CAPITALIZING ON THE ABUNDANCE OF ETHANE IN MARCELLUS/UTICA

1. CAPITALIZING ON THE ABUNDANCE OF ETHANE IN MARCELLUS/UTICA Presentation for Ben Franklin Shale Gas Innovation Contest Aither Chemicals, LLC May 22, 2012

2. The Aither Story - Can an old line business like the Petrochemical industry suffer a disruptive technology change? • Union Carbide Engineers proved the efficacy of catalytic cracking in 1980s • Pricing for oil based feedstock compared to natural gas failed to make a compelling case to move to commercialization • The pricing advantage of natural gas liquids (NGL) as a feedstock relative to oil has changed everything for the petrochemical industry • This sustainable competitive advantage can make Pennsylvania a world leader in Petrochemical production • Aither is perfectly positioned to seize this competitive advantage in our region, and anywhere in the world where NGLs are present

4. Ethane: Aither’s Abundant Feedstock By 2014, annual ethane production is estimated to be over 11 billion pounds per year. There is currently no outlet/market/use for ethane in our region! There are many markets for ethane-derived petrochemicals. *Source: NiSource

5. Competitive Advantage – Why Aither is Disruptive Aither has the lowest capital cost in the industry for the development of a world class cracker – our Catalytic cracker is roughly 25% of the equivalently sized cost of a traditional steam cracker Aither has the lowest-cost process to make petrochemicals Aither’s scalable technology can meet local ethane supply availability, local market demand for chemical products, and available local land area and employee resources Aither can take pure ethane or a mixture of methane and ethane, simplifying delivery of feedstock Aither's technical team is the best in the world

6. Aither Technology – Comparing to a Steam Cracker • Aither Catalytic Cracking compared to Steam Cracking(Steam cracking is the old, conventional technology) • 25% of the capital cost compared to steam cracker • Significantly less ethane needed for output • Lower operating cost • 80% Lower energy input • 88% Lower CO2 output • Shorter time to commercial operation possible due to less complexity • Scalable • Start small, and grow with ethane production • Meet local market demand • Simpler process to produce higher-value products • Fewer by-products • No flare due to no unwanted heavy byproducts.

7. Aither Process: Polyethylene Example Ethane gas In Ethane gas to Ethylene gas “Catalytic Cracking” Aither Process Ethylene gas to Polyethylene solid “Conversion” to a “Downstream” Chemical High-Value Polyethylene Chemicals Out Beyond Ethylene

8. George Keller, Ph.D. More than 40 years of R&D experience (Union Carbide, MATRIC) Chemical separations science and technology Distillation, pervaporation, membrane separations, extraction, and adsorption Chemical process fundamentals Renewable raw materials Process heat integration and efficiency improvement Commercialization of innovative technology Many distillation and related processes Most advanced technology for producing oxygen via miniature adsorption units in the homes of people with severe lung problems World’s largest pervaporation facility Elected to National Academy of Engineering Recently announced on AIChE’s list of 100 Chemical Engineers of the Modern Era.

9. Madan Bhasin, Ph.D. Expertise in heterogeneous catalysis and surface science, applied and fundamental More than 45 years of experience Senior Research Scientist at Dow Chemical and Corporate Fellow at Union Carbide Member, U.S. National Academy of Engineering Recipient of the Dow Chemical Two Highest Awards: H. H. Dow Gold Medal & President’s Award ( a First for R&D ) Recipient of “Citation of Recognition“ in Congressional Record of U.S. Senate 1988 Discovered, developed, led, and assisted in commercialization of eleven generations of improved efficiency ethylene oxide catalysts which have contributed, per year, $30 to $60 million(for 30+ years) income without additional investment. Reduced CO2 emissions by ~70%. Developed and applied a variety of surface analytical techniques (Auger, XPS, SIMS, ISS, High Resolution Scanning Auger) for characterization of various commercial and developmental catalysts. Vast experience in other “game-changing” catalytic technologies

10. Why is Aither’s Technology Important for Shale Gas? There are Three Ways to Make More Profit as a Gas Producer • Decrease lifting costs • Increase the Price of the Commodity (virtually impossible as a price-taker) • Find New Markets for Co-Products Of the 12 Outstanding Finalists, only 5 innovations increase the market for products produced by Shale Gas Producers. Of those 5 products, only one feeds into a global business with total sales in excess of $13 trillion.

11. Aither’s Economic Impact • Aither will create jobs in Pennsylvania • 1000 construction jobs • 200 permanent direct jobs • >1000 indirect permanent jobs • Aither will keep value added assets in the Region • No need to ship ethane to Canada or the Gulf • Eliminates the need for expensive piping infrastructure • Aither’s cracker technology can reinvigorate the petrochemical industry in Pennsylvania.

12. NO OTHER FINALIST, AS OUTSTANDING AS THEY MAY BE, CAN MAKE THAT CLAIM!