GB2461723A

GB2461723A - Conversion of waste carbon dioxide gas to bulk liquid fuels suitable for automobiles

Info

Publication number: GB2461723A
Application number: GB0812618A
Authority: GB
Inventors: Christopher Denham Wall
Original assignee: Individual
Current assignee: Individual
Priority date: 2008-07-10
Filing date: 2008-07-10
Publication date: 2010-01-13
Anticipated expiration: 2028-07-10
Also published as: GB2461723B; GB0812618D0

Abstract

Carbon dioxide gas exhausted from power stations is collected by means of absorption into an absorptive fluid. The carbon dioxide is used as the carbon skeleton for hydrocarbon oralcohol fuel. In another section, water is separated into its constituent elements, namely hydrogen and oxygen, by electrolysis. The hydrogen is combined with the carbon dioxide in an exothermic reaction to produce methanol. Methanol is a preferred automobile fuel as the pure substance or as a mixture with conventional motor fuel. If it is desired, the methanol may be converted to ethanol or conventional motor fuel. The process represents an energy conversion technology, since the carbon dioxide has no reductive (calorific) heat value, and is essentially inert.

Description

BACKGROUND TO THE INVENTION

The invention relates to the manufacture of synthetic liquid fuel.

More specifically the invention relates to the economic production of synthetic liquid fuel from synthesis gas, utilizing as a carbonaceous feedstock, waste carbon dioxide gas such as that exhausted from fossil fuel burning power stations.

In one aspect of the invention the liquid fuel that is manufactured is alcohol fuel, primarily methanol, and secondarily ethanol, suitable for use in motor vehicles as a blend with petrol or in a pure form.

In another aspect of the invention the liquid fuel that is manufactured comprises the traditional liquid automotive fuels petroleum and dieseline and aviation gas.

According to one application (A) of the invention the electrical energy source which enables the production of liquid fuel from the waste carbon dioxide gas emitted typically by gas, oil or coal burning power stations, does itself not emit carbon dioxide.

Such sources of electrical power typically incorporate the tidal, wind, turbine, solar, radiation, hydro-electric, and nuclear power station technologies.

In this application of the invention, carbon dioxide emissions to atmosphere will be reduced or eliminated from the fossil fuel fired power plant. The carbon dioxide will be converted to liquid fuel. In this way the emissions of what has been termed "greenhouse gas" will be partially, or completely eliminated from the power station, producing the waste carbon dioxide gas.

In a second application (B) of the invention, the electrical energy source which enables the production of liquid fuel from the waste carbon dioxide gas emitted typically by gas, coal or oil burning power stations, comes itself from power stations that exhaust the carbon dioxide gas.

This will typically occur at off-peak periods when the power station would normally operate at a low electrical power output compared to peak period output. The power plant may continue to operate at a steady load and the excess electrical power converted into liquid fuel economically.

This in essence represents electricity power storage. In a further extension of this idea the liquid fuel may be used at a high efficiency in a gas fired turbo-alternator, to produce electricity at peak demand periods.

At present no convenient and universal method for massive electricity storage exists. One often used technology is water pump storage. In this electricity storage scheme water is pumped to an elevated reservoir at off peak power demand periods, and let down through an electricity generating turbine at peak demand periods. In most areas this method of energy storage is, however, impracticable.

In most aspects the two applications of the invention (A) and (B) above will be to a greater or lesser extent indistinguishable, since the liquid fuel producing facility will operate adjacent to a fossil fuel burning power plant linked to a regional electricity grid system.

In the description of the detailed financial analysis which is a part of the background to the invention, electricity generated from a thermo-nuclear power station is assumed for those manufacturing facilities exhibiting a large production rate. In general this is the only form of electricity generation available on a regular large scale independent of location. The cost base for conventional power generation is somewhat lower.

In a third application (C) of the invention, coal based liquid fuels manufacturing facilities, which, utilizing the current technology, exhaust large quantities of carbon dioxide to atmosphere, use this waste carbon dioxide to produce additional liquid automotive fuel. In this application the existing technology is combined with the new technology to reduce or eliminate carbon dioxide emissions.

Whereas crude oil, and the derived products petroleum and dieseline, are proven in their use in automotive engines, and in particular in the four stroke piston engine whether of the spark ignition type or the adiabatic compression auto-ignition type (diesel), this fuel suffers from a number of disadvantages.

The primary disadvantages of the use of the distillation products of crude oil, petrol and diesel as automotive liquid fuels are as follows.

The global reserve of crude oil is finite and is being depleted at an ever increasing rate.

* At some time in the future a severe shortage of crude oil will prohibit the usage of petroleum and dieseline unless these products are synthetically manufactured.

* The shortage of crude oil will be exacerbated by the requirements of the petro-chemical industry which depends on crude oil to produce ethylene glycol, polyethylene, polypropylene, acrylonitrile, butadiene elastomers and caprolactom as major products.

* Resulting from the shortage of petroleum products a rise in the price of fuel will lead to a general increase in the price of transportation, and a concomitant price increase in most goods and services.

* Crude oil reserves are not uniformly distributed around the world, but are concentrated in certain areas. This leads to a number of difficulties including: -High transportation costs to certain areas; -Political arid social problems caused by legitimate or illegitimate concerns relating to the financial or other control of crude oil production and distribution.

a Petroleum and Dieseline are often the cause of vehicular exhaust pollution, and in particular photo-chemical pollution in major conurbations.

In the light of these problems relating to the exploitation of crude oil and its refinery products, and in particular supply constraints, it is clear that at some stage in the future, a replacement for crude oil derived petroleum and dieseline must be evolved to enable the continuation of economic vehicular transportation.

The basic requirements of such a fuel are that it remains as is, or exhibits characteristics as follows: a. The fuel must be cheap to manufacture; b. The fuel should ideally be suitable for use in existing four stroke piston engines of the spark ignition type (petrol) or the compression heat ignition type (diesel). There are a number of cogent reasons why the fuel should be compatible with existing automobile engines, mainly relating to the minimization of a dislocation in the economic working of the worldwide automotive industry, and automobile servicing and repair industry; c. The fuel must be dispensed in the normal way using existing equipment and primary and secondary fuel distribution infrastructures. As a counter example the distribution of cryogenic liquid hydrogen and oxygen would require major changes in distribution infrastructure; d. The fuel must be as safe as or safer than petroleum and dieseline, both as concerns primary and secondary (retail) distribution and in traffic accidents; e. The fuel must exhibit drivability characteristics that are equal to or superior to the existing fuels, petroleum and dieseline. These drivability characteristics include: -acceleration -top speed -torque -idling -cold start -hot start f. The fuel must be as efficient or more efficient in terms of distance traveled per unit cost; g. The fuel must exhibit pollution characteristics that are equal to or better than those evinced by petroleum and dieseline; h. The fuel must be able to be introduced gradually into the existing worldwide transportation network and infrastructure, incorporating such diverse elements as technical college training, motor vehicle design, legal statutes, vending, road safety, bulk transportation capability and many others.

A replacement fuel that fulfils all of the requirements listed in A-G above is ALCOHOL. This is in fact presently the only motor fuel that is used in significant quantities in competition with petroleum and dieseline.

The alcohol fuel that is currently distributed is the chemical compound ETHANOL, with the chemical formula C2H5OH.

ETHANOL is produced in world scale quantities in two regions in the world.

* In Brazil where ethanol is the fermentation product of sugar cane.

Approximately 5 million cars operate using ethanol blends, or pure ethanol which is marketed as E96 or Ethanol with 4% water.

* In the United States where maize (corn) is the raw material for the ethanol.

It is marketed throughout the United States as a dilute blend in petroleum, and in the Mid West States, as E85, which is 85% Ethanol with 15% petroleum.

However, the capability of the international agricultural economy will be to produce only approximately 3-5% of the total fuel requirement.

ETHANOL may be synthesized from a carbonaceous feedstock via a process route that first entails the production of METHANOL.

METHANOL with the chemical formula CH3OH has the same basic properties as ETHANOL and satisfies all of the requirements A-G listed above. The economics of synthetic METHANOL manufacture are considerably superior to synthetic ETHANOL manufacture.

It is probable therefore that METHANOL will take precedence over ETHANOL as the primary replacement for petroleum and dieseline in the market place.

It is not likely that any other chemical substance will supplant ALCOHOL in general, and METHANOL and ETHANOL specifically, as the major replacement compounds for PETROLEUM and DIESELINE.

The reasons for this are mainly their superior fuel efficiency, cost and pollution characteristics, coupled with essential compatibility with the existing engines, and distribution infrastructure.

The invention relates specifically to the use of carbon dioxide, with the chemical formula CO2 as the carbonaceous feedstock for the production of the automotive fuel.

This carbon dioxide is exhausted by all fossil burning power stations and is widely or universally regarded as a waste product with no substantial industrial value as a basic commodity, but with a number of niche applications mainly concerning welding gas and carbonated soft drinks.

The carbon dioxide is, however, available in a relatively concentrated form, and is substantially free from impurities. The processes of, for example, coal mining, coal beneficiation and transportation, gasification and dust removal have been substantially carried out, and ash disposal is also economically independent.

Thus, whilst the carbon dioxide has no value in its normal role as a chemical reductant, economically it may be used simply as the CARBON skeleton upon which other elements and in particular HYDROGEN may be added through the introduction of ENERGY, to overcome heat of formation limitations and create relatively complex chemical compounds, and in particular HYDROCARBONS or OXYGENATED HYDROCARBONS.

The invention relates to the manufacture of ALCOHOL fuel by the method of using waste CARBON DIOXIDE as the carbon skeleton for the formation of the alcohols METHANOL (CH3OH) and ETHANOL (C2H5OH), and of the TRADITIONAL fuels PETROLEUM, DIESELINE and AVIATION FUEL by an essentially similar front end process.

It is important to note that any chemical compounds chosen for synthesis using this method must satisfy a number of criteria: A. HIGH VOLUME PRODUCTION As a result of the carbon dioxide (C02) being produced in very large quantities, the chemical products must be consumed in very large quantities. The only chemical compounds that satisfy this criterion are liquid automotive fuels.

B. HIGH ENERGY TRANSLATION EFFICIENCY.

The manufacturing process should contain as few process conversion inefficiencies as possible, so that the conversion of electrical energy to chemical energy is as complete as possible. If this is not done the manufacturing process may be sub-economic, since the major economic input to the process is electricity cost.

A process which satisfies this requirement is primarily the production of METHANOL. METHANOL is the cheapest of the bulk commodity chemicals to produce, mainly as a result of the almost complete catalyst selectivity (98% of the product is methanol, the remainder mainly ethanol and propanol, which are simply added to the fuel). Apart from the high catalyst selectivity, the number of process steps is limited.

The manufacture of ETHANOL is also possible using the process. In this case the production of methanol is in any event carried out as the raw material for further processing. The methanol is first converted to CARBOXYLIC ACID (CH3COOH), before hydrogenation to ETHANOL. In this process selectivity to ethanol production is very high, of the order of 97%.

The manufacture of TRADITIONAL automotive fuels, PETROLEUM, DIESELINE and AVIATION FUEL, is more complex since the catalyst is not selective and a wide range of products is formed, which must be worked up mainly by standard refinery techniques. The energy contained in the products is lower than the electrical energy input as a ratio compared to alcohol manufacture. The product, however, is generally easier to introduce to the marketplace.

C. LOW PHYSICAL SPACE REQUIREMENT.

In the invention the CARBON DIOXIDE emitted from conventional power plant is converted to ALCOHOL FUEL or TRADITIONAL AUTOMOTIVE FUEL, using electrical power to produce HYDROGEN by electrolysis of water.

Whilst the electrical energy may be readily transported to the chemical plant, and in particular the major electricity consuming electrolysis section of the plant by electricity transmission lines, the chemical plant must be situated in close proximity to the carbon dioxide producing power plant.

This is as a result of the high pipeline and compression costs involved in transferring the carbon dioxide over a long distance.

The requirement to place the chemical plant in close proximity to the power plant will in many instances, be associated with space limitations. For example, power plants may be situated in or close to urban areas. Whereas the source of electrical power, and in particular nuclear power plants, may be situated far from the conurbation, the chemical plant cannot be far removed from the carbon dioxide source.

Space limitation will in many instances, and particularly those involving electricity storage schemes, dictate that the chemical plant producing the * synthetic fuel must be simple and occupy a small area of land. The METHANOL synthesis plant fulfils this requirement.

It is the simplest of the bulk commodity chemical plants and occupies a small land area. The electrolytic cells producing hydrogen may be tiered to reduce land area occupied.

The land area required to produce ETHANOL, will be approximately twice that required for methanol. In the ethanol production process methanol is first manufactured followed by reaction to form carboxylic acid. This carboxylic acid is then hydrogenated to form ethanol. The hydrogen gas requirement per kg.mole of ethanol is according to the flow sheet 6 kg. mole, as opposed to 3 kg.mole for METHANOL production. As a result the number of electrolytic cells will be double (per kg.mole) or about 45% greater on a volumetric or mass basis.

For the manufacture of traditional fuels by the Fischer-Tropsch (F-T) synthesis or the MTG (MOBIL, Methanol to Gasoline) synthesis, the land area occupied is considerably larger. This is because in these processes the product of the synthesis reaction is not specific, and includes a very wide product spectrum.

This product spectrum must be treated using both standard and non-standard refinery processes in what is essentially a complex operation. The land area required is large.

D. CONTINUOUSLY VARIABLE PRODUCTION In many applications of this technology, and particularly those involving electricity storage schemes, the process of the fuel synthesis will be continuously variable in production output. This will arise as a result of variable regional electricity demand, typically referred to as peak electricity demand and off-peak electricity demand cycles. One of the functions of the synthesis of the fuel may be to effectively store electrical energy, which may not otherwise be stored. This lack of storage mechanism currently leads to down turning the electrical output of power stations at off-peak periods.

This is inefficient in terms of fuel efficiency, leads to a greater payback period for the capital investment of the power facility, and also results in operational and scheduling problems.

It is strongly cost-effective to operate a conjoined electricity storage scheme at variable rates, rather than to downturn an electricity generating plant.

This is most pronounced when the electricity generated would otherwise be effectively wasted. Examples of this are: 1. In extended gusty periods, during off peak periods when electricity demand is low, for those countries (notably Denmark), where wind turbine generation accounts for a significant percentage of the electricity generating mix.

2. During off peak periods in nations or regions with a significant portion of the electricity generated by nuclear power plants In this case the nuclear power plants are operated at a lower capacity during off-peak periods. Since the variable cost of production for a nuclear power plant is not a major proportion of the overall economics, it is economic to operate nuclear power stations at a continuous high capacity.

According to the invention this would have the added benefit of consumption of "greenhouse gas", which would otherwise be exhausted to atmosphere, and production of liquid automotive fuel which would otherwise have to be alternatively sourced.

The requirement for a production facility which is continuously variable in production rate is met by the METHANOL synthesis plant, and the associated electrolytic production of hydrogen gas.

The electrolytic cell house will comprise a large number of identical cells, and cells may be readily brought on or off line to maintain efficient current density.

The synthesis reactor pressure may be varied over a wide range and the proportioning of inlet gas modified to allow continuously variable production from the METHANOL plant.

An ETHANOL manufacturing facility may also be designed to incorporate continuously variable production rates. Because the manufacturing process is more complex than that for methanol production bulk storage of the intermediates would be required.

The more complex processes to manufacture the traditional fuels petroleum and dieseline by the Fischer-Tropsch (F-T) process and the Methanol to Gasoline (MTG) process would not in general be amenable to continuously variable production, in the absence of far reaching intermediate storage and essentially complex production scheduling.

E. LOW CAPITAL COST A high capital cost would mitigate strongly against the introduction of the new technology in general.

In particular a high capital cost would generally preclude retrofit installation associated with existing fossil fuel burning facilities which are close to the end of their economic life.

METHANOL synthesis plant is by a very considerable margin, the cheapest synthetic fuel facility to build. This is mainly as a result of the intermediate pressure level of the synthesis reaction (ca 70 -90 BAR) and the extremely high catalyst selectivity (ca 98% selective to methanol with the remainder mainly ethanol and propanol) This obviates the necessity for any downstream processing apart from the removal of water by simple distillation.

Ethanol production is associated with a much higher capital outlay, as a result of the increased complexity, remembering that methanol itself is the raw material for ethanol production.

The capital cost and complexity of production of the traditional fuels petroleum and dieseline by either the F-T synthesis or the MOBIL MTG synthesis would generally preclude their implementation in the capacity of generalized energy storage during off-peak cycles. Purpose built traditional fuels facilities would not in general, however, be precluded.

SUMMARY OF THE INVENTION

In summary the following points are relevant:

* The quantity of carbon dioxide entering the atmosphere mainly from coal based power plants is of considerable concern.

This gas may be significant contributory factor in average global surface temperature increase, commonly known as "global warming", Methanol is the cheapest of the major liquid automotive fuels to synthetically manufacture from a carbonaceous feedstock. This is mainly as a result of the simplicity of the chemical facility required, resulting from the very high catalyst selectivity. Thus very nearly all of the synthesis gas is converted to methanol (approximately 98%), and the remaining reaction products are mainly ethanol and propanol which are simply added to the fuel-grade methanol.

Water is the reaction by-product.

* When methanol is manufactured from coal a significant quantity of carbon dioxide is exhausted into the atmosphere. However, this quantity of carbon dioxide is lower than that for the manufacture from coal of traditional automotive fuels, or of ethanol.

* Methanol and ethanol are entirely compatible with the four-stroke piston engines currently in use worldwide as petrol (spark ignition) and diesel (compression ignition) engines.

* The alcohol may be added as a blend to petrol or it may be used in its neat form.

In most respects, and particularly in terms of the efficiency and pollution characteristics, ethanol and methanol are superior to the traditional automotive fuels petroleum and dieseine, Within the boundaries outlined in the Background above.

According to the invention carbon dioxide gas exhausted form fossil fuel power stations (coal, natural gas or crude oil fired) is used as the raw material, to manufacture liquid fuel for use in automobiles, or for other uses.

Thus the waste carbon dioxide gas is, according to the invention, one of the raw materials for the production of liquid automotive fuel. I0

The other raw material for the production of the liquid automotive fuel is hydrogen gas.

The hydrogen gas is obtained from a breakdown of liquid water by means of electrolysis.

A fundamental premise of the invention is that the electrical power used to electrolyse the liquid waste to produce hydrogen is generated by an energy source, which itself does not produce a carbon dioxide by-product. For most applications this energy source will arise from nuclear power stations.

In this way multiple objectives are fulfilled: * Liquid automotive fuel is produced.

* Two power plants may be situated adjacent to one another, resulting in a low environmental impact and some fmancial economy.

* The exhaustion of virgin fossil fuels (gas/coal/crude oil) does not appear in the manufacture of the alcohol liquid automotive fuel process. Waste gas is used instead of valuable raw material fossil fuel. This fossil fuel may then be used for applications outside of simple combustion.

* Pollution from the carbonaceous fossil fuel power plant will be substantially reduced since the feedstock to the synthetic fuel facility is freed from particulate matter.

METHANOL AND ETHANOL MANUFACTURE: OUTLINE OF

CHEMISTRY -BASIC STOICHIOMETRY

METHANOL MANUFACTURE -CARBON SOURCE COAL

Manufacture Using Coal as a Feedstock The basic reactions in a simplified form are as follows: C + 02 CO (COAL)

GASIFICATION

CO + H20 * CO2 + H2

SHIFT REACTION

CO + 5H2 + CO2. 2CH3OH + H2

SYNTHESIS REACTION

METHANOL MANUFACTURE -CARBON SOURCE NATURAL GAS

Manufacture Using Natural Gas (Methane) as a Feedstock CH4 + H20 CO + 3H2

STEAM REFORMING REACTION

CH4 + 202 * CO2 + 2H2O

COMBUSTION OF METHANE

CO + 5H2 + CO2 2CH3OH + H20

SYNTHESIS REACTION

METHANOL MANUFACTURE -CARBON SOURCE WASTE CARBON

DIOXIDE

Manufacture Using Fossil Fuel Burning Power Station Exhaust CO2 Gas as a Feedstock 2H20 2H2 + 02

ELECTROLYSIS OF WATER

H2 + CO2 H20 + CO

REVERSE SHIFT REACTION

CO + 5H + CO2 2CH3OH + OH + H20

SYNTHESIS REACTION

DISCUSSION OF BASIC CHEMISTRY

Coal Process When coal is used as a feedstock, carbon monoxide CO is formed by partial oxidation, in the gasifier.

The hydrogen, H2, is formed by reacting the carbon monoxide with water. This has the effect of reducing the water.

Part of the by-product of this reaction produces the carbon dioxide (C02) required for the synthesis reaction.

According to the basic stoichiometry of the process: 3 KG.MOLE of C is used for each KG.MOLE OF CH3OH (METHANOL). Of this: * 2KG.MOLE of C is used to make 2KG.MOLE of H2 * 1KG.MOLE of C is used to make 1KG.MOLE of CO * 1 KG.MOLE of CH3OH is produced + 2 KG.M OLE of CO2 is exhausted to atmosphere Natural Gas Process When natural gas is used as the feedstock to produce methanol the methane (CH4) is reacted with steam (H20). This produces both the CO and the H2 required for the reaction.

* I KG.MOLE of CH4 and 1 KG.MOLE of H20 produces 1 KG.MOLE of CO and 3 KG.MOLE of H2 * 1 KG.MOLE of CH3OH is produced from 1 KG.MOLE of CH4 * 1 KG.MOLE of excess H2 is produced * (zero) 0 KG.MOLE OF CO2 is exhausted to atmosphere A portion of the natural gas is combusted to power the steam reforming reaction.

This provides the carbon dioxide (C02) required.

Waste Carbon Dioxide Process When carbon dioxide is used as the carbon source for the process, hydrogen (H2) is first produced by electrolysis of water (H20).

A portion of the hydrogen (H2) is reacted against a portion of the carbon dioxide (C02) to form the carbon monoxide (CO) required for the reaction.

According to the basic stoichiometry of the process: 3 KG.MOLE of H20 is electrolytically decomposed to form 3 KG.MOLE of H2 and 1.5 KG.MOLE of 02.

Of this: * 1 KG.MOLE of H2 is reacted with 1 KG.MOLE of CO2 to produce, 1 KG.MOLE of CO * 2 KG.MOLE of H2 reacts with the CO so formed * 1 KG.MOLE of CH3OH is produced from 3 KG.MOLE of H2 * + 1.5 KG.MOLE of oxygen is exhausted to atmosphere * -1KG.MOLE of CO2 is exhausted to atmosphere In the waste carbon dioxide process, carbon dioxide that would be exhausted to atmosphere is consumed. Minus one KG.MOLE of CO2 is produced per KG.MOLE of methanol produced.

ETHANOL MANUFACTURE

General Outline Independent of the carbon source the following outline chemistry is operative in the synthetic manufacture of ETHANOL.

METHANOL is the starting raw material.

The METHANOL (CH3OH) is reacted with carbon monoxide (CO) to form ACETIC ACID (CH3000H).

CH3OH + CO CH3000H The ACETIC ACID is reacted with HYDROGEN GAS to form ETHANOL.

CH3COOH + 2H2 CH5OH + H20 The additional CO and H2 required to convert the METHANOL to ETHANOL is derived in the same three ways, for the three different raw material schemes as previously, viz: Coal Used as a Raw Material C + 1/202 CO 2CO + 2H20 2H2 + 2002 Natural Gas Used as a Raw Material CH4 + H20 CO + 3H (In this case excess hydrogen gas is unavoidably produced.) Carbon Diodde Used as a Raw Material 3H20 3H2 + l'/202 (water) Electrolytic decomposition CO2 + H2 CO + H2 Thus, according to the stoichiometry the essential formation process of carbon monoxide (CO) and of hydrogen (H2) are simply doubled up to provide the raw material for ETHANOL manufacture.

That this is not absolutely proportionately correct in actual practice is a result of process considerations, process inefficiencies and heat of formation.

Nevertheless, to a close approximation the stoichiometric scheme is representative of the actual industrial conversion.

Thus for ETHANOL manufacture the overall STOICHIOMETRIC CONVERSIONS are as follows for each raw material scheme

COAL PROCESS

Basic stoichiometry: 6 KG.MOLE of C is used for each KG.MOLE of C2H5OH (ETHANOL) Of this: * 4 KGMOLE of C is used to make 4 KG.MOLE OF H2 * 1 KG.MOLE of C2H5OH is produced * + 4 KG.MOLE of CO2 is exhausted to atmosphere

NATURAL GAS PROCESS

Basic stoichiometry: 2 KG.MOLE of CH4 and 2 KG.MOLE of H20 produces 2 KG.MOLE of CO and 6 KG.MOLE of H2, Of this: * 1 KG.MOLE of C2H5OH is produced from 2 KG.MOLE of CH4 * 2 KG of excess H2 is produced * (ZERO) 0 KG.MOLE of CO2 Is exhausted to atmosphere

WASTE CARBON DIOXIDE PROCESS

6 KG.MOLE of h2o is electrolytically decomposed to form 6 KG.MOLE OF H2 AND 3 KG.MOLE of 02.

Of this: * 2 KG.MOLE of H2 is reacted with 2 KG.MOLE of CO2 to produce 2 KG.MOLE of CO.

* 1 KG.MOLE of C2H5OH is produced from 6 KG.MOLE of H2 * -2 KG.MOLE of CO2 is exhausted to atmosphere * + 3 KG.M OLE of OXYGEN is exhausted to atmosphere In the waste carbon dioxide process, carbon dioxide that would otherwise be exhausted to atmosphere is consumed. Thus minus two (-2) KG.MOLES of CO2 is exhausted to atmosphere per KG.MOLE of ethanol produced.

METHANOL MANUFACTURE -EXISTING PROCESS -COAL

FEEDSTOCK

TECHNICAL DESCRIPTION

In the normal production of methanol using a coal feedstock, the coal is first GASIFIED to produce mainly carbon monoxide (CO). Unwanted by-products are, typically, hydrogen suiphide (H2S) or sulphur dioxide (SO2), (dependent on gasification temperature), and carbon dioxide (C02).

Step One

__________ CO

COAL CO2 plus trace C ______ _______ H2S,S02 H2 Others CH4, V2 02 OXYGEN etc BLOCK DIAGRAM 1 Step Two is In a second step, this gas stream is typically washed clean of dust and the unwanted carbon dioxide and hydrogen suiphide are then removed. The removal of the carbon dioxide and hydrogen suiphide is typically achieved by a process known as temperature swing adsorption (TSA). H2S Co2

co, Co2 SCRUBBING H2S Co _____________ SECTION so2 plus Dust CO2 some H c ___________ REMOVAL TI 2L), 2 ______________ SO2 TSA BLOCK DIAGRAM 2 Step Three In a third step the CO gas is compressed to a pressure level suitable for the SHIFT REACTION and the METHANOL SYNTHESIS REACTION. Co Co

some some H2 H2

LOW HIGH

PRESSURE PRESSURE

COMPRESSION

BLOCK DIAGRAM 3 Step Four In the fourth step the hydrogen for the reaction is generated by the reduction of water in a process known as the SHIFT REACTION.

Approximately two thirds of the carbon monoxide (CO) gas stream is diverted to the SHIFT REACTOR, and one third is used to provide the carbon source for the SYNTHESIS REACTION.

In this reaction water is reduced by the action of the reducing agent, which is carbon monoxide.

The waste product of this reaction is carbon dioxide which is exhausted to the atmosphere.

The product of this reaction is hydrogen. 2C02

TO WASTE

3C0 2C0 2C0+2H20

TT

4 LITI2 2CO, +2112 F120 Co BLOCK DIAGRAM 4 Step Five In the fifth step the synthesis gas is proportioned and then directed into the SYNTHESIS REACTOR. The reaction typically takes place at 50 -90 BAR.

Some carbon dioxide is added to the synthesis gas stream to cool down the reaction by the reverse shift reaction. This prevents catalyst sintering and extends catalyst life The gas is typically added to the METHANOL SYNTHESIS REACTOR at the top of the reactor, and at two or more further intermediate stages to allow the reaction to progress, which would otherwise be stopped by equilibrium considerations. The reaction is exothermic and the intermediate gas injection, called quench injection, lowers the temperature and moves the gas mixture away from equilibrium, allowing methanol formation.

A number of reactions occur in the synthesis reactor, which may typically be represented as: 1. CO + 51-12 + co2 2CH3OH + H20 2. 2C0 + 7H2 + CO2 ----3CH3OH + H20 3. CO + 8H2 + co2:---3CH3OH + 2H20 4. 2C0 + 10H2 + 2C02. 4CH3OH + 2H20 Etc These reactions are all essentially equivalent to the same reaction, namely, CO + 2H2, CH3OH once the reverse shift reaction is accounted for. Thus, for example, in 4 above 2C0 + 10H2 + 2C02 4CH3OH + 2H20 could equally be written 2C0 + (2C0 +2H20) + 8H2 -----4CH3OH + 2H20 When water is removed from both sides of the equation the following results: 4(CO + 2H2) 4(CH3OH) or CO + 2H2 CH3OH Thus the effect of adding carbon dioxide is to increase the quantity of water by-product of the reaction.

The actual quantity of methanol produced remains unchanged.

The methanol synthesis reactor is equipped with a recycle compressor.

BLOCK DIAGRAM 5 -___ ___ CO+H2+C02 ______ CO+H2+C02 PRODUCTS OF CO+H2+C02 rIO H20 + CO, C02, H2 PLUS U1'REACTED

SYNTHESIS GAS

Step Sb In the next step the product stream is cooled down to condense out the methanol and the water.

This is typically conducted in a heat exchange known as an interchanger, against the incoming fresh synthesis gas, which requires heating up.

The liquid methanol product and by-product water are condensed and recovered.

The unreacted synthesis gas is mixed with the fresh hot synthesis gas and passed to the recycle compressor. This compressor ensures that the reactants are maintained at the correct pressure.

FRESH SYNTHESIS GAS UNREACTED SYNTHESIS

(COLD) _______ GAS PRODUCT CH3OH(s) CH3OH

_________________ PRODUCT

o SEPARATOR HO By-product H2O(g) by-product P'us unreacted Synthesis gas

FRESH REACTION SYNTHESIS GAS (HOT)

BLOCK DIAGRAM 6 Step Seven The products of the reaction which are essentially pure methanol (the reaction is approximately 98% selective to CH3OH as product) and water are distilled to provide fuel grade methanol by coarse distillation.

The water by-product is purified for recycling within the process.

PRODUCT METHANOL

BLOCK DIAGRAM 7 _____________ (DISTILLATE) CH3OH (Methanol) H H20 (Water) 0 L)

WATER

(RAFF1NATE) The combined process flow scheme is illustrated overleaf as a block diagram.

FLOWSHEET TRADITiONAL PROCESS FUEL METHANOL Nitrogen Exhaust N2

PRODUCT IR COAL FROM MINE

____ A

METHANOL j ____________ CH3OH l AIR U

I COAL

PRODUCT SEPARATOR

HANDL[NG

WATER p __ fc

BY-PRODUCT 02

GAL

4 H GASIFICATION

WATER CO2

CO + (CO2 + Trace El2 H25, SO2 +H2S) CK so2 DUST REMOVAL Exhaust

SYNTHESIS _____ _____________________________

REACTOR ____ I SULPHUR REMOVAL

CARBON [NOXIDE REMOVAL __ 1

PHASE __CO

____________PARATOR_I

PRODUCT ___

I INTERCOOLER

/ RECYCLE / COMPRESSOR \COMPRESSION/ CO2 ___________ H20 SI-lIFT REACTION H2 + CO2 SECOND STAGE CO2 _________ F CO2 H2 t REMOVAL ___________________________________ 1 Exhaust CO2 In the manufacture of methanol using a coal feedstock, the following points should be noted.

* After the gasification section three kilogramme.moles of carbon monoxide are produced for each kilogramme.mole of methanol that is produced for sale.

The other two kilogramme.moles (kg.moles) of carbon monoxide are used to reduce water and thereby produce hydrogen gas (H2 gas) by the shift reaction CO + H20 CO2 + H2 In this reaction, the CO2 gas is exhausted to the atmosphere, contributing to the global increase in Carbon Dioxide levels.

Only one third of the carbon that is processed into Carbon Monoxide in the gasification section is incorporated into the product methanol, and only about a quarter of the carbon (or coal) feedstock is incorporated into the final product as a result of unavoidable process inefficiencies, including the gasifier efficiency.

* The majority of the coal (Carbon) is therefore used as a method of splitting the water molecule (H20) using CHEMICAL ENERGY.

* In the process for the manufacture of methanol from a coal feedstock, the following major reactions occur. The heats of formation are shown below each: A. GASIFICATION REACTION c + 1/20 � Co (solid) (gas) (gas) XHf Hf zHf O 0 -110598 kj/kg.mole TOTAL -110598 This reaction is strongly exothermic.

. SHIFT REACTION Co � H20 � H2 + CO2 (gas) (gas) * (gas) (gas) Hf Hf Hf M-If -110598 -241984 0 -393780 kjJkg.mole kj/kg.mole kj,/kg.mole TOTAL -41 198 The reaction is weakly exothermic.

C. SYNTHESIS REACTION This may be typically represented by the following: CO + 5H2 + CO2 -2CH3OH + H20 (gas) (gas) Hf Hf Hf -110 598 0 -393 780 (x 2 kg.moles) -241 984 kj/kg.m kj/kg.mole -201 301 kj/kg.mole kj /kg.mole TOTAL -402 602 This reaction is strongly exothermic.

METHANOL PRODUCTION PROCESS EMPLOYED BY THE INVENTION

According to the invention, carbon dioxide exhaust, typically from fossil fuel fired power stations, is used as the carbonaceous raw material for the manufacture of methanol.

The carbon dioxide will typically be diluted with a large amount of excess air used for combustion, and will contain a significant quantity of particulate matter, as well as sulphur containing compounds, mainly Sulphur Dioxide.

The gas collection point should be situated after the normal dust collection units, that is after the bag filters or electrostatic precipitators In the process the coal mining, coal preparation and coal gasification is all part of the normal function of the fossil fuel power plant.

Any ash disposal from the power plant is carried out in the normal way and is not undertaken by the synthetic methanol manufacturing facility.

The carbon source is useless as a reducing medium, since it is fully oxidised. It is entirely ineffective in its normal role as a reactant, and cannot be used to undertake the formation of hydrogen gas by capturing oxygen from the water molecule.

The carbon source is, however, in a relatively concentrated form, and is available at substantially zero cost.

Step One In the first step of the process, the carbon dioxide gas, which is mixed with a large quantity of excess air and nitrogen, together with some sulphur containing compounds and residual dust is raised in pressure by a few inches water gauge (inches wg) in order to pass it through the WASHING UNIT. This is achieved by using a BLOWER.

N2, C02, Excess Air N2, C02, Excess Air

______________ BLOWER

Residual Dust Residual Dust BLOCK DIAGRAM 1 Step Two The Carbon Dioxide gas stream is now passed through a WASHtNG UNIT to remove the residual dust. This unit will typically comprise a set of water spray nozzles situated along the diameter of a venturi pressure recovery constriction.

A number of venturis may be placed in series.

Following from this wash, the gas, which is saturated with water is passed through a DROPLET SEPARATOR to remove dirty water droplets, using a physical separation method.

BLOCK DIAGRAM 2 N2, C02, Excess Air N2,C02,Excess Air WASHING.

WATER

Step Three The carbon dioxide stream, which is now substantially free of dust, but which contains N2, Air and some Sulphur containing compounds, typically SO2, is now processed in order to provide a source of pure Carbon Dioxide (C02). This is achieved in the GAS PURIFICATION SECTION. w

This typically comprises a temperature and/or pressure swing adsorption unit.

A number of proprietary technologies are available to achieve this.

The residual SO2 and other impurities are removed from the CO2 stream at this stage.

Refrigeration of the adsorbent liquid may be required at this stage.

if pressure swing adsorption is used, the exhaust comprising mainly excess air and nitrogen may be passed through a turbine in order to economize on compression costs.

BLOCK DIAGRAM 3 _______________ AIR, NITROGEN, Some C02, Some SO2 C02, AIR, NITROGEN GAS ___________________

____________________ PURIFICATION

Some SO2 SECTION PURE CO2 Step Four The pure carbon dioxide (C02) is now compressed prior to the REVERSE SHIFT REACTION.

Typically this will take place at about 50-90 BAR.

Co2 co2

LOW PRESSURE INTERMEDIATE PRESSURE

BLOCK DIAGRAM 4 Step Five In another section of the methanol facility HYDROGEN GAS is prepared by electrolysis of water.

Raw material WATER is purified by filtration followed by removal of electrolytic impurities, typically salts of various trace elements, as well as dissolved carbonates, etc. The removal of ionic species is typically conducted in an ION EXCHANGE TOWER.

BLOCK DIAGRAM 5

PROCESS WATER

I FLOCCULATION ION

_________ AND/OR ______ EXCHANGE

RAW FILTRATION

WATER __________ ___________

WASTE STREAM

Step Six The process water is now treated with a CONDUCTIVITY MODIFIER, which optimises the electricital efficiency of the electrolyte cells. This is typically potassium hydroxide.

BLOCK DIAGRAM 6

CONDUCTIVITY

MODIFIER

PROCESS WATER I PROCESS WATER TO

L CELL HOUSE

Step Seven The process water is now electrolysed to produce HYDROGEN GAS. This is essentially the core of the entire process.

A very large amount of electrical energy is required at this stage, since water is a stable molecule and has a highly negative heat of formation as follows: H2 + 02 ____ H20 (gas) (gas) (liquid) L\Hf Hf Hf 0 0 -286 000 kj/kg.mole As well as employing a very large power input, the cell house will be physically very large in extent, and will require a considerable input of construction material.

Nevertheless, the technology is well known and proprietary electrolytic cells are available from a number of vendors.

The function of the electrolytic cell is to break down the water molecule by the action of ELECTROLYSIS.

The basic process of ELECTROLYSIS OF WATER is described in outline below: H21 K OH-102 (conductivity I (H+H = H2) modifier) H IONS 0H

SELECTIVELY BOTH OH- OH

DISCHARGED IONS ro -CATHODE ANODE 40H -02 + 2H20

CATHODE

(PROCESS WATER) H20 The product HYDROGEN is generated at the CATHODE and is captured as the raw material for the process.

The by-product OXYGEN is generated at the ANODE, and, because it will be produced in quantities too large for commercial exploitation, will mainly be exhausted into the atmosphere. For electrolysis units conjoined to coal based power plants, the oxygen may be used to reduce excess combustion air and lower residual waste carbon in the ash.

Some oxygen may be removed for commercial sale.

The amount of electrical energy is extremely large, and is typically generated using a THERMO-NUCLEAR POWER STATION for large projects involved with S traditional liquid fuel displacement.

For the generation of 1 KG.MOLE PER SECOND of hydrogen gas at the cathode of the (combined) electrolytic cell, assuming a 5% efficiency loss in conversion of electrical energy to chemical energy requires an electrical input of about 300 MEGAWATI'S.

Thus 2 kg mass of hydrogen generation per second requires 306 MW of electrical power.

02 gas (to exhaust) H20 I H2gas

ELECTROLYSIS

PROCESS i (to process)

WATER L

BLOCK DIAGRAM 7 Step Eight The hydrogen gas produced by the ELECTROLYTIC cell is collected and compressed, in a first stage compression, to enable reaction against the purified and compressed CARBON DIOXIDE.

H2 GAS H2 GAS

LOW INTERMEDIATE

PRESSURE PRESSURE

BLOCK DIAGRAM 8 Step Nine The purified and compressed CARI3ON DIOXIDE is now reacted against the HYDROGEN gas to produce the CARBON MONOXIDE gas required for the synthesis reaction.

Approximately one sixth of the HYDROGEN GAS stream is directed, along with approximately half of the CARBON DIOXIDE gas stream, into the REVERSE SHIFT REACTOR.

These proportions will vary somewhat dependent on the catalyst type, the operating pressure of the SYNTHESIS REACTION, and the quench gas injection arrangement around the reactor.

The heats of formation of the REACTANTS are PRODUCTS involved in the REVERSE SHIFT ACTION are as follows: CO2 + H2 CO + H20 (gas) (gas) ... (gas) (gas) LMf Hf Hf AHf -393780 0 -110598 -241984 kj/kg.mole kjjkg.mole kj/kg.mole Hf +41 198 kj/kg.mole There is thus a net positive heat of formation according to HESS'S LAW OF CONSTANT HEAT SUMMATION.

The process will absorb approximately 41.2 MW of power per KG.MOLE of Hydrogen consumed to form CARBON MONOXIDE.

However, since only a relatively small portion of the HYDROGEN generated by the electrolytic cells is involved in the REVERSE SHIFT REACTION, this does not amount to a significant heat input.

Thermodynamic integration of the entire methanol manufacturing process will allow the REVERSE SHIFT REACTION endothermic power input to be I 0 transferred from the SYNTHESIS REACTOR by heat exchange, in typical energy integration schemes.

BLOCK DIAGRAM 9 50% CO2 GAS BYPASS (TYPiCAL) Co2 CO2 p REVERSE CO

SHIFT __________________

ri2 REACTOR

GAS

H2 GAS BYPASS REVERSE SHIFT

REACTOR

80-85% (TYPICAL) H2 GAS BYPASS Step Ten (: The following steps are as for the coal based flowsheet.) In the tenth step the synthesis gas is proportioned and then directed into the SYNTHESIS REACTOR. The reaction typically takes place at 50 -90 BAR.

Some carbon dioxide is added to the synthesis gas stream to cool down the reaction by the reverse shift reaction. This prevents catalyst sintering and extends catalyst life The gas is typically added to the METHANOL SYNTHESIS REACTOR at the top S of the reactor, and at two or more further intermediate stages to allow the reaction to progress, which would otherwise be stopped by equilibrium considerations. The reaction is exothermic and the intermediate gas injection, called quench injection, lowers the temperature and moves the gas mixture away from the equilibrium, allowing methanol formation.

A number of reactions occur in the synthesis reactor, which may typically be represented as: 1. CO + 5H2 + CO2 -----* 2CH3OH + H20 2. 2C0 + 7H2 + CO2 * 3CH3OH +H20 * 3. CO + 8H2 + 2C02 ** 3CH3OH 2H20 4. 2C0 + 10H2 + 2C02: 4CH3OH + 2H20 Etc...

These reactions are all essentially equivalent to the same reaction, namely, CO+2H2 CH3OH once the reverse shift reaction is accounted for. Thus, for example, in 4 above 2C0 + 10H2 + 2CO2 4CH3OH + 2H20 could equally be written 2C0 + (2C0 + H20) + 8H2 " 4CH3OH + 2H20 When water is removed from both sides of the equation the following results: 4(CO + 2H2) . 4(CH3OH) or CO + 2H2 * CH3OH Thus the effect of adding carbon dioxide is to increase the quantity of water by-product of the reaction.

The actual quantity of methanol produced remains unchanged.

The methanol synthesis reactor is equipped with a recycle compressor.

BLOCK DIAGRAM 10 CO+H2+C02 ______ CO+H1+C02 PRODUCTS OF 8 8 CO+H2+C02 H20 +CO,C02,H2

PLUS UNREACTED

SYNTHESIS GAS

Step Eleven In the next step the product stream is cooled down to condense out the methanol and the water.

The liquid methanol product and by-product water are condensed and recovered.

FRESH SYNTHESIS GAS I UNREACTED SYNTHESIS

(COLD) + GAS PRODUCT CH3OH(s) z CH3OH

_______________ PHASE PRODUCT

By-product H20(g) SEPARATOR by-product Plus unreacted Synthesis gas

FRESH REACTION SYNTHESIS GAS (HOT)

BLOCK DIAGRAM 11 Step Twelve The products of the reaction which are essentially pure methanol (the reaction is approximately 98% selective to CH3OH as product) and water are distilled to provide fuel grade methanol by coarse distillation.

The water by-product is purified for recycling within the process.

PRODUCT METHANOL

_________ (DISTILLATE) z CH3OH (Methanol) H20 (Water) rID

WATER

(RAFFINATE) BLOCK DIAGRAM 12 The combined process flow scheme is illustrated below as a block diagram.

In the manufacture of methanol using nuclear generated electricity to electrolyse water and produce hydrogen gas, the following points are relevant: * The raw material carbon takes the form of Carbon Dioxide (C04,which is generated principally by fossil fuel burning power stations. The carbon source has essentially no value, and is normally exhausted to the atmosphere as a major atmospheric pollutant.

* The flowsheet obviates any need for coal mining, coal beneficiation, coal gasification and ash disposal.

* The only other raw material for the manufacture of methanol is water. After purification and conductivity modification, the raw material water is electrolysed to produce hydrogen.

is * The major effluent from the plant is oxygen which is released to the atmosphere.

* From an economic viewpoint the following salient features emerge: -The raw materials for the process, Carbon Dioxide and Water are essentially free and require a relatively basic cleanup prior to processing.

FLOWSHEET

METHANOL PRODUCED BY ELECTROLYSIS OF WATER

Go2, BLOWER AIR, DROPLET N2, SO2WASIE c02,

SEPARATOR AIR

WATER

I NITROGEN

PURIFICATION I

DIRTY WATER GAS I so2

I FLOCCULATION I SECTION _______

AND/OR FILTRATION ______________ _J H20 PROCESS.f C02

INTERMEDIATE

H EXCHANGE \ COMPRESSORJ/

ION

REVERSE

SHIFT 4 REACTOR Co2 Co2

I PROCESS

WATER I

___________ I

______ C ___

CONDUCTIVITY 1 h--_ H2 I MODIFICATION z I

-F ___ I ____ ____ -a I

I I RECYCLE

H20 H2 \COMPRESSOR/

ELECTROLYSIS

CELLS J PHASE 1 I PRODUCT _____ SEPARATOR h INTERCOOLER

____ L Z METHANOL

I LIQUID ________

02 _____lAND

L REACTOR

EXHAUST WATER

METHANOL RAFFINATE WASTE I METHANOL

PRODUCT UNREACTED GAS

From an economic point of view the two major traditional ways of producing methanol are compared with the nuclear electrolysis method as an overview.

METHANOL FROM COAL

(Raw Material -Coal) Raw material is low opportunity cost, high ash coal. (Limited export potential).

The cost of coal mining, coal beneficiation and handling, coal gasification and ash disposal is high. This represents approximately 50% of the capital cost input.

Other variable costs are low.

Fixed costs (Maintenance and Personnel) are relatively high as a result of the high proportion of solids handling equipment and gasifiers which are in general high maintenance items.

The process of converting low value coal to high value methanol is typically referred to as a HIGH VALE ADDED operation.

METHANOL FROM NATURAL GAS

(Raw Material -Typically Natural Gas) Raw material is usually high cost and has a number of alternative uses.

Fixed costs for a gas based plant, maintenance and personnel, are much lower than for a coal based plant.

All of the equipment downstream of the production of the required synthesis gas is identical (or nearly identical) to that for the coal based methanol plant.

The process of converting expensive Natural Gas into high value methanol is typically referred to as a LOW VALUE ADDED operation.

METHANOL FROM WASTE CO2 CONVERTED BY NUCLEAR

ELECTROLYSIS

(Raw Material -Carbon Dioxide Exhausted to Atmosphere by Power Plants; -River Water) Raw Material is essentially at zero cost.

The Nuclear Electrolysis method of methanol manufacture is essentially a DIRECT ENERGY CONVERSION PROCESS.

All of the chemical energy in the methanol comes form the electrical energy generated by the thermo-nuclear power plant.

The value of the chemical energy in the methanol is greater than the value of the raw electrical energy generated.

This pays for the chemical synthesis equipment, capital requirement and all of the fixed costs.

Fixed costs are low, and essentially similar to those for a gas based plant.

The major item of capital equipment is the electrolysis cell house.

The electricity cost for the conversion represents practically all of the total variable cost of production.

The process of converting essentially valueless carbon dioxide exhaust and raw water to high value methanol using high value electricity may be referred to as a DIRECT ENERGY CONVERSION process.

MASS AND ENERGY BALANCE

Methanol Produced by Nuclear-Electric Electrolysis of Water, in Combination with Waste Carbon Dioxide BASIS 4400 TONNES/DAY OF METHANOL PRODUCT 4 400 Tonnes/Day = 183.333 Tonnes/hr = 50.925 Kg/second KG.MOLES/SECOND OF PRODUCT METHANOL Molecular Weight of Methanol CH3OH = 32.043 KG.MOLE/SEC = 50.925 1.589 32.043 KG.MOLES/SECOND OF HYDROGEN GENERATED The reaction formulae may be variously represented as: CO + 2H2 CHOH CO + 5H2 + C02 -2CH3OH + H20 2C0 + 7H2 + CO2, 3CH3OH + H2O Co + 8H2 + 2C02 ____ 3CH3OH + 2H20 3C0 + 9H2 + CO2 ____ 4CH3OH + H2O 2C0 + 10H2 + 2C02, 4CH3OH � 2H20 These reactions are, in fact, all equivalent one to the other, as can be seen when it is taken into account that in the REVERSE SHIFT ACTION l-12+c02 Co One kg of CO is, in fact, equivalent to one kg.mole of H2.

Thus the formula CO + 2H2, CH3OH Indicates 3 EQUIVALENT moles of H2 to produce 1 mole of CH3OH, as does the formula 3C0 + 9H2 + CO2, 4CH3OH i-H20 where 12 EQUIVALENT moles of H2 are required to produce 4 moles of CH3OH.

s KG.MOLES H2 REQURIED TO BE GENERATED PER SECOND = 3.xl.589 = 4.767 kg.moles This is equivalent to 9.534 kg/second.

PURIFIED DE-IONISED WATER REQUIREMENT FOR THE ELECTROLYTIC

CELL HOUSE

KG.MOLES DE-IONISED WATER REQUIRED/SECOND 4767 kg.moles 85.85 kg/second = 309.07 tonnes/hr 7417.75 tonnes/day

CARBON DIOXIDE REQUIREMENT

All of the carbon in the carbon dioxide entering the synthesis plant, appears in the methanol product.

KG.MOLES OF CO2 REQUIRED 1.589 kg.moles/ second = 69.91 kg/second 251.69 tonnes/hr 6040.7 tonnesJday Note: SIZE OF CONJOINED CONVENTIONAL FOSSIL FUEL BURNING POWER

PLANT

The approximate minimum size of the power plant linked to the methanol facility is as follows: KG.MOLES/SECOND OF CARBON 1.589 Heat of combustion of Carbon C + 02 _____ CO2 iHf zHf iHf 0 0 -393 780 kj /kg.mole Energy released per second by the burning of 1.589 kg.moles of Carbon to Carbon Dioxide: = 1.589x393780 = 625.72 MW The approximate efficiency of a coal fired power station in conversion of chemical energy to electrical energy is 40%.

The minimum size of the conjoined fossil fuel burning power station is thus: 625.xO.4 250 MW Since not all of the CO2 will be recovered from the existing facility, an existing plant size of 300-400 MW would probably be required.

Electrical Power Required for the Methanol Synthesis Plant The electrical power required for the electrolysis cells which generate hydrogen gas and oxygen gas from water is calculated as follows: KG.MOLES [SECOND REQUIRED H2 (gas) = 4.767 H2 + 02 _____ H20 (gas) (gas) (liquid) Hf Hf -Hf 0 0 -286 030 kj /kg.mole Assuming a 5% conversion loss, the electrical power required is: 4.767 x 286 030 x 1.05 1432 MW kg.moles kj sec kg,mole Thus a nuclear power plant of approximate capacity 1500 MW will be associated with a conventional power plant of approximately one third of the size.

CHEMICAL ENERGY STORED IN THE METHANOL PLANT

It is instructive to compare electrical power input into the chemical synthesis plant with the chemical energy that is stored in the methanol molecule. Jo

Methanol manufactured per second = 1.589 kg.moles On combustion CH3OH + 1�02 ____ C02 + 2H20 (gas) (gas) Hf iHf t\Hf 238815 0 393780 2x(241 988) kj/kg.mole kj/kg.mole =483 976 kj / kg.mole Net heat 638 941 kj/kg.mole FOR 1.589 KG.MOLE/SECOND I 5 CHEMICAL POWER POTENTIAL 1.589x638941 1015 MW Thus an ELECTRICAL POWER of approximately 1432 MW is converted into a CHEMICAL POWER of 1015 MW.

The majority of the balance is the loss incurred as heat of vaporisation of water and of methanol.

MANUFACTURE OF OTHER SYNTHETIC FUELS

Introduction

The manufacture of methanol has been described in some detail in order to clearly demonstrate the practicability of using waste CARBON DIOXIDE GAS as the CARBON SKELETON for the synthetic fuel.

In essence, ELECTROYTIC HYDROGEN is used to reduce a portion of the CARBON DIOXIDE in a REVERSE SHIFT REACTION to form CARBON MONOXIDE.

The resulting synthesis gas is a mixture of CO and H2 and may contain CO2.

This synthesis gas is the basic building block for the other synthetic fuels is ETHANOL, PETROL, DIESELINE and AVIATION FUEL.

ETHANOL PRODUCTION

For the production of ETHANOL synthesis gas is used in exactly the same way as for methanol. Methanol is converted to ACETIC ACID by carbon monoxide addition produced by the reaction of ELECTROLYTIC HYDROGEN with waste carbon dioxide in the invention. The ACETIC ACID is then converted to ETHANOL by hydrogenation with ELECTROLYTIC HYDROGEN.

The ETHANOL is then distilled.

The basic reactions following from the formation of METHANOL are: CH3OH + CO CH3COOH Methanol Carbon Monoxide Acetic Acid CH3COOH + 2H2 C2H5OH + H20 Acetic Acid Hydrogen Ethanol Water A simplified block diagram of the synthetic ethanol unit follows overleaf.

The synthetic production of ETHANOL by the ELECTROLYTIC HYDROGEN method, is less economic than the production of METHANOL, as a result of the additional process complexity and interface energy losses.

Nevertheless, if economy of scale is applied, ethanol for use as a liquid fuel may be economically manufactured.

ETHANOL SYNTHESIS BLOCK DIAGRAM

SEPARATOR

ETHANOL

SYNTHESIS CH3COOH ETHANOL C,HOH

PRODUCT

DISTILLATION

WASTE WATER

TRADITIONAL AUTOMOTIVE FUEL PRODUCTION -METHANOL TO

GASOLINE (MTG) PROCESS The MTG process was developed by MOBIL. In the process methanol is first manufactured as a RAW MATERIAL for the manufacture of the gasoline.

The methanol is dehydrated over a zeolite (clay like) catalyst. A very wide product range results incorporating saturated and unsaturated paraffins, aromatic compounds and oxygenates including ethers aldehydes and ketones.

The basic reactions are not possible to represent stoichiometricafly, but in general terms are as follows:

LIGHT SATURATED PARAFFINS

P LIGHT UNSATURATED PARAFFINS

-CYCLIC HYDROCARBONS

(1LJ -p AROMATICS (Benzene Related Compounds) n.._I13 11 Methanol _______ -DIMETHYL ETHER Zeolite Catalyst OTHER ETHERS ________ MEDIUM CHAiN LENGTH PARAFF1NS -

SATURATED AND UNSATURATED

P ALDEHYDES AND KETONES

_________ CARBOXYLIC ACIDS AND OTHER

OXYGENATES

WATER

In general the dehydration of methanol results in the production of light hydrocarbons suitable for use as petrol, rather than dieseline products.

The entire process starts with synthesis gas, which may be made using WASTE CARBON DIOXIDE as the carbon skeleton, in combination with ELECTROLYTIC HYDROGEN. The process economics are considerably inferior to the process economics of METHANOL production, in terms of conversion of electrical energy to chemical energy.

The process is essentially complex compared to methanol production, mainly as a result of the fact that methanol is, in fact, the raw material for further processing, and that the dehydration reaction over the zeolite catalyst is non-specific.

This necessitates the employment of refinery techniques downstream of the dehydration reaction.

Fixed costs, involving mainly personnel arid maintenance costs, are higher per unit calorific value of liquid fuel produced, than for the straightforward methanol synthesis.

Capital costs are also higher, by a considerable margin, as are variable costs of production per unit calorific value.

If economy of scale were to be applied, the process could be employed to produce traditional liquid automotive fuels synthetically at a factory gate price similar to the pump price in western European nations.

TRADITIONAL AUTOMOTIVE FUELS ICONCLUDEDI MANUFACTURE

BY THE FISCHER-TROPSCH (F-T) PROCESS In the Fischer-Tropsch process, the synthesis gas is passed over an iron catalyst in the SYNTHOL REACTOR.

As for the MTG process, a very wide range of products is syrithesised, which include the products listed above for the MTG process, but also comprise alcohols including methanol and ethanol.

In general higher molecular weight hydrocarbons are produced than for the MTG process, and diesel is produced along with the some aviation fuel in combination with gasoline.

The process economics are very similar to those for the MTG process, and all comments relating to the economic efficiency of the MTG process apply equally to the F-T process of manufacturing TRADITIONAL AUTOMOTIVE FUELS A block diagram of the synthetic production of traditional liquid fuels by the Fischer-Tropsch process follows overleaf.

SYNTHETIC PRODUCTION OF TRADITIONAL LIQUID FUELS

BY THE FISCHER TROPSCH TECHNIQUE

SYNTHESIS GAS SYNTHESIS ALCOHOLS KETONES

CO+H2 REACTOR CO+H2 AQUEOUS

PFIASE

METHANE CONDENSATION OXYGENATE

REFORMER] DISTILLATION PROCESSING CH4t ___ ____

___ ___ ____ -ING co2

EXHAUST

REMOVAL

METFIANE _____I______

HYDRO

______H

CRYOGENIC DE-WAXING UNIT

SEPARATOR C2

I Lc5.c6 _______ ________ ____ C3C47 C5.C6

ETHYLENE

PURIFICATION LOLIGOMEZATION ISOMERISATION

UNIT UNIT

DIESEL

PRODUCT DIESEL PRODUCT C2H4

PRODUCT

COMBINED TECHNOLOGY PRODUCTION -PART A: THE

PRODUCTION OF SYNTHETIC LIQUED FUELS FROM A COAL

FEEDSTOCK WITH ZERO CARBON DIOXIDE EMISSION TO

ATMOSPHERE

In the conventional manufacture of synthesis gas from a coal feedstock, three kg.moles of Carbon are oxidised to form Carbon Monoxide: 3C + V202 3C0 Of these three kg.moles, two kg.moles are used to reduce WATER to provide HYDROGEN GAS.

2C0 + 2H20 2C02 + 2H2 This carbon dioxide is exhausted to atmosphere.

The essential purpose of the majority of the coal in this process is to reduce WATER H20, by oxidizing the carbon.

The coal is thus used partially as the carbon framework for the synthetic fuel, but mainly as the means for processing the required hydrogen for the synthesis.

Most of the coal (approximately 70-80%) is converted to carbon dioxide gas and exhausted to atmosphere.

This is a non-ideal situation for two reasons: * A large quantity of coal is required for a relatively small production of carbon based liquid fuel. This coal is a non-renewable resource.

* The carbon dioxide gas may contribute to global temperature increase, through an effect known as the "greenhouse effect" in which long wavelength radiation is prevented from escape.

In COMBINED CYCLE manufacture, part of the synthetic fuel is manufactured from coal using conventional technology.

The carbon dioxide exhaust from this process may then be converted to synthesis gas, and additional fuel may be generated by the new technology involving HYDROGEN production by ELECTROLYSIS.

The fuel produced by the novel process need not be the same fuel as that produced by the conventional technology.

For example, coal could be used for the manufacture of traditional fuel by the Fischer-Tropsch process, and the exhaust CO2 gas used for the economic manufacture of methanol.

Alternatively, the same liquid fuel could be manufactured by both the conventional technology and the novel technology. This would provide economy of scale in all of the processing units downstream of the synthesis gas production.

In addition, the superior economics of the production of the synthetic fuel using low opportunity cost coal could be combined with the (generally) less attractive economics of the electrolytic hydrogen synthesis gas production process.

There are a number of advantages to combining the conventional technology with the novel technology to produce synthesis gas, as follows: * The provision of economy of scale in the processing plant and equipment * The combination of processing economics * Extension of the life of the coal reserve by a factor of three to four * The provision of a highly concentrated source of carbon dioxide for conversion to synthesis gas.

COMBINED TECHNOLOGY PRODUCTION -PART B: THE

PRODUCTION OF SYNTHETIC LIQUED FUELS FROM A COAL

FEEDSTOCK WITH ZERO CARBON DIOXIDE EMISSION TO

ATMOSPHERE

In a second combined technology method of manufacture, synthetic fuel may be economically manufactured from synthesis gas in the following manner: Step One hi this step WATER GAS is produced by the reaction of the COAL with WATER.

The heat source to produce the reaction is supplied by a technology (typically nuclear) that does not depend on the chemical combustion.

C + H20 CO + H2 (solid) (liquid) iHf iHf \Hf tHf 0 -286000 -110598 0 kjjkg.mole kj/kg.mole

ENDOTHERMIC

+ Hf 175 400 kj/kg.mole This is the traditional "water gas" reticulated generally for domestic use.

With no wastage of carbon dioxide, most of the synthesis gas has been created.

Step Two The additional hydrogen molecule is supplied by electrolysis of water.

H20 H2 + V202 iHf Hf Hf -286 000 0 0 kj /kg.mole The resultant synthesis gas comprising 1 MOLE of CO and 2 MOLES of H2 is produced according to the following scheme: SYNTHESIS GAS PRODUCED 1 KG.MOLE CO, 2KG.MOLE H2 CARBON EMPLOYED 1 KG.MOLE HYDROGEN PRODUCED I KG.MOLE BY ELECTROLYSIS 1 KG MOLE BY WATER GAS REACTION FOR 1 KG.MOLE/SECOND HEAT REQUIRED 175.4 MW ELECTRICAL POWER REQUIRED 286.0 MW TOTAL POWER REQUIRED 461.4 MW For Methanol, nominal daily production rate 32x3600x24/1000 = 2765 TONNEIDAY This form of combined technology production lowers the power input required by about half compared to the method of production of synthesis gas by reaction of electrolytic hydrogen against waste CO2.

Features of this technology to produce synthesis gas are: * No waste C02 is produced * The life of the coal resource is extended * A relatively high priced coal raw material may be employed with little effect on economics.

PRODUCTION ECONOMICS

The economics of the production of fuel using waste carbon dioxide as a carbon source is of crucial importance to the practical implementation of the invention.

In this respect a financial analysis is presented as a part of the background to the invention, for the production of methanol. From this economic analysis for the production of methanol, the economics of ethanol production and of traditional fuel production by both the F-T arid MTG processes are extrapolated.

The production economics of the carbon dioxide energy conversion process are primarily dependent on the cost of electrical energy at the synthesis plant, and secondarily on the capital cost of the synthesis plant.

For a natural gas based methanol synthesis plant, the economics of production are primarily dependant on the cost of the natural gas, and secondarily on the capital cost of the synthesis plant.

For a coal based methanol synthesis plant, using as a raw material high ash coal with essentially zero opportunity cost (no export potential) the major financial consideration is the overall capital cost of the facility. Fixed costs of production (mechanical maintenance and personnel) are a secondary financial consideration.

The financial parameters that are used in the evaluation are: * Net present value at zero cost of capital * Net present value at a weighted average cost of capital above the inflation rate * Internal Rate of Return (non-inflationary), and * Internal Rate of Return (inflationary).

For the comparative financial analysis the following input parameters are of especial relevance:

CAPITAL COST

Each technology has been assigned a base case capital cost, at fixed production rate. This production rate is set at 4400 tonnes/day. Note that this is the size of the New Zealand Synfuel facility, erected in the mid-1980s.

The capital cost in each case reflects not only the direct cost of chemical plant construction, including off sites and utilities, but also includes: * Indirect costs

-field distributables

-contractor and sub-contractor home offices.

* Capitalized engineering * Capitalized spares * Venture costs * Insurances and levies * Start-up and commissioning costs * Inflation and interest during construction * Contingency.

The indirect and other costs typically make up greater proportion of the capital input than the direct construction costs.

For the three types of Methanol Synthesis plant the following inclusive capital costs of implementation are representative.

Base Case Production Rate -4400 Tonnes/Day Techno1oy Capital Cost US$m NATURAL GAS REFORMING 2037.2 Notes: In a sense this represents a base-case as most methanol plants worldwide use natural gas as a raw material.

Technology Capital Cost US$m COAL GASIFICATION 3395.4 Notes: A coal based methanol plant is approximately 67% more expensive in terms of capital compared to gas based synthesis plant.

Technology Capital Cost US$m WASTE CO2 ELECTROLYTIC H2 2452.2 Notes: For the exhaust CO2 synthesis the main additional capital cost elements are the electrolytic cells and the CO2 recovery and SO2 stripping sections at the front end of the synthesis facility.

The major cost saving compared of the natural gas synthesis is the steam reformer section which is not a part of the flow sheet. However, this is essentially replaced by the reverse shift rector.

CAPITAL COST -PRODUCTION RATIO FACTORING

For alternative rates of production the capital cost is calculated at the production ratio, factored to a power of 0.6.

Thus for the same three cases producing 2,200 tonnes per day, or exactly half of the base case of 4400 tonnes per day, the capital cost is not 50% of the base case but r2200l 0.6 0.659 Thus the cost is not half, but two thirds, which is typical of industrial experience with loss of economy of scale.

CAPITAL COST -EXPENDITURE PROFILE

For all of the scenarios, it is assumed that the capital is expended over a three arid one half year period, and the following proportions are expended.

YEAR 1 23.3% YEAR 2 40.0% YEAR 3 30.0% YEAR 4 6.7% (half year) It is assumed that commissioning starts after the first quarter year 4, and that nameplate production is achieved in quarters 3 and 4.

For smaller synthesis plants (circa 500 tonnes/day and lower) this time scale is longer than would be typically anticipated, but is in any event conservative and will not inflate economic expectation.

FIXED COSTS OF PRODUCTION

Each technology has been assigned a fixed cost base of production which is typical of the technology used.

Fixed costs of production typically comprise for the main part (Ca 80%) personnel and maintenance costs.

The following base case fixed costs of production are assumed for the investments.

Annual Fixed Costs of Production by Technolqgy Base Case Production Rate 4400 Tonnes Technology Annual Fixed Cost of Production US$1 Annum NATURAL GAS REFORMING 51.9 COAL GASIFICATION 89.6 WASTE C02, ELECTROLYTIC H2 58.9 For alternative rates of production in the fixed costs of production are calculated at the production ratio factored to a power of 0.6.

In essence the ratio of fixed costs of production will follow the ratio of installed capital cost.

In the calculation of the fixed costs of production for the waste C02, electrolytic H2 method of production, it has been assumed that the electrolytic cells, which re relatively capital intensive are not maintenance or personnel intensive.

VARIABLE COSTS OF PRODUCTION

General Introduction

Whilst the capital cost of the methanol plant installations will vary regionally and globally, the range of variation is limited of the order of 30%.

In areas remote from the primary manufacture of the major equipment items and where extensive infrastructure is required the cost will be higher. In areas where the methanol plant may be situated adjacent to existing service facilities (brownfield site) a lower capital cost may be anticipated.

The same basic range of variability may be anticipated for the fixed costs of production.

The primary financial parameter, for both natural gas based and electrolytic hydrogen based synthesis facilities, namely that of variable cost is considerably more difficult to anticipate, and may be expected to cover a much wider range.

It is difficult to anticipate the variable cost structures that will pertain through the life of the investment.

it is also difficult to allocate a variable cost that will pertain to an average" investment, for the purposes of this financial comparison.

Natural Gas For large (world scale) projects the equity and loan partners, because of the large capital investment, will require some assurance that the variable cost of production will fall in a range at least in the early payback period, that will to some extent, guarantee their investment.

Thus a pricing arrangement will in most cases be a requisite for project approval.

This may take the form of an interest in the development of a previously is undeveloped gas field which is dedicated or primarily dedicated to the production facility. Typically the developers of the gas field would enter into some form of financial arrangement with the methanol synthesis company, such as a take or pay arrangement.

Such an arrangement might or might not be applicable through the entire discount period of the methanol synthesis plant.

However, under such an arrangement the gas price would be to a greater or lesser extent decoupled from spot price fluctuations in energy prices.

Essentially, for facilities exhibiting massive economy of scale, it must be anticipated that the average price of natural gas raw material is considerably lower than the market price for the high opportunity cost commodity.

Such methanol plants would be dedicated primarily to the production of jo methanol as an automotive fuel as the production would be impossible to accommodate in any alternative way.

Whilst the methanol produced from such plants is relatively inexpensive the number of locations worldwide where access to a supply of natural gas with a low opportunity cost is severely limited.

Most regions in the world with a large natural gas resource have over a period of time developed market outlets for the raw material, or have a regional operational development plant in place which renders the resource of medium to high opportunity cost.

Thus in the financial analysis which follows, whilst a low cost of natural gas is assumed for world scale production units, this is provisional upon a limited number of such opportunities being available.

For smaller production facilities the assumed cost of the natural gas is higher For the smallest natural gas based facilities, it is assumed that the cost of the gas is that which pertains to general consumption (spot prices) In the financial analysis which follows larger facilities will have access to a cheaper supply of natural gas. Whilst this is a generalization, and in fact many small plants may have access to low cost niche sources of gas, it is a practicable simplifying assumption.

COAL COST

The saine general remarks pertaining to the supply of natural gas to a synthetic fuels facility pertain to the supply of a coal feedstock.

There is, however, a fundamental difference in that coal is more abundant than natural gas, and sourcing of dedicated low opportunity cost coalfields, specifically to service liquid fuels facilities exhibiting economy of scale is easier than that for natural gas.

Whilst natural gas and crude oil pricing is generally closely linked, pricing of coal is, to some extent decoupled, since many coal reserves hve a low or zero opportunity value.

For the purposes of this economic evaluation, large synthesis facilities will have access to lower priced coal than smaller facilities.

Variable Costs -Electricity For the purposes of this economic appraisal, electricity costs pertaining in the United States of America are taken as a benchmark.

Unlike coal costs and natural gas costs, which typically vary over a wide range, electricity costs in the USA for plants coming on line in 2003 cover an essentially small price band.

The electricity costs projected for 2013 in the United States area as follows: Coal 5.0 kw/hr Natural Gas 5.35 kw/hr Wind 5.85kw/hr Nuclear 6.45 kw/hr The following should be noted with regard to electricity cost: For large synthetic fuel facilities exhibiting economy of scale, the fuel synthesis facility will be constructed in tandem with electricity generating plant (or power station). This power station will, in most cases, be a nuclear power plant.

* The projected cost of 6.45 kw/hr for general electricity supply to the electricity grid system, should be lowered by a factor representative of continuous power supply at nameplate capacity.

* Since a nuclear power station operating in this capacity will evince superior economics, and will not be subject to off-peak load reduction, some form of electricity price structure at a lower rate than that pertaining for general use should be established.

* For the purpose of this economic appraisal a 12% discount below costs applicable to variable demand users is assumed.

* For small facilities a price level of 5 kw/hr is assumed. This reflects a balance between cheap power at off-peak periods, and the requirement to oversize the liquid fuels synthesis facility to accommodate variable production rate.

Assumed Fiscal Regimen A once-off Initial Allowance of 50% of the capital cost of the manufacturing facility is assumed in the first year of production.

This is followed by two equal tranches of 50% of the remainder, termed the Wear and Tear allowance, in the two years following: * Corporation taxation of 42.5% is payable on taxable income * Inflation is assumed at 4.5% per annum * Cost of capital is assumed at 3% above the inflation rate.

Coparative Economic Appraisal Comparative economic appraisal is carried out for the manufacture of METHANOL by three different process routes: * Coal Raw Material * Natural Gas Raw Material * Waste C02/Electrolytic H2 Raw Material.

The economic appraisal is carried out at four different scales of production: A. 4400 tonnes/day B. 1000 tonnes/day C. 250 tonnes/day.

Case A is representative of a liquid automotive fuels displacement initiative, whilst Case C would be more representative of an electricity storage initiative, with Case B of an intermediate nature.

METHANOL FINANCIAL ANALYSIS

Case: 4400 Tonnes/Day

Description: VARIABILITY AROUND VARIABLE COST

Selling Price at Factory Gate: 60 per Litre Equivalent Petrol Price: 1.20 per litre

____________ -INPUT PARAMETERS OUTPUT PARAMETERS

IRR

Manufacturing Capital Fixed Variable Non-IRR NPV NPV NPV Tax Tax Facility Type Cost Cost Cost Inflation Intl Real Real InfI Payable Payable 4.5% 0% 3% 7.5% Non-4.5% USI$Tonne WACC WACC WACC Intl lnfl H ______ _____ 45 14 19 8649 4708 4289 7020 14727 COAL BASED M 3395.4 89.6 35 15 20 9096 4989 4589 7377 15347 ______________ L _______ _____ 25 15 20 9543 5270 4891 7733 15968 ________ ______ _____ US$IMMBTU _______ _____ _____ ______ _______ _______ H ______ _____ 15 13 18 4200 2256 2052 3411 6856 GAS BASED M 2037.2 51.9 11 18 22 635.4 3610 3395 4961 9663 _____________ L ______ _____ 9 20 24 7490 4335 4002 5676 11171 ____________ ______ _____ US$/XWHR _______ _____ _____ ______ _______ _______ WASTE C02 H ______ _____ 6.3 8 11 2684 1143 968 2226 4928 ELECTROLYTIC M 2452.2 58.9 5.67 9 14 3575 1712 1510 2937 6228 H2 L ______ _____ 5.2 11 15 4239 2315 1909 3467 7203 Case: 4400 Tonnes/Day

Description: VARIABILITY AROUND CAPITAL COST

Selling Price at Factory Gate: 604 per Litre Equivalent Petrol Price: 1.20 per litre

INPUT PARAMETERS OUTPUT PARAMETERS

______ _____ ________ IRR ______ _____ ______ _______ _______

Manufacturing Capital Fixed Variable Non-IRR NPV NPV NPV Tax Tax Facility_Type Cost Cost Cost Inflation Infi Real Real Intl Payable Payable 4.5% 0% 3% 7.5% Non-4.5% USI$ WACC WACC WACC Intl Infi _____________ ______ _____ Tonne _______ _____ ________ H 4244.3 _____ ________ 12 17 8608 4499 4043 7016 15054 COAL BASED M 3395.4 89.6 35 15 20 9096 -4989 4589 7377 15347 _______________ L 2546.6 ______ _________ 20 24 9808 5653 5202 7513 15509 I-I 2546.6 _____ ________ 14 18 5965 3242 2973 4840 9653 GAS BASED M 2037.2 51.9 11 18 22 635.4 3610 3395 4961 9663 _____________ L 1527.9 _____ ________ 23 27 6713 3951 3668 5111 9909 WASTE C02 H 3065.3 _____ ________ 7 11 3223 1343 1129 2676 5963 ELECTROLYTIC M 2452.2 58.9 5.67 9 14 3575 1712 1510 2937 6228 H2 L 1839 _____ ________ 13 17 3927 2073 1880 3198 6492 Case: 4400 Tonnes/Day

Description: VARIABILITY AROUND CAPITAL COST

Selling Price at Factory Gate: 55 per Litre Equivalent Petrol Price: 1.10 per litre

INPUT PARAMETERS OUTPUT PARAMETERS

______ _____ _________ IRR ______ _____ _____ ______ ______

Manufacturing Capital Fixed Variable Non-IRR NPV NPV NPV Tax Tax Facility Type Cost Cost Cost Inflation lnfl Real Real Intl Payable Payable 4.5% 0% 3% 7.5% Non-4.5% _____________ -______ _____ USI$ Tonne WACC WACC WACC Intl lnfl H 4244.3 _____ __________ 11 15 7463 3775 3356 6101 13317 COAL BASED M 3395.4 89.6 35 13 18 7951 4269 3864 6462 13678 _____________ L 2546.6 ______ ___________ 17 23 8527 4826 4528 6735 13757 ______ _____ US$!MMBTU _______ ______ _____ _____ _______ _______ GAS BASED H 2546.6 _____ __________ 12 16 4819 2521 2280 3926 7996 M 2037.2 51.9 11 15 20 5112 2815 2626 4143 8139 ______________ L 1527.9 ______ ___________ 20 25 5567 3236 2979 4197 8260 ______ _____ US1KWHR _______ ______ _____ ______ _______ _______ WASTE CO2 H 3065.3 _____ _________ 5 9 2077 598 414 1762 4295 ELECTROLYTIC M 2452.2 58.9 5.67 7 11 2429 978 808 2023 4561 H2 L 1839 _____ __________ 10 14 2782 1348 1192 2283 4820 Case: 4400 Tonnes/Day

Description: VARIABILITY AROUND VARIABLE COST

INPUT PARAMETERS OUTPUT PARAMETERS

______ ____ _________ IRR _____ ______ ______ ______ _______

Manufacturijg Capital Fixed Variable Non-JRR NPV NPV NPV Tax Tax Facility Type Cost Cost Cost Inflation Intl Real Real Intl Payable Payable 4,5% 0% 3% 7.5% Non-4.5% US/$ Tonne WACC WACC WACC InfI Intl H ______ _____ 45 13 17 7504 3988 3599 6106 12992 COAL BASED M 3395.4 89.6 35 13 18 7951 4269 3864 6462 13678 _____________ L ______ _____ 25 14 19 8397 4550 4127 6819 14363 _____ ____ US$IMMBTU _______ _____ ______ _____ ______ ______ GAS BASED H ______ ____ 15 11 15 3055 1533 1370 2497 5179 M 2037.2 51.9 11 15 20 5112 2815 2626 4143 8139 _____________ L _______ _____ 9 17 22 6209 3508 3305 4899 9532 WASTE CO2 H ______ _____ 6.3 5 8 1539 397 254 1312 3256 ELECTROLYTIC M 2452.2 58.9 5.67 7 11 2429 978 808 2023 4561 K2 I. ______ _____ 5.2 8 12 3093 1405 1216 2553 5530 1000 Tonnes/Day Case:

Description: VARIABILITY AROUND CAPITAL COST

Selling Price at Factory Gate: 65 per Litre Equivalent Petrol Price: 1.30 per litre

____________ -INPUT PARAMETERS OUTPUT PARAMETERS

______ ____ __________ IRR _____ _____ ______ ______ _______

Manufacturing Capital Fixed Variable Non-IRR NPV NPV NPV Tax Tax Facility Type Cost Cost Cost Inflation InfI Real Real InfI Payable Payable 4.5% 0% 3% 7.5% Non-4.5% ____________ -______ ____ __________ _______ WACC WACC WACC InfI Infi H 1744.7 _____ ___________ 6 10 1458 521 403 1224 3013 COAL BASED M 1396 36.8 45 8 12 1659 735 624 1372 3164 _____________ L 1046.8 _____ ___________ 11 15 1860 943 839 1520 3313 ______ ____ US$IMMBTU _______ _____ _____ ______ ______ ______ GAS BASED J�. 1046.8 _____ ___________ 7 11 934 363 296 779 1771 M 837.4 21.3 13.5 9 13 1054 491 429 868 1859 _____________ L 628.1 _____ ___________ 12 16 1175 614 555 957 1950 WASTE C02 H 1260 _____ __________ 4 7 619 89 21 537 1422 ELECTROLYTIC M 1008 24.2 5.4 6 9 763 249 187 644 1530 H2 L 756 _____ ___________ 8 12 908 404 347 751 1639 Case: 1000 Tonnes/Day

Description: VARiABILITY AROUND VARIABLE COST

Selling Price at Factory Gate: 654 per Litre Equivalent Petrol Price: 1.30 per litre

____________ -INPUT PARAMETERS OUTPUT PARAMETERS

______ _____ _________ IRR ______ ______ _____ ______ ______

Manufacturing Capital Fixed Variable Non-IRR NPV NPV NPV Tax Tax Facility Type Cost Cost Cost Inflation InfI Real Real InfI Payable Payable 4.5% 0% 3% 7.5% Non-4.5% ___________ ______ ____ _________ ______ WACC WACC WACC InfI InfI H ______ _____ 55 8 12 1557 669 562 1291 3007 COAL BASED M 1396 36.8 45 8 12 1659 735 624 1372 3164 _____________ L ______ _____ 35 8 13 1761 800 686 1453 3320 ______ _____ US$IMMBTU _______ ______ ______ _____ _______ _______ GAS BASED H ______ ____ 17 6 10 645 230 180.5 541 1256 M 837.4 21.3 13.5 9 13 1054 491 429 868 1859 _____________ L ______ _____ 10.5 11 15 1405 711 637 1149 2379 WASTE C02 1i ______ ____ 6.0 4 8 571 122 65 490 1250 ELECTROLYTIC M 1008 24.2 5.4 6 9 763 249 187 644 1530 H2 L ______ _____ 5.0 6 10 892 333 267 746 1718 Case: 1000 Tonnes/Day

Description: VARIABILITY AROUND CAPITAL COST

____________ -INPUT PARAMETERS OUTPUT PARAMETERS

______ ____ _________ IRR _____ _____ ______ ______ ______

Manufacturing Capital Fixed Variable Non-IRR NPV NPV NPV Tax Tax Facility Type Cost Cost Cost Inflation InfI Real Real lnfl Payable Payable 4.5% 0% 3% 7.5% Non-4.5% ___________ -______ ____ US$ITonne WACC WACC WACC Infi InfI H 1744.7 _____ __________ 5 9 1198 350 240 1016 2617 COALBASED M 1396 36.8 45 7 11 1399 567 467 1164 2763 _____________ L 1046.8 _____ ___________ 10 14 1599 777 682 1312 2915 GAS BASED Jj 1046.8 _____ ___________ 5 9 674 194 134 571 1391 M 837.4 21.3 13.5 7 11 794 323 269 660 1479 � 628.1 _____ __________ 10 14 915 449 399 749 1570 WASTECO2 H 1260 ____ _________ 2 6 358.2 -87 -149 329 149 ELECTROLYTIC M 1008 24.2 5.4 4 7 503 77 22 463 1150 H2 L 756 _____ ___________ 6 10 648 236 167 543 1258 Case: 1000 Tonnes/Day

Description: VARIABILITY AROUND VARIABLE COST

Selling Price at Factory Gate: 6O per Litre Equivalent Petrol Price: 1.20 per litre

____________ -INPUT PARAMETERS OUTPUT PARAMETERS

______ _____ _________ IRR ______ _____ _____ ______ ______

Manufacturing Capital Fixed Variable Non-IRR NPV NPV NPV Tax Tax Facility Type Cost Cost Cost Inflation Infi Real Real InfI Payable Payable 4.5% 0% 3% 7.5% Non-4.5% COAL WACC WACC WACC InfI InfI ___________ _______ ______ US$!Tonne ________ ______ ______ ______ ________ ________ H ______ _____ 55 7 11 1297 501 402 1083 2611 COAL BASED M 1396 36.8 45 7 11 1399 567 467 1164 2763 _____________ L _______ _____ 35 7 12 1500 633 528 1245 2920 ______ _____ US$!MMBTU _______ _____ _____ ______ ______ _______ GAS BASED H _______ _____ 17 4 7 384 58.7 16.2 333 876 M 837.4 21.3 13.5 7 11 794 323 269 660 1479 ____________ L ______ _____ 10.5 9 13 1145 546 480 941 1997 WASTE CO2 11 ______ ____ 6 2 1 _____ -104 282 -869 ELECTROLYTIC M 1008 24.2 5,4 4 7 503 J 77 22 463 1150 H2___________ L _______ _____ 5,0 5 8 632 162 104 539 1337 Case: 250 Tonnes/Day

Description: VARIABILITY AROUND VARIABLE COST

Selling Price at Factory Gate: 70 per Litre Equivalent Petrol Price: 1.40 per litre

INPUT PARAMETERS OUTPUT PARAMETERS

______ ____ _________ IRR _____ _____ _____ _______ ______

ManufacturinQ Capital Fixed Variable Non-IRR NPV NPV NPV Tax Tax Facilitylype Cost Cost Cost Inflation Infi Real Real Infi Payable Payable 4.5% 0% 3% 7.5% Non-4.5% ____________ ______ ____ _________ _______ WACC WACC WACC InfI InfI H _______ _____ 55 3 7 219.5 -10.4 -42.7 196 609 COAL BASED M 607.5 16.0 50 3 7 232 -1.7 -34.5 206 629 ______________ L _______ _____ 45 3 7 245 6.9 -26.3 216 646 GAS BASED H _______ _____ 18.0 1 5 58 -52 -68 58 228 M 364.5 9.3 14 4 7 17.5 27 7.3 151.5 399 ______________ L _______ _____ 8.5 7 11 336 131 107 280 637 WASTE CO2 H _______ _____ 5.5 2 5 84 -59 -79 81.9 303 ELECTROLYTIC M 439 10.5 5.0 2 6 124 -31 -53 114 362 H2 L _______ _____ 4.0 4 7 204 23 0 128 479 Case: 250 Tonnes/Day

Description: VARIABILITY AROUND CAPiTAL COST

INPUT PARAMETERS OUTPUT PARAMETERS

______ _____ __________ IRR _____ ______ ______ _______ _______

Manufacturing Capital Fixed Variable Non-IRR NPV NPV NPV Tax Tax Facility Type Cost Cost Cost Inflation Infi Real Real InfI Payable Payable 4.5% 0% 3% 7.5% Non-4.5% ___________ ______ ____ __________ ______ WACC WACC WACC InfI nfl H 759.44 _____ ___________ 2 5 149 -103 -139 142 564 COAL BASED M 607.5 16 50 3 7 232 -1.7 -34.5 206 629 ______________ L 455.7 ______ ____________ 5 9 320 96 67 271 694 GAS BASED 455.6 _____ ___________ 2 6 122.5 -33 -54 113 360 M 364.5 9.3 14 4 7 175 27 7.3 151.5 399 _____________ L 273.4 _____ ___________ 6 10 227 84 67 190 439 WASTE C02 H 548 ____ _________ 1 4 61 -106 -129 67 315 ELECTROLYTIC M 439 10.5 5.0 2 6 124 -31 -53 114 362 H2 L 329.1 ______ ___________ 4 8 187 40 21 160 409 250 Tonnes/Day Case:

Description: VARIABILITY AROUND VARIABLE COST

INPUT PARAMETERS OUTPUT PARAMETERS

______ ____ __________ IRR _____ ______ ______ ______ ______

Manufacturing Capital Fixed Variable Non-IRR NPV NPV NPV Tax Tax Facility Type Cost Cost Cost Inflation InfI Real Real InfI Payable Payable 4.5% 0% 3% 7.5% Non-4.5% US$ITonne WACC WACC WACC Infi Intl H _______ _____ 55 2 6 154 -55 -85 144 509 COAL BASED M 607.5 16.0 50 2 6 167 -46 -77 154 530 ______________ L ______ _____ 45 2 6 179 -37 -68 164 549 ______ _____ US$/MMBTU _______ ______ ______ ______ _______ _______ GASBASED H ______ _____ 18.0 0 3 -21 -107 -114 19.5 132 M 364.5 9.3 14.0 2 6 109 -17.6 -34.8 100 304 � ______ _____ 8.5 6 9 271 89 67 228 541 WASTE C02 H ______ ______ 5.5 0 3 19 -106 -124 30 208 ELECTROLYTIC M 439 10.5 5.0 1 4 59 -77 -96 62 267 H2 L ______ ______ 4.0 2 6 139 -21 -42 126 384 Case: 250 Tonnes/Day

Description: VARIABILITY AROUND CAPITAL COST

___________ -INPUT PARAMETERS OUTPUT PARAMETERS

______ ____ _________ IRR _____ _____ _____ ______ ______

Manufacturing Capital Fixed Variable Non-IRR NPV NPV NPV Tax Tax Facility Type Cost Cost Cost Inflation Intl Real Real Intl Payable Payable 4.5% 0% 3% 7.5% Non-4.5% ____________ ______ ____ _________ _______ WACC WACC WACC Intl InfI H 759.44 _____ ___________ 1 4 79.8 -149 -183 89.6 464 COAL BASED M 607.5 16.0 50 2 6 167 -46 -77 154 530 _____________ L 455.7 _____ ___________ 4 8 254 52.5 25.8 219 594 GAS BASED H 455.6 _____ ____________ 1 4 57.4 -79 -98 61 266 M 364.5 9.3 14.0 2 6 109 -17.6 -34.8 100 304 _____________ L 273.4 _____ ___________ 5 8 162 41.3 26.2 138 343 WASTE C02 H 548 _____ ___________ 0 3 -21 -161 -175 32 220 ELECTROLYTIC M 439 10.5 5.0 1 4 59 -77 -96 62 267 H2 L 329.1 _____ ___________ 3 6 122 -4 -21 109 319

SYNTHETIC METHANOL PRODUCTION -FINANCIAL ANALYSIS

* MEDIUM PRESSURE PROCESS * COPPER CATALYST SUPPORTED ON ALUMINA

NOTES -FINANCIAL

1 BOTH INFLATIONARY AND NON-INFLATIONARY FINANCIAL ANALYSES ARE

PERFORMED

2 INFLATION RATE OVER THE DISCOUNT PERIOD IS ASSUMED AT 4.5 PERCENT 3 NON-INFLATIONARY FINANCIAL FIGURES ARE REFERRED TO IN THE SPREADSHEET AS REAL°

TAX REGIME

4 COMPANY TAXATION IS INCLUDED AT A RATE OF 42.5% AN INITIAL CAPITAL ALLOWANCE OF 50% IS ALLOWABLE IN THE FIRST PRODUCTION

YEAR

6 WEAR AND TEAR ALLOWANCE OF 50% OF THE BALANCE FOLLOWS FOR THE

FOLLOWING TWO SUCCESSIVE YEARS

FINANCIAL ANALYSES PERFORMED

7 INTERNAL RATE OF RETURN ON INFLATIONARY NET CASH FLOW 8 INTERNAL RATE OF RETURN ON NON-INFLATIONARY (REAL) NET CASH FLOWS 9 NET PRESENT VALUE AT ZERO COST OF CAPITAL PERFORMED OVER THE NON-INFLATIONARY (REAL) CASH FLOWS

NET PRESENT VALUE AT A STATED COST OF CAPITAL IN PERCENTAGE TERMS

ABOVE THE INFLATION RATE PERFORMED OVER THE NON-INFLATIONARY NET

CASH FLOWS

11 NET PRESENT VALUE AT A STATED COST OF CAPITAL PERFORMED OVER THE

INFLATIONARY NET CASH FLOWS

TIME SCALE

12 CONSTRUCTION COMMENCES BEGINNING FIRST QUARTER 2011 13 FIRST PRODUCTION BEGINNING 3RD QUARTER 2014 14 DISCOUNT PERIOD FROM 2011 TO 2036

NOTES -CAPITAL COST

A BASE CASE CAPITAL COST OF US$7200 MILLION IS ASSUMED 16 CAPITAL COST IS FACTORED AT PROPORTIONAL PRODUCTION TO POWER 0.6 17 CAPEX IS APPROXIMATELY 23 PERCENT INYEAR ONE

PERCENT IN YEAR TWO

PERCENT IN YEAR THREE

7 PERCENT UP TO BEGINNING THIRD QUARTER YEAR FOUR 18 CAPITAL EXPENDITURE PROPORTIONS ARE AS DETAILED BELOW

NOTES COST OF COAL

19 LOW OPPORTUNITY VALUE HIGH ASH COAULIGNITE IS ASSUMED AS RAW

MATERIAL

COAL MINE IS INTEGRAL WITH THE SYNTHETIC FUELS FACILITY

21 A TRANSFER PRICE IS ASSUMED WHICH WILL ALLOW THE COAL MINE TO OPERATE

UNDER

ESSENTIALLY THE SAME FINANCIAL PARAMETERS OFIRR AND NPV AS THE FUEL

FACILITY

22 COAL COST IS FACTORED ACCORDING TO PRODUCTION RATE

NOTES -PRODUCTION RATE

23 BASE CASE IS 15400 METRIC TONNES PER DAY OF METHANOL 24 PRODUCTION OF METHANOL IS MODULAR-EACH SYNTHESIS REACTOR CAPACITY 2200 TONNES/DAY OCCUPANCY AT NAMEPLATE CAPACITY IS ASSUMED AT 90 PERCENT 26 ROLLING SHUTDOWN FOR PLANT MAINTENANCE IS ASSUMED

NOTES FIXED COSTS OF PRODUCTION

27 BASE CASE FIXED COSTS ARE ASSUMED AT US$190 MILLION/ANNUM 28 FIXED COSTS ARE FACTORED ACCORDING TO PRODUCTION RATE

NOTES -TECHNOLOGY

29 HIGH PRESSURE (APPROX 30 BAR) NON-SLAGGING GASIFIERS

RECTISOL GAS CLEANING

31 SYNTHESIS CONDUCTED AT 80 BAR 32 COARSE DISTILLATION (FUEL GRADE) 33 CARBON CAPTURE AND STORAGE ASSUMED Number of Synthesis Modules ____________ ____________ 2 ____________ __________ ______________ _______________ ____________ ____________ Size of each synthesis module ____________ ____________ 2200 tonnes/day __________ ______________ _______________ ____________ ____________ Nominal Daily Production ___________ ___________ 4400 ___________ _________ _____________ ______________ ___________ ___________ Percentage Capital Capex Capex Basecase Capex Additions ____________ ____________ ____________ ____________ Percent Proportions Capex Istallation ____________ Coal Preparation and _________ Gasification ___________ 950.7 135882 US$ Millions 0.28 28 US$7200M YEAR 1 0.233333333 Gas cleanup, stagel C02 _________ removal ___________ 305.5865105 US$ Millions 0.09 9 Exponent YEAR 2 0.4 Shift reaction, compression, stage2 C02 _________ removal ___________ 407.4486807 US$ Millions 0.12 12 0,6 YEAR 3 0.3 Synthesis Basecase _________ Reaction ___________ 475.3567941 US$ Millions 0.14 14 prod ution YEAR 4 0.066666667 Distillation Wastewater _________ Section treatment 271.6324538 US$ Millions 0.08 8 15400 TID ___________ ___________ Utilities and _________ Offsites ___________ 746.9892479 1.15$ Millions 0.22 22 Scaling Factor (PLANfl ___________ Carbon _________ Capture ___________ 237.678397 (JS$ Millions 0.07 7 0.471584121 ___________ ___________ Total Capital (COAL Additions ___________ ___________ 3395.405672 US$ Millions _________ 100 Scaling Factor COST) ___________ ___________ ___________ ___________ _________ _____________ 0.323846166 __________ ___________ Online Time ___________ ___________ 90 % _________ _____________ _____________ __________ ___________ Equivalent online time at nameplate production rate ___________ ___________ 328.725 ___________ _________ _____________ _____________ Density of methanol ___________ ___________ 790 Kgim3 _________ ______________ _____________ 76 ________ ________ ______ _______ Realised Selling Price of methanol

FOB

Factory 1erimeter ___________ ___________ ___________ ___________ -70 US cents/litre _____________ __________ ___________ Tonnes of Methanol Tonnes I produced ___________ __________ ___________ 1446390 annum _____________ _____________ __________ ___________ Kilo -lilresof nietanol produced ___________ ___________ ___________ 1830873418 _________ _____________ ______________ __________ __________ Gross sales of Methanol US$ per num ___________ __________ __________ 1281611392 annum _____________ Million US$ / __________ __________ 1281.611392 annum _____________ _____________ __________ __________ Percentage of ash in coal ____________ ____________ 27 % ______________ Base case -coal ____________ Tonnes of coal Million required Tonnes / per annum __________ __________ __________ 3.571428571 annum _____________ 9.125 pure __________ __________ Cost of US$ per coal _____________ _____________ 35 tonne _______________ ______________ Base Case Percentage Fixed Costs Fixed Costs ___________ ___________ ___________ ___________ _________ _____________ Fixed Costs Salaries 40 _________ Payroll 35.84039321 US$M ___________ _________ _____________ 190 Marntenance 40 _________ Maintenance 35.84039321 US$M ___________ _________ _____________ ______________ Other 20 _________ Other 17.9201966 US$M ___________ _________ _____________ Fixed Costs Total ___________ 89.60098301 US$M All Figures In Millions Of United States Dollars ______________ ___________ Year 2011 2012 2013 2014 2015 -2016 -Inflation Rate 4.5 4.5 4.5 4.5 4.5 4.5 Inflation Index 1 1.045 1.092025 1.1411661 1.1925186 1.2461819 Gross Sales (real) 0 0 0 640.8057 1281.6114 1281.6114 GrossSales(inflated) 0 0 0 731.26575 1528.3454 1597.121 Fixed Costs real 0 0 0 64.512708 89.600983 89.600983 Fixed Costs (inflated) 0 0 0 73.619717 106.85084 111.65913 Fixed Costs (inflated) Cost of coal (real) 0 0 0 62.5 125 125 Costof coal (inflated) 0 0 0 71.322883 149.06483 155.77274 Fixed and Variable Costs-(real) 0 0 0 127.01 271 214.60098 214.60098 Fixed and Variable Costs (inflated) 0 0 0 144.9426 255.91566 267.43187 Cash Flow (real) 0 0 0 513.79299 1067.0104 1067.0104 Cash Flow (inflated) -0 0 0 586.32315 1272.4298 1329.6891 Taxable Value of Plant (real) 0 792.26132 2150.4236 3169.0453 1697.7028 848.85142 Capital Additions During Year (real) 792.26132 1358.1623 1018.6217 226.36038 0 ______ Cumulative Capital Additions (real) 792.26132 2150.4236 3169.0453 3395.4057 3395.4057 3395.4057 Initial Allowance (real) 0 0 0 1697.7028 0 0 WearAnd TearAllowance (real) 0 0 0 0 848.85142 848.85142 Year -2011 2012 2013 -2014 2015 2016 Tax Allowance (real) 0 0 0 1697.7028 848.85142 848.85142 Taxable ValueofPlant(inflated) -0 792.26132 2211.5409 3323.9013 1791.108 895.55401 Ca Additions During Year (inflated) 792.26132 14192796 1112.3604 258.3148 0 _________ Cumulative Capital Additions (inflated) 792.26132 2211.540!. 3323.9013 3582.2161 3582.2161 3582.2161 Initial Allowance (inflated) 0 _________ __________ 1791.108 _________ __________ Wear And Tear Allowance (inflated) 0 _________ _________ ________ 895.55401 895.55401 Tax Allowance (inflated) _________ _________ _________ 1791.108 895.55401 895.55401 Annual Taxable Income (real) 0 0 0 -1183.91 218.15899 218.15899 Annual Taxable Income (inflated) 0 0 0 -1204:785 376.87575 434.13509 Tax Loss Carried Forward (real) ________ ________ _________ -1183.91 -965.7509 -747.5919 Tax Loss Carried Forward(inflated) ________ _________ _________ -1204.785 -827.9091 -393.774 Taxable Income (real) 0 0 0 -0 0 _______ 0 Taxable Income(inflated) 0 ________ 0 0 0 40.361046 Tax Payable (real) 0 0 0 0 0 _______ 0 Tax Payable (inflated) 0 0 0 0 0 17.153 Cash Flow After Tax (real) ________ 0 0 513.79299 1067.0104 1067.0104 Trading cash flow after tax(inf) 0 ________ Q 586.32315 1272.4298 1312 Net Cash FIow(real) -792.2613 -1358.162 -1018.622 287.43261 1067.0104 1067.0104 Net Cash FIow(inflated) -792.2613 -1419.28 -1112.36 328.00836 1272.4298 1312.5357 Cumulative cash flow (real) -792.2613 -2150.424 -3169.045 -2881.613 -1814.602 -747.5919 Cumulative cash flow(inflated) -792.2613 -2211.541 -3323.901 -2995.893 -1723.463 -410.9275 Year -2017 2018 -2019 -2020 2021 2022 Inflation Rate 4.5 4.5 -4.5 4.5 Inflation Index 1.3022601 1.3608618 1.4221006 1.4860951 1.5529694 1.622853 Gross Sales (real) 12816114 1281.6114 1281.6114 1281.6114 1281.6114 1281.6114 Gross Sales (inflated) 1668.9914 1744.096 1822.5803 1904.5965 1990.3033 2079867 Fixed Costs real 89600983 89.600983 89.600983 89600983 89600983 89.600983 Fixed Costs (inflated) 116.68379 121.93456 127.42161 133.15559 139.14759 145.40923 Fixed Costs (inflated) Cost of coal (real) 125 125 125 125 125 125 Cost of coal (inflated) 162.78252 170.10773 177.76258 18516189 194.12118 202.85663 Fixed and Variable Costs-(real) 214.60098 214.60098 214.60098 214.60098 214.60098 214.60098 Fixed and Variable Costs (inflated) 279.4663 292.04229 305.18419 318.91748 333.26876 348.26586 Cash Flow (real) 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 Cash Flow (inflated) 1389.5251 1452.0537 1517.3962 1585.679 1657.0345 1731.6011 Taxable Value of Plant (real) 0 0 0 0 ______ 0 0 Capital Additions During Year (real) _________ __________ -0 0 0 __________ Cumulative Capital Additions (real) 3395.4057 3395.4057 3395.4057 3395.4057 33954057 3395.4057 Initial Allowance (real) 0 0 0 0 0 0 Wear And Tear Allowance (real) 0 0 0 0 -0 0 Tax Allowance (real) _________ 0 -0 0 0 0 Taxable Value of Plant (inflated) _________ 0 _________ Capital Additions DunngYear (inflated) Cumulative Capital Additions (inflated).

Uiitial Allowance (inflated) Wear And Tear Allowance (inflated) Tax Allowance (inflated) Annual Taxable Income (real) 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 Annual Taxable Income (inflated) 1389.5251 1452.0537 1517.3962 1585.679 1657.0345 1731.6011 Tax Loss Carried Forward (real) 0 0 0 0 0 0 Tax Loss Carried Forward(inflated) -0 0 -0 0 0 Taxable Income (real) 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 Taxable Income(inflated) 1389.5251 1452.0537 I 1517.3962 1585.679 1657.0345 1731.6011 Year 2017 2018 2019 2020 2021 2022 Tax Payable (real) 453.47942 453.47942 453.47942 453.47942 453.47942 453.47942 Tax Payable (inflated) 590.54817 617.12284 644.89337 673.91357 704.23968 735.93046 Trading Cash Flow After Tax (real) 613.53099 613.53099 613.53099 613.53099 613.53099 613.53099 Trading cash flow after tax(inf) 798.97694 834.9309 872.50279 911.76542 95279486 995.67063 Net Cash Flow(real) 613.53099 613.53099 613.53099 613.53099 613.53099 61353099 Net Cash Flow(inflated) 798.97694 8349309 872.50279 911.76542 952.79486 995.67063 Cumulative cash flow (real) -134.0609 47947011 1093.0011 1706.5321 2320.0631 2933.594 Cumulative cash flow(inflated) 388.04945 1222.9804 2095.4831 3007.2486 3960.0434 4955.714 Year 2023 2024 2025 2026 2027 2028 Inflation Rate 4.5 4.5 4.5 4.5 4.5 4.5 Inflation Index 1.6958814 1.7721961 1.8519449 1.9352824 2.0223702 2.1133768 GrossSales(real) 1281.6114 12816114 1281.6114 1281.6114 1281.6114 1281.6114 Gross Sales (inflated) 2173.461 2271.2667 2373.4737 2480.28 2591.8926 2708.5278 Fixed Costs real 89.600983 69.600983 89.600983 89.600983 89.600983 89600983 Fixed Costs (inflated) 151.95264 158.79051 165.93609 173.40321 181.20635 189.36064 Fixed Costs (inflated) Costof coal (real) 125 125 125 125 125 125 Cost of coal (inflated) 211.98518 221.52451 231.49312 241.91031 252.79627 264.1721 Fixed and Variable Costs-(real) 214.60098 214.60098 214.60098 214.60098 214.60098 214.60098 Fixed and Variable Costs (inflated) 363.93782 380.31502 397.4292 41 5.31 351 434.00262 453.53274 Cash Flow (real) 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 Cash Flow (inflated) 1809.5231 1890.9517 1976.0445 2064.9665 2157.89 2254.9951 Taxable Value of Plant (real) 0 0 0 0 0 0 Capital Additions During Year (real) 0 0 0 0 0 0 Cumulative Capital Additions (real) 3395.4057 3395.4057 3395.4057 3395.4057 3395.4057 3395.4057 Irutial Allowance (real) 0 0 0 0 0 0 Wear And Tear Allowance (real) 0 0 0 0 0 0 Tax Allowance (real) 0 0 0 0 0 0 Taxable Value of Plant (inflated) Capital Additions During Year (inflated) __________ __________ __________ __________ __________ __________ Cumulative Capital Additions (inflated) __________ __________ __________ __________ __________ kitiaI Allowance (inflated) Wear And Tear Allowance (inflated) __________ __________ Tax Allowance (inflated) Annual Taxable Income (real) 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 Annual Taxable Income (inflated) -1809.5231 1890.9517 1976.0445 2064.9665 2157.89 2254.9951 Tax Loss Carried Forward (real) 0 0 __________ 0 0 0 Tax Loss Carried Forward(inflated) 0 0 0 0 0 0 Taxable Income (real) 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 Taxable lncome(inflated) 1809.5231 1890.9517 1976.0445 2064.9665 2157.89 2254.9951 Tax Payable (real) 453.47942 453,47942 453.47942 453.47942 45347942 453.47942 Tax Payable (inflated) 769.04734 803.65447 839.81 892 877.61 077 917.10325 958.3729 Trading Cash Flow After Tax (real) 613.53099 613.53099 613.53099 613.53099 613.53099 Trading cashflowaftertax(inf) 1040.4758 1087.2972 1136.2256 1187.3557 1240.7868 622 Net Cash FIow(real) 61 3.53099 61 3.53099 613.53099 613.53099 613.53099 613.53099 Net Cash FIow(inflated) 1040.4758 1087.2972 1136.2256 1187.3557 1240.7868 1296.6222 Cumulative cash flow (real) 3547.125 4160.656 4774.187 5387.718 6001.249 6614.78 Cumulative cash flow(inflated) 5996.1899 7083.4871 8219.7127 9407.0684 10647.855 11944.477 Year 2029 2030 2031 2032 2033 2034 Inflation Rate 4.5 4.5 4.5 4.5 45 45 Inflation Index 2.2084788 2.3078603 2.411714 2.5202412 2.633652 2.7521663 GrossSales(real) 1281.6114 1281.6114 1281.6114 1281.6114 1281.6114 1281.6114 Gross Sales (inflated) 2830.4115 2957.7801 3090.8802 3229.9698 3375.3184 3527.2077 Fixed Costs real 89.600983 89.600983 89.600983 89.600983 89.600983 89.600983 Fixed Costs (inflated) 197.88187 206.78655 216.09195 225.81609 235.97781 246.59681 Fixed Costs (inflated) __________ __________ __________ __________ __________ __________ Cost of coal (real) 125 125 125 125 125 125 Cost of coal (inflated) 276.05985 288.48254 301.46425 315.03014 329.2065 344.02079 Fixed and Variable Costs-(real) 214.60098 2 14.60098 214.60098 214.60098 214.60098 214.60098 Fixed and Variable Costs (inflated) 473.94171 495.26909 517.5562 540.84623 565.18431 590.6176 Cash Flow (real) 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 Cash Flow (inflated) 2356.4698 2462.511 2573.324 2689.1235 2810.1341 2936.5901 Taxable Value of Plant (real) 0 0 0 0 0 0 Capital Additions During Year (real) 0 0 0. 0 0 0 Cumulative Capital Additions (real) 3395.4057 3395.4057 3395.4057 3395.4057 3395.4057 3395.4057 Initial Allowance (real) 0 0 0 0 0 0 Wear And Tear Allowance (reaj) 0 0 0 0 0 0 Tax Allowance (real) 0 0 0 0 0 0 Taxable Value of Plant (inflated) __________ __________ __________ __________ __________ __________ Capjtal Additions During Year (inflated) __________ __________ __________ __________ __________ __________ Cumulative Capital Additions (inflated) __________ __________ __________ __________ __________ __________ Initial Allowance (inflated) __________ __________ __________ __________ __________ __________ Wear And Tear Allowance (inflated) __________ __________ __________ __________ __________ __________ Tax Allowance (inflated) __________ __________ __________ __________ __________ __________ Annual Taxable Income (real) 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 Annual Taxable Income (inflated) 2356.4698 2462.511 2573.324 2689.1235 2810.1341 2936.5901 Tax Loss Carried Forward (real) 0 0 0 0 0 __________ Tax Loss Carried Forward(inflated) __________ __________ __________ __________ __________ __________ Taxable Income (real) 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 1067.0104 Taxable Income(inflated) 2356.4698 2462.511 2573.324 2689.1235 2810.1341 2936.5901 Tax Payable (real) 453.47942 453.47942 453.47942 453.47942 453.47942 453.47942 Tax Payable (inflated) 1001.4997 1046.5672 1093.6627 1142.8775 1194.307 1248.0508 Trading Cash Flow After Tax (real) 613.53099 613.53099 613.53099 613.53099 613.53099 613.53099 Trading cash flow after tax(inf) 1354.9702 1415.9438 1479.6613 1546.246 1615.8271 1688.5393 Net Cash FIow(real) 613.53099 613.53099 613.53099 613.53099 613.53099 613.53099 Net Cash Flow(inflated) 1354.9702 141 5.9438 1479.6613 1546.246 161 5.8271 1688,5393 Cumulative cash flow (real) 7228.3109 7841.8419 8455.3729 9068.9039 9682.4349 10295.966 Cumulative cash flow(inflated) 13299.447 14715.391 16195.053 17741.299 19357.126 21045.665 Year 2035 2036 Inflation Rate 4.5 4.5 Inflation Index 2.8760138 3.0054345 Gross Sales (real) 1281.6114 1281.6114 Gross Sales (inflated) 3685.9321 3851.799 Fixed Costs real 89.600983 89.600983 Fixed Costs (inflated) 257.69367 269.28988 Fixed Costs (inflated) __________ __________ Cost of coal (real) 125 125 Cost of coal (inflated) 359.50173 375.67931 Fixed and Variable Costs-(real) 2 14.60098 2 14.60098 Fixed and Variable Costs (inflated) 617.1954 644.96919 Cash Flow (real) . 1067.01 04 1067.0104 Year 2035 2036 Cash Flow (inflated) 3068.7367 3206.8298 Taxable Value of Plant (real) 0 0 Capital Additions During Year (real) 0 0 Cumulative Capital Additions (real) 3395.4057 3395.4057 Initial Allowance (real) 0 0 Wear And Tear Allowance (real) 0 0 Tax Allowance (real) 0 0 Taxable Value of Plant (inflated) __________ __________ Capital Additions During Year (inflated) __________ __________ Cumulative Capital Additions (inflated) __________ __________ Initial Allowance (inflated) __________ __________ Wear And Tear Allowance (inflated) __________ __________ Tax Allowance (inflated) __________ __________ Annual Taxable Income (real) 1067.0104 1067.0104 Annual Taxable Income (inflated) 3068.7367 3206.8298 Tax Loss Carried Forward (real) __________ __________ Tax Loss Carried Forward(inflated) __________ __________ Taxable Income (real) 1067.0104 1067.0104 Taxable Income(inflated) 3068.7367 3206.8298 Tax Payable (real) 453.47942 453.47942 Tax Payable (inflated) 1304.2131 1362.9027 Trading Cash Flow After Tax (real) 613.53099 613.53099 Trading cash flow after tax(inf) 1764.5236 18439272 Net Cash Flow(real) 613.53099 613.53099 Net Cash Flow(inflated) 17645236 18439272 Cumulative cash flow (real) 10909.497 11523.028 Cumulative cash flow(inflated) 22810.189 24654.116 SELLING PRICE OF METHANOL 70 US CENTS PER LITRE FOB FACTORY GATE INFLATION RATE OVER DISCOUNT PERIOD 4.5% WEIGHTED AVERAGE COST OF CAPITAL-NON INFLATIONARY 3% WEIGHTED AVERAGE COST OF CAPITAL -INFLATIONARY 7.5% INTERNAL RATE OF RETURN-(IRR) NON-INFLATIONARY 0.1769219 INTERNAL RATE OF RETURN-INLATIONARY 0.2294787 NET PRESENT VALUE AT ZERO COST OF CAPITAL 11523.028 NET PRESENT VALUE AT WACC-NON-INELATIONARY 6536.1281 NET PRESENT VALUE AT WACC-INFLATIONARY 61 22.013 TAX PAYABLE TO REVENUE AUTHORITY (REAL) US$M 9069.5885 TAX PAYABLE TO REVENUE AUTHORITY(INFLATED) US$M 18543.49

NUCLEAR ELECTROLYSIS METHANOL SYNTHESIS -FINANCIAL

ANALYSIS

* SYNTHETIC METHANOL PRODUCTION -MEDIUM PRESSURE PROCESS * COPPER CATALYST SUPPORTED ON ALUMINA * WASTE CARBON DIOXIDE IS USED FROM COAL-BASED POWER PLANTS * THERMO-NUCLEAR ELECTRICITY IS USED IN THE ELECTROLYSIS OF WATER TO MANUFACTURE HYDROGEN * THE THERMO-NUCLEAR POWER PLANT IS SITUATED ADJACENT TO THE CONVENTIONAL POWER PLANT

NOTES -FINANCIAL

1 BOTH INFLATIONARY AND NON-INFLATIONARY FINANCIAL ANALYSES ARE PERFORMED 2 INFLATION RATE OVER THE DISCOUNT PERIOD IS ASSUMED AT 4.2 PERCENT 3 NON-INFLATIONARY FINANCIAL FIGURES ARE REFERRED TO IN THE SPREADSHEET AS REAL"

TAX REGIME

4 COMPANY TAXATION IS INCLUDED AT A RATE OF 42.5% AN INITIAL CAPITAL ALLOWANCE OF 50% IS ALLOWABLE IN THE FIRST PRODUCTION YEAR 6 WEAR AND TEAR ALLOWANCE OF 50% OF THE BALANCE FOLLOWS FOR THE FOLLOWING TWO

SUCCESSIVE YEARS

FINANCIAL ANALYSES PERFORMED

NET PRESENT VALUE AT A STATED COST OF CAPITAL IN PERCENTAGE TERMS ABOVE THE

INFLATION RATE PERFORMED OVER THE NON-INFLATIONARY NET CASH FLOWS

11 NET PRESENT VALUE AT A STATED COST OF CAPITAL PERFORMED OVER THE INFLATIONARY NET

CASH FLOWS

TIME SCALE

NOTES -CAPITAL COST

A BASE CASE CAPITAL COST OF US$5200 MILLION IS ASSUMED FOR A PRODUCTION RATE OF 15400 TONNES/ANNUM 16 CAPITAL COST IS FACTORED AT PROPORTIONAL PRODUCTION TO POWER 0.6 17 CAPEX IS APPROXIMATELY 23 PERCENT INYEAR ONE

PERCENT IN YEAR TWO

PERCENT IN YEAR THREE

NOTES COST OF ELECTRICITY

19 ELECTRICITY IS PURCHASED FROM A THERMO-NUCLEAR POWER PLANT DEDICATED TO THE

METHANOL SYNTHESIS PLANT

FOR HIGH PRODUCTION RATES >2000 TONNE/DAY

THE NUCLEAR POWER STATION OPERATES ON AN INDEPENDENT FINANCICIAL BASIS

21 FOR LOWER PRODUCTION RATES A NON-C02 EXHAUST MIX MAY BE ASSUMED OR

OFF-PEAK POWER STORAGE BY ALCOHOL MANUFACTURE

NOTES -PRODUCTION RATE

23 BASE CASE IS 15400 METRIC TONNES PER DAY OF METHANOL 24 PRODUCTION OF METHANOL IS MODULAR-EACH SYNTHESIS REACTOR CAPACITY 2200 TON NE S/DAY OCCUPANCY AT NAMEPLATE CAPACITY IS ASSUMED AT 90 PERCENT 26 ROLLING SHUTDOWN FOR PLANT MAINTENANCE IS ASSUMED NOTES. FIXED COSTS OF PRODUCTI 27 BASE CASE FIXED COSTS ARE ASSUMED AT 28 FIXED COSTS ARE FACTORED ACCORDING TO PRODUCTION RATE

NOTES -TECHNOLOGY

29 CARBON DIOXIDE EXHAUST FROM CONVENTIONAL POWER PLANT IS EMPLOYED AS THE

CARBONACEOUS FEEDSTOCK

THE CO2 GAS IS RAISED IN PRESSURE BY A BLOWER AT A POINT AFTER THE DUST COLLECTION

PLANT

31 THE GAS IS WASHED CLEAN OF DUST 32 PURE C02 GAS IS SEPARATED FROM THE GAS STREAM CONTAINING EXCESS AIR NITROGEN, AND SO2 THIS IS ACHIEVED BY TEMPERATURE AND/OR PRESSURE SWING GAS ADSORPTION 33 THE PURIFIED CO2 GAS STREAM IS COMPRESSED 34 RAW WATER IS PURIFIED BY FLOCCULATION/FILTRATION FOLLOWED BY ION EXCHANGE

A CONDUCTIVITY MODIFIER IS ADDED

36 THE WATER IS ELECTROLYSED AND HYDROGEN IS DISCHARGED AT THE CATHODE 37 THE H2 GAS IS COLLECTED AND COMPRESSED 38 A PORTION OF THE H2 GAS IS REACTED AGAINST A PORTION OF THE CO2 GAS IN THE REVERSE

SHIFT REACTOR TO FORM CO

39 THE GASES ARE PROPORTIONED INTO THE SYNTHESIS REACTOR IN THE NORMAL WAY

COARSE DISTILLATION IS UNDERTAKEN-FUEL GRADE METHANOL IS PRODUCED

Number of esiMles 2 __ Size of each yhesis module 2200 tonne4y. ____________ Nominal Daily Production 4400 ____________ Capex Basecase Percentage Capex çp)tal Additions ___________ ___________ Capex Percent Proportions Capex ________ Istallation ___________ Electrolytic Cell House 686.6264804 US$ Millions 0.28 28 5200 US$M YEAR 1 0.233333333 Gas Cleanup C02 Capture 220.7013687 US$ Millions 0.09 9 Exponent ________ YEAR 2 __________ Compression,Reverse Shift Reaction 294.2684916 US$ Millions 0.12 12 0.6 ________ YEAR 3 0.3 Basecase Synthesis Reaction 343.3132402 US$ Millions 0.14 14 pon ________ YEAR 4 66666L Distillation Section -Wastewater Treatment 196.1789944 USS Millions 0.08 8 15400 TID _________________ Utilities and Otfsites 539.4922346 US$ Millions 0.22 22 Scalin9 Factor (PLANT) ________________ Electiical Integration With Existng Power Plant 171.6566201 US$ Millions 0.07 7 0.471584121 ________ Total Capjl Additions 2452.23743 US$ Millions ____________ 100 ____________ Online Time 90 % ____________ Equivalent online time at nameplate production rate 328.725 ___________ Density of methanol 790 Kg/m3 Days Realised Sellii Price of methanol fob Factory p/jmeter ___________ ___________ ____________ 65 us cents/litre ____________ Tonnes of Methanol produced ___________ 1446390 Tonnes/annum _____________ Kilo -litresof metanol produced ___________ 1830873.418 ____________ Gross sales of US$ per Methanol per annum ___________ 1190067722 annum _____________ Base Case Power Million uss Plant __________ 1190.067722 perannuni _____________ ___________ Size ________________ Per 2200 tonne/day Base Capacity Of Nuclear Case Power Plant ___________ -1500 Megawatt _____________ ____________ Electricity _______________ pate Power Consun!pt)fl __________ 1431.999899 Megawatt -Giqawatt.hrs GIGA gjed per annum __________ 11297.62 Gigawatt Firs ____________ ___________ 39541.67 WATT.HRS/ANNUM __________ Cost Of Electricity From Thp-U.S.cents per Nuclear Power Plant ____________ 4 Kilowaft.Hr ______________ Million U.S.Dollars per ______________ __________ 0.04 GigawattHr ________ ________ _________ _____________ ________ Percentage Fixed _______________ ___________ 4000000 __________ _________ _________ Base Case Costs _________ Fixed Costs ___ __________ ___________ __________ __________ Fixed Costs Salaries 40 Payroll 23.57920606 __________ ___________ __________ __________ 125 Maintenance 40 Maintenance 23.57920606 _________ __________ _________ _________ __________ Other 20 Other 11.78960303 ________ _________ ________ ________ _________ _____________ ________ Fixed Costs _______________ 58.94801514 _________ All Figures In Millions Of United States Dollars ______________ _________ Year 2011 2012 2013 2014 2015 2016 Inflation Rate 4.2 4.2 4.2 4.2 4.2 4.2 Inflation Index 1 1.042 1.085764 1.1313661 1.1788835 1.2283966 GrossSales(real) 0 0 0 595.03386 1190.0677 1190.0677 GrossSales(inflated) 0 0 0 673.20113 1402.9512 1461.8751 Fixed Costs real 0 0 0 42.442571 58.948015 58.948015 Fixed Costs (inflated) 0 0 0 48.018085 69.49284 72.41154 Fixed Costs (inflated) __________ __________ __________ __________ __________ __________ Cost Of Electricity (real) 0 0 0 225.9524 451.9048 451.9048 Cost of Electricity (inflated) 0 0 0 255.63488 532.7431 555.11831 Fixed and Variable Costs-(real) 0 0 0 268.39497 510.85282 510.85282 Fixed and Variable Costs (inflated) 0 0 0 303.65297 602.23594 627.52985 Cash Flow (real) 0 0 0 326.63889 679.21491 679.21491 Cash Flow (inflated) 0 0 0 369.54816 800.71522 834.34526 Taxable Value of Plant (real) 0 572.18873 1553.0837 2288.7549 1226.1187 613.05936 Capital Additions During Year (real) 572.18873 980.89497 735.671 23 163.4825 0 0 Cumulative Capital Additions (real) 572.18873 1553.0837 2288.7549 2452.2374 2452.2374 2452.2374 lnitialAllowance(real) 0 0 0 1226.1187 0 0 WearAndlearAllowancejreal) 0 0 0 0 613.05936 613.05936 TaxAllowance(real) 0 0 0 1226.1187 613.05936 613.05936 Taxable Value of Plant (inflated) 0 572.18873 1594.2813 2393.0466 1289.0026 644.5013 Capital Additions During Year (inflated) 572.18873 1022.0926 798.76534 184.95855 0 __________ Cumulative Capital Additions (inflated) 572.18873 1594.2813 2393.0466 2578.0052 2578.0052 2578.0052 Initial Allowance (inflated) 0 __________ __________ 1289,0026 __________ __________ Wear And Tear Allowance (inflated) 0 __________ __________ __________ 644.5013 644.5013 Tax Allowance (inflated) __________ __________ __________ 1289.0026 644.5013 644.5013 Annual Taxable Income (real) 0 0 0 -899.4798 66.155549 66.155549 Annual Taxable Income (inflated) 0 0 0 -919.4544 156.21393 189.84397 Tax Loss Carried Forward (real) __________ __________ __________ -899.4798 -833.3243 -767.1687 Tax Loss Carried Forward(inflated) __________ __________ __________ -919.4544 -763.2405 -573.3965 Taxable Income (real) 0 0 0 0 0 0 Taxable lncome(inflated) 0 0 0 0 0 0 Tax Payable (real) , 0 0 0 0 0 0 Tax Payable (inflated) 0 0 0 0 0 0 Trading Cash Flow After Tax (real) 0 0 0 326.63889 679.21491 679.21491 Trading cash flow after tax(inf) 0 0 0 369.54816 800.71522 834.34526 Year 2011 2012 20131 2014[ 2015J 2016 Net Cash Flow(real) J -572.1887 -980.895 -735.6712 163.15639 679.21491 679.21491 Net Cash Flow(inflated) j -572.1887 -1022.093 -798.7653 184.58961 J 800.71522 834.34526 Cumulative cash flow (real) -572.1887 -1553.084 -2288.755 -2125.599 -1446.384 -767.1687 Cumulativecashflow(inflated) -572.1887 -1594.281 -2393.0471 -2208.457j -1407.742j -573.3965 Year 2017 2018 2019 2020 2021 2022 Inflation Rate 4.2 4.2 4.2 4.2 4.2 4.2 Inflation Index 1.2799892 1.3337488 1.3897662 1.4481364 1.5089581 1.5723344 GrossSales (reall 1190.0677 1190.0677 1190.0677 1190.0677 1190.0677 1190.0677 Gross Sales (inflated) 1523.2739 1587.2514 1653.9159 1723.3804 1795.7624 1871.1844 Fixed Costs real 58.948015 58.948015 58.948015 58948015 58.948015 58.948015 Fixed Costsjinflated) 75.452824 78.621843 81.92396 85364767 88.950087 92.68599 Fixed Costs (inflated) ___________ ___________ ___________ ____________ ___________ ___________ Cost Of Electricity (real) 451.9048 451.9048 451.9048 451.9048 451.9048 451.9048 Cost of Electricity (inflated) 578.43327 602.72747 628.04203 654.41979 681.90542 710.54545 Fixed and Variable Costs-(real) 510.85282 510.85282 510.85282 510.85282 510.85282 510.85282 Fixed and Variable Costs (inflated) 653.8861 681.34932 709.96599 739.78456 770.85551 803.23144 Cash Flow (real) 679.21491 679.21491 679.21491 679.21491 679.21491 679.21491 Cash Flow (inflated) 869.38776 905.90205 943.94993 983.59583 1024.9069 1067.9529 Taxable Value of Plant (real) 0 0 0 0 0 0 Capital Additions Dunng Year (real) 0 ___________ 0 0 0 0 Cumulative Capital Additions (real) 2452.2374 2452.2374 2452.2374 2452.2374 2452.2374 2452.2374 Initial Allowance (real) 0 0 0 0 0 0 Wear And Tear Allowance (real) 0 0 0 0 0 0 Tax Allowance (real) 0 0 0 0 0 0 Taxable Value of Plant (inflated) 0 0 ___________ ____________ ___________ ____________ Capital Additions During Year (inflated) ___________ ___________ ___________ ____________ ___________ ____________ Cumulative Capital Additions (inflated) ___________ ___________ ___________ ____________ ___________ ____________ Initial Allowance (inflated) ____________ ____________ ____________ ____________ ____________ ____________ Wear And Tear Allowance (inflated) ___________ ___________ ___________ ____________ ___________ ____________ Tax Allowance (inflated) ___________ ___________ ___________ ____________ ___________ ____________ Annual Taxable Income (real) 679.21491 679.21491 679.21491 679.21491 679.21491 679.21491 Annual Taxable Income (inflated) 869.38776 905.90205 943.94993 983.59583 1024.9069 1067.9529 Tax Loss Carned Forward (real) -87.95382 0 0 0 0 0 Tax Loss Carried Forward(inflated) 0 0 0 0 0 0 Taxablelncome(real) 591.26109 679.21491 679.21491 679.21491 679.21491 679.21491 Taxable lncome(inflated) 869.38776 905.90205 943.94993 983.59583 1024.9069 1067.9529 Tax Payable (real) 251.28596 288.66634 288.66634 288.66634 288.66634 288.66634 Tax Payablejinflated) 369.4898 385.00837 401.17872 418.02823 435.58541 453.88 Trading Cash Flow After Tax (real) 427.92895 390.54857 390.54857 390.54857 390.54857 390.54857 Trading cash flow after tax(inf) 499.89796 520.89368 542.77121 565.5676 589.32144 614.07294 Net Cash Flow(real) 427.92895 390.54857 390.54857 390.54857 390.54857 390.54857 Net Cash Flow(inflated) 499.89796 520.89368 542.771 21 565.5676 589.321 44 614.07294 Cumulative cash flow (real) -339.2398 51.308789 441.85736 832.40593 1222.9545 1613.5031 Cumulative cash flow(inflated) -73.49857 447.3951 990.16632 1555.7339 2145.0554 2759.1283 Year 2023 2024 2025 2026 2027 2028 Inflation Rate 4.2 4.2 4.2 4.2 4.2 4.2 Inflation Index 1.6383724 1.7071841 1.7788858 1.853599 1.9314501 2.0125711 Gross Sales (real) 1190.0677 1190.0677 1190.0677 1190.0677 1190.0677 1190.0677 Gross Sales (inflated) 1949.7741 2031.6646 2116.9946 2205.9083 2298.5565 2395.0959 Fixed Costs real 58.948015 58.948015 58.948015 58.948015 58.948015 58.948015 Fixed Costs (inflated) 96.578802 100.63511 104.86179 109.26598 113.85515 118.63707 Fixed Costs (inflated) ___________ ___________ ___________ ___________ ____________ ___________ Cost Of Electcity (real) 451.9048 451.9048 451.9048 451.9048 451.9048 451.9048 Cost of Electncity (inflated) 740.38836 771.48467 803.88703 837,65028 872.831 59 909.49052 Fixed and Variable Costs-(real) 510,85282 510.85282 510.85282 510.85282 510.85282 510.85282 Fixed and Variable Costs (inflated) 836.96716 872.11978 908.74881 946.91626 986.68675 1028.1276 Cash Flow (real) 679.21 491 679.21491 679.21491 679.21491 679.21491 679.21491 Cash Flow (inflated) 1112.807 1159.5449 1208.2457 1258.9921 1311.8697 1366.9683 Taxable Value of Plant (real) 0 0 0 0 0 0 Capital Additions Dung Year (real) 0 0 0 0 0 0 Cumulative Capital Additions (real) 2452.2374 2452.2374 2452.2374 2452.2374 2452.2374 2452.2374 Initial Allowance (real) 0 0 0 0 0 0 Wear And Tear Allowance (real) 0 0 0 0 0 0 Tax Allowance (real) 0 0 0 0 0 0 Taxable Value of Plant (inflated) ___________ ___________ ____________ ___________ ___________ ___________ Capital Additions During Year (inflated) ___________ ___________ ____________ ___________ ___________ ___________ Cumulative Capital Additions (inflated) ___________ ___________ ____________ ___________ ___________ ___________ Initial Allowance (inflated) ___________ ___________ ____________ ___________ ___________ ___________ Wear And Tear Allowance (inflated) ____________ ____________ ____________ ____________ ____________ ____________ Tax Allowance (inflated) ___________ ___________ ___________ ___________ ___________ ___________ Annual Taxable Income (real) 679.21491 679.21491 679.21491 679.21491 679.21491 679.21491 Annual Taxable Income (inflated) 1112.807 1159.5449 1208.2457 1258.9921 1311.8697 1366.9683 Tax Loss Carried Forward (real) 0 0 0 0 0 0 Tax Loss Carried Forward(inflated) 0 0 0 0 0 0 Taxable Income (real) 679.21491 679.21491 679.21491 679.21491 679.21491 679.21491 Taxable lncome(inflated) 1112.807 1159.5449 1208.2457 1258.9921 1311.8697 1366.9683 Tax Payable (real) 288.66634 288.66634 288.66634 288.66634 288.66634 288.66634 Tax Payable (inflated) 472.94296 492.80657 51 3.50444 535.071 63 557.54464 580.96151 Trading Cash Flow After Tax (real) 390.54857 390.54857 390.54857 390.54857 390.54857 390.54857 Trading cash flow after tax(inf) 639.86401 666.73829 694.7413 723.92044 754.3251 786.00675 Net Cash FIow(real) 390.54857 390.54857 390.54857 390.54857 390.54857 390.54857 Net Cash Flow(inflated) 639.86401 666.73829 694.7413 723.92044 754.3251 786.00675 Cumulative cash flow (real) 2004.0516 2394.6002 2785.1488 3175.6974 3566.2459 3956.7945 Cumulative cash flow(inflated) 3398.9923 4065.7306 4760.4719 5484.3923 6238.71 74 7024.7242 Year 2029 2030 2031 2032 2033 2034 Inflation Rate 4.2 4.2 4.2 4.2 4.2 4.2 Inflation Index 2.097099 2.1851772 2.2769546 2.3725867 2.4722354 2.5760693 Gross Sales (real) 1190.0677 1190.0677 1190.0677 1190.0677 1190.0677 1190.0677 Gross Sales (inflated) 2495.6899 2600.5089 2709.7302 2823.5389 2942.1275 3065.6969 Fixed Costs real 58.948015 58.948015 58.948015 58.948015 58.948015 58.948015 Fixed Costs (inflated) 123.61983 128.81186 134.22196 139.85928 145.73337 151.85417 Fixed Costs (inflated) ___________ ___________ ___________ ___________ ____________ _________ Cost Of Electricity (real) 451.9048 451.9048 451.9048 451.9048 451.9048 451.9048 Cost of Electricity (inflated) 947.68912 987.49207 1028.9667 1072.1833 1117.215 1164.1381 Fixed and Variable Costs.(real) 510.85282 510.85282 510.85282 510.85282 510.85282 510.85282 87 _______ _____ ______ _______ I3 2029 2030 2031 2032 2033 2034 I Fixed and Vaable Costs (inflated) 1071.3089 1116.3039 1163.1887 1212.0426 1262.9484 1315.9922 Cash FIowjreal) 679.21491 579.21491 679.21491 679.21491 679.21491 679.21491 Cash Flow (inflated) 1424.3809 1484.2049 1546.5415 161 1.4963 1679:1791 1749.7046 Taxable Value of Plant (real) 0 0 0 0 -0 0 Capital Additions During Year (real) 0 0 0 0 0 0 Cumulative Capital Additions (real) 2452.2374 2452.2374 2452.2374 2452.2374 24522374 2452.2374 ktial Allowance (real) ___________ 0 0 0 0 0 Wear And Tear Allowance (real) 0 0 0 0 -0 0 Tax Allowance (real) 0 0 0 0 _________ 0 Taxable Value of Plant (inflated) Capital Additions During Year (inflated) Cumulative Capital Additions (inflated) Initial Allowance (inflated) Wear And Tear Allowance (inflated) Tax Allowance (inflated) Annual Taxable Income (real) 679.21491 679.21491 679.21491 679.21491 679,21491 679,21491 Annual Taxable Income (inflated) 1424.3809 1484.2049 1546.5415 1611.4963 1679.1791 1749.7046 Tax Loss Carried Forward (real) 0 0 0 0 0 __________ Tax Loss Carried Forward(inflated) Taxable Income (real) -679.21491 679.21491 679.21491 679.21491 679.21491 679.21491 Taxable lncome(infiated) 1424.3809 1484049 1546.5415 1611.4963 1679.1791 1749.7046 Tax PyJreal) 288.66634 288.66634 288.64, 288.4, 288.66634 288 66_, Tax Payable (inflated) 605.36189 630.78709 657.2 684. 713.65113 743.62447 Trading Cash Flow After Tax (real) 390.54857 390. 39047 390.54857 390.5482 390.54857 Trading cash flow after tax(inf) 819.01903 853.41783 889.2 926. 965.528 1006.0802 Net Cash Flow(real) 390.54857 390.54857 390.54857 -3904857 390.54857 390.54857 Net Cash Flow(inflated) -819.01903 853.41783 889.26138 926.61036 -965.528 1006.0802 Cumulative cash flow (real) 4347.3431 4737.8916 5128.4402 551&9888 5909.5374 6300.0859 Cumulative cash flow(inflated) 7843.7432 8697.1611 95864224 10513.033 11478.561 12484.641 Year 2035 2036 Inflation Rate 4.2 4.2 Inflation Index 2.6842642 2.7970033 Gross Sales (real) -1190.0677 1190.0677 Gross Sales (inflated) 3194.4562 3328.6233 Fixed Costs real 58.948015 58.948015 Fixed Costs (inflated) 158.23205 164.87779 Fixed Costs (inflated) Cost Of Electricity (real) 451.9048 451 Cost of Electricity (inflated) 1213.0319 1263 Fixed and Variable Costs-(real) 510.85282 510.85282 Fixed and Variable Costs (inflated) -13712639 1428.857 Cash Flow (real) 679,21491 679.21 491 Cash Flow (inflated) -1823.1922 18997663 Taxable Value of Plant (real) 0 0 Capital Additions During Year (real) -0 -0 Cumulative Capital Additions (real) 2452.2374 2452.2374 Initial Allowance (real) 0 0 Wear And Tear Allowance (real) 0 -0 Tax Allowance (real) -0 -0 Year 2035 2036 Taxable Value of Plant (inflated) ___________ ___________ Capital Additions During Year (inflated) ___________ ___________ Cumulative Capital Additions (inflated) ___________ ___________ Initial Allowance (inflated) ____________ ____________ Wear And Tear Allowance (inflated) ___________ ___________ Tax Allowance (inflated) ___________ ___________ Annual Taxable Income (real) 679.21491 679.21491 Annual Taxable Income (inflated) 1823.1922 1899.7663 Tax Loss Carried Forward (real) ____________ ____________ Tax Loss Carried Forward(inflated) ____________ ____________ Taxable Income (real) 679.21491 679.21491 Taxable Income(inflated) 1823.1922 1899.7663 Tax Payable (real) 288.66634 288.66634 Tax Payable (inflatedj 774.8567 807.40068 Trading Cash Flow After Tax (real) 390.54857 390.54857 Trading cash flow after tax(inf) 1048.3355 1092.3656 Net Cash FIow(real) 390.54857 390.54857 Net Cash FIow(inflated) 1048.3355 1092.3656 Cumulative cash flow (real) 6690.6345 7081.1831 Cumulative cash flow(inflated) 13532.977 14625.342 SELLING PRICE OF METHANOL 65 US CENTS PER LITRE FOB. FACTORY GATE COST OF ELECTRICITY U.S.CENTS/KWHR 4 SIZE OF NUCLEAR POWER PLANT 1500 MEGAWATTS TONNES OF METHANOL PRODUCED PER ANNUM 1446390 TONNES INFLATION RATE OVER DISCOUNT PERIOD 4.2 PERCENT

WEIGHTED AVERAGE COST OF CAPITAL -NON-

INFLATIONARY 3 PERCENT WEIGHTED AVERAGE COST OF CAPITAL -INFLATIONARY 7.2 PERCENT INTERNAL RATE OF RETURN-(IRR) NON-INFLATIONARY 0.15642809 INTERNAL RATE OF RETURN -INLATIONARY 0.20369557 NET PRESENT VALUE AT ZERO COST OF CAPITAL 7081.18307 NET PRESENT VALUE AT WACC -NON-INFLATIONARY 3925.0771 NET PRESENT VALUE AT WACC-INFLATIONARY 3674.98373 CUMULATIVE TAX PAID TO REVENUE AUTHORITY (REAL) 5735.94633 US$M CUMULATIVE TAX PAID TO REVENUE AUTHORITY (INF) 11233.8503 US$M

SYNTHETIC METHANOL -NATURAL GAS BASED PRODUCTION

FINANCIAL ANALYSIS

* MEDIUM PRESSURE PROCESS * * COPPER CATALYST SUPPORTED ON ALUMINA *

NOTES-FINANCIAL

TAX REGIME

4 COMPANY TAXATION IS INCLUDED AT A RATE OF 42.5% AN INITIAL CAPITAL ALLOWANCE OF 50% IS ALLOWABLE IN THE FIRST PRODUCTION YEAR 6 WEAR AND TEAR ALLOWANCE OF 50% OF THE BALANCE FOLLOWS FOR THE FOLLOWING

TWO SUCCESSIVE YEARS

FINANCIAL ANALYSES PERFORMED

NET PRESENT VALUE AT A STATED COST OF CAPITAL IN PERCENTAGE TERMS ABOVE THE

INFLATION RATE PERFORMED OVER THE NON-INFLATIONARY NET CASH FLOWS

11 NET PRESENT VALUE AT A STATED COST OF CAPITAL PERFORMED OVER THE INFLATIONARY

NET CASH FLOWS

TIME SCALE

NOTES -CAPITAL COST

A BASE CASE CAPITAL COST OF US$4320 IS ASSUMED FORA PRODUCTION RATE OF 15400 TONNES/ANNUM 16 CAPITAL COST IS FACTORED AT PROPORTIONAL PRODUCTION TO POWER 0.6 17 CAPEX IS APPROXIMATELY 23 PERCENT INYEAR ONE

PERCENT IN YEAR TWO

PERCENT IN YEAR THREE

NOTES-COST OF NATURAL GAS

19 NATURAL GAS IS IMPORTED TO THE METHANOL SYNTHESIS FACILITY COST 8.5 US$/MMBTU

THE GAS PRODUCTION FACILITY OPERATES ON A SEPARATE FINANCIAL BASIS

NOTES-PRODUCTION RATE

21 BASE CASE IS 15400 METRIC TONNES PER DAY OF METHANOL 22 PRODUCTION OF METHANOL IS MODULAR-EACH SYNTHESIS REACTOR CAPACITY 2200 TONNE S/DAY 23 OCCUPANCY AT NAMEPLATE CAPACITY IS ASSUMED AT 90 PERCENT 24 ROLLING SHUTDOWN FOR PLANT MAINTENANCE IS ASSUMED

NOTES -FIXED COSTS OF PRODUCTION

BASE CASE FIXED COSTS ARE ASSUMED AT US$110 MILLION/ANNUM 26 FIXED COSTS ARE FACTORED ACCORDING TO PRODUCTION RATE

NOTES -TECHNOLOGY

27 NATURAL GAS (CH4) IS EMPLOYED AS THE CARBONACEOUS FEEDSTOCK 28 STEAM REFORMATION OF THE CH4 IS CARRIED OUT OVER A NICKEL CATALYST 29 THE REFORMATION TECHNOLOGY IS AS FOLLOWS:CH4+H203H2+CO

THE CARBON DIOXIDE REQUIRED TO MODIFY THE SYNTHESIS REACTION IS

OBTAINED BY COMBUSTION OF NATURAL GAS TO POWER THE STEAM REFORMATION

REACTION

31 THE PURIFIED CO2 GAS STREAM IS COMPRESSED 32 THE GASES ARE PROPORTIONED INTO THE SYNTHESIS REACTOR IN THE NORMAL WAY 33 THE SYNTHESIS REACTOR IS EQUIPPED WITH RECYCLE COMPRESSION 34 COARSE DISTILLATION IS UNDERTAKEN-FUEL GRADE METHANOL IS PRODUCED Number of Synthesis Modules __________ 0,113636364 __________ _______ _________ ____________ __________ __________ ___________ Size of each synthesis module ___________ 2200 tonnes/day _______ __________ _____________ __________ ___________ ____________ Nominal Daily Production __________ 250 __________ ______ _________ ____________ _________ __________ ___________ Percentage Capex Capex Basecase Capex Capital Additions ___________ ____________ ___________ Percent Proportions Capex __________ Istallation ____________ Steam reformation __________ 102.0688804 US$ Millions 0.28 28 4320 US$M YEAR 1 0.233333333 Gas Cleanup C02 Capture __________ 32.8078544 US$ Millions 0.09 9 Exponent _________ YEAR 2 0.4 CompressionReverse Shift Reaction __________ 43.74380587 US$ Millions 0.12 12 0.6 __________ YEAR 3 0.3 Basecase Synthesis Reaction __________ 51.03444018 US$ Millions 0.14 14 prodution __________ YEAR 4 0066666667 Wastewater Distillation Section treatment 29.16253725 US$ Millions 0.08 8 15400 l/D __________ ___________ Utilities and Offsites __________ 80.19697743 US$ Millions 0.22 22 Scaling Factor (PLANT) __________ ___________ Carbon Capture __________ 25.51722009 US$ Millions 0.07 7 0.084382342 __________ __________ ___________ (NATURAL Total Capital GAS Additions __________ 364.5317156 US$ Millions _______ 100 Scaling Factor COST) __________ ___________ ________________ _________ __________ __________ _______ _________ 0.02451 1922 _________ _________ __________ Online Time __________ 90 % _______ __________ ____________ __________ __________ ___________ Equivalent online time at nameplate production rate __________ 328.725 Days _______ __________ ____________ __________ __________ ___________ Density of methanol ___________ 790 Kg/m3 ____________ _____________ Realised Selling Price of methanol fob Factoiy perimeter ____________ ____________ _____________ 70 US cents/litre ___________ Tonnes of Methanol produced ____________ 82181.25 Tonnes/annum ______________ Kilo -litresof metanol produced ___________ 104026.8987 ____________ _____________ Gross sales United States of Methanol Dollars per per annum ___________ 72818829.11 annum _____________ Million United Base Case States Power ___________ __________ 72.81882911 Dollars/annum ____________ Plant Size __________ ________ Per 2200 tonne/day _________ __________ 750 MW ________ module Quapfjfyf natural gas required p tonne in MMBTU __________ 29.1 MMBTU ____________ - __________ _________ 30.7005 GIGA JOULES ____________ _________ __________ _______ Namai Power Consumption __________ 0.088832465 GIGAWATT _____________ Natural Gas Pricgper MMBTU _________ 8.5 U.S.$/MMBTU ___________ Percentage Base Case Fixed Costs _________ Fixed Costs JfyL ____________ _____________ ______________ Fixed Costs Salaes 40 Payroll 3.712823029 __________ ____________ _____________ 110 Maintenance 40 Maintenance 3.712823029 ___________ ____________ _____________ __________ Other 20 Other 1.856411515 ________ _________ Fixed Costs _____________ 9.282057573 All Figures In Millions Of United States Dollars ___________ Year 2011 2012 2013 2014 2015 2016 2017 Inflation Rate 4.2 4.2 4.2 4.2 4,2 4.2 4.2 Inflation Index 1 1.042 1.085764 1.1313661 1.1788835 1.2283966 1.2799892 Gross Sales (real) 0 0 0 36.409415 72.818829 72.818829 72.818829 GrossSales(inflated) 0 0 0 41.192377 85.844913 89.4504 93.207317 Fixed Costs real 0 0 0 6.6830815 9.2820576 9.2820576 9.2820576 Fixed Costs (inflated) 0 0 0 7.5610117 10.942464 11.402048 11.880934 Fixed Costs (inflated) _______ __________ _________ _________ _________ __________ _________ Cost Of Electricity (real) 0 0 0 0 20.327532 20.327532 20.327532 CostofElectncity(inflated) 0 0 0 0 23.963792 24.970271 26.019022 Fixed and Variable Costs-(real) 0 0 0 6.6830815 29.60959 29.60959 29.60959 Fixed and Variable Costs (inflated) 0 0 0 7.5610117 34.906256 36.372318 37,899956 Cash Flow (real) 0 0 0 29.726333 43.209239 43.209239 43.209239 Cash Flow (inflated) 0 0 0 33.631 365 50.938658 53.078081 55.307361 Taxable Value of Plant (real) 0 85.0574 230.87009 340.2296 182.26586 91.132929 0 _____ 92 ______ ______ ______ ______ Year 2011 2012 2013 2014 2015 2016 2017 Capital Additions During Year (real) 85.0574 145.81 269 109.35951 24.302114 0 0 0 Cumulative Capital Additions (real) 85.0574 230.87009 340.2296 364.531 72 364.531 72 364,53172 364.53172 Initial Allowance (real) 0 0 0 182.26586 0 0 0 WearAndTearAllowance(real) 0 0 0 0 91.132929 91.132929 0 TaxAllowance(real) 0 0 0 182.26586 91.132929 91.132929 0 Taxable Value of Plant (inflated) 0 85.0574 236.99422 35573284 191.61372 95.806858 0 Capital Additions During Year (inflated) 85.0574 151.93682 118.73862 27.494588 0 _________ _________ Cumulative Capital Additions (inflated) 85.O574 236.99422 355.73284 38322743 383.22743 383.22743 _________ Initial Allowance (inflated) 0 _________ _________ 191.61 372 _________ _________ _________ Wear And Tear Allowance (inflated) 0 _________ _________ _________ 95.806858 95.806858 _________ Tax Allowance (inflated) _______ ________ ________ 191.61372 95.806858 95.806858 _______ Annual Taxable Income (real) 0 0 0 -152.5395 -47.92369 -47.92369 43.209239 Annual Taxable Income (inflated) 0 0 0 -1 57.9824 -44.8682 -42.72878 55.307361 Tax Loss Carried Forward (real) ________ _________ _________ -1 52.5395 -200.4632 -248.3869 -205.1777 Tax Loss Carried Forward(inflated) ________ __________ _________ -157.9824 -202.8506 -245.5793 -190.272 Taxable Income (real) 0 0 0 0 0 0 0 Taxable lncome(inflated) 0 0 0 0 0 0 0 Tax Payable (real) 0 0 0 0 0 0 0 Tax Payable (inflated) 0 0 0 0 0 0 0 Trading Cash Flow After Tax (real) 0 0 0 29.726333 43.209239 43.209239 43.209239 Tradingcashflowaftertax(inf) 0 0 0 33.631365 50938658 53.078081 5507361 Net Cash Flow(real) -85.0574 -1 45.81 27 -109.3595 5.4242187 43.209239 43.209239 43.209239 Net Cash Flow(inflated) -85.0574 -151.9368 -118.7386 6.1367771 50.938658 53.078081 55.307361 Cumulative cash flow (real) -85.0574 -230.8701 -340.2296 -334.8054 -291.5961 -248.3869 -205.1777 Cumulative cash flow(inflated) -85.0574 -236.9942 -355.7328 -349.5961 -298.6574 -245.5793 -190.272 Year 2018 2019 2020 2021 I 2022 2023 2024 Inflation Rate 4.2 4.2 4.2 4.2 4.2 4.2 4.2 Inflation Index 1.3337488 1.3897662 1.4481364 1.5089581 1.5723344 1.6383724 1.7071841 Gross Sales (real) 72.818829 72.818829 72.818829 72.818829 72.818829 72.818829 72.818829 GrossSales(inflated) 97.122024 101.20115 105.4516 109.88056 114.49555 119.30436 124.31514 Fixed Costs real 9.2820576 9.2820576 9.2820576 9.2820576 9.2820576 9.2820576 9.2820576 Fixed Costs (inflated) 12.379933 12.89989 13.441685 14.006236 14.594498 15.207467 15.846181 Fixed Costs (inflated) _________ _________ _________ __________ __________ _________ _________ Cost Of Electricity (real) 20.327532 20.327532 20.327532 20.327532 20.327532 20.327532 20.327532 Cost of Electricity (inflated) 27.111821 28.250518 29.437039 30.673395 31.961678 33.304068 34.702839 Fixed and Variable Costs-(real) 29.60959 29.60959 29.60959 29.60959 29.60959 29.60959 29.60959 Fixed and Variable Costs (inflatedL 39.491754 41.150408 42.878725 44.679631 46.556176 48.511535 50.54902 Cash Flow (real) 43.209239 43.209239 43.209239 43.209239 43.209239 43.209239 43.209239 Cash Flow (inflated) 57.63027 60.050741 62.572872 65.200933 67.939372 70.792826 73.766125 Taxable Value of Plant (real) 0 0 0 0 0 0 0 Capital Additions During Year (real) _________ 0 0 0 0 __________ 0 Cumulative Capital Additions (real) 364.531 72 364.531 72 364.531 72 364.531 72 364.53172 364.53172 364.53172 Initial Allowance (real) 0 0 0 0 0 0 0 Wear And Tear Allowance (real) 0 0 0 0 0 0 0 Tax Allowance (real) 0 0 0 0 0 0 0 Taxable Value of Plant (inflated) 0 I ______ Year 2018 2019 2020 2021 2022 2023 2024 Capital Additions During Year (inflate) _________ __________ _________ __________ _________ _________ _________ Cumulative Capital Additions (inflated) _________ _________ _________ __________ _________ _________ _________ Initial Allowance (inflated) _________ _________ _________ __________ _________ _________ _________ Wear And Tear Allowance (inflated) __________ __________ Tax Allowance (inflated) _________ _________ _________ _________ __________ _________ __________ Annual Taxable Income (real) 43.209239 43.209239 43209239 43.209239 43.209239 43.209239 43.209239 Annual Taxable Income (inflated) 57.63027 60.050741 62.572872 65.200933 67.939372 70.792826 73.766125 Tax Loss Carried Forward (real) -161.9684 -118.7592 -75.54995 -32.34071 0 0 0 Tax Loss Carried Forward(inflated) -1 32.6417 -72.59096 -10.01808 0 0 0 0 Taxable Income (real) 0 0 0 10.868532 43.209239 43.209239 43.209239 Taxable lncorne(inflated) 0 0 52.55479 65.200933 67.939372 70.792826 73.7661 25 TaxPayable(real) 0 0 0 4.6191262 18.363927 18.363927 18.363927 Tax Payable (inflated) 0 0 22.335786 27.710397 28.874233 30.086951 31.350603 Trading Cash Flow After Tax (real) 43.209239 43.209239 43.209239 38.590113 24.845313 24.845313 24.845313 Trading cash flow after tax(inf) 57.63027 60.050741 40.237087 37,490537 39.065139 40.705875 42.415522 Net Cash Flow(real) 43.209239 43.209239 43.209239 38.590113 24.845313 24.845313 24.845313 Net Cash Flow(inflated) 57.63027 60.050741 40,237087 37.490537 39.065139 40.705875 42.415522 Cumulative cash flow (real) -161.9684 -118.7592 -75.54995 -36.95983 -1 2.11452 12.730792 37.576105 Cumulative cash flow(inflated) -132.6417 -72.59096 -32.35387 5.1366681 44.201807 84.907682 127.3232 Year 2025 2026 2027 2028 2029 2030 2031 Inflation Rate 4.2 4.2 4.2 4.2 4.2 4.2 4.2 Inflation Index 1.7788858 1.853599 1.9314501 2.01 25711 2.097099 2.1851772 2.2769546 Gross Sales (real) 72.818829 72.818829 72.818829 72.818829 72.818829 72.818829 72.818829 Gross Sales (inflated) 129.53638 134.97691 140.64594 146.55307 152.7083 159.12205 165.80517 Fixed Costs real 9.2820576 9.2820576 9.2820576 9.2820576 9.2820576 9.2820576 9.2820576 Fixed Costs (inflated) 16.51172 17.205213 17.927831 18.6808 19.465394 20282941 21.134824 Fixed Costs (inflated) __________ _________ _________ _________ __________ _________ __________ Cost Of Electricity (real) 20.327532 20.327532 20.327532 20.327532 20.327532 20.327532 20.327532 Cost of Electricity (inflated) 36.160358 37.679093 39.261615 40.91 0603 42.628848 44.41926 46.284869 Fixed and Variable Costs-(real) 29.60959 29.60959 29.60959 29.60959 29.60959 29.60959 29.60959 Fixed and Variable Costs (inflated) 52.672078 54884306 57.189447 5991403 62.094242 64.7022 67.419693 Cash Flow (real) 43.209239 43.209239 43.209239 43.209239 43.209239 43.209239 43.209239 Cash Flow (inflated) 76.864302 80.092602 83.456492 86961664 90.614054 94419845 98.385478 Taxable Value of Plant (real) 0 0 0 0 0 0 0 Capital Additions During Year (real) 0 0 0 0 0 0 0 Cumulative Capital Additions (real) 364.53172 364.53172 364.53172 364.53172 364.53172 364.53172 364.53172 Initial Allowance (real) 0 0 0 0 0 0 0 Wear And Tear Allowance (real) 0 0 0 0 -0 0 0 Tax Allowance (real) 0 0 0 0 0 0 0 Taxable Value of Plant (inflated) _________ _________ _________ __________ Capital Additions During Year (inflated) __________ _________ _________ __________ Cumulative Capital Additions (inflatedL __________ _________ _________ __________ Initial Allowance (inflated) Wear And Tear Allowance (inflated) __________ __________ Tax Allowance (inflated) Year 2025 2026 2027 2028 2029 2030 2031 Annual Taxable Income (real) 43.209239 43.209239 43.209239 43.209239 43.209239 43.209239 43.209239 Annual Taxable Income (inflated) 76,864302 80,092602 83.456492 86.961664 90.614054 94.419845 98.385478 Tax Loss Carried Forward (real) 0 0 0 0 0 0 0 Tax Loss Carried Forward(inflated) 0 0 0 0 _________ _________ _________ Taxable Income (real) 43209239 43.209239 43.209239 43.209239 43.209239 43.209239 43.209239 Taxable lncome(inflated) 76.864302 80.092602 83.456492 86.961664 90.61 4054 94.419845 98.385478 Tax Payable (real) 18.363927 18.363927 18.363927 18.363927 18.363927 18.363927 18.363927 Tax Payable (inflated) 32.667328 34.039356 35.469009 36.958707 38.510973 40.128434 41.813828 Trading Cash Flow After Tax (real) 24.845313 24.845313 24.845313 24.845313 24.845313 24.845313 24.845313 Trading cash flow after tax(inf) 44.196974 46.053246 47.987483 50.002957 52.103081 54.291411 56.57165 Net Cash Flow(real) 24.845313 24.845313 24.845313 24.845313 24.845313 24.845313 24.845313 Net Cash Flow(inflated) 44.196974 46.053246 47.987483 50.002957 52.103081 54.291411 56.57165 Cumulative cash flow (real) 62.421417 87,26673 112.11204 136.95736 161.80267 186.64798 211.49329 Cumulative cash flow(inflated) 171.52018 217.57342 265.56091 31 5.56386 367.66694 421.95836 478.53001 Year 2032 2033 2034 2035 2036 Inflation Rate 4.2 4.2 4.2 4.2 4.2 Inflation Index 2.3725867 2.4722354 2.5760693 2.6842642 2.7970033 Gross Sales (real) 72.818829 72.81 8829 72.81 8829 72.818829 72.818829 Gross Sales (inflated) 172.76899 180.02529 187.58635 195.46497 203.6745 Fixed Costs real 9.2820576 9.2820576 9.2820576 9.2820576 9.2820576 Fixed Costs (inflated) 22.022487 22.947431 23.911223 24,915495 25.961945 Fixed Costs (inflated) ____________ ___________ ___________ ___________ ___________ Cost Of Electricity (real) 20.327532 20.327532 20.327532 20,327532 20.327532 Cost of Electricity (inflated) 48.228833 50.254444 52.365131 54.564466 56.856174 Fixed and Variable Costs-(real) 29.60959 29.60959 29.60959 29.60959 29.60959 Fixed and Variable Costs (inflated) 70.25132 73.201875 76.276354 79.479961 82.818119 Cash Flow (real) 43.209239 43.209239 43.209239 43.209239 43.209239 Cash Flow (inflated) 102.51767 106.82341 111,30999 115.98501 120.85638 Taxable Value of Plant (real) 0 0 0 0 0 Capital Additions During Year (real) 0 0 0 0 0 Cumulative Capital Additions (real) 364.53172 364.53172 364.531 72 364.531 72 364.531 72 Initial Allowance (real) 0 0 0 0 0 Wear And Tear Allowance (real) 0 0 0 0 0 TaxAllowance (real) 0 0 0 0 0 Taxable Value of Plant (inflated) ____________ ___________ ___________ ____________ ___________ Capital Additions During Year (inflated) _____________ ___________ ___________ ____________ ___________ Cumulative Capital Additions (inflated) _____________ ___________ ___________ ____________ ___________ Initial Allowance (inflated) _____________ ___________ ___________ ___________ ___________ Wear And Tear Allowance (inflated) _____________ ____________ ____________ ____________ ____________ Tax Allowance (inflated) _____________ ___________ ___________ ___________ ___________ Annual Taxable Income (real) 43.209239 43.209239 43.209239 43.209239 43.209239 Annual Taxable Income (inflated) 102.51767 106.82341 111.30999 115.98501 120.85638 Tax Loss Carried Forward (real) 0 0 ___________ ___________ ___________ Tax Loss Carried Forward(inflated) _____________ ___________ ___________ ___________ ___________ Taxable Income (real) 43.209239 43.209239 43.209239 43.209239 43.209239 Year 2032 2033 2034 2035 2036 Taxable lncome(inflated) 102.51767 106.82341 111.30999 115.98501 120.85638 Tax Payable (real) 18.363927 18.363927 18.363927 18.363927 18.363927 Tax Payable (inflated) 43.570009 45.399949 47.306747 49.293631 51.363963 Trading Cash Flow After Tax (real) 24.845313 24.845313 24.845313 24.845313 24.845313 Trading cash flow after tax(inf) 58.947659 61.423461 64.003246 66.691383 69,492421 Net Cash FIow(real) 24.845313 24.845313 24.845313 24.845313 24.845313 Net Cash Flow(inflated) 58.947659 61.423461 64.003246 66.691383 69.492421 Cumulative cash flow (real) 236.33861 261.18392 286.02923 310.87454 335.71986 Cumulative cash flow(inflated) 537.47766 598.90113 662.90437 729.59575 799.08817 SELLING PRICE OF METHANOL 70 US CENTS PER LITRE FOB. FACTORY GATE COST OF NATURAL GAS US.$/MMBTU 8.5 U.S.$/MMBTU QUANTITY OF NATURAL GAS REQUIRED PER TONNE 29.1 MMBTU TONNES OF METHANOL PRODUCED PER ANNUM 82181.25 TONNES INFLATION RATE OVER DISCOUNT PERIOD 4.2 PERCENT WEIGHTED AVERAGE COST OF CAPITAL -NON-INFLATIONARY 3 PERCENT WEIGHTED AVERAGE COST OF CAPITAL -INFLATIONARY 7.2 PERCENT INTERNAL RATE OF RETURN -(IRR) NON-INFLATIONARY 0.06649636 INTERNAL RATE OF RETURN -INILATIONARY 0.10540022 NET PRESENT VALUE AT ZERO COST OF CAPITAL 335.719856 NET PRESENT VALUE AT WACC -NON-INFLATIONARY 130.910445 NET PRESENT VALUE AT WACC -INFLATIONARY 106.79737 TAX PAYABLE TO REVENUE AUTHORITY JREAL) 280.078027 TAX PAYABLE TO REVENUE AUTHORITY (INFLATED) 636.879905

DISCUSSION -ECONOMIC VIABILITY OF METHANOL

MANUFACTURE USING WASTE CARBON DIOXIDE AS A

FEEDSTOCK, TOGETHER WITH HYDROGEN GENERATED BY THE ELECTROLYSIS OF WATER.

INTRINSIC VIABILITY

COMPETITIVE VIABILITY

Methanol my be manufactured by the stated method economically at a price level of approximately 60 US$ per litre If economy of scale is employed.

On an equivalent calorific value basis, this equates to a PETROLEUM price of US$1. 17/litre Facilities not exhibiting economy of scale will produce methanol economically at approximately 75 US$/litre, or US$1.47/litre for Petroleum.

It is evident therefore that METHANOL production by this method is INTRINSICALLY viable, since in many parts of the world, this price level is competitive with the landed price of the TRADITIONAL fuels PETROLEUM and DIESELINE.

BASIC VIABILITY is dependant mainly on the price of electricity at the synthesis plant location, since the technology represents an ENERGY CONVERSION TECHNOLOGY, in which the raw materials, water and waste, carbon dioxide are essentially free.

Competitive viability against methanol produced from coal and gas depends on two factors, namely TRANSPORTATION COSTS, and the extent of the ENERGY SOURCE PRICE LEVEL DECOUPLING.

TRANSPORTATION COSTS

Transportation costs for bulk commodity chemicals and liquid fuels will in many instances contribute considerably to the landed cost of the commodity. For example, methanol may be produced cheaply using the advantages of economy of scale and a raw material with a low opportunity value at say 40/litre, FOB factory gate. Transportation by pipeline to a coastal port, on-loading onto a liquid fuel tanker, trans-oceanic shipping, off-loading and delivery to a bulk storage depot ready for secondary (retail) distribution, may add almost 100% to the basic production cost of the fuel.

Thus, whilst the fuel may be produced at a price level of (say) 40 /litre at a specific location which affords basic production advantages, shipment may raise the price level to (say) 70/litre, at the retail distribution location.

The new technology can always, or almost always, be located at or close to the retail distribution centre.

The reason for this is that all or nearly all major cities worldwide are equipped with electricity generation by means of fossil fuel combustion, in close proximity to the city.

As a general rule, therefore, transportation costs for the waste CO2 technology will be lower than those for the existing technologies employing coal or natural gas as a feedstock.

When transportation costs are factored into the overall cost structure it is likely that methanol produced from waste CO2 will be competitively priced against other production methods, in specific areas globally.

ENERGY SOURCE PRICE LEVEL DECOUPLING

Since the technology represents ENERGY CONVERSION from electrical energy to chemical energy and there is always a proportion of the energy lost in the conversion, it is fundamental to the intrinsic economic viability of the process that there is a decoupling of energy source pricing.

For example, if the source of electricity is a NATURAL GAS fired power plant, there is no benefit to be gained by first converting the chemical energy into electricity, and then back to chemical energy in the form of liquid fuel. In this case it is more economical to convert the chemical energy inherent in the natural gas directly to the chemical energy in the liquid fuel, via steam reforming of the gas.

If, however, the price of electrical energy is decoupled from the price of chemical energy, and is available at a price which stays relatively static, and to some extent independent of the price of chemical energy (coal, crude oil and natural gas) the intrinsic viability of the energy conversion is confirmed.

Thus, for example, if crude oil price level fluctuations are followed by natural gas prices and by coal prices, but not by thermo-nuclear generated electricity prices, it is likely that at some time in the future the novel technology will represent the most competitive production method.

If, as a counter-example, all of the sources of energy rise in concert, and crude oil and natural gas price levels are followed closely by nuclear electricity and coal price levels, the ENERGY CONVERSION will not prove to be competitively viable except in specific location dependent instances.

In actual practice there would appear to be at present, a sufficient ENERGY SOURCE PRICE LEVEL DECOUPLING to evince competitive economic viability against a coal or gas produced product in a number of regions worldwide, independent of transportation economics.

INTRINSIC ECONOMIC VIABILITY -TRADITIONAL LIQUID FUELS.

The TRADITIONAL FUELS, PETROLEUM and DIESELINE may be manufactured by the stated method utilizing waste CO2 and H2 generated by the electrolysis of water, at a price level of approximately US$1.87/litre, with the application of economy of scale in manufacture.

The technology employed could be either the FISCHER-TROPSCH (F-T) process, or the METHANOL (MTG) process.

The economics of manufacture are relatively easy to "back out" of the economics of manufacture of pure METHANOL, using the following information as follows: a. The cost of production of PETROL and DIESEL, by the competing technologies, namely he F-T synthesis and the MTG dehydration are closely similar. This fact has been ascertained by competitive examination, in a state funded initiative by the Central Energy Fund (CEF) in South Africa.

b. In the MOBIL MTG process 20% of the calorific value of the methanol is lost in conversion to gasoline. Furthermore additional capital cost of approximately 50% is required for the dehydration reaction and downstream refinery operations. There is also an associated increase in fixed cost of operation. The combinatorial effect of the unavoidable raw material efficiency loss, coupled with the increased capital cost, and fixed cost of operation, renders the economic product sale price at a level approximately 60% above that for methanol production, on a CALORIFIC VALUE basis.

Thus, for a METHANOL price of 60/litre the CALORIFIC EQUIVALENT price for gasoline (petroleum) and dieseline is approximately US$1.17/litre When this is increased by 60% an economic production cost of approximately US$1.87/litre is obtained.

This is of marginal INTRINSIC VIABILITY.

COMPETITiVE VIABILITY * TRADITIONAL FUELS.

The same arguments as for the discussion concerning METHANOL production apply. These arguments revolve around TRANSPORTATION cost and ENERGY SOURCE PRICE LEVEL DE-COUPLING.

STRATEGIC, ENVIRONMENTAL AND FOSSIL FUEL CONSERVATION CONSIDERATIONS.

Strategic Considerations The technology may be attractive to some nations or regions which would like to be to a greater or lesser extent independent of liquid fuel imports.

Fossil Fuel Conservation The technology will extend the lifespan of the non-renewable fossil fuel resources Environmental Considerations Environmental considerations chiefly revolve around the reduction of carbon dioxide emission to atmosphere, but also will include particulate exhaust reduction from power stations, a lower coal mining impact, and, in some instances, the co-location of nuclear and conventional power plants.

ECONOMIC VIABILITY -CONJOINED CONVENTIONAL PLANT WITH

WASTE C02 AND/OR WATER GAS REACTION: ZERO CARBON

DIOXIDE EMISSION TECHNOLOGY

It is likely that conjoined liquid fuels production project revolving both conventional technology and the new technology, will be commissioned. Such projects would utilize both COAL and ELECTRICITY as the major inputs.

Such plants would evince ZERO CARBON DIOXIDE emission, and economics of production intermediate between those for the conventional coal gasification technology, and the novel CO2 capture and H2O electrolysis technology.

The advantages of such an arrangement are manifold: * A coal usage of approximately one third of a conventional coal gasification front end synthesis plant would be required.

* By product oxygen from the electrolysis cells would be used for the gasification of coal.

* A much smaller coal resource would be required for the chemical plant.

* Zero emission of CO2 to the atmosphere would accompany the synthesis plant.

* A concentrated form of CO2 would be available instead of the dilute form associated with the excess air of combustion of fossil fuel fired power stations.

* The economics of production would be intermediate between the economics of conventional production and the novel method of production, in the approximate ratio of 1: 2. This would strongly reinforce the economic viability of the overall venture.

* The processing units downstream of the synthesis gas production units are common. There is thus a single conversion train for all processes from the synthesis reaction downstream. This will lend economy of scale to the production unit and lower capital costs and fixed costs of operation.

Location of the Methanol Synthesis Plant The number of locations where the synthesis plant could be economically situated for the coal based plant is very much greater than that for the conventional technology.

This arises from two considerations: 1. The required size of the coal deposits adjacent to which is situated the liquid 2S fuels synthesis plant is only 1/3rd of that required for the conventional technology. There are a limited number of locations worldwide where the coalfield reserve is of sufficient extent to provide massive economy of scale using the conventional technology.

With the combined technology, the number of suitable locations is advanced to a level where practicable employment is broadened to include many nations and regions where previously economy of scale would be considered inaccessible.

2. Since the coal raw material is no longer the primary raw material cost consideration, there is a greater degree of latitude in coal resource utilized.

Thus, for example:

-either a very low grade coal requiring considerable work up and beneficiation could be utilized; -or an expensive coal exhibiting a medium to high opportunity cost could be utilized as a raw material.

This broadening of the economic spectrum as regards raw material coal selection will result in the combined technology being more generally applicable than the conventional technology in isolation.

ECONOMIC VIABILITY

Off-peak Power Utilization to Provide Liquid Fuel from Existing Power Stations The utilization of cheap electric power to produce liquid fuel and notably methanol, during off-peak load conditions will be viable to a degree dictated by - * The cost of the electricity The percentage utilization of the liquid fuels synthesis plant.

In general it would be preferable to operate the synthesis plant at a constant, high rate. Obviously, this is a counter-assumption to the use of cheap electricity at low periods in the electricity demand cycle.

Economically an ideal situation would be for a synthetic liquid fuels facility to operate at a rate close to capacity during peak load conditions and capacity during off peak conditions.

In general it is projected that superior economics are evinced with the sale of the liquid fuel generated, as opposed to its use as a calorific fuel to power a fuel fired turbo-alternator at peak demand periods.

Such synthesis plants would not generally evince economy of scale, mainly because of space limitations, and other limitations caused by retro-fit application.

It is likely that INTRINSIC ECONOMIC VIABILITY is ensured for plants operating inside, or adjacent to, conurbations, since the liquid fuel could be conveniently added to the regional fuel pool for secondary distribution.

It is interesting to note that, for the case of coal fired power stations, the OXYGEN produced by the ELECTROLYSIS CELLS which in the normal course of events is a waste gas, and is simply exhausted to atmosphere, may be profitably used.

It is recalled that the synthesis gas for the production of the liquid fuel is according to the invention, produced by obtaining HYDROGEN, by the electrolysis of water. In this process OXYGEN is evolved as a by-product of electrolysis.

For the case of synthetic fuel plants adjacent to coal fired power stations the oxygen, injected into the combustion air, and at a later point near the completion of the coal combustion process, will result in the following: * A substantial lowering of the excess air required for the combustion of the coal. This air is heated to a high temperature and exhausted at a high temperature to atmosphere, and represents a direct loss of energy.

* A lowering of the residual carbon in the ash leaving the power station, from a typical level of 5 -7% to 1 -2%, by the injection of pure oxygen at a point close to combustion completion.

* A lowering of the mass of ash requiring disposal by a commensurate amount.

* The provision of a more concentrated CO2 source for recovery and conversion to synthesis gas.

The resultant decrease in excess air of combustion, combined with the additional benefit or more complete coal combustion, should result in an efficiency increase of about 5-12% dependent on the type of power station employed.

II

Claims

CLAIMS1. A method of economically converting waste carbon dioxide, such as that exhausted from fossil fuel burning power stations, to alcohol or traditional liquid fuel suitable for automotive transport.
2. A method of utilizing the waste carbon dioxide from fossil fuel fired electricity generating stations as a means for electrical power storage, through the production of liquid fuels, and in particular methanol.
3. A method of increasing the thermal efficiency of a coal fired power station operating in conjunction with a liquid fuels synthesis plant, according to CLAIM 2 above, by utilization of pure oxygen as a portion of the combustion medium.
4. A method of manufacture of liquid fuels using coal as the primary feedstock, in which substantially zero emissions of carbon dioxide accompany the manufacturing process, through the method according to CLAIM 1, in conjunction with traditional manufacturing technology.
5. A method of manufacture of liquid fuel using coal as the primary feedstock, in which substantially zero carbon dioxide emissions accompany the manufacturing process, through the method according to CLAIM 4 in conjunction with production of CARSON MONOXIDE and HYDROGEN employing the water gas reaction, with a non-C02 emissive energy source providing energy for the endotherniic reaction.Amendment to the ciams have been flied as followsCLAIMThe practicable conversion of waste carbon dioxide gas to bulk automotive fuel through the manufacture of specifically methanol (CH3OH) which practicability is not shared by other synthetic fuels and is dependant inter-alia on a number of conjoined technical circumstances specific to the manufacture of methanol these listed technical circumstances being relevant to the method of manufacture employing in general off-peak usage of electrical power in regions in general proximity to conurbations as follows: i) the low physical space requirement of the methanol manufacturing facility.ii) the capability of the methanol manufacturing facility to exhibit a continuously variable producion rate over a wide range which is in general a requirement dictated by instanteous power availability changes.iii) the capability of production in the manufacturing process to incorporate economy of scale associated with and 1) and ii) above and resulting in a low unit cost of production.iv) the circumstance of a high catalyst selectivity to methanol in the manufacturing process of the order of 98% with water as the only significant by product, allowing in general bulk manufacture in the region o-f conurbations.v) a capital cost of the manufacturing facility as a result inter-alia of i -iv above coupled with the medium pressure operation of the synthesis plant and the simplicity of the distillation, which renders the manufacture of specifically methanol by the process outlined above, to be economically viable.