KeLa Energy, LLC 12 th Annual Green Chemistry & Engineering Conference Recycling and Clean Coal Technology

KeLa Energy Slide 2 Coal The US Energy Base

KeLa Energy Slide 3 Recycled Raw Materials The Value in a Waste Pile

KeLa Energy Slide 4 Clean Coal The Additive Effect

KeLa Energy Slide 5 Clean Coal Technology Lower emissions when burned More complete combustion No outside storage problems Minimal plant modifications Cost competitive with existing fuel

KeLa Energy Slide 6 US Coal Numbers ,

KeLa Energy Slide 7 US Coal Numbers 13 Percent of the USA Found in 38 States Covers 458,600 square miles Mined in 27 States

KeLa Energy Slide 8 Waste Coal Fines A Historic & Growing Problem

KeLa Energy Slide 9 Waste Coal Fines Some of the facts Generated at coal mines Generated at coal processing plants Over two billion tons in 700 sites 50 million tons added each year

KeLa Energy Slide 10 Using Waste Coal Fines The Challenge of Reclamation & Use

KeLa Energy Slide 11 Using Waste Coal Fines A substantial source of energy Over 10,000 Billion Btu’s 1.00E13 Btu’s

KeLa Energy Slide 12 Using Waste Coal Fines A fine challenge Energy not easily recovered Coal fines present handling problems - and processing problems - and burning problems

KeLa Energy Slide 13 US Carpet Numbers Billions of pounds of carpet are land- filled each year A fraction of that carpet is recycled Post Consumer Carpet

KeLa Energy Slide 14 Carpet Recycling Difficult to recycle Hard to handle Difficult to de-construct Mixed components Poor heating value They put dirt in it!

KeLa Energy Slide 15 KeLa Engineered Fuel A coal derived, synthetic fuel Made up of coal fines - binding materials - PC carpet - biomass

KeLa Energy Slide 16 KeLa Engineered Fuel Engineered for the customer Lower emissions Btu value Biomass Size

KeLa Energy Slide 17 KeLa Engineered Fuel Utilizes a readily available stream of Recycled waste materials Renewable waste materials Waste coal fines

KeLa Energy Slide 18 The KeLa Process © Coal or Biomass Particle Fiber Reinforcement Adhesion Point Encapsulated Particle

KeLa Energy Slide 19 Emissions KeLa Engineered Fuel Compared to Coal Lower SO x emissions Lower NO x emissions Lower VOC’s Reduction in total HAP’s emission The quality of the coal, amounts of binder and amounts of biomass determine the final reductions. Reductions have been documented by independent testing based on EPA methodology.

KeLa Energy Slide 20 Burning Characteristics Compared to Coal Easier to ignite than coal Produces less smoke on start-up Equal or greater Btu/lb Higher combustion efficiency Higher hydrogen content

KeLa Energy Slide 21 KeLa Engineered Fuel The Fuel Lower moisture content Not affected by moisture Stored outside like coal

KeLa Energy Slide 22 The Effect of Water Water Soaked for One-Half Hour

KeLa Energy Slide 23 Handling & Storage Handles like coal Requires no special equipment Does not foul production equipment No dusty residues

KeLa Energy Slide 24 KeLa Fuel Ultimate Analysis Elements% Carbon65.28 Hydrogen6.26 Sulfur0.73 Nitrogen1.91 Oxygen8.42 Ash14.65 Moisture2.69 Btu/lb12,095 2 points higher due to binders 30% Reduction due to blending

KeLa Energy Slide 25 KeLa Fuel Rank

KeLa Energy Slide 26 Stoker Fuel Production Run While the CO 2 calculated values are close to the test results, KeLa believes that the higher CO 2 is due to the Calcium Carbonate, CaCO 3 in the waste carpet component. CaCO 3 + heat → CaO + CO 2 Similarly, the test values for SO 2 are lower than the calculated values, which KeLa believes is due to the Calcium component in its waste carpet component “scrubbing” the Sulfur from the flue gas. CaO + SO 2 + ½O 2 → CaSO 4, Run 2 calculates to 8.6% lower SO 2 and Run 3 to 22.2% lower SO 2. Clearly, there is an increased improvement as excess air is reduced. Under the right conditions, Calcium reacts with Sulfur to form a precipitate, CaSO 4. In order to postulate what is the true “scrubbing effect” of the KeLa fuel, chemical analysis of both fly ash and bottom ash would have to be done to fully understand the chemical processes when combusting this blended fuel. That analysis was carried out by the UK Center for Applied Energy Research in 2007 and the report is available upon request.

KeLa Energy Slide 27 Ash Analysis C %S %Ca % Coal Ash KeLa Ash September 5, 2007 combustion ash analysis performed by the University of Kentucky Center for Applied Energy Research.  Huge boiler efficiency improvement

KeLa Energy Slide 28 Example of Emission Benefits Small Stoker fired boiler 6675 Sulfur, 12,500 Btu/lb SO 2 emissions ,650 lbs/yr Total reduction ( 89,045) lbs/yr 35%~ 45 tons/yr Inc Btu’s by 500 Btu/lb ( 10,146) Lower S 30% by blending ( 73,051) SO 2 scrubbing at Comb ( 5,848)

KeLa Energy Slide 29 Clean Coal Technology Lower emissions when burned Blending Combustion scrubbing More complete combustion 2% compared to 29% KeLa Engineered Fuel

KeLa Energy Slide 30 Clean Coal Technology No outside storage problems Stable No leaching Minimal plant modifications Handles like coal Cost competitive with existing fuel KeLa Engineered Fuel

KeLa Energy Slide 31 KeLa Energy Company Status First commercial plant currently under development. Plant One will produce in excess of 125,000 tons of KeLa Engineered Fuel per year. Plant One will consume in excess of 6,600 tons (13.2 million pounds) of post consumer carpet per year. Additional larger plants being planned.

KeLa Energy, LLC 12 th Annual Green Chemistry & Engineering Conference KeLa Engineered Fuel One Step in the Process

KeLa Energy Slide 33 Contact Information KeLa Energy, LLC 7575 Dr. Phillips Blvd Suite 325 Orlando, Florida Office (407) Cell (407) Fax (407) Web Site Information -