# Sequestering carbon in the built environment
August 2009 

# Calera Corporation2 

### Completing the cycle: Calera provides permanent carbon sequestration in the built environment 

# CO 2 (Ca, Mg) 

# CO 3

Problem: CO 2 emissions need to be reduced by 30 billion tons a year by 2050 in order to avoid dramatic climate change. There are few economically feasible options available. Solution: Calera offers power providers and other large CO 2 emitters a cost effective, low risk solution to address increasingly stringent regulations. Further, Calera provides carbon negative building materials to meet the demand of end users. 

## conversion3 

### A climate change solution that fits the size of the problem

! The building materials market is sufficiently large to handle all the CO 2 

### from power plants, heavy industry and traditional cement production

SIZE of SOLUTION: 16 B tons market 32 billion tons of cement + aggregate = ~16 billion tons of CO 2 if all captured by Calera products = 4000+ Calera plants, assuming 1000 MW coal equivalent = ~$960 billion market @ $30/ton-product average price Calera’s initial target markets:

SIZE of PROBLEM: 11 B tons CO2 4900 power and 1175 cement plants = >40% of world CO2 Carbon market opportunity: ~$330 billion market if $30/ton- CO 2 Addressable market , 2007-2050 Aggregate product volume far exceeds cement with a 4:1 volume ratio in concrete plus use in asphalt and road beds Rule of thumb : 1 ton of Calera product = ! ton of CO2

Solution is growing as fast or faster than the problem...4 

### Novel technologies and integrated design allow for beneficial reuse at global industrial scale

! Benefits of integrated solution: Lower capex and opex

! Partnering with top equipment suppliers and EPC firms to design for low cost and large scale from beginning

! Modular plant design allows for rapid deployment worldwide and added Intellectual Property protection Breakthroughs:

- Maximized absorption efficiency with low energy use

- Mineral loading

- Multi-pollutant capture Breakthroughs:

- Novel chemistry

- Novel material science producing undefined polymorphs with cementitious properties

- Industrial scale and economics Breakthroughs:

- Ability to control particle size and material density

- Reuse of waste heat 

### Absorb Precipitate De-water Dry/ Produce5 

### Calera’s Process Steps

! Ability to locally source Divalent Cations allows for flexible siting:

– Coastal power plants can use seawater or brines

– Inland power plants can use brines or dissolved minerals

– Desalination/Demineralization retentate from desal or water demin treatment


### ! Ability to locally source Base adds additional environmental benefit:

– Various classes of Fly Ash (Class F, Class C, others)

– Other land filled base sources (Mg(OH) 2 waste tailings, red mud, etc.)

– Minerals (Serpentine, Brucite)

– Manufactured sources of caustic soda 

## Ca +2 

## + 2OH
- 

## + CO 2 

## " CaCO 3 

## + H 2 

## O Mg +2 

## + 2OH
- 

## + CO 2 

## " MgCO 3 

## + H 2 

## O Basic Chemistry:

Absorb Precipitate De-water Dry/ Produce Calera’s core technology: Formation of unique carbonate mineral polymorphs6 

### Calera carbon impact: Power perspective Capture – Emissions + Displacement

! When considering the CO2 captured by the process, the CO2 released by the energy consumed and the CO2 displaced by offsetting aggregate and cementitious materials, the total CO2 removed from the environment is higher than the total emissions of the power plant by 5%7 

### Coal is the problem to solve, however the cost of CCS for fossil fueled power generation remains prohibitive

$- $20 $40 $60 $80 $100 $120

- 500 1,000 1,500 2,000 2,500 3,000

95% - 100% 20% - 40% 10% - 15% 4% - 10%Cost to Capture & Store CO2($/(MT CO2))CO2Emissions (MT/Yr)

Mole Fraction of CO 2 in Emission Stream Quanity Cost

95%-100% 20% - 40% 10 %– 15% 4% - 10% 1) CO 2 from Ethanol Fermenters 2) CO 2 from steam reforming at Refineries, Ammonia Plants, SNG Plants, 3) CO 2 Separated from sour natural gas 1) CO 2 from Cement Calcination 2) Other chemical plants 1) Coal Fired power plants 2) Oil & diesel generators 1) Natural gas fired power plants 2) Furnaces, small boilers, etc. Quantity

Source: Natcarb - EIA - IPCC Special Report on Carbon Capture and Sequestration - Kurt House Analysis (MIT)8 -1200 -1000

-800 -600 -400 -200 0 200 400 600

Water Fly Ash Cement

Calera Fine Agg. Calera SCMNet CO2Emissions (lb) Reference Ordinary Concrete 

### 537 lb CO 2 

### /yd 3 

### of concrete

Source: Calera analysis 

### Calera carbon impact: Concrete perspective 1- An offset displacing ordinary concrete carbon footprint 2- An emission reduction by the conversion of CO 2 

### into carbonates

Cement displacement - Offsets -

Carbon conversion from power plant - CO 2 

### off take

agreement or

allowances - 

# +

Total: Calera Coarse Agg. 

## - 1,146 lb CO 2 

## /yd 3 

## of concrete9 

### Calera technology moving to demo scale project

! Laboratory, Small Batch and Large Batch Scale – 2007+

! Has established the ability to efficiently capture and convert to mineral carbonate with seawater and waste base sources

! 1 kg/day Low Voltage Base production unit

! Generating 5 tons of product capturing 2.5 tons of CO 2 per single batch

! Pilot – Started up April 2009

! Establishes continuous process at 1 ton per day of product (0.5 tons of CO 2 from coal fired boilers

! Will test efficiency and integration of individual process technologies

! Testing on pulverized coal flue gas and site specific conditions and materials

! 1 ton/day Low Voltage Base production unit

! Multiple Demos – Currently in design (as of July 2009), site selection in progress

! Takes flue gas from 10MW to 80MW of host plant

! Scales up in segments / modules

Pilot (Moss Landing) Demonstrations (20-80MW) Commercial Scale Chemistry, Laboratory and Batch Processes 2007 2008 2009 2010 2011 2012

# Pilot Unit Moss Landing, CA
Start-up: April 2009 Photos: July 200911 

### CA pilots validate process, product and environmental feasibility

! Pilot plants running large scale batch and continuous processes

! Flue gas simulator – Ability to test any type of coal and flue gas composition

! Producing material for product development and testing
! Demonstration of waste mineral utilization

! Monterey Bay Marine Sanctuary requires highest level of environmental performance 

### Moss Landing Power Station >1000 MW base load

>1500 MW peaking Fuel: Natural Gas Operator: Dynegy 

### Calera Pilot and Global R&D 150,000 sqft covered 200 acres total 60m gpd discharge permit

5m tons of mineral waste12 

## Pilot Plant Moss Landing Pilot Plant Layout13 

### Moss Landing Pilot Plant - Process Flow

Coal

Air

Seawater Moss Mag

/Dolime Pulverized Coal Hopper Coal Fired Boiler Simulator Gas to Liquid Absorber

Precipitator With Pax Agitator Moss Mag Forced Draft Fan

Seawater Pump

Base Feed

Pump Dewatering Feed Pump

Dewatering Wet Mill Spray Dryer Feed Pump Absorber

Pump Recirculation Pump Induced Draft Fan CO 2 Depleted Flue Gas

Cement Aggregate Water to Treatment Screw Feeder Baghouse

Spray Dryer14 

### Moss Landing Pilot Plant – Coal Boiler Simulator 

## Coal Fired Boiler Simulator (CFBS)

• Simulates time-temperature combustion history of full -scale utility boilers

• Capable of burning pulverized coal from anywhere in the world

• Capacity 1 MMBtu/hr

• Generates flue gas composition and temperature identical to full scale15 

### Absorber/Reactor: Calera Pilot Scale Unit16 

### Moss Landing Pilot Plant – Systems 

## Solid-Liquids Separator Precipitates absorbed CO 2 into solids and separates supernatant.17 

### Moss Landing Pilot Plant – Systems 

## Wet Mill and Spray Dryer Modifies particle size and shape of precipitant and then dries final product.

# Multi-pollutant Control

CONFIDENTIAL19 

### Multi-pollutant Robustness and Control Potential

In Calera Process SO 2 is absorbed in alkaline liquid and converted to sulfate



### Actual retrofit costs can vary significantly due to complexity of engineering for existing systems configurations Calera Process not sensitive to presence of other pollutants Retrofit CapEx Costs * SO 2 ~ $ 325/kW - $ 450/kW NOx ~ $ 225/kW - $330/kW Hg ~ $36/kW - $ 42/kW TOTAL ~$ 586kW - $822/kW

(*)Sources: Sargent & Laundy (2007), DOE, Hoskins 2008 & PNM SJGS BART Analysis20 

### Multipollutant Control Potential of Calera Process

! Sulfur Dioxide SO 2

– Seawater is alkaline by nature and SO 2 is absorbed as sulfite

– Traditional seawater FGD systems use air aeration to oxidize the sulfite to sulfate prior to water discharge to the sea


### ! Nitrogen Oxide NOx

– NOx is NO (~95%) and NO 2 (5%)

– NO can be converted by various techniques (e.g. use of oxidizers such as methanol and hydrogen peroxide) to form NO 2 which is soluble with neutral or base liquids

– Nitrate stabilized in Calera product


### ! Mercury Hg

– Mercury emissions are Hg and HgCl 2 depending on coal and combustion

– Mercury can be oxidized by various techniques (e.g., using electro-chem byproduct Cl) to form water soluble HgCl 2 that can be removed by water absorption

– Trace mercury stabilized in product


### ! Non-Volatile trace metals (As, Se, Pb)

– Captured as particulate matter in absorption system

– Trace metals stabilized in product

# About Calera22 

### World class team with international expertise in Energy, Geology, Water, and Building Materials

! Calera was founded in June 2007, by Brent R. Constantz, Ph.D.

! Calera has been funded by its unique investor Khosla Ventures



## Top talent with credentials

• 70 people

• 18 PhD

• 14 MS

• 5 MBA

• 2 JD, 3 patent agents, 1 paralegal 

## Collective experience

• Collectively built large scale projects in 15 countries around the world

• Upwards of 100 SPE’s

• 100 patents 

## Management Team

• Successful entrepreneurs

• Public company execs

• Power, geology, water and building materials 

## Investors and Advisors

• Khosla Ventures

• Scientific Advisory Board

• Carbon Advisory Board

• Specialty Technical Advisory Board23 

### World class team and staffing program: Management and Business Brent Constantz, Chief Executive Officer Founded and led three successful Silicon Valley Companies: Norian Corporation, Corazon Inc., and Skeletal Kinetics LLC - all in the medical device area. He is the inventor of over 70 issued US patents, principally in the area of advanced cements for repairing fractured bones in orthopedic surgery. He is a Consulting Professor in Geological & Environmental Sciences at Stanford University and has academic interests in global carbon cycles in biomineralization and the formation of limestone. Charlie Webster, Chief Financial Officer Formerly EVP & CFO of Tessera Technologies, a semiconductor technology licensing firm. Charlie held various senior management roles at KLA-Tencor, a global leader in semiconductor capital equipment. Prior to KLA, he worked at Bechtel Group, in project & equity finance, and as CFO of Nexant, a Bechtel owned technology and consulting firm serving the international energy industry. Eric Witt, Vice President of Intellectual Property Thirty years of experience in academia, business, and law. Eric comes to Calera from the law firm Wilson Sonsini Goodrich & Rosati, where he was a senior attorney managing the intellectual property portfolios of companies with technologies ranging from analytical instrumentation to gene therapy. Brian Curtis, Senior Director of Corporate Development Formerly founding General Manager for Heritage Technologies Asia which recycles bulk chemicals from electronics manufacturers & recovers copper minerals for beneficial reuse in China. Previously, Brian has worked with multiple start-ups and venture capital firms in the US and Asia. He began his career as an alternative fuels and hydrogen plant engineer for Chevron. He holds a BS in Mechanical Engineering from UCLA and an MBA from MIT Sloan School of Management.24 

### World class team and staffing program: Energy and Operations
John Brewster, Executive VP & COO 30 years experience in all aspects of power industry, from power marketing, operations, M&A & regulatory compliance. Former EVP Plant Operations, Development Engineering, Procurement and Construction at NRG Energy. There he was responsible for implementation of the new build and repower program along with plant operation of assets worldwide, Financial Risk Management committee, and represented NRG on partnership boards both domestically and internationally. Randy Seeker, Vice President of Engineering Former New Product Development manager at GE Energy. 30 years of experience in combustion technologies, air pollution control and monitoring, waste treatment technologies and conventional and advanced power systems. Randy served on the U. S. Environmental Protection Agency's Science Advisory Board for over 10 years and has served on several U.S. National Academy of Science panels. Dr. Seeker is the inventor of 25 US and International patents and has over 200 technical publications. Will Day, Vice President, Development Engineering & Construction Previously worked at NRG Energy as a Director in both the Construction and Operations Divisions. Will was responsible for construction and operations for the Central Region of NRG which included coal and gas fueled electric generating stations. He represented NRG on industry and partnership boards both domestically and internationally. Kyle Self, Director of Process Technology Dr. Self worked at Exxon Chemical Company in both process development and plant operations groups. He then joined Stone and Webster Engineering Corporation where he designed processes for world scale chemical plants and assisted with shakedown and plant operations support. He has held numerous research and development positions with Symyx Technologies, Fluidigm Corporation, and Accelergy Corporation primarily in the development and scale-up of new process technologies.25 

### World class team and staffing program: Building Materials

Terry Holland, Vice President, Materials Technology Well-known concrete industry consultant, expert witness & past-president of the American Concrete Institute. Has 40 years of experience in all facets of concrete business & technology. He is well-known for his pioneering leadership role in introducing the use of silica fume to the concrete industry.

Andy Youngs, Director of Applications Development & Testing Holds 15 patents on environmental products for the construction industry. He is recognized as a leading expert on pervious pavements and teaches at the University of California at Davis on the subject. A successful entrepreneur, he has developed and introduced high value added products throughout his career.
Kristin Cooper-Carter, Director of Sustainability Formerly a faculty member of California State University, Chico she was responsible for staffing, budgeting & fundraising, as well as teaching in the College of Engineering. As a professor at CSU, Chico, she taught courses in Concrete, Civil Engineering and Sustainability. She also served as Director of the Concrete Industry Management Program. She had been the most awarded project director on campus for over 12 years having managed dozens of grant programs totaling tens of millions of dollars.