emission solutions for bi-fuel diesel engine retrofits

CONFIDENTIAL

Don LambertV.P. Product Development and Training

MIRATECHTulsa, Oklahoma

2013 Oklahoma Technology ShowcaseAugust 23, 2013

Emission Solutions for Bi-Fuel Diesel Engine Retrofits

2

What exactly does MIRATECH build and sell?

Catalytic Converters, Mufflers, and Related Controls

Stationary / Industrial Engine FocusoNot Cars.

Emission and Acoustic Solutionso Engine Exhaust, Engine Noise.

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NASA Satellite Image – January 2013

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What’s that big glowing cluster of light on the prairies?

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Flared Natural Gas in the Shale Drilling Plays

Primarily Oil Plays Absent or Insufficient

Gathering Pipelines for the Natural Gas

Flaring preferable to Venting

EIA: < 1% of Gas Production Flared Nationwide

29% of North Dakota’s Gas Production is Flared!

Solutions/Uses for This Abundance of Flared Gas?

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Bi-Fuel Retrofits of Diesel Engines Used in O&G

Diesel Engines – Workhorses of the Oilfieldo Drilling Operations – Generators, Mud Pumpso On-Site Power Generationo Liquids Pumping

Extreme Duty Cycleo Lots of Time Under Heavy Loado 24/7 Operationo Big Quantities of Diesel Fuel Consumed!

Ideal Candidates for Bi-Fuel Retrofitso Substitute Natural Gas for a Portion of the Diesel Fuel Consumedo Use a Readily Available Fuel Source that Would Otherwise be Flared!

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Major Components of a Bi-Fuel Retrofit

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Bi-Fuel Retrofit – Gas Mixer, Mass Air Flow Sensor

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Bi-Fuel Retrofit – Control Panel

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Bi-Fuel Opportunity – O&G Diesel Engines

Fuel Cost Savings (Up to 70% Displacement of Diesel Fuel Consumed)

Extended Run Times with Existing Diesel Fuel Tank Less Frequent Fuel Deliveries Uses an Available Fuel Source at the Wellsite Less Carbon-Intensive Fuel Source Lower Exhaust Emissions Other Non-O&G Opportunities

o Emergency Backup Generatorso Data Center Generatorso Refrigeration Containers

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Significant Fuel Savings with Bi-Fuel Retrofit

Diesel-Only Bi-Fuel In Operation Net Fuel Cost Savings (20 Days)$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$69,325

$34,808

$4,166

$30,351

Nat. Gas @ $3.43/MCFDiesel @ $3.50/gal.Fuel Savings

Bi-Fuel Retrofit of a 1.3 MW Diesel Drilling Rig Gen SetBarnett Shale - 20 Day Drilling Cycle

Actual Recognized Fuel Savings by Early Adopters

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Obstacles to Bi-Fuel Adoption

Federal Clean Air Act and “Anti-Tampering”

Backlog of Rulemaking at EPA

“No-It-All” Personalities

Hidden Agendas

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The Path to Expanded Bi-Fuel Retrofit Adoption

Advocacy Demonstration Projects Comparative and Quantitative Emissions Analysis Catalyst Development, Testing, Validation,

Commercialization Final System Refinements Webinar to EPA EPA Affirmation, Position Statement

In Other Words … Change the Rules of the Game:o Credible Researcho Compelling Resultso Work with the EPA … Don’t Wait for Research and Rulemaking by Others

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Comparative Emissions Analysis: MIRATECH Research Plan

Four Engine Operating Modes (Exhaust Emissions Scenarios)o Stock Diesel Engine (Raw Emissions)o Bi-Fuel Retrofitted Diesel Engine (Raw Emissions)o Stock Engine w/ MIRATECH Catalysto Bi-Fuel Engine w/ MIRATECH Catalyst

Five Engine Operating Loads: 10% - 100% Rated Load Multiple Pollutant Species

o NOx

o COo Formaldehydeo CO2

o CO2-equivalent

GOAL: Control Bi-Fuel Engine Emissions w/ MIRATECH Catalyst to Equal or Lower than the Stock Diesel Engine’s Certified Emissions.

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Engine Carbon Monoxide Emissions Performance Results

15 ekW (10%) 35 ekW (25%) 70 ekW (50%) 105 ekW (75%) 140 ekW (100%)0

200

400

600

800

1000

1200

279

133

44 4180

249

6 2 5 9

1151

680

480

366

37 17 20 23

Bi-Fuel System CO Analysis, 6.8 litre John Deere (Tier 2)

Bi-FuelDieselBi-Fuel + MIRATECH CatalystDiesel + MIRATECH Catalyst

Engine Load Points (% of Rated Load)

Exha

ust

Gas

Con

cent

rati

on (

ppm

)

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Engine NOx Emissions Performance Results

15 ekW (10%) 35 ekW (25%) 70 ekW (50%) 105 ekW (75%) 140 ekW (100%)0

100

200

300

400

500

600

700

800

900

1000

506

585

724

820

935

506

577

673

778

915

587

778 770829

567

767 771829

Bi-Fuel System NOx Analysis, 6.8 Litre John Deere (Tier 2)Bi-Fuel

DieselBi-Fuel + MIRATECH CatalystDiesel + MIRATECH Catalyst

Engine Load Points (% of Rated Load)

Exha

ust

Gas

Con

cent

rati

on (

ppm

)

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Results Summary

With the Bi-Fuel + MIRATECH Catalyst Retrofit, NOx and CO Emissions are Reduced to Levels at or Below the Factory-Certified Emissions from the Stock Diesel Engine

The MIRATECH Catalyst Achieves a Formaldehyde Emission Reduction that is Compliant with EPA’s RICE NESHAP Regulation

As Expected, the Less Carbon-Intensive Blend of Fuel Reduces CO2 Emission Levels in the Engine Exhaust

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Outcomes

Many Hesitant Bi-Fuel Prospects Have Now Been Persuaded by These Results to Adopt Bi-Fuel + MIRATECH Catalyst Retrofits

Emergency Gen Set Operators Have the Opportunity for Expanded Use of Their Equipment, Knowing They Will Comply with RICE NESHAP, As Well

MIRATECH Has Commercialized a Bi-Fuel Catalyst Formulation Drilling Companies are Recognizing Significant Fuel Savings,

Putting a Stranded Natural Resource to Good Use EPA Has Invited MIRATECH and GFS Corp to Present Their

Research This Fall

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Thank You!

Feel Free to Visit MIRATECH Corporation Today at Our Booth.