Biosilica Commercialization Plans

Subbaraman Viswanathan, Ph.D.

Rajan K. Vempati, Ph.D.

Green Construction Material from Rice Hull Proven Pozzolan (Concrete additive) USED IN BRIDGES, RUNWAYS & HIGH RISE BUILDING Ready for Commercialization

Biosilica and Energy Corporation

B s E C

Biosilica – A Commercial OpportunityRenewable cementitious material

)

Useful product from Agriculture WASTE• Revenue for Rice Mills• Saves energy

• Meets growing demand for pozzolans in CONCRETE applications

• Cheaper product• High rates of return for the

investor

Concrete Additives MarketRICE HULL

Agricultural Waste – from Rice Mills 4 major rice growing states: Arkansas, Texas, California and Louisiana Ready availability; Cheap material - currently landfilled

Biosilica Potential and CompetitionIn ‘000 Tons

Material Rice Husk Biosilica Potential

Silica Fume & Precipitated Silica

North America 2,000 400 350Worldwide 90,000 18,000 1,400• Silica fume is the competitor for HPC use {Sale price $350 to $585/T} • Precipitated silica is a competitor in fillers and additives applications {Sale price

up to $1,000/T and higher} Needs bigger fonts - important

Demonstration plant capacity:Rice Hull Feed rateBiosilica make

500 LB/Day100 LB/Day

Cost of building demonstration plant (using toll manufacturing)

$ 250,000

Demo plant operational expenses; less than 3 months of operation

$ 150,000

Sponsored testing(Using large scale testing needed for Accreditation)

$ 400,000

Marketing $ 100,000 Administrative (includes a chemist, an engineer and an operator)

$ 300,000

Commercial plant design (FEED = Front End Engineering Design)

$ 100,000

Licensing and other activities for commercial plant - $ 200,000 Total: $1,500,000

Demonstration & Marketing Effortsup to 18 months

CAPITAL COST LIST

Equipment Estimated cost Delivery time

Main Furnace System – Power system, Control, rotary

$ 1.75 40 weeks

Feed handling, air and NG supplies

$ 0.75 22 weeks

Filters and scrubbers for pollution control

$ 1.00 25 weeks

Ground preparation $ 1.00 --

Furniture and fixtures $ 0.50 --

Working capital $ 1.00 20 weeks

Total $ 6.00 66 weeks

Estimates are in 2008 $s.Current costs adjusted for inflation $7.7 Million

FinancialsAttractive return on Investment

Table 1: Process Economics SummaryPlant type Biosilica Plant

OnlyBiosilica Plant with Steam Generation

Capacity, TPY of Biosilica™ 18,000 18,000Steam generation, MLB/HR 0 112CAPEX $ 7.5 Million $ 7.7 MillionFeed Rice Hull cost (*) $10/T $10/T

Product Biosilica™ price (#) $350/T $350/T

Power sale price -- $0.08/KWH

IRR, % (&) 25 % 35%

NPV (8% rate) $11 Million $ 19 Million

Breakeven price for biosilica, #$ /T $250 $140

• Data from Anheuser Busch# from HPC concrete users& Bank rate 8%; 20 year loan; Debt/Equity Ratio 75/25

First Biosilica Plant – Balance Sheet Data

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