LEXTRAN

LTD.
Advanced Clean Air Solutions

HELPS YOU CLEAN THE AIR FOR A BETTER WORLD

November
Overview

• Lextran Ltd. is a private company formed in 1997 by

Ludan Engineering Co. Ltd. one of Israel’s leading
engineering companies with 700 employees.
• Lextran has developed a unique and patented gas cleaning
technology that removes pollutants from flue gasses
emitted by power plants and other industrial installations.
* Granted patents: EU # 1225967; US # 6,881,243
* Pending Hg patents: EU #10/596,400; USA # 04806657.5
* Registered Patent, for using of Reagent # 132347
• Lextran has set its goals in reducing the air pollution by
developing a cost effective installation for controlling the
emissions of Nitrogen Oxides (NOx), Sulphur Oxides
(SOx), Mercury (Hg) and other heavy metals.
Lextran
Structure
The Business
opportunity
• The reduction of the air pollution from power plants
are a
subject of great importance.
• Nitrogen Oxides (NOx), Sulphur Oxides (SOx), Mercury
(Hg) and other heavy metals emitted by burning fuel,
are an ecological burden of the first degree.
• Most of the governments and the environmental
enforcing bodies have set strict standards to
prevent dangerous pollutants’ discharge to the
atmosphere.
• Lextran patented processes are cost effective and
user friendly compare to any existing conventional
Electricity Generated by Fuel 1980-
2030
Air Pollution – Lethal
Legacy
In the US, several hundred older, coal-burning
power plants across the nation are still
operating without updated or no pollution
controls.
Pollution from these plants pose severe threats
to the public health and the environment:
• Asthma attacks & emergency room visits -
More than 6 millions asthma attacks.
• Premature mortality - 40,000 premature
deaths every year.
• Loss of Aquatic and forest ecosystems -
The largest source of the nitrogen and
sulfur pollution that causes the acid rain.
• Human development and neurological
damage - Coal-burning plants are the
largest domestic industrial known source of
mercury.
Lextran Technology
• The Lextran DeSOx + DeNOx + DeHg technology is a unique,
patented 3 in 1 gas cleaning technology using a wet scrubber &
employing the Lextran liquid catalyst in a water emulsion, to treat
SOx, NOx and Mercury. These 3 major pollutants are purged in one
wet scrubber.
• The Lextran process is a single step, simultaneous multi pollutant
removal approach. The chemistry is complex and involves mass
transfer between gas and two liquid phases and a set of chemical
reactions.
• The Lextran process meets or substantially exceeds all
current regulatory requirements for coal fired power plants:
• Almost complete removal of SOx
• Up to 70% removal of NOx
• Almost complete removal of Mercury
• It is a very simple installation with only a minimum of
equipment and
only liquid reagents, and it requires a relatively small
Process
Description
Utilization of the Lextran chemistry is achieved using
the following steps:
• Absorption of SO2 and N2O3 in the Lextran-water emulsion in a
conventional gas-liquid contacting “absorption tower”.
• Oxidation of the Lextran-oxides complex in “oxidation tank” at
the bottom of the absorber, using excess of oxygen from the
flue gas.
• Removing of the water dissolved salt from the system by
separating the aqueous phase from the Lextran phase, through a
constant bleed from the circulation stream across the scrubber
into the “decanter”.
• The bleed stream into the “decanter” passes a filter to remove
accumulated particulate matter.
• Neutralization of the acids using basic compounds such as 25%
NH4OH to form Ammonium Nitrate and Ammonium Sulphate salts
which can be used as a fertilizer.
Schematic Process
Diagram
 Process
Comparison
Complex FGD Process Lextran Simple Process

Lextran is a simple solution in retrofit and new plants

Lextran Performance -
indicative

Lextran excellent results in pilots and laboratory tests

The Market
Segments
The Lextran process has applicability in five
(5) major market segments:
• Electric power plants burning coal
• Electric power plants burning heavy fuel oil
• Diesel power plants
• Industries: steel manufacturing, oil refining, pulp
and paper, etc.
• Solid waste management incinerators
Market
Size•
The worldwide annual revenues for power plant air
pollution control in 2005 were estimated as US$34.3
billion and the annual capital expenditure in DeSNox
is about US$ 13 billion. Lextran’s addressable
markets segments are the following:
• In Coal Power plants is US$8,24 billion.
• In HFO (Residual oil) plant is US$ 1.07 billion.
• Increasing focus on DeSNOx will greatly increase the
market size worldwide in the 2010-2012 periods due
to the concerns about Mercury and other heavy
metal pollutants and the related enforcements
regulations.
• Almost 60% of all Coal projects are being built for
the U.S., China, Mediterranean and Eastern
European countries, that have recently joint the
European Community, such as Poland, Romania,
Bulgaria.
Lextran’s Coal Market - US$ 8.24
billion
Lextran Coal Target Markets - in $ million p.a.

United States
Germany
285.7
1,179.2 Poland
3,107.1
Russia
South Africa
1,875.0 Australia
393.3
217.8
507.0
China
302.1
372.6 India
Japan
Lextran’s HFO Market - US$ 1.07
billion
Lextran HFO Target Markets - in $ million p.a.

Mexico
United States
Italy
92.3 44.0 74.1 Netherland
88.9 175.3
s Spain
Russia
China
119.7 71.0
India
57.0 48.1 Japan
165.7 90.8
48.3 Korea, South
Singapore
Taiwan
 Investment Cost
Comparison
Lignite Sub- Bituminou
bitum s
700
600
500
400
US$/kW
300
200
100
0
Marsulex Airborne LSFO Toxecom Lextran

LEXTRAN investment cost is lower in relation to other technologies

Operational Cost
Comparison
Operational
Cost LEXTRAN
Alternative Cost - excluding Cost - including
POLLUTANT UNITS Technology by product credit by product credit

DeSOx $/MWh $8.00 $6.00 $1.90

DeNOx $/MWh $3.30 $1.40 $1.30
DeHg $/MWh $8.00 $1.86 $1.86
Total Costs $/MWh $19.30 $9.26 $5.06
Saving in % % 52% 74%

LEXTRAN Products are cost efficient in operational expenses

Total Cost Comparison - Investment &
Operational

Total Cost LEXTRAN - Total Cost

Alternative Cost - excluding Cost - including
POLLUTANT UNITS Technology by product credit by product credit

DeSOx $/MWh $11.28 $8.73 $3.58

DeNOx $/MWh $5.22 $2.03 $2.35
DeHg $/MWh $8.00 $2.70 $3.33
Total Costs $/MWh $24.50 $13.46 $9.26
Saving in % % 45% 62%

LEXTRAN Products are cost efficient in Total Specific Costs

Our products and
services
• Lextran offers the following 3 services:
I. A Technology Engineering Basic Package and supply of Lextran’s
liquid
catalyst
II. Full scale new Plants or retrofit of existing installations
III.Supplementary Operational and Maintenance service agreements
• Lextran offers complete solutions:
– from the Definition of the Problem; Pre-Project analysis;
Laboratory tests; Pilot plant; up to the Implementation – full
scale plant, and -
– O & M supervision services
 Lextran’s key
benefits
• Direct Benefit - Compliance with Clean
Air Act and Regulations:-
– In Coal based Power plants: Lextran process is
the simple and cost efficient solution to
comply with the stringent Clean Air
regulations.
– In Heavy Fuel oil Power plants (Steam and
Diesel) Lextran removes almost 100%, no
matter what the is sulfur content.
• By Products - Ammonium nitrate and
ammonium
sulfate can be utilized by the fertilizer industry.
Lextran’s key benefits (continuation)

• New or Retrofit - The benefits apply

to both new power plants and
retrofits.
• EPA revised clean air regulations
mandate DeSNOx for every coal
power plant, many of which were
previously exempt.
• The Lextran process requires a small
footprint and can be constructed
while the plant continues to operate.
Only a few days of connection are
needed to become operational.
 March 2008 - Lextran Worldwide
Presence
Country
1 Israel

2 Romania

3 Poland

4 Austria

5 Czech Republic

6 China

7 Slovakia

8 Hungary

9 Estonia

10 Russia

11 South Africa
Business
Model
Lextran is seeking to license its patented Lextran
system to specialized companies in a number of
selected countries: North America, EU (Mediterranean
& East Europe), China, South Africa, South East Asia.
Lextran is seeking major players (partners) in these
markets that will receive the rights to market &
supply the Lextran process:
– The partner will deal with all the marketing maters, as well as
detailed engineering, project management and
commissioning on site.
– The partner will invest in a local joint venture and undertake
large scale demonstrations projects using the Lextran
process.
Contact
information
Mr. Haim Mr. Arie Manor
Sterenfine VP Business Development
Mobile:
General +Manager
972-52-234 1345 Mobile: + 972-52-484 9529
Tel: + 972-3-918 2000 Tel: + 972-3- 9182045
e-mail: haim@lextran.co.i e-mail: amanor@lextran.co.il
l arimanor@ludan.co.il
haim@ludan.co.il
LEXTRAN LTD.
Fax: + 972-3-9182022
Address:
6 Granit St. Kiryat Arie,
P.O.B. 3584
Petah Tikva 49130, Israel
www.lextrantech.co.il