Confidential1 Clatrhrate Desalination Technology Inventors name: Tretyakov K. Telephone: Yuzhnoye State Design Office City: Dnepropetrovsk

Confidential2 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.

Confidential3 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

Confidential4 Distribution of renewable fresh water resources, m 3 /(year person) Necessary minimum m 3 /(year person)

Confidential5 Existing water-desalinating capacities m 3 /(year person)

Confidential6 Demanded water-desalinating capacities m 3 /(year person)

Confidential7 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 $/m 3. High quality of the freshened water.

Confidential8 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.

Confidential9 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 Н 2,H 3 and O 18.

Confidential10 Advantages Low energy consumption on desalting of high salty water without its preliminary treatment.

Confidential11 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

Confidential12 Stage of Development The pilot unit is developed. Properties of the clathrate are investigated.

Confidential13 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).

Confidential14 Development Costs 2 Demonstration plant at any location to produce 36,000 gallons/day [136 m 3 /day] or 40 acre-feet/year [49300 m 3 /year] if operated continuously Commercial plant at unspecified location to produce 3.6 million gallons/day [13600 m 3 /day] or 4,000 acre-feet/year [4.93 million m 3 /year] Commercial.plant at unspecified location to produce 7.2 million gallons/day [27300 m 3 /day] or 8,000 acre-feet/year [9.87 million m 3 /year] $60,000 $1,432,000 $2,303,000

Confidential15 Commercial Potential The general world market of fresh water makes 500 billion $ per year. Nearby 1 billion persons in the world require potable water.

Confidential16 Commercial Potential 10 countries: UAE (Commercial Potential = 1), Kuwait, Israel, Denmark, Saudi Arabia, Oman, Libyan Arab Jamahiriya, Tunisia, Algeria, Jordan.

Confidential17 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 1m 3. The commercial price of the water produced by our technology is no more 5 $ per 1m 3.

Confidential18 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

Confidential19 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

Confidential20 The technological competitor Richard A. McCormack. (Ramco, Inc., San Diego, Calif.). Michael D. Max. (Marine Desalination Systems, L.L.C., Washington, DC). 3

Confidential21 Competitive Matrix Important product or technology characteristics ClathrateReverse Osmosis Distillation Energy consumption, kJ/kg fresh water (initial water – 2 % NaCl) <100 >300 Energy consumption on producing of desalinated water depending on initial brine salinity depends weakly depends strongly depends weakly Preliminary water treatment not requiredrequirednot required Salt content in water produced, g/liter 1 3<10 Content of heavy isotopes Н 2, H 3 and O 18 reducedwithout changes reduced

Confidential22 References 1.James E. Miller. Review of Water Resources and Desalination Technologies. SAND REPORT Unlimited Release. Printed March Richard A. McCormack. Clathrate desalination plant preliminary research study. Water Treatment Technology Program Report No. 5 June Patent 6,158,239 USA. Desalination through gas hydrate/ Michael D. Max, Dec. 12, 2000