TARBLASTERTARBLASTER

A TECHNOLOGY FOR ”DRY” A TECHNOLOGY FOR ”DRY” RECOVERY OF OIL FROM OIL SHALE RECOVERY OF OIL FROM OIL SHALE

WITH WITH •NO WATER CONSUMPTIONNO WATER CONSUMPTION

•EXTRACTION AND UPGRADING OF THE OIL EXTRACTION AND UPGRADING OF THE OIL IN ONE OPERATIONIN ONE OPERATION

•LESS ENERGY CONSUMPTIONLESS ENERGY CONSUMPTION•LESS GHG EMISSIONLESS GHG EMISSION

Introduction of the PETROMAKS program og user managed Introduction of the PETROMAKS program og user managed innovation projects by NFRinnovation projects by NFR

Presentation of Tarblaster AS by CEO Olav EllingsenPresentation of Tarblaster AS by CEO Olav Ellingsen• The companyThe company

• About the projectAbout the project

The technology challenges by Ph.D. Jørn Bakken SINTEF The technology challenges by Ph.D. Jørn Bakken SINTEF Energy Research ASEnergy Research AS

• R&D needsR&D needs• Time sheduleTime shedule• ResourcesResources

Open discussion about the project and input from NFR to an Open discussion about the project and input from NFR to an applicationapplication

AGENDAAGENDA

• Incorporated by 88 shareholders from Norway, England, Sweden, Germany, Switzerland, USA and Canada

• Number of issued shares 11.000.000

• CEO Olav Ellingsen

• Board of Directors:

• Chairman, lawyer Morten Borch, Oslo• Engineer, Steve Kent, London• Member, marketing investigator Bjarte S.

Ellingsen, Oslo• Member, engineer Olav Ellingsen, Oslo

TARBLASTER ASTARBLASTER ASwww.tarblaster.comwww.tarblaster.com

CEO Olav EllingsenCEO Olav Ellingsen

• SINTEF ENERGY RESEARCH AS, Trondheim• Professor Jens Hetland• Ph.D. Jørn Bakken

• NYHAVNA MEKANISKE AS, Trondheim• Engineer Stig Fuglestad

• KGD Development AS, Oslo• CEO engineer Roger Gale• Professor Finn Drangsholt

R&D PARTNERSR&D PARTNERS

Oil Shale is a sedimentary rock that contains organic matter, which although not appreciable soluble in conventional petroleum solvents can be converted to soluble liquids by heating.

When heated in a processes known as pyrolysis, destructive distillation or retorting, the bonds rupture forming smaller liquids or gaseous molecules. These can then be separated from the inorganic matrix, which remains behind as the spent shale waste products.

OIL SHALEOIL SHALE

Oil shale has been found on all of the inhabited continents.U.S. Geological Survey estimate that the world's oil shale

deposits comprises 2 quadrillion barrels.

If all this oil were extracted and distributed among the world's residents, each person would receive about 600.000 barrels. However, the spent shale would cover over the entire surface of the world, land areas and ocean included, to a depth of about 10 feet.

WORLD WIDE DEPOSITSWORLD WIDE DEPOSITS

DIVERGENCE IN OIL SHALEDIVERGENCE IN OIL SHALE

Commercial grades of oil shale ranges from about 100 to 200 litres per metric ton (l/t) of rock. The U.S. Geological Survey has used a lower limit of about 40 l/t (9 gal/ton) for classification of Federal oil-shale lands.

Here we will use the units used by U.S. Geological Survey – gallons / ton to define the oil shale types as shown below:

DIVERGENCE IN OIL SHALEDIVERGENCE IN OIL SHALE

DIVERGENCE IN OIL SHALEDIVERGENCE IN OIL SHALE

DIVERGENCE IN OIL SHALEDIVERGENCE IN OIL SHALE

OIL SHALE DEPOSITSOIL SHALE DEPOSITS

OIL SHALE DEPOSITSOIL SHALE DEPOSITS

PROBLEMS CONNECTED TO PROBLEMS CONNECTED TO EXISTING TECHNOLOGYEXISTING TECHNOLOGY

High consumption of waterHigh consumption of water

Water polluted with small amount of oil, fines and Water polluted with small amount of oil, fines and chemicalschemicals

High level of energy consumption – inefficient High level of energy consumption – inefficient energy conversionenergy conversion

High output of GHG emissionHigh output of GHG emission

Huge capital investmentsHuge capital investments

Heavy oil which must be upgraded or mixed with Heavy oil which must be upgraded or mixed with light oil prior to refininglight oil prior to refining

The idea in developing the Tarblaster technology was to present a technology which could extract the oil and upgrade it to a refinery feed stock without the environmental constraints as by existing technologies.

THE TARBLASTER IDEATHE TARBLASTER IDEA

TARBLASTER GENERAL FLOW TARBLASTER GENERAL FLOW DIAGRAMDIAGRAM

TARBLASTER LOGISTICS

THE BENEFITS OF THE TARBLASTER TECHNOLOGY

Low energy consumption

Self-sustained with energy by combustion of low value energy

Reduced CO2 emission

No water consumption

Extraction and upgrading the oil in one operation

Reduce capital investments

Easy to scale up

Increased value of oil by:• Increased API FROM 8 to 25 (*)• Reduce sulphur and metal content

(*) Proved API 18, but believe it will be possible to reach

API 25 by an add on process

TEST UNIT

First test June 2008

Test rig ready for testing at SINTEF ENERGY RESEARCH AS, Trondheim

FROM OIL SHALE TO OILFROM OIL SHALE TO OIL

TARBLASTER TEST RESULTS 20.05.09TARBLASTER TEST RESULTS 20.05.09ESTONIAN OIL SHALEESTONIAN OIL SHALE

Test period 55 minutes

Total oil sand feed 33,348 kg

Mass of carbon in sand

Oil evaporated off 4 % of mass of shale

Oil collected 1,41 litres

COMPARISON PRESENT PRODUCTION AND COMPARISON PRESENT PRODUCTION AND TARBLASTER PRODUCTIONTARBLASTER PRODUCTION

FEASIBILITY OF THE TARBLASTER TECHNOLOGY

Unique low temperature and pressure thermo mechanical process

Process equipment known to the industry

Mining operation as for existing technology

CUSTOMERS BENEFIT

FOR EXISTING INDUSTRY AS AN ADD ON PROCESS

REDUCED CAPITAL INVESTMENT

REDUCED ENVIRONMENTAL IMPACTS

REDUCED LIABILITY RISKS

SHORTER PAY BACK TIME

LOWER RECOVERY COSTS AND HIGHER YIELD

CAN HANDLE LEAN SHALE

CAN USE FINE GRAINED SHALE

NO WATER CONTAMINATION

PRIME POTENTIAL CLIENTS

VG Oil AS, Estonia PETROBRAS, Brazil 27 companies pursuing oil shale in

USA

THE TECHNOLOG CHALLENGESJørn Bakken SINTEF Energy Research AS

•Process for the preparation of the feed to the reactor

•System for even distribution of the feed into the reactor

•Handling of spent shale with regeneration of the heat in a solid/liquid steam boiler

•Testing and development of a high temperature sand filter for capture of fines in the gas stream

•Optimization of the condensation conditions by different partial pressure of the gas fraction

THE TECHNOLOG CHALLENGESJørn Bakken SINTEF Energy Research AS

•Optimization of the fluidization conditions in the reactor and regenerator by recirculation of hot pyrolysis gases into the regenerator's plenum

•Development of an electrostatic filter for capture of oil aerosols and non condensed fumes

•Mass and energy balance for optimization of process temperature and specific loads

•Improved upgrading by utilizing the kinetic energy in the gas stream and rerouting part of the produced oil to the reactor

•Simulation and characterization of the process