ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Investor Presentation 2008

Sep 28, 2008

Environmental Clean Technologies Limited

Coldry Technology address at Coal Tech 2008

29 September 2008: Environmental Clean Technologies Limited (ASX:ESI) advises that Chief Executive, Kos Galtos is presenting the following paper at the Coal Tech 2008 conference in Queensland today.

Coal Tech 2008 is bringing together all the major coal producers, power generators, petroleum firms, engineers in addition to state and federal government representatives to gain an up to the minute understanding of the latest developments with clean coal initiatives in Australia.

Mr Galtos will contribute to the debate on new technology developments and what the Coldry Technology means for the power industry in terms of assisting each of them to economically meet their carbon emission reduction targets.

He said “I am pleased to have been invited by the industry to present to this key strategic forum with an audience of decision makers and key stakeholders in the resources industry. The acknowledgement of the significance of Coldry as an innovative and commercial technology demonstrates the Company’s pre-eminence in the brown coal arena.”

For further information please contact Chief Executive, Kos Galtos on 03 9684 0800

Level 13, 222 Kingsway � South Melbourne � Victoria 3205 � Australia � +61(0)3 96840888 � www.ectltd.com.au

Cleaning Up Brown Coal

Environmental Clean Technologies Limited

What is ‘Brown Coal’?

• Lignite, often referred to as brown coal

• Considered the lowest rank of coal

• Characteristics between coal & peat, typical;

• Inherent moisture as high as 66%

• Ash from 6% to 19%

• Carbon around 60%

• Heat content from 10 to 20 MJ/kg

• High volatile matter content

• Making it easier to convert to gas & liquid products

• Susceptible to spontaneous combustion

• Transport & storage issues limit trade on world market

• Used almost exclusively for power generation, in power stations constructed very close to mines

• CO2 emissions much higher than black coal plant

• Continued power plant operation politically contentious.

Environmental Clean Technologies Limited

Production - World Lignite

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|---|---|
|Tonnes|
|Germany|175,400|
|Russia|83,200|
|United States|80,500|
|Australia|67,800|
|Greece|67,000|
|Poland|59,500|
|Turkey|57,200|
|Czech Republic|50,700|
|China|47,000|
|Serbia|35,500|
|Romania|29,800|
|North Korea|26,500|
|Total|894,800|

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“1526 Lignite & Sub-bituminous Power Stations Identified”

Environmental Clean Technologies Limited

What is Coldry?

• World’s 1st economic method of dewatering brown coal

• Creates a stable, transportable black coal substitute

• Transforms 62% moisture ‘Latrobe Valley’ coal to <12%

• Enhances energy per Kg from 8 MJ to 24 MJ

• Works on Lignite & many Sub-bituminous Coals

• Immediately deployable in existing ‘Brown’ coal boilers

• At 10% to 20% of total fuel load

• Realises significant efficiencies & opportunities

• Cuts overall consumption of coal as a feedstock

• Reduces Carbon emissions at ‘Front end’

• Contributes to ‘water consumption’ strategies

• Reduces ash accumulation

• Supports the case for Super-critical or gasification

• Enables new fuel reserves & export opportunities.

Environmental Clean Technologies Limited

Examples of Independent Testing

Lignite: Victoria, Australia

<A$33 Tonne

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|---|---|---|---|---|
|Mined|Coldry|Change|%|
|Moisture (%)|58.90|11.30|-47.60|-81%|
|Ash Yield (%db)|1.63|1.63|0|0%|
|Gross Dry Calorific Value|26.97|27.00|.03|0%|
|Gross Wet Calorific Value|11.09|23.18|12.09|109%|
|Net Wet Calorific Value|9.33|22.04|12.71|136%|

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Sub-bituminous: Inner Mongolia, China

<A$27 Tonne

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|---|---|---|---|---|
|Mined|Coldry|Change|%|
|Moisture (%)|34.80|15.00|-19.80|-57%|
|Ash Yield (%db)|18.44|17.50|-0.94|-5%|
|Gross Dry Calorific Value|22.30|22.50|.20|1%|
|Gross Wet Calorific Value|14.54|19.10|4.56|31%|
|Net Wet Calorific Value|13.31|18.20|4.89|37%|

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Environmental Clean Technologies Limited

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The Coldry Process
 Screening
 Attrition & Extrude
 Water recovery
 Conditioning
 Pack Bed Dryer
Environmental Clean Technologies Limited
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Coldry: Pilot Plant

• Developed by CRA & Melbourne Uni in the early 1980’s

• Commissioned 2004 - Batch process

• Upgraded 2007 - Continuous process & Water recovery

• Max capacity – 10,000 t.p.a.

• Investment - >$5M

Environmental Clean Technologies Limited

Coldry: Demonstration Plant

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Target Start: 1Q09 Completion 4Q10
–
Output 150,000 t.p.a.
–
Heat source Waste Heat or Geothermal
–
Construction Prefabricated Modules
•
Strategic Relationships
–
Design Engineers: Arup
•
Preliminary design complete >3,500 hours
•
+/- 30% Preliminary Feasibility May 09 Completed
•
+/- 10% Preliminary Feasibility Oct 09 Due
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Construction: MacConnell Dowell
•
Target maximum price
–
Corporate Advisory: Deloitte
•
SPV financial modelling Delivered
•
Strategic Business Planning In Progress
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Finance: Philip Capital
•
Acquisition of Debt & Equity Finance
–
.
Operation & Maint. Negotiations concluding
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Environmental Clean Technologies Limited

What will be proven…

• °

• Low Heat (45 C) + Low Pressure (12 psi) = Low Cost

• Production of exportable, low ash, black coal substitute

• – ‘Carbon Free’ Class A water

  • No leaching of coal volatiles

  • • No Pollutants to be dealt with

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|---|---|
|•|
|CO2 reduction:|
|–|
|Unmodified Lignite Boiler (10% shandy)|3% to 6%|
|–|
|Black Coal Boiler|11% to 18%|
|–|
|Super Critical Boiler & IDGCC|35% to 42%|
|•|
|Production Cost <$33* tonne, including|
|–|
|CapEx, OpEx, Financing, Depreciation, Royalties|
|•|
|Coldry carbon footprint|
|–|
|Latrobe Valley (Lignite)|1:9|
|–|
|Greek (Lignite)|1:10|
|–|
|Mongolian (Sub-bituminous)|1:16|

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Environmental Clean Technologies Limited

Questions…..

• ….

Environmental Clean Technologies Limited

Coldry

“The world’s most cost effective, immediately deployable, carbon emissions reduction technology for Brown coal!”

Environmental Clean Technologies Limited