clatrhrate Desalination Technology

1. 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

2. 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

3. 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

4. Distribution of renewable fresh water resources, m3/(yearperson) Necessary minimum - 1700m3/(yearperson) Confidential

5. Existing water-desalinating capacitiesm3/(yearperson) Confidential

6. Demanded water-desalinating capacitiesm3/(yearperson) Confidential

7. 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 $/m3. • High quality of the freshened water. Confidential

8. 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

9. 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 Н2,H3and O18. Confidential

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

11. 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

12. Stage of Development • The pilot unit is developed. • Properties of the clathrateare investigated. Confidential

13. 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

14. Development Costs 2 $60,000 $1,432,000 $2,303,000 • Demonstration plant at any location to produce 36,000 gallons/day [136 m3/day] or 40 acre-feet/year [49300 m3/year] if operated continuously • Commercial plant at unspecified location to produce 3.6 million gallons/day [13600 m3/day] or 4,000 acre-feet/year [4.93 million m3/year] • Commercial .plant at unspecified location to produce 7.2 million gallons/day [27300 m3/day] or 8,000 acre-feet/year [9.87 million m3 /year] Confidential

15. 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

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

17. 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 1m3. • The commercial price of the water produced by our technology is no more 5 $ per 1m3. Confidential

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

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

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

21. Competitive Matrix Confidential

22. References • James E. Miller. Review of Water Resources and Desalination Technologies. SAND REPORT 2003-0800. Unlimited Release. Printed March 2003 • Richard A. McCormack. Clathrate desalination plantpreliminary 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