SulphCo Technology Overview Natural Gasoline Focus April 2011 - … · 2012. 4. 17. · Ultrasound-Assisted Oxidative Desulfurization Mei, H.; Mei, B. W.; Yen, T. F. Fuel, 82, 405

SulphCo Confidential and Proprietary

SulphCo® Technology Overview Natural Gasoline Focus

April 2011


Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that contain projections, estimates or assumptions about our revenues, income and other financial items, our plans for the future, future economic performance, transactions and dispositions and financings related thereto. In many cases, forward-looking statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology, such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” and other similar terminology or the negative of such terminology. However, the absence of these words does not mean that the statements are not forward-looking.

In addition, these forward-looking statements include, but are not limited to, statements regarding implementing our business strategy; development, commercialization and marketing of our products; our intellectual property; our estimates of future revenue and profitability; our estimates or expectations of continued losses; our expectations regarding future expenses, including research and development, sales and marketing, manufacturing and general and administrative expenses; difficulty or inability to raise additional financing, if needed, on terms acceptable to us; our estimates regarding our capital requirements and our needs for additional financing; attracting and retaining customers and employees; sources of revenue and anticipated revenue; and competition in our market.

Forward-looking statements are only predictions. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. All of our forward-looking information is subject to risks and uncertainties that could cause actual results to differ materially from the results expected. Although it is not possible to identify all factors, these risks and uncertainties include the risk factors and the timing of any of those risk factors identified in “Item 1A. Risk Factors” section contained in our most recent Form 10-K, as well as the risk factors and those set forth from time to time in our filings with the Securities and Exchange Commission (“SEC”). These documents are available through our web site, http://www.sulphco.com, or through the SEC’s Electronic Data Gathering and Analysis Retrieval System (“EDGAR”) at http://www.sec.gov.

Each forward-looking statement speaks only as of the date of the particular statement and we undertake no obligation to update or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise.

References in this presentation to “we,” us,” “our,” “our company,” and “SulphCo” refer to SulphCo, Inc., a Nevada corporation.


Outline

•  Technology background

•  SulphCo®’s desulfurization technology

•  SulphCo®’s application development process

•  Development and commercial validation of a natural gasoline application

•  Other applications

•  Natural gas liquids sweetening

•  Diesel

•  Next steps

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Oxidative Desulfurization (ODS)

!  Chemistry: •  Oxidation of sulfur species •  Catalysts: acids, metal complexes, heteropolyanions •  Oxidants: H2O2; tert-BuOOH •  Phase transfer catalysts (oil-water systems)

!  Separation: •  Extraction – liquid-liquid separation •  Adsorption

!  Focus of a variety of companies: http://www.e2env.com/HE.pdf

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Ultrasound-Assisted Oxidative Desulfurization

Mei, H.; Mei, B. W.; Yen, T. F. Fuel, 82, 405 (2003)

!  Chemistry: oil, H2O2 solution, catalyst, phase transfer reagent !  Original patent assigned to SulphCo !  Un-optimized technology

Ultrasound greatly enhances reactivity

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Conversion of DBT to DBTO with and without the use of ultrasound

Con

vers

ion

of D

BT

to D

BTO

, %

Time, min

with Ultrasound

w/o Ultrasound


SulphCo’s Patented Approach to Oxidative Desulfurization

Ultrasound

!  Frequency: 15-20 kHz !  Amplitude: 40-120 µm

Separation !  Gravity separation !  Adsorption !  Extraction

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Chemistry

!  Oxidant: H2O2 etc. !  Oxygen transfer catalyst !  Phase transfer catalyst not required

SulphCo Confidential and Proprietary 7

SulphCo Investor Presentation

7

Cavitation Drives Phase Transfer, Accelerating Oxidative Desulfurization


SulphCo® Application Development

!  Three major stages in developing an application –  Batch reactor testing to select additive package and

estimate operating costs –  Continuous flow pilot plant testing to determine

operational windows –  Commercial scale validation at client’s site

!  In 2010 successfully completed all three stages of a natural gasoline application in Mont Belvieu, TX

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Commercial Scale Process Scheme for Natural Gasoline

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Sulfur Compound Distribution, Before and After Reaction and Water Wash

10

Sulfur Specific Gas

Chromatography

GC-SCD


Commercial Validation Details

!  Exceeded all objectives of validation, comprising performance, ease of operation and cost

!  Defined robust operating window !  Demonstrated up to 3000 BBL/day throughput in a

single reactor !  Culminated in continuous run of 42 hours

–  Goal was to operate continuously for 24 hours !  Average below 45 ppm S in product !  All samples “Sweet” by the Doctor Test

–  Exceeded goal

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Process Control and Sulfur Results

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Diesel Finishing

!  SulphCo®’s Process is Complementary to HDS –  Hydrodesulphurization is a reductive process –  SulphCo®’s ODS process is oxidative –  Sulfur compounds difficult to remove by HDS are easy

for ODS to remove

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Additional Applications: Diesel Finishing

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SulphCo Confidential and Proprietary 15

Hydrogen Usage Profile for Conventional Hydrotreating (PARC Example)

15

•  Removal of the final 1% of sulfur requires >40% of total hydrogen (for diesel tested) •  Generic behavior should hold true for majority of diesel fuels •  Many options for cost/benefit optimization (Hydrogen usage, catalyst life, etc.)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

93% 94% 95% 96% 97% 98% 99% 100%

% H

ydro

gen

Con

sum

ptio

n

% Sulfur Reduction

% Hydrogen Consumption vs. % Sulfur Reduction (Untreated Diesel)


Natural Gas Liquids Sweetening

!  Typical objective tiers –  Mercaptan reduction to meet a Total Mercaptan Sulfur

spec –  Odor reduction or elimination

!  Chemistry and additive package different than other applications

!  System is tunable if Total Sulfur reduction needed

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Natural Gas Condensate Sweetening

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Condensate Feed

Treated and Water-Washed Condensate

Sulfur Specific Gas

Chromatography

GC-SCD


Next Steps

!  Identify opportunities – Client/SulphCo® dialogue to determine

commercial feasibility (stream qualities, volumes, value proposition, infrastructure, etc.)

– Develop testing plan !  Sampling

– Batch testing sample requirements: 1-5 gal – Continuous flow pilot unit sample requirements:

1-4 BBL

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Documents

SulphCo Technology Overview Natural Gasoline Focus April 2011 - … · 2012. 4. 17. · Ultrasound-Assisted Oxidative Desulfurization Mei, H.; Mei, B. W.; Yen, T. F. Fuel, 82, 405