ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Investor Presentation 2008

Jul 9, 2008

Environmental Clean Technologies Limited

ABN 28 009 120 40

CEO presentation to India Clean Tech Forum

Thursday 10[th] July 2008 : Environmental Clean Technologies Limited (ASX:ESI) is pleased to advise that ECT Chief Executive Kos Galtos is tomorrow presenting the attached paper at the joint Confederation of Indian Industry, CII-Centre of Excellence for Sustainable Development and Clean Technology AustralAsia second India Clean Tech Forum ‘Cleantech Solutions: Financing and Technological Innovation for Sustainable Development’.

The conference agenda will outline the challenges and opportunities for accelerating investment, transfer and deployment of Cleantech in the surging Indian market- arguably the biggest Cleantech market in the world.

Mr Galtos is one of 30 of the world’s experts and leaders in Cleantech who is presenting vital market knowledge and opportunities for Cleantech in India.

The two day forum, which is being held at The Taj Mahal Hotel, New Delhi, is bringing together key political leaders, Cleantech industry leaders, local government, investors, technology companies and others to discuss ‘Cleantech Solutions: Financing the Technological Innovation for Sustainable Development in India’.

India represents the fastest growing market for Cleantech solutions and technology transfers.

For further information please contact the Company Secretary, Jan Macpherson on 0419 940558.

Level 13 � 222 Kingsway � South Melbourne � Victoria 3205 � Australia � +61(0)3 96840801� www. etcltd.com.au

Coldry

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

World Energy Outlook

• India & China = 45% of global energy demand increase

• India set to double energy use between 2005 and 2030

• • Worldwide, fossil fuels (oil, gas & coal) dominate fuel mix – Coal use driven by China & India power sector demand

• • India to be World’s 3[rd ] Largest CO[2 ] emitter by 2015.

Source: World Energy Outlook 2007-China & India

Coldry: Key Facts

• World’s 1st economic method of dewatering brown coal – Creating a stable, transportable black coal substitute

• Immediately deployable in existing coal boilers

• Delivering significant efficiencies & opportunities

• Reduces Carbon emissions at ‘Front end’

• Cuts overall consumption of coal as a feedstock

• Contributes to ‘water consumption’ strategies

• Reduces ash accumulation

• Supports the case for upgraded boilers

• Enables new fuel reserves & export opportunities

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The Coldry Process
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• Screening

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� Attrition & Extrude
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� Water recovery
� Conditioning
� Pack Bed Dryer
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Examples of Independent Testing

Lignite: Victoria, Australia

	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%

Sub-bituminous: Inner Mongolia, China

	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%

Source: HRL Laboratories (Vic, Australia)

Delivering with Partners

Engineering construction specialist in design, procurement & construction of mineral resource & waste-to-resource projects Provided initial +/- 30% scalability study

Global audit, consulting, financial advisory, risk management & tax services firm

Delivered SPV financial model based on +30% Minproc study

Leading consulting firm providing world-class engineering, design, planning & Corporate advisory services Delivering design & +/-10% to15% feasibility study

World class engineering, construction & maintenance company with business units in civil & marine, mechanical, electrical, pipelines, tunnelling & underground services Providing TMP/GMP construction contracts

Specialist in capital raising, mergers & acquisitions, corporate advisory & investment to high growth, global relevant orgs. Primary Adviser for Acquisition of Debt & Equity Finance

Proposition: Brown Coal Power Stations

• Demonstration Plant – Planned Q1/2009 Start

• Construction of 150,000 TPA plant

– Location: Victoria, Australia or other

• Commercial Plants – Domestic Consumption

• Underpinned by Commercial Demonstration Plant success

• – Delivers Coldry in line with Power Station update program

• – Power Station purchases @ <A$25 per beneficiated tonne

• – Coal saved beneficiated for export sale

• Added Export Capacity

• Capacity increased modularly to meet global demand.

Delivering to Power Stations

• Power Station enters Agreement

• 50 year lease adjacent site

• Commitment of coal & pricing

• Terms for purchase of ‘Domestic’ Coldry

• $0 cost hot water (> 40C) access for heat transfer needs

• Costs of provision of electricity, water & other site services

• Detailed Design & Feasibility study financed by ECT

• Funding sourced by ECT

• Special Purpose Vehicle (‘SPV’) formed

• To finance, construct, own, operate & distribute Coldry

• – Ownership structure

  • ECT 75.0%

  • Power Station 25.0%

• In exchange for;

• A$5M Intellectual Property (‘IP’) release fee to SPV

• A$2 per tonne ‘Domestic Royalty’

• A$5 per tonne ‘Export Royalty’

• Dividends from plant investment

Benefits: Power Station - Australia

• Demonstration Plant

• OpEx based Investment in CO2 reduction technology

• Provides an auxiliary fuel at lower cost per tonne

• Absolute proof of economic recovery of water from Brown Coal

• Low risk, first step in ‘gateway’ uses for Brown Coal assets

• Commercial Plant – Domestic Consumption

• 5% Reduction in carbon emissions at ‘Front end’ with 10% burn

• Immediately deployable without modification to existing boilers

• – Delivery of business case for upgraded boilers

• Opportunity to reduce CO2 emissions by over 30%

• Significant additional water recovered

• New profits from export of ‘saved coal’ as Black Coal substitute

• Plus dividends, operational benefits & new revenue opportunities

• Added Export Capacity

• Increased dividends, operational benefits & opportunity

• Potentially share customers carbon savings

• Additional recovered water facilitates ‘self-sufficiency’

Example - Near Term Prospects

• Demonstration Plant 150K t.p.a (Auxiliary & Test Fuel)

• Capex - $30,000,000 • Equity (20%) - $ 6,000,000 • Annual Return (est.) - $ 2,600,000

• Victorian brown coal power stations (@ 10% Burn) – Hazelwood: 2.7M T.P.A.

	–Hazelwood: 2.7M T.P.A.
	•CapEx	-	$241,200,000
	•Equity (20%)	-	$ 48,240,000
	•Annual Return (est.)	-	$ 37,695,712
	–Yallourn: 2.55M T.P.A.
	•CapEx	-	$229,200,000
	•Equity (20%)	-	$ 45,840,000
	•Annual Return (est.)	-	$ 36,138,544
	–Loy Yang A: 3.1M T.P.A.
	•CapEx	-	$277,200,000
	•Equity (20%)	-	$ 55,440,000
	•Annual Return (est.)	-	$ 41,349,049
•	Abhijeet, India 2.5m T.P.A.
	•CapEx	-	$241,200,000
	•Equity (20%)	-	$ 48,240,000
	•Annual Return (est.)	-	$ 19,379,701

Example - Medium Term Prospects

• Victorian brown coal power stations (@100% Burn)

– Hazelwood: 5.0M T.P.A.

	•CapEx	-	$421,200,000
	•Equity (20%)	-	$ 84,240,000
	•Annual Return (est.)	-	$ 54,924,954
–	Yallourn: 4.6M T.P.A.
	•CapEx	-	$397,200,000
	•Equity (20%)	-	$ 79,440,000
	•Annual Return (est.)	-	$ 52,649,924
–	Loy Yang A: 5.8M T.P.A.
	•CapEx	-	$493,200,000
	•Equity (20%)	-	$ 98,640,000
	•Annual Return (est.)	-	$ 59,679,094

• Abhijeet, India 20m T.P.A.

•	•Annual Return (est.) Abhijeet, India 20m T.P.A.	-	$ 59,679,094
	•CapEx	-	$1,645,200,000
	•Equity (20%)	-	$ 329,040,000
	•Annual Return (est.)	-	$ 166,000,000
•	World wide market potential	>1524	Brown Coal Power Stations

Coldry[®]

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