Coal Desulfurization How to save $242 million over 15 years! Presented By: Greg Spittle

In The News North Carolina passes Clean Smokestack legislation North Carolina passes Clean Smokestack legislation Progress Energy Carolinas forced to invest $813 million in desulfurization units Progress Energy Carolinas forced to invest $813 million in desulfurization units Employment in British coal drops from 221,000 employees to 24,000 employees over 10 years Employment in British coal drops from 221,000 employees to 24,000 employees over 10 years Coal power plants in the UK run at 17% capacity Coal power plants in the UK run at 17% capacity 25% of market lost to natural gas in UK over past 10 years 25% of market lost to natural gas in UK over past 10 years President George W. Bush signs bill to cut SOx emissions by 75% by 2018 President George W. Bush signs bill to cut SOx emissions by 75% by 2018

What Does This Mean? Any market can change dramatically in a short period of time Any market can change dramatically in a short period of time Changes like those in the UK can devastate a company Changes like those in the UK can devastate a company These changes can be anticipated These changes can be anticipated What does this really mean to you? It’s time to prepare your company for the future!

What Are Your Options? Buy/Sell Allowances Buy/Sell Allowances A short term fix to a long term problemA short term fix to a long term problem Switch Fuel Switch Fuel Not always a possibilityNot always a possibility Not always enoughNot always enough Install a Flue Gas Desulfurization Unit (FGD) Install a Flue Gas Desulfurization Unit (FGD) The only guaranteed way to maintain a competitive edgeThe only guaranteed way to maintain a competitive edge

The Cost/Benefit of Trading

The Trading Outlook

Why Is Desulfurization The Best Choice? Desulfurization dramatically drops output of SOx  8,000 tons versus 85,000 tons of SO 2 Other fuels are not always available  Depends on region of country and/or shipping costs Other fuels don’t always provide low enough emissions  Only a 30% reduction in emissions  ie 60,000 tons versus 85,000 tons of SO 2

Coal Distribution

Coal Consumption (In Millions of Tons)

The Numbers

More About The Numbers Desulfurization unit has a lifetime of 15 yrs –Savings/Earnings up to $5.1 billion over lifetime of product That is approximately $1000 a year in savings/earnings per customer

Why Spittle Inc? We will provide an on sight demonstration with our portable equipment We will work with your company to design the most efficient and cost effective installation process We are the industry leaders for installing desulfurization units on coal fired power plants

Recap The market is changing –In the next five years the market will be remarkably different It is important to stay ahead of your competitors and regulators Reasonably earn/save $242 million over the next 20 years –Possible earnings/savings of up to $5.1 billion over the next 20 years