CATO Energy concept for future energy derived from carbon products.

1. Renewable Energy Derived from Sustainable Sources of
Carbon
This is a summary of technologies that CATO can provide which can derive renewable
energy from sustainable sources of carbon supplies. These supplies include forms of
waste, such as oil sands shale and wastes, coal Gob piles, Cellulosics, Wood Wastes,
municipal solid waste and auto shredder residues. Annual carbon supplies are substantial
and reserves are plentiful in the US and world markets. (est. 2.0 Bln tons of carbon /yr in
the US only)
The vision is to derive renewable forms of energy independent of foreign oil, fuels
derived from foreign oil, and traditional forms of fossil fuels.
The building block for the conversion of traditional forms of waste to carbon is the
utilization of “Method to Recapture Energy From Organic Waste” technology. This
method involves the production of porous, highly reactive carbon and water from wastes
such as MSW that have been reacted with CO2 and/or CO. The byproducts of the process
include recyclable metals and the capture of chlorine and fluorine. No harmful
byproducts are emitted.
This is much less capital intensive to build and operate than traditional mass burn to
energy applications and is twice as efficient. The carbon produced has BTU equivalent
value to coal and can be used as a co-fire equivalent by coal fired utilities. It can be
further enhanced and value added by utilization in fuel cells or converting the coal to
other forms of hydrocarbon gases and or liquids.
This technology is game changing in that it utilizes gases previously known to be inert or
un-reactive. Theses gases are CO2 and CO. Columbia University and the Colorado
School of Mines have collaborated independently on these significant scientific findings.
Columbia is studying the sequestration of CO2 by utilizing carbon substrates to capture
the CO2. CSM has confirmed the findings of CATO in its patented claims.
The carbon derived from the process above can be utilized to make gases and liquids of
hydrocarbons which are more valuable than coal net of the cost to convert using two
independent methods. One is the “Method for the Production of Hydrogen Gas and
Electricity From Carbon” and the other is the “Carbon-Fueled Fuel Cell”. In both the
production of gases with much higher value per BTU than coal is produced. This creates
a market for industrial gases such as hydrogen, methane and propane that is independent
of the price of oil. Instead, it is linked to a very stable price of coal or coal equivalent, that
being the carbon derived from waste.

2. Example, natural gas from oil costs a minimum of $3.50 per million BTU while carbon
or coal sells for approx 50 % of this cost. This allows for economical conversion to
competitive equivalent products such as methane, methanol, ethanol, and propane.
Commercially it provides a floor price for utilities who need natural gas to satisfy peak
demand for electricity in an uncertain peak demand environment. Rather than be exposed
to the price at spot market, they can opt for the fuel derived from coal as an alternate.
Carbon To Hydrocarbon Illustration
Methane Methanol Ethanol Propane
Carbon Lbs /Lb Product 2.3 1.7 1.6 2.1
Cost per Lb $0.12 $0.06 $0.10 $0.13
Sales Value Range $0.06- 0.22 $0.125-0.14 $0.22- 0.26 $0.14-0.30
Net Value at median $0.14 $0.1325 $0.24 $0. 22
TpY/ 20 cells 150,000 400,000 400,000 104,000
Gross Margin $(000,000) $6.0 $58.0 $152.0 $19.0
Plant cost to build 20 cells = $22 million est.
Currently electric power can be derived from taking carbon through the CATO Cell. In
demonstration phase is the ability to produce methane and propane while generating
electric power. This can be scaled to generate power plentiful enough to serve
communities, especially useful in rural electric applications. The efficiency of conversion
of the carbon to electricity is extremely high when compared to existing alternative
technologies.
Energy Derived From High Sulphur Coals
Concurrent to this effort is the process which employs the “Method to Recapture Energy
From Organic Waste” to produce Clean Coal from commercially undesirable coals such
as those with high sulphur. When combined with “Microwave Enhancement of the
Segregation Roast” technology, the process cleans fossil forms of coal. The removal of
sulphur, Mercury, Arsenic, Cadmium, and Lead can occur prior to combustion,
minimizing liability issues involved in storing byproduct ash from coal fired utilities.
Coupled to the “Carbon-Fueled Fuel Cell”, electric power can be derived from
processing of this form of carbon or “Clean Coal.”
A sample illustration involves high sulphur coal from Illinois No. 6. A facility capable of
processing 1,000,000 tons of this coal per year would produce 735,000 tons of carbon,
40,000 tons of sulphur and 44 megawatts of electricity. In addition, the deleterious metals
mentioned above and present in ash would be eliminated. It is further envisioned that
metals such as Titanium, Vanadium , Molybdenum and nonferrous metals can be
economically recovered prior to combustion.

3. High Sulphur Coal to Energy Illustration
Sales
Clean Carbon 1748 lbs @ $0.025/lb $ 43.70
Pure Sulphur 72 lbs @ $0.030/lb $ 2.16
Electric Power 203.7 KwH @ $0.05/KwH $ 10.19
Total Sales Revenue $ 56.05/ton
Costs
Coal Cost per Ton $ 28.00
Cost to run Operation/Ton(est) $ 12.00
Total Costs (est) $ 40.00
Net per Ton of Illinois No. 5 processed $ 16.05/ton
Conclusion
The technologies described above are game changing within the field of energy. The use
of sustainable carbon based resources provides a base to move further away from
imported oil dependency and reduces traditional forms of fossil fuel use. This, along with
Clean Coal technology can further enhance consumers’ ability to consume energy
derived from renewable sources and domestic forms of carbon.
Beyond the current phases of development described, the utilization of the CATO Cell to
compete with gasoline, diesel, hybrid or electric forms of transportation based power is
envisioned. Imagine filling the car with carbon and realizing better electric and fuel
consumption efficiencies than can be imagined today. Another step away from foreign
oil.