2. CONFIDENTIAL
What is ClearCove About
• There is MONEY in the sludge - STOP wasting money to destroy it
• ClearCove unlocks this energy by “harvesting” biomass from wastewater:
Innovative
– Municipal and Industrial
• Monetize the vision: Transformational
– We sell the equipment
– We create energy annuities for our clients AND ClearCove Systems
– Turn Cost Centers into Profit Centers - Accelerate adoption!
– Total Solution = Lower CAPEX = Industry changing
– Changing the Economics of Wastewater
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3. CONFIDENTIAL
An Industry
Problem…
• Same basic design since the 60’s & 70’s
• Conventional primary treatment typically removes 50% - 60%
percent of the Total Suspended Solids
• Typical reduction in Organics = 20% - 30%
• According to EPRI, 1.0% of the nation’s energy is consumed by
WWTP
• 75% of that can be attributed to the aeration process !
• Regulatory and Permit Violations on the rise - 40,000 Annual
Overflows (US News and World Report)
4. CONFIDENTIAL
Addressable Market
Municipal WWTP
• U.S.: 21,000 plants
• Europe: 45,000 plants
Industrial WWTP
• Thousands of Plants
• Organics Focused: Food and Beverage
– Sewer and Disposal rates continue to
increase
– Stress on municipal infrastructure
impeding growth
– Grants and funding for key economic
drivers, i.e. Dairy and Wine, on the rise
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Revenue opportunity per plant:
• $300,000 – $1,000,000: Equipment
• Energy Production Annuity
• Disposal Surcharge Reduction Annuity
Revenue opportunity per plant:
• $3,000,000-30,000,000: Equipment Sales
• $250,000 – $5,000,000 / yr.: Energy Annuity
5. CONFIDENTIAL
We change the dynamics of how a plant is built
• What is different about ClearCove solution… (simple!)
– We focus on the “front” of a plant
– Simple concepts efficiently executed
– We stop the flow: The only way to capture Supracolloidals (“Rocket Fuel”)
– We use gravity to filter the organics
– We unlock energy value
– We create 2.4-4.1 X’s the energy opportunity in Anaerobic Digestion
– We lower CAPEX
• We Monetize Digesters: 250-450+% improvement
…..It’s not about the digester – it is about the fuel!
• We take out energy cost: up to 50% used to power a plant
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12. CONFIDENTIAL
Current Highlights
• Intellectual Property: Sustainable Competitive Advantage
– 3 US Patents, 1 China Patent; 14 Patents Pending; 18 Invention Disclosures
• Pilots: Gen 3.0 and 4.0 “On the Road”
– 8 completed; 4 in the queue
• NYSERDA PON 2722
– $600,000 Grant 12/26/2013
• Customer Revenue Pipeline: 20 Customers ($33 M)
• Customer Revenue Positive in 2014
• Business Development: Direct and through strategic partners
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13. CONFIDENTIAL
Energy Production: The Energy Value of ClearCove “Harvested”
Feedstock
• It’s not about the Anaerobic Digester, It’s about the fuel that feeds
them…
• Biomass = Energy
• High Value Biomass = MORE Energy
• ClearCove Energy Value in Anaerobic Digestion - NYSERDA Pilot Results
• 2.5 - 4.1X The Industry Standard
for Anaerobic Digesters
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14. CONFIDENTIAL
Case Study
Examples:
Case Study 1: Municipal
• Forced Upgrade, Consent Order
• Capital Expense Savings: $4.6MM (30%) vs Traditional Engineering Design
• Total Energy Benefit Annually: $135,000-335,000
• Landfill Cost Reduction = $50,000/yr.
• Will meet EPA 10 State Requirement
Case Study 2: Municipal
• Forced upgrade
• Capital Costs of CCS: $4M; Needed to upgrade anyway. So no incremental expense
• Total Energy Benefit Annually: $650,000
• Landfill Cost Reduction = $80,000/yr.
Case Study 3: Municipal
• Forced Upgrade, Consent Order
• Capital Expense Savings: $2.6MM (40%) vs Traditional Engineering Design
• Total Energy Benefit Annually: $80,000- 150,000
• Landfill Cost Reduction = $35,000/yr.
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15. CONFIDENTIAL
Capitalize on Entire Solution
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Construction Retrofit Build
Energy/Digester Recurring Revenue
16. CONFIDENTIAL
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President/COO
Previous President -
Unisource Worldwide;
Corporate Officer of
Several Companies
CFO
Previous CFO of
Several Public,
Private
Corporations; M/A
Experience
Board of Advisors Examples (All are investors):
– Rick Schwerdtfeger, Ph.D - Former NREL Scientist
– James Fralick- Former Chief Economist of Morgan Stanley; Federal Reserve
– James Hotchkies - Consultant and Former Corporate officer of Xenon
(acquired by GE)
CTO
30 Years in
Wastewater
Design
CEO
Previous President
– Flextronics;
Corporate Officer
of Eastman Kodak
17. CONFIDENTIAL
• Energy Production: 2.5X – 4.1X energy harvested
• Energy Reduction: 50+% less energy to operate
• Regulatory Compliance Assured: Operations Reliability
• Capital Costs Reduction: less versus today’s technology
• Capacity Imrovement: Can doubles within same footprint
• Cleaner Water: Changes Infrastructure Game for a Water Starved Planet
• Automation: Smart Operations
• Greener / Cleaner: Reduces Millions of tons of CO2
12/15/201
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ClearCove Systems