te executive summary

Confidential & ProprietaryConfidential & ProprietaryConfidential & ProprietaryConfidential & Proprietary

InvestorInvestor PresentationPresentation

Confidential & ProprietaryConfidential & ProprietaryConfidential & ProprietaryConfidential & Proprietary

DisclosuresDisclosures

This presentation contains statements that are considered forward−lookingstatements. Forward−looking statements give the current expectations of forecasts of future events of the Company. All statements other than statements of current or historical fact contained in this annual report, including statements regarding the Company’s future financial position, business strategy, budgets, projected costs and plans and objectives of management for future operations, are forward−looking statements. These statements are based on the Company’s current plans and certain assumptions by the Company’s management about future conditions, and the Company’s actual future activities and results of operations may be materially different from those set forth in the forward−looking statements. These forward−looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with statements relating to: (i) the ability of the Company to fund its continued operations and development activities; (ii) the Company’s ability to commercialize its technologies; (iii) changes in government policy and in legislation and regulation that adversely affect the Company’s business prospects; and (iv) general economic and market conditions.

Confidential & ProprietaryConfidential & ProprietaryConfidential & ProprietaryConfidential & Proprietary Slide Slide Slide Slide 3

�� Founded in 1988 to commercialize water and energy technologiesFounded in 1988 to commercialize water and energy technologies

�� Headquartered in Worcester, MA; Sales office in Phoenix, AZ and Headquartered in Worcester, MA; Sales office in Phoenix, AZ and Little Little

Rock, ARRock, AR

�� Publicly traded (TMEN.PK) with a fully diluted market capitalizaPublicly traded (TMEN.PK) with a fully diluted market capitalization of tion of

~$40 ~$40 -- $60M$60M

�� Company divided into two distinct business units:Company divided into two distinct business units:

�� Water Technologies Division: Water Technologies Division: CASTtionCASTtion Corporation, Worcester, MACorporation, Worcester, MA

�� Clean Energy Division: BabcockClean Energy Division: Babcock--Thermo Carbon Capture LLC, Worcester, MAThermo Carbon Capture LLC, Worcester, MA

Corporate InformationCorporate Information


2009A Year in Transition

2010Rebuilding

Year

2011Year of

High Growth

�� Addressed our legal and Addressed our legal and

tax issuestax issues

�� Recapitalized the Recapitalized the

CompanyCompany

�� Strengthened our Board Strengthened our Board

and hired new CFOand hired new CFO

�� Positioned the Company Positioned the Company

for future growthfor future growth

�� New CEO experienced New CEO experienced with energy and clean with energy and clean tech growth companiestech growth companies

�� Begin $27.1M CAST Begin $27.1M CAST NYC ARP Project NYC ARP Project ––signed in Junesigned in June

�� Raise growth capitalRaise growth capital

�� Expand sales and Expand sales and marketing initiativesmarketing initiatives

�� Expand strategic Expand strategic partnerships: Babcock partnerships: Babcock and AECOMand AECOM

�� Robust Water Robust Water

Technologies Business Technologies Business

underway to industrial and underway to industrial and

municipal marketsmunicipal markets

�� Continued Continued

commercialization of the commercialization of the

ZEBS energy technologyZEBS energy technology

�� Relist on Relist on NasdaqNasdaq or AMEXor AMEX

Company Poised to Create ValueCompany Poised to Create Value


Business Unit HighlightsBusiness Unit Highlights

CASTion

BTCC

�� Water Technologies DivisionWater Technologies Division

�� ~70 systems in operation~70 systems in operation

�� Large, growing domestic market opportunity: Industrial Large, growing domestic market opportunity: Industrial ($7B+) and Municipal ($5B+)($7B+) and Municipal ($5B+)

�� Large NYC contract Large NYC contract –– Signed in June Signed in June ’’10 and strong pipeline10 and strong pipeline

�� Significant competitive advantage: IP, low cost providerSignificant competitive advantage: IP, low cost provider

�� Market leading partner in AECOMMarket leading partner in AECOM

�� Attractive margins on industrial contracts, multiyear revenue Attractive margins on industrial contracts, multiyear revenue

streamsstreams

�� Clean Energy Division Clean Energy Division –– Joint venture with Babcock PowerJoint venture with Babcock Power

� Leading carbon capture technology utilizing Zero Emissions Boiler (“ZEBS”) technology – pressurized oxy-fuel

� Supported by a strong IP portfolio

� Babcock provides plant construction and engineering experience

� $1T+ market opportunity

� Significant long-term value creation potential


CASTion OverviewCASTion Overview

Bu

sin

ess

Tech

no

log

y F

eatu

res

�� Deploying Controlled Atmosphere Separation Technology Deploying Controlled Atmosphere Separation Technology (CAST)(CAST)

�� Disposition / conversion or recycle of recovered products Disposition / conversion or recycle of recovered products and/or valuable renewable resources from wastewater for and/or valuable renewable resources from wastewater for reuse (Zero discharge)reuse (Zero discharge)

�� ARP: captures Ammonia and converts to fertilizer or powerARP: captures Ammonia and converts to fertilizer or power

�� Metals: recovers precious metals and/or concentrate sufficient Metals: recovers precious metals and/or concentrate sufficient

to achieve zero discharge capabilityto achieve zero discharge capability

�� Ethylene Glycol/Propylene Glycol: chemical recovery to meet Ethylene Glycol/Propylene Glycol: chemical recovery to meet

EPA requirementsEPA requirements

�� FeaturesFeatures

�� Proprietary technologyProprietary technology

�� As platform technology can be combined with other OTS As platform technology can be combined with other OTS

technologies to create new intellectual property (IP)technologies to create new intellectual property (IP)

�� Applicable to many industrial chemical extraction problemsApplicable to many industrial chemical extraction problems

�� Low cost as compared to alternatives Low cost as compared to alternatives

�� Small footprintSmall footprint

�� Low operating costsLow operating costs

�� Payback in less than two years in most Payback in less than two years in most

applicationsapplications


Parameter SHARON TEC CAST

Technology Biological Chemical

Capital Cost ($M) $60 $30

Operating Costs ($M/y) $6.2 $2.7

System footprint (gsf) 26,500 7,000

Temp Dependency High None

Time to Equilibrium Weeks 1 hour

Tolerance to Temp Swings Low High

Residency time required (hrs) 60 0.5

Sludge produced (t/y) 252 None

Odor Significant None

CAST/ARP Competitive AdvantageCAST/ARP Competitive Advantage

Based on same 1.5 mgpd system


�� Partnership: Market & Deploy CAST for Municipal ARPPartnership: Market & Deploy CAST for Municipal ARP

�� AECOM (NYSE: ACM) AECOM (NYSE: ACM) an Engineering, Technical & Management an Engineering, Technical & Management

Leader In All Key Markets That It Serves (Leader In All Key Markets That It Serves (www.aecom.comwww.aecom.com))

�� $5.6 Billion in 2008 Revenues$5.6 Billion in 2008 Revenues

�� 43,000 Employees / Operating in over 100 Countries, Providing S43,000 Employees / Operating in over 100 Countries, Providing Such Services As:uch Services As:

�� Wastewater TreatmentWastewater Treatment

�� Sustainable Economic DevelopmentSustainable Economic Development

�� Highways & BridgesHighways & Bridges

�� Power GenerationPower Generation

�� Operations & MaintenanceOperations & Maintenance

�� Municipal InfrastructureMunicipal Infrastructure

�� Remediation and Waste ManagementRemediation and Waste Management

�� #3 Out of Top 500 Design Firms#3 Out of Top 500 Design Firms

�� #3 Out of Top 25 Wastewater Treatment #3 Out of Top 25 Wastewater Treatment

�� #4 Out of Top 25 Sewerage & Solid Waste#4 Out of Top 25 Sewerage & Solid Waste

�� Global Headquarters Is In Los Angeles, CAGlobal Headquarters Is In Los Angeles, CA

Partner Profile: AECOMPartner Profile: AECOM


A Global Market OpportunityA Global Market Opportunity

● Water and

Wastewater Treatment is a $164 B global market

●Industrial Water Treatment is a $95 billion global market

Dead zones are increasingly a worldwide problem, providingtremendous upside for CASTion water treatment systems


Market Drivers & Value PropositionMarket Drivers & Value Proposition

�� Water Technologies adoption is being driven by government regulaWater Technologies adoption is being driven by government regulation tion

and corporate focus on cost savings and corporate focus on cost savings

�� Corporations are being forced to evaluate and adopt waste water Corporations are being forced to evaluate and adopt waste water treatment treatment

methodologiesmethodologies

�� New York City fined over $14M for failure to implement higher niNew York City fined over $14M for failure to implement higher nitrogen removal trogen removal

standardsstandards

�� CASTion provides key competitive advantages versus other waste wCASTion provides key competitive advantages versus other waste water ater

treatment optionstreatment options

�� Low cost path to complianceLow cost path to compliance

�� Rapidly implemented and reliable technologyRapidly implemented and reliable technology

�� Offers a better use of valuable resources (e.g., land, energy, wOffers a better use of valuable resources (e.g., land, energy, water)ater)

�� High ROIHigh ROI

�� ZEBS business represents an opportunity to be a leader in the $1ZEBS business represents an opportunity to be a leader in the $1T+ zero T+ zero

emissions and carbon management power market emissions and carbon management power market


Sector ARP Metals PG/EG Sugar Total %

Industrial $7,203 $2,145 $550 $446 $10,345 65%

Municipal 5,475 NA NA NA 5,475 35%

Total $12,678 $2,145 $550 $446 $15,820 100%

% Total 80% 14% 3% 3% 100%

Domestic Addressable MarketDomestic Addressable Market

CAST Market ($M) CAST Market ($M) –– 8,000+ systems and $16B in 8,000+ systems and $16B in

Industrial and Municipal opportunities (Domestic only)Industrial and Municipal opportunities (Domestic only)


�� PICTURE OF A COAL PLANTPICTURE OF A COAL PLANT

�� Key PointsKey Points

�� Solves excess parasitic power issue normally a part of oxySolves excess parasitic power issue normally a part of oxy--fuelfuel

�� 2 US patents & 8 foreign patents issued / 2 foreign patents pen2 US patents & 8 foreign patents issued / 2 foreign patents pendingding

�� Cost at a slight premium to Cost at a slight premium to conventional coal plantconventional coal plant11

�� Collects liquid COCollects liquid CO22

�� Captures other noxious elements (mercury, sulfur, etc.) for dispCaptures other noxious elements (mercury, sulfur, etc.) for disposalosal11 Study by Canadian government (CANMET)Study by Canadian government (CANMET)

Our Technology: ZEBSOur Technology: ZEBS


� BabcockBabcock--Thermo Carbon Capture LLCThermo Carbon Capture LLC

�� 50/50 Joint Venture with Babcock Power Inc.50/50 Joint Venture with Babcock Power Inc.

�� Develop & Commercialize New Advanced Power Develop & Commercialize New Advanced Power

Plant Design Plant Design -- ZEBS ZEBS

�� ZEBSZEBS: Evolutionary in Design : Evolutionary in Design –– Revolutionary in PerformanceRevolutionary in Performance

�� ZEBSZEBS = Zero Emission Boiler System= Zero Emission Boiler System

�� Combusts Coal / Oil / Natural Gas With Zero Air EmissionsCombusts Coal / Oil / Natural Gas With Zero Air Emissions

�� Captures COCaptures CO2 2 In Pressurized Liquid Form In Pressurized Liquid Form

�� Based on oxyBased on oxy--fuel chemistry w/ novel twist: Pressurized Oxyfuel chemistry w/ novel twist: Pressurized Oxy--fuelfuel

�� 2 US Patents Issued / 8 Foreign Patents Issued / 2 Foreign Paten2 US Patents Issued / 8 Foreign Patents Issued / 2 Foreign Patents Pendingts Pending

�� 99% of Process Components Are Off99% of Process Components Are Off--TheThe--Shelf EquipmentShelf Equipment

�� Installed Cost Estimated To Approximate Conventional Pulverized Installed Cost Estimated To Approximate Conventional Pulverized Coal PlantCoal Plant

�� Phase 1: Phase 1: Established Underlying Science & ThermodynamicsEstablished Underlying Science & Thermodynamics

�� CompletedCompleted

�� Phase 2: Phase 2: Design, Build & Operate SmallDesign, Build & Operate Small--Scale Pilot PlantScale Pilot Plant

�� Generate Performance Data with an Operating SystemGenerate Performance Data with an Operating System

�� Sub System Design and costing of 600 MW ZEBS Power Plant Sub System Design and costing of 600 MW ZEBS Power Plant -- 1Q 20101Q 2010

BabcockBabcock--Thermo CarbonThermo CarbonCapture LLC (BTCC)Capture LLC (BTCC)


� Partnership: Commercialize & deploy ZEBSPartnership: Commercialize & deploy ZEBS

�� Babcock Power IncBabcock Power Inc. . ((www.babcockpower.comwww.babcockpower.com) )

�� Babcock Power Is a Group of Companies Providing OEM Design and Babcock Power Is a Group of Companies Providing OEM Design and

Manufacturing of Major Equipment for the Power Generation MarketManufacturing of Major Equipment for the Power Generation Market

�� Over $500 million in Annual Sales Over $500 million in Annual Sales

�� Over 400 Years of Combined Experience in:Over 400 Years of Combined Experience in:

�� Boiler Design and Firing for Fossil Fuel Power PlantsBoiler Design and Firing for Fossil Fuel Power Plants

�� ConstructionConstruction

�� EnvironmentalEnvironmental

�� Heat ExchangersHeat Exchangers

�� State of the Art Power Plant UpgradesState of the Art Power Plant Upgrades

�� RepoweringRepowering

�� RetrofitRetrofit

�� Initial target market for ZEBS is repoweringInitial target market for ZEBS is repowering

Partner Profile: Babcock Power Inc.Partner Profile: Babcock Power Inc.


Coal Consumption: Coal Consumption: Growing Market OpportunityGrowing Market Opportunity

World Coal Consumption

OECD Coal Consumption Non-OECD Coal Consumption

0

50

100

150

200

250

1980 1990 2000 2010 2020 2030

OECD Non-OECD Total

Quadrillion BTU �� World coal consumption expected to increase by 49% World coal consumption expected to increase by 49%

from 2006from 2006--20302030

�� 127.5 quadrillion BTU to 190.2 quadrillion BTU127.5 quadrillion BTU to 190.2 quadrillion BTU

�� NonNon--OECD countries account for 94% of total growth OECD countries account for 94% of total growth

from 2006from 2006--20302030

�� 73% increase from 200673% increase from 2006--20302030

�� 73% of world coal consumption expected in Non73% of world coal consumption expected in Non--

OECD countries, an increase from 63% in 2006OECD countries, an increase from 63% in 2006

�� OECD coal consumption expected to increase by 8% OECD coal consumption expected to increase by 8%

from 2006from 2006--20302030

190.2 BTU

139.6 BTU

50.7 BTU

24.3 25.528.8

13.2 12.8 12.1

3.89.4 9.5 9.8

38.5

46.9 47.850.7

16.5 18.2

0

10

20

30

40

50

60

1980 2006 2015 2030

North America OECD Europe OECD Asia Total OECD

Quadrillion BTU

Growth Rates

1980-2030 2006-2030

North America 75% 18%

OECD Europe (34%) (9%)

OECD Asia 162% 5%

Total OECD 32% 8%

8.7 9.5 9.4

66.5

87.6

122.8

2.7 5.4 5.8 7.4

31.6

80.6

102.9

139.6

12.9 15.9

0

20

40

60

80

100

120

140

160

1980 2006 2015 2030

Non-OECD Europe and Eurasia Non-OECD Asia Other Non-OECD Total Non-OECD

Quadrillion BTU

Growth Rates

1980-2030 2006-2030

Non-OECD Europe and Eurasia (27%) 8%

Non-OECD Asia 671% 85%

Other Non-OECD 173% 38%

Total Non-OECD 342% 73%


70’

150’

210’

BTCC: Capabilities

Repowering Existing PlantsRepowering Existing Plants

�� NO production lossNO production loss

�� Much smaller footprintMuch smaller footprint

�� New ZEBS steam generator New ZEBS steam generator replaces existing boilerreplaces existing boiler

�� Use the existing turbinesUse the existing turbines

�� Size ZEBS for power plant output Size ZEBS for power plant output steam requirementssteam requirements

�� Capture all emissions (e.g., COCapture all emissions (e.g., CO22, , S, Hg, etc.) for sale or S, Hg, etc.) for sale or sequestrationsequestration


BTCC: Total Market Size

Existing U.S. Coal-Fired Capacity Percentage by Age

Source: U.S. EIA data

~95% are > 25 years old ~95% are > 25 years old

Repowering OpportunityRepowering Opportunity


BTCC: Total Market Size

��$65B to $100B market opportunity for ZEBS$65B to $100B market opportunity for ZEBS

��Approximately 20Approximately 20--30% of the 320 GW installed coal fleet 30% of the 320 GW installed coal fleet

��Older units typically >25 yearsOlder units typically >25 years

��Smaller units typically < 300 MWSmaller units typically < 300 MW

��Units not retrofitted with Units not retrofitted with NOxNOx and and SOxSOx controlcontrol

Low Hanging Fruit for ZEBSLow Hanging Fruit for ZEBS-- US: US: Retrofit/RepowerRetrofit/Repower


Very experienced and balanced team with outstanding technical expertise

Management TeamManagement Team

�� Cary Bullock, President and Chief Executive OfficerCary Bullock, President and Chief Executive Officer

�� Very experienced developing energy and infrastructure technologyVery experienced developing energy and infrastructure technology

�� GreenFuelGreenFuel Technologies, Technologies, ExcelergyExcelergy, KENETECH, , KENETECH, XenergyXenergy, FPL Energy Services, NSP Power , FPL Energy Services, NSP Power

ServicesServices

�� AB, Amherst College, BS, MS, Massachusetts Institute of TechnolAB, Amherst College, BS, MS, Massachusetts Institute of Technology, ogy,

�� Ted Klowan, Jr., Executive Vice President and Chief Financial OfTed Klowan, Jr., Executive Vice President and Chief Financial Officerficer

�� Extensive public company and technology company experienceExtensive public company and technology company experience

�� Certified Public Accountant , MBA (International Finance)Certified Public Accountant , MBA (International Finance)

�� Ernst & Young, Waters Corporation, Helix TechnologyErnst & Young, Waters Corporation, Helix Technology

�� David Delasanta, President of CASTion Corp.David Delasanta, President of CASTion Corp.

�� Shaw Group, AECOM, Kaiser EngineeringShaw Group, AECOM, Kaiser Engineering

�� Over 35 years of environmental management, startup, and M&A expeOver 35 years of environmental management, startup, and M&A experiencerience

�� BS Physics, MS Environmental Engineering, and MBABS Physics, MS Environmental Engineering, and MBA

�� Steve Brown, Chief Engineer of CASTion Corp.Steve Brown, Chief Engineer of CASTion Corp.

�� Over 15 years of experience with CASTion and predecessor companyOver 15 years of experience with CASTion and predecessor company (Cellini Purification)(Cellini Purification)

�� 25+ years in water engineering25+ years in water engineering

�� UmassUmass Amherst, WPI, MIT Industrial Liaison ProgramAmherst, WPI, MIT Industrial Liaison Program

�� Mark Simon, PhD Mark Simon, PhD abdabd, VP Process Engineering CASTion, VP Process Engineering CASTion

�� Over 8 years of experience with CASTionOver 8 years of experience with CASTion

�� Prior experience includes KWI North America, ConPrior experience includes KWI North America, Con--Test Environmental, Briggs AssociatesTest Environmental, Briggs Associates

�� 25+ years in water chemistry25+ years in water chemistry

�� Columbia Southern, Columbia Southern, UmassUmass AmherstAmherst


2010 Financial Plan Summary2010 Financial Plan Summary

�� CAST Municipal businessCAST Municipal business

�� Signed NYC contract in June Signed NYC contract in June –– total value of $27.1Mtotal value of $27.1M

�� Receive $841K in July and another $3.2M by end of 2010Receive $841K in July and another $3.2M by end of 2010

�� CAST Industrial businessCAST Industrial business

�� Robust pipeline in excess of $20M with ASP ~$900kRobust pipeline in excess of $20M with ASP ~$900k

�� Targeting 40% gross margin per contract Targeting 40% gross margin per contract

�� Concentrate on building sales and marketing capabilitiesConcentrate on building sales and marketing capabilities

�� Recently added a senior sales executiveRecently added a senior sales executive

�� Plan to hire one additional senior sales / marketing executive iPlan to hire one additional senior sales / marketing executive in Q3n Q3

�� Investment in proactive lead generation marketing campaignInvestment in proactive lead generation marketing campaign

�� By Q3 2010, expect to have sales about equal to sales for all ofBy Q3 2010, expect to have sales about equal to sales for all of 20092009

�� Successful execution will result in profitability by 2012Successful execution will result in profitability by 2012


Key Investment ThemesKey Investment Themes�� Huge market opportunity Huge market opportunity –– $16B addressable market$16B addressable market

�� Proven solution Proven solution –– ~70 deployments and blue chip customer base~70 deployments and blue chip customer base

�� Strong market momentum Strong market momentum –– NYC contract signed in May NYC contract signed in May ’’10, growing 10, growing

industrial pipelineindustrial pipeline

�� AECOM Partnership AECOM Partnership –– Building momentum in the municipal marketBuilding momentum in the municipal market

�� Significant Competitive Advantages Significant Competitive Advantages –– Cost effective, rapidly Cost effective, rapidly

deployable, High ROIdeployable, High ROI

CA

ST

ion

�� Huge market opportunity Huge market opportunity –– Market estimated to be $1T+Market estimated to be $1T+

�� Unique Opportunity Unique Opportunity –– TMEN provides a vehicle to invest NOW in a TMEN provides a vehicle to invest NOW in a

leading edge carbon capture technologyleading edge carbon capture technology

�� Leading IP Portfolio Leading IP Portfolio –– Pressurized oxyPressurized oxy--fuel is a leading solution for zero fuel is a leading solution for zero

emissions carbon management power plantsemissions carbon management power plants

�� Strong partnership Strong partnership –– TMEN and Babcock provide the combined TMEN and Babcock provide the combined

expertise necessary for a leading clean technology power plant bexpertise necessary for a leading clean technology power plant businessusiness

BT

CC

te executive summary

Documents