Executive Summary
October 2010
Proprietary Information
AGENDA
• Integrated Energy Solutions Overview
• Bio-Coal™ Intro
• Power Plant Example
• Competition
• Target Customers
• Market Assessment
• Projected Revenues
• Current Status
INTEGRATED ENERGY SOLUTIONS LLC
• Founded in 2009
• Focused on Renewable Energy
• Research and Development, Technology
Licensing, Project Development, and Project
Execution
INTEGRATED ENERGY SOLUTIONS LLC
Officers and Executive Committee:
Al Rettenmaier, President
Tim Orrick, Esq., VP/General Counsel
Advisory Committee:
Dennis Huber, Chief Technology Officer,
CenturyLink Telecommunications
Bob Dunn, VP, JE Dunn Construction
INTEGRATED ENERGY SOLUTIONS LLC
IES is Focused on Biomass Co-Firing for
Coal Fired Power Plants
Now…..
• Algae – Bio-Coal™ Technology
next up is……
• Wood Torrefaction - TorrWood
BIO-COAL™ IS ALGAE BIOMASS COFIRING
• Produces No Cost Renewable Power in
Existing Coal Fired Power Plants
• Reduces Emissions
• Meets Renewable Portfolio Standards (RPS) –
at a Fraction of the Cost of Wind Energy
5000 gal Algae Growth Facilities
at Chamois Power Plant in Missouri
BIO-COAL™ IS A SIMPLE SOLUTION
 Cultivate/Grow Native Algae
• No “Super Algae”
• Simple Nutrients, No Manipulation
• CO2 Supply from Air, Flue Gas or Other
Source
 Harvest the Algae
 Feed the Algae/Coal Mixture to Power Plant
COAL INDUSTRY ISTURNINGTO ALGAE
Recent Article on Algae Co-Firing:
“Biomass - Getting Fired Up About Algae in PC
Burners”, Modern Power System Magazine,
Aug 2010
• Article Describes 10% Algae/ 90% Coal Test
Burn by Siemens/PetroAlgae
• Favorable Results including a 20% NOx
Reduction!
BIO-COAL™ POWER PLANT EXAMPLE
Sunflower Electric, Holcomb, KS
• 360 MW Pulverized Coal Power Plant
• Replace 10%
of Coal with Algae
Seambiotic Algae Growth Facility
At a Coal Power Plant in Israel
BIO-COAL™ REPLACES COAL
Sunflower
360 MW
Example
Before Bio-
Coal™
After Bio-
Coal™ Savings
Coal Usage,
tons/y
1,650,000 1,485,000 165,000
Coal Cost,
$/y
$49,368,000 $44,431,200 $4,936,800
BIO-COAL™ EMISSIONS REDUCTIONS
Sunflower
360 MW Example Before Bio-Coal™ After Bio-Coal™
CO2 Emissions, tons/y 2,534,424 2,204,949
SO2 Emissions, tons/y 1,154 1,039
NOx Emissions, tons/y 3,926 3,141
Hg Emissions, tons/y 327 294
BIO-COAL™ EMISSIONS REDUCTIONS
Sunflower
360 MW Example
Emission
Reduction with
Bio-Coal™
Percent
Reduction
CO2 Emissions, tons/y 329,475 13%
SO2 Emissions, tons/y 115 10%
NOx Emissions, tons/y 785 20%
Hg Emissions, tons/y 33 10%
COMPARISON OF BIO-COAL™ RENEWABLE
ENERGYTO NEW WIND ENERGY
BIO-COAL™ RENEWABLE ENERGY
Sunflower
360 MW Example Before Bio-Coal™ After Bio-Coal™
Renewable
Megawatts 0 36
BIO-COAL™ CAPITAL COST
VS WIND ENERGY
Sunflower
360 MW Example Bio-Coal™ Wind Energy
Equivalent Renewable
Megawatts 36 109*
Cost of Equivalent
Renewable Megawatts $58,000,000 $218,000,000
*Includes capacity factor of 33%
BIO-COAL™ PRODUCTION COST
VS WIND ENERGY
Sunflower
360 MW Example Bio-Coal™ Wind Energy
Renewable Electricity
Cost, $/kWh
$0.00* $0.04*
*Includes Renewable Production Incentive,
Biomass Credits and Emissions Reduction
Credits
BIO-COAL™ INCENTIVES
Numerous Biomass Incentives are Offered
• American Clean Energy Leadership Act
– ‘‘(G) allow triple credits for generation of energy
from algae;
• Renewable Electricity Production Tax Credit or
Incentive - 2.1 ¢/kWh
• US Dept of Treasury Renewable Energy Grant
– 30% of qualifying facility cost
• USDA Biomass - $45/ton
ALGAE HARVESTING COMPETITION
Current State-of-the-Art Algae Harvesters
Make Algae “Paste” – Not Fuel
• Evodos – Advertising Energy Usage of 0.7
kWh/kg algae – Bio-Coal™ Uses 80% Less
• Algaeventures Systems Inc. – New
Technology HDD – makes “paste”
• Bio-Coal™ Makes Fuel for Combustion
TARGET CUSTOMERS
Coal Industry Segment Application
Coal Power Plants On-site algae ponds,
sequester CO2,
harvest/combust algae for fuel
replacement and emission
reductions
Coal Mines Enhanced coal value: Coal
product with renewable
component and reduced
emissions
Railroads New rail transport facilities for
Bio-Coal™
Engineering/Construction
Companies
New algae growth and Bio-
Coal™ harvesting facilities
BIO-COAL™ MARKET FACTORS
• Climate – southern latitudes/warmer climates
are best for algae growth
• Renewable Portfolio Standards – states with
RPS targets must have renewable energy
• Available Land – algae farms need large tracts
of relatively flat land
• Existing Coal Fired Power Plants – the more
existing coal plants, the larger the market
TARGET MARKETS BASED ON FACTORS
In order of Existing Coal Power Plant Capacity:
Texas, North Carolina, Missouri, Florida,
Arizona, Oklahoma, Utah, Colorado, Virginia,
Kansas, New Mexico, Nevada and California
These states have a total of 100,000 MW of
existing coal plants and a projected renewable
energy build-out of 16,761 MW by 2025 (EIA-
DOE) to meet existing RPS mandates
BIO-COAL™ MARKET SIZE
• Survey of Power Plants in the Target States
Indicates that 1 in 4 Existing Coal Power Plants
are Favorable for Bio-Coal™
• At 10% Algae this Yields 2,500 MW of Algae
Power Production
• Total Investment Estimated at $4 Billion
• Total Algae Production: 11,500,000 ton/yr
BIO-COAL™ MARKET SIZE
Market Assessment:
• 2,500 MW of Renewable Energy from Bio-
Coal™ = Capital Cost of $4.0 billion
• In 2008, $23 billion Spent in US for Renewable
Energy (EPA Source)
• Conclusion: This Level of Investment is Already
Being Made
BIO-COAL™ MARKET SIZE
Market Assessment:
• 2,500 MW Renewable Energy from Bio-Coal™
• RPS Projected to Require 76,000 MW of
Renewable Energy by 2025 – per Union of
Concerned Scientists
• Conclusion: Market is in Place for 15 Years
BIO-COAL™ MARKET SIZE
Market Assessment:
• US Coal Power Plants Use 1 Billion Tons of
Coal per Year
• 2,500 MW of Algae from Bio-Coal™
= 11,500,000 Tons of Algae
• Algae Value of $500 Million Annually
• Represents 1% of Coal Market
REVENUE PROJECTIONS
• Assuming Capital Cost of $4 billion
• Bio-Coal™ License Fees: $57 MM revenue
• Equipment Supply: $800 MM revenue
• Engineering: $200 MM revenue
• Bio-Coal™Royalties: $2/ton or $23 MM/yr
INTEGRATED ENERGY SOLUTIONS LLC
Current Status:
• Developing Business Plan
• Locking Up IP Long Term
• Conducting Additional Proof of Concept
Testing in University Laboratory
• Looking for a Strategic Partner and Investor

Executive Summary October 2010

  • 1.
  • 2.
    AGENDA • Integrated EnergySolutions Overview • Bio-Coal™ Intro • Power Plant Example • Competition • Target Customers • Market Assessment • Projected Revenues • Current Status
  • 3.
    INTEGRATED ENERGY SOLUTIONSLLC • Founded in 2009 • Focused on Renewable Energy • Research and Development, Technology Licensing, Project Development, and Project Execution
  • 4.
    INTEGRATED ENERGY SOLUTIONSLLC Officers and Executive Committee: Al Rettenmaier, President Tim Orrick, Esq., VP/General Counsel Advisory Committee: Dennis Huber, Chief Technology Officer, CenturyLink Telecommunications Bob Dunn, VP, JE Dunn Construction
  • 5.
    INTEGRATED ENERGY SOLUTIONSLLC IES is Focused on Biomass Co-Firing for Coal Fired Power Plants Now….. • Algae – Bio-Coal™ Technology next up is…… • Wood Torrefaction - TorrWood
  • 6.
    BIO-COAL™ IS ALGAEBIOMASS COFIRING • Produces No Cost Renewable Power in Existing Coal Fired Power Plants • Reduces Emissions • Meets Renewable Portfolio Standards (RPS) – at a Fraction of the Cost of Wind Energy 5000 gal Algae Growth Facilities at Chamois Power Plant in Missouri
  • 7.
    BIO-COAL™ IS ASIMPLE SOLUTION  Cultivate/Grow Native Algae • No “Super Algae” • Simple Nutrients, No Manipulation • CO2 Supply from Air, Flue Gas or Other Source  Harvest the Algae  Feed the Algae/Coal Mixture to Power Plant
  • 8.
    COAL INDUSTRY ISTURNINGTOALGAE Recent Article on Algae Co-Firing: “Biomass - Getting Fired Up About Algae in PC Burners”, Modern Power System Magazine, Aug 2010 • Article Describes 10% Algae/ 90% Coal Test Burn by Siemens/PetroAlgae • Favorable Results including a 20% NOx Reduction!
  • 9.
    BIO-COAL™ POWER PLANTEXAMPLE Sunflower Electric, Holcomb, KS • 360 MW Pulverized Coal Power Plant • Replace 10% of Coal with Algae Seambiotic Algae Growth Facility At a Coal Power Plant in Israel
  • 10.
    BIO-COAL™ REPLACES COAL Sunflower 360MW Example Before Bio- Coal™ After Bio- Coal™ Savings Coal Usage, tons/y 1,650,000 1,485,000 165,000 Coal Cost, $/y $49,368,000 $44,431,200 $4,936,800
  • 11.
    BIO-COAL™ EMISSIONS REDUCTIONS Sunflower 360MW Example Before Bio-Coal™ After Bio-Coal™ CO2 Emissions, tons/y 2,534,424 2,204,949 SO2 Emissions, tons/y 1,154 1,039 NOx Emissions, tons/y 3,926 3,141 Hg Emissions, tons/y 327 294
  • 12.
    BIO-COAL™ EMISSIONS REDUCTIONS Sunflower 360MW Example Emission Reduction with Bio-Coal™ Percent Reduction CO2 Emissions, tons/y 329,475 13% SO2 Emissions, tons/y 115 10% NOx Emissions, tons/y 785 20% Hg Emissions, tons/y 33 10%
  • 13.
    COMPARISON OF BIO-COAL™RENEWABLE ENERGYTO NEW WIND ENERGY
  • 14.
    BIO-COAL™ RENEWABLE ENERGY Sunflower 360MW Example Before Bio-Coal™ After Bio-Coal™ Renewable Megawatts 0 36
  • 15.
    BIO-COAL™ CAPITAL COST VSWIND ENERGY Sunflower 360 MW Example Bio-Coal™ Wind Energy Equivalent Renewable Megawatts 36 109* Cost of Equivalent Renewable Megawatts $58,000,000 $218,000,000 *Includes capacity factor of 33%
  • 16.
    BIO-COAL™ PRODUCTION COST VSWIND ENERGY Sunflower 360 MW Example Bio-Coal™ Wind Energy Renewable Electricity Cost, $/kWh $0.00* $0.04* *Includes Renewable Production Incentive, Biomass Credits and Emissions Reduction Credits
  • 17.
    BIO-COAL™ INCENTIVES Numerous BiomassIncentives are Offered • American Clean Energy Leadership Act – ‘‘(G) allow triple credits for generation of energy from algae; • Renewable Electricity Production Tax Credit or Incentive - 2.1 ¢/kWh • US Dept of Treasury Renewable Energy Grant – 30% of qualifying facility cost • USDA Biomass - $45/ton
  • 18.
    ALGAE HARVESTING COMPETITION CurrentState-of-the-Art Algae Harvesters Make Algae “Paste” – Not Fuel • Evodos – Advertising Energy Usage of 0.7 kWh/kg algae – Bio-Coal™ Uses 80% Less • Algaeventures Systems Inc. – New Technology HDD – makes “paste” • Bio-Coal™ Makes Fuel for Combustion
  • 19.
    TARGET CUSTOMERS Coal IndustrySegment Application Coal Power Plants On-site algae ponds, sequester CO2, harvest/combust algae for fuel replacement and emission reductions Coal Mines Enhanced coal value: Coal product with renewable component and reduced emissions Railroads New rail transport facilities for Bio-Coal™ Engineering/Construction Companies New algae growth and Bio- Coal™ harvesting facilities
  • 20.
    BIO-COAL™ MARKET FACTORS •Climate – southern latitudes/warmer climates are best for algae growth • Renewable Portfolio Standards – states with RPS targets must have renewable energy • Available Land – algae farms need large tracts of relatively flat land • Existing Coal Fired Power Plants – the more existing coal plants, the larger the market
  • 21.
    TARGET MARKETS BASEDON FACTORS In order of Existing Coal Power Plant Capacity: Texas, North Carolina, Missouri, Florida, Arizona, Oklahoma, Utah, Colorado, Virginia, Kansas, New Mexico, Nevada and California These states have a total of 100,000 MW of existing coal plants and a projected renewable energy build-out of 16,761 MW by 2025 (EIA- DOE) to meet existing RPS mandates
  • 22.
    BIO-COAL™ MARKET SIZE •Survey of Power Plants in the Target States Indicates that 1 in 4 Existing Coal Power Plants are Favorable for Bio-Coal™ • At 10% Algae this Yields 2,500 MW of Algae Power Production • Total Investment Estimated at $4 Billion • Total Algae Production: 11,500,000 ton/yr
  • 23.
    BIO-COAL™ MARKET SIZE MarketAssessment: • 2,500 MW of Renewable Energy from Bio- Coal™ = Capital Cost of $4.0 billion • In 2008, $23 billion Spent in US for Renewable Energy (EPA Source) • Conclusion: This Level of Investment is Already Being Made
  • 24.
    BIO-COAL™ MARKET SIZE MarketAssessment: • 2,500 MW Renewable Energy from Bio-Coal™ • RPS Projected to Require 76,000 MW of Renewable Energy by 2025 – per Union of Concerned Scientists • Conclusion: Market is in Place for 15 Years
  • 25.
    BIO-COAL™ MARKET SIZE MarketAssessment: • US Coal Power Plants Use 1 Billion Tons of Coal per Year • 2,500 MW of Algae from Bio-Coal™ = 11,500,000 Tons of Algae • Algae Value of $500 Million Annually • Represents 1% of Coal Market
  • 26.
    REVENUE PROJECTIONS • AssumingCapital Cost of $4 billion • Bio-Coal™ License Fees: $57 MM revenue • Equipment Supply: $800 MM revenue • Engineering: $200 MM revenue • Bio-Coal™Royalties: $2/ton or $23 MM/yr
  • 27.
    INTEGRATED ENERGY SOLUTIONSLLC Current Status: • Developing Business Plan • Locking Up IP Long Term • Conducting Additional Proof of Concept Testing in University Laboratory • Looking for a Strategic Partner and Investor