1. Synthetic Materials - Synmat History Founded 1994 Mission: Acquire and develop sources of synthetic gypsum

2. Synmat Dewater, transport and market in excess of 2.5 million tons of synthetic gypsum in 2006 Greater than 20% of all synthetic gypsum that is consumed in the U.S. 5.0 million tons of synthetic gypsum under contract 2010

3. Facility Description Receive scrubber bleed from scrubber Return effluent to scrubber Produce treated discharge stream Horizontal vacuum belt filter system –Wallboard Grade Gypsum Product – 8% moisture max –Reserve recovery from Gypsum Stack

4. Transport Conveyor –On site wallboard Barge –400 TPH Loading Rate –350 Barge Loadings Annually RailTruck –Cake –Dried

5. Synmat - Design

6. Synmat – Design

7. Truck Loading

8. Barge Loading Cumberland

9. Agricultural Sales Synmat Experience Truck load – local –Soybeans –Golf Courses –Aquaculture Barge load – river –Through Distributor Agricultural product –Fertilizer Filler

10. Distribution Hurdles Economic Transport Distance –OTR, $0.10 - $0.12 per ton mile (+ fuel) Seasonal Variations –Two peak seasons Stockpiling near usage point Handling Issues –Modifications to broadcast systems

11. Business Hurdles Large Industrial Sales Typical –Gypsum Wallboard 350,000 – 900,000 tons –Portland Cement 35,000 – 200,000 tons Cooperative Approach –Pool Local Users Through Cooperative

12. Targets for Future Sales Utility must see economic benefit to sales –Direct and Indirect Investment in Research EPRI University Grants Aggressively develop local market –50 to 100 mile radius around utility End-user must see long-term value to gypsum –Investment in gypsum must generate positive ROI