Washington DC Energy & Environmental Funders

Hosting Sponsor:
Andrews Kurth LLP

The Center for Economic and Environmental Partnership, Inc., will sponsor its next Washington, DC Energy & Environmental Funders’ meeting on Friday May 2, 2008.

Stage I-Ultra Clean Coal to Hydrogen-Fired Gas Power Plant:
- Coal converted to hydrogen gas for use in on site base load/peaker gas turbines
- CO2 separated/piped to Stage II-for conversion to Cellulosic fuels

Stage II-Ultra High Yield/Low Cost Cellulosic Fuel Plant:
Feedstocks: > Process Steps: > Output:
Non-Food Agricultural crops/Residues > 1. Gasification To Syngas >Cellulosic/Non-Petroleum: Gasoline
Municipal Solid Waste/Yard Waste > 2. Catalytic Conversion to Fuel > Ethanol / Diesel
Forestry/Lumber/ Wood Waste > > Heating Oil

The Quantum Clean Energy Complex, to be presented to the public here for the first time, combines a coal to hydrogen gas power plant and a cellulosic fuel plant into a fully integrated, closed end system that produces electricity with ultra low carbon/ultra low pollution, and a full range of cellulosic liquid fuels including cellulosic gasoline, diesel, ethanol, methanol, butanol and home heating oil.

The front end of the plant is an ultra-clean power plant which takes in the full range of coal types, and through a 12-step conversion process that uses a wholly new arrangement of previously proven technologies, converts the coal into hydrogen and a separate stream of carbon dioxide (CO2). The hydrogen drives a gas turbine which produces clean power with nearly zero pollution, as well as residual carbon dioxide, for sale either to area utilities or to regional power markets. The fully separated carbon dioxide stream is then piped to the back end of the plant and combined with cellulose from municipal solid waste and non-food agricultural biomass for conversion to any of several liquid fuels, or heating oil.

The back end of the plant is an ultra high yield cellulosic fuel plant which takes in a full range of agricultural cash crops and crop residues, forestry and lumber waste, municipal solid waste (including yard waste and wood waste), which first goes through gasification to syngas. The syngas is then mixed with the CO2 which was separated from the coal. The newly combined syngas then goes through a first round of catalytic conversion where it is converted (with 99% efficiency) to methanol. From methanol, a second round of catalytic conversion can produce any of several highly valued transportation and heating fuels: cellulosic gasoline; diesel, ethanol, butanol or heating oil.

Because the CO2 from the power plant provides up to 30-40% or more of the total feedstock that is converted to fuel, the CO2 greatly increases the overall fuel yield of the plant, and greatly reduces its overall production cost. That factor, combined with the extraordinary speed of gasification (vs. enzymes, anaerobic fermentation, or acid hydrolysis), and the near 100% energy conversion rate of catalytic conversion vs. those other processes, greatly increase the overall fuel-to-feedstock gross yield and dramatically reduces its production cost per gallon, e.g. cellulosic gasoline @ $0.75/gallon vs. petroleum based gasoline @ approximately $2.00/gallon and cellulosic ethanol @ $0.75/gallon vs. corn-based ethanol at over $2.00/gallon.

This process can also be modified to produce cellulosic butanol, an advanced alcohol fuel with many advantages over conventional ethanol. Butanol is a far superior fuel to ethanol but has always been very expensive to produce (currently $4.00-5.00/gallon and sold for $6.00-7.00/gallon), as thus far too high to ever be used as a fuel. But with the Quantum process, it can be made for only $1.00/gallon which would make its use as a fuel economically viable.

Tom Casey, President & CEO, will explain how, in addition to producing electric power and cellulosic fuels, these facilities will have the ability to take in and dispose of the carbon dioxide generated by outside sources, thus becoming the first commercial carbon sink. Acting much like a solid waste landfill, they will be able to receive and dispose of the carbon dioxide now being generated by other facilities, i.e. conventional coal-fired power plants (each ton of coal emits up to three tons of CO2)/oil refineries, etc. This unique capability would make carbon capture and sequestration (CCS) completely unnecessary. Our plants would simply take in the CO2 and charge a carbon disposal fee equal to what carbon emissions will soon cost. The main profit potential would come from catalytically converting that CO2 into cellulosic fuels. From each ton of CO2 we could produce approximately 230-280 gallons of fuel. If we were producing diesel from that CO2 and selling it for $3.00 a gallon-we would generate $750-900 per ton of CO2 (plus a disposal fee) or $2,250-$2,700.for each ton of coal used in a power plant. With little to no expense involved in converting that CO2 to fuel, this could be a major profit center for these facilities.

The process has been proven on a pilot plant with over 8,000 hours (almost a full year) of continuous, reliable performance, converting a wide range of cellulosic feedstocks, including corn stover, sugarcane bagasse, rice/wheat hulls, woodchips, classified municipal solid waste and others, to ethanol with a gross yield of 278 gallons of ethanol per ton of feedstock-four times the yield of other processes currently being used, and did so at an average production cost of $0.75/gallon vs. nearly three times that of most other production processes. The catalytic conversion processes were further tested/proved in a 50-ton/day small-scale commercial demonstration plant in Aberdeen, MS.

The company anticipates raising $30 to $50 million in equity and debt this summer. The process is patented, although the component pieces are all well established.

Sector Expert: Calling in from Louisiana will be Stanley Pearson, Research Scientist, who was responsible for several parts of this process, will elaborate on the various technologies involved.

Date: Friday, May 2, 2008
Time: 8:00 – 10:00 am
Place: Andrews Kurth LLP
1350 I Street, NW, Suite 1100
Washington, DC 20006
202-662-2700

Nearest Metro stop: The building is between 13th and 14th Street. You can exit at McPherson Square and cross the street to the building or exit Metro Center on 13th Street (and G Street) and walk up to 13th and I, where you make a left and cross the street.

Cost: $50 if you pre-register.
Cash or checks (payable to CEEP) accepted. Must register or cancel by 4pm the previous day. No shows will be invoiced.
$60 if you pay at the door.
See below for Annual Registration opportunities and other important conditions.

Agenda:
8:00 to 8:20 – Networking with Members
8:30 to 9:00 – Presentation by Thomas Casey, President & CEO
9:00 to 9:30 – Presentation by Sector Expert: Stanley Pearson, Research Scientist
9:30 to 10:00 – Discussion and Networking

Thank you, and we look forward to seeing you at the next DC Funders meeting.

If you have any questions about registration or need more information about the program, please contact Gelvin Stevenson at gelvin@optonline.net.

BIOGRAPHICAL SKETCHES:

Thomas J. Casey, Chairman of the Board, is a multi-faceted, accomplished and successful executive, entrepreneur and financier. His career spans almost 30 years of board, top-level corporate and general management experience, and showcases an outstanding track record of solid business accomplishment in a variety of businesses and industries, and within increasingly larger and more diversified organizations-involving both domestic and international operations and projects. Tom is also a seasoned venture capitalist and investor with wide and deep experience finding, funding and commercially developing a wide variety of innovative, leading edge technologies in a variety of industries.

While completing his MBA at Harvard, he transformed a family-owned specialty furniture chain into a profitable and fast-growing regional chain. He then conceived of, financed, started and built Commonwealth Industries, Inc., regional marketer and distributor of high quality brand name consumer goods and services, offering discounts on 5,000 plus products, hotels, rental cars and goods and services. It broke even within four months and was debt free within one year. He then moved into the oil industry at AMEX listed Damson Oil Corporation as President and General Manager of a new Oilfield Services Division that he created and grew aggressively in business lines, assets, customers, revenue and profits.

Tom then spent the 1980's starting and building The Sovereign Group, Ltd., a Wall Street financial services firm that engaged in investment and merchant banking and investment management, both domestically and internationally. During this time, clients and partners included Merrill Lynch Realty Division, Cushman and Wakefield, Champion International, the Socialist Republic of Vietnam, Chemical Bank, Paine Weber, New York State Public Employees Pension Fund, the Saudi Royal Family and the Kuwaiti Investment Co.

Tom studied at the Naval Academy and has degrees from Hunter College, Harvard University, and a Ph.D. in International Business from the University of London/American University.

Stanley R. Pearson spent 34 years as a research scientist and plant superintendent with Dow Chemical Company, working in Benzene Hex chloride plants, a Synthetic Glycerin plant, and a research pilot plant for PQM Co. where he built a Perchlor-Carbon Tet Production plant in Mexico City.

Stan was then assigned to engineer, build, and operate a balanced energy chlor-alkali plant, which included its own power generation unit. Upon the completion of this plant, he was assigned to build more balanced energy chlor-alkali plants, including one in Canada, and then a 600 MW power plant in Plaquemine, La.

His next assignment was building a Synthetic Power (Coal Gasification) plant for the Louisiana division. He worked on this for seven years, before taking early retirement in 1984, and starting Tri-Fuels Inc., which converted internal combustion engines to run on compressed natural Gas. In 1991, he sold Tri-Fuels to Oklahoma Natural Gas. Since then, he has been developing and marketing a BIOMASS TO ETHANOL process, which can be modified to produce synthetic diesel and/or synthetic gasoline.

Stan's name is on 10 patents from Dow Chemical and he currently has several new patents pending. He graduated from the University of Oklahoma in 1950.

Advisory Board
Zachary Alexander, ebT Design, LLC
Bob Lawrence, Bob Lawrence & Associates
Mark Riedy, Andrews Kurth LLC
Ira Rubenstein, Center for Economic and Environmental Partnership, Inc.
Gelvin Stevenson, Ph.D., Center for Economic and Environmental Partnership, Inc.
Michael Ware, Advance Capital Markets, Inc.

DCE&EF Pricing Policy
1. Cost, with pre-registration up to 4pm the day before the meeting: $50.
2. No-shows will be invoiced.
3. Cancellations allowed until 4pm the day before the meeting.
4. Cost, with registration at the door the day of the meeting: $60.
5. All paid registrants will be emailed any information made available electronically for that meeting.
6. An Annual Registration for DCE&EF can be purchased for $400. It will provide admittance to all regularly scheduled meetings held during a 12-month period.
7. Annual registrants will be emailed any information made available electronically for any of the regularly scheduled meetings covered by their annual registration.

Formed in February 2004, DC Energy & Environmental Funders (DCE&EF) is a joint service of Investors Circle, the Energy & Environmental Capital Network (ECN), the Environmental Business Association of New York State, Inc. (EBA/NYS), Investors Circle and Cleantech Venture Network LLC (Cleantech). DCE&EF provides networking, information, and other services to investors interested in energy and environmental companies. DCE&EF activities are produced by the Center for Economic and Environmental Partnership, Inc. (CEEP) in furtherance of its educational mission.

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