HRS Sludge to Oil Technology

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HYDROCARBON RECOVERY HYDROCARBON RECOVERY SOLUTIONSSOLUTIONSSludge/Emulsion Resolution & Oil Recovery

Sludge-to-Oil (S-t-O™) Technology


SS--tt--OO™™ Technology OverviewTechnology Overview

Novel process enhances treatment of sludges, an environmental liability, through recovery of marketable hydrocarbons

No toxic emissions or byproducts

End products limited to oil, clean water and inert solids

Makes money through environmental remediation charges and also recovery of saleable hydrocarbons

Customers substantially mitigate the cost of remediation by sharing revenue in recovered hydrocarbons

Scalable, mobile solution applicable to varying challenges across global marketplace worth billions


Environmental benefits of S-t-O™ are substantial and include:

No further remediation of solids required. Other techniques often move the solids around, but don’t fix the problem, and liabilities remain.

No airborne or liquid toxic emissions. Even bioremediation is an incomplete solution to the extent that oil – consuming micro-organisms become part of a food chain in which humans participate.

Rapid decomposition of chemical reagents to non-hazardous state. Chemical dispersants used to date in the Gulf of Mexico have raised considerable alarm, as they are more toxic to sea life than crude.

Recovery of usable hydrocarbons. Some competitive techniques burn off the valuable oil.

In tank bottom and refinery applications as well as seaside oil contamination, lower risk to workers than manual movements of the sludge.

SS--tt--OO™™ Competitive AdvantageCompetitive Advantage


Problem & OpportunityProblem & Opportunity

Oil Sludge is essentially the toxic byproduct of oil production, which through our process – Sludge to Oil (S-t-O™) - can instead yield marketable oil products potentially worth millions of dollars per day.


Problem & OpportunityProblem & OpportunityThe petroleum industry produces daily over 1.4 million barrels of environmentally hazardous crude oil sludge/emulsion. In addition, millions of barrels of crude sludge have accrued in temporaryholding tanks, pits, and other surface impoundments, with no economic means for safe disposal. All locations where crude oil is stored—such as transfer stations, vessels, tankers, ships, and the world’s 708 refineries—have this problem.


While crude oil is being stored in tanks the fine sediments carried during production and the heavy fractions such as the asphaltenes and paraffin sink to the bottom and form what in the industry is known as sludge or emulsion.

During production, crude oil flows in a mixture with water and solids (earth minerals). A percentage of this mixture is an emulsion containing oil-water and solids, which presents a series of problems and liabilities for handling, storing, transporting and refining crude oil.

This accumulation often causes damage to pumping equipment as well as fouling of the lines and the heating coils where this equipment is used. In some instances, sludge can reduce tank storage capacities by up to 50%. The clean up process for tanks encumbered with sludge is a cumbersome and expensive task mainly based on manual labor to take out the sludge under confined space conditions.

Ongoing Problem Ongoing Problem -- 1.4 million bbl/day1.4 million bbl/day


The extracted sludge becomes a liability of the owner of the tank asset because it poses a threat to the environment. Disposal by conventional means is expensive and typically, and in most cases where remediation is imperfect, does not result in cessation of the owner’s exposure to liability.

““CradleCradle--toto--GraveGrave”” LiabilityLiability


Helios Power Solutions, LLC has formed a new company, Hydrocarbon Recovery Solutions (HRS), to commercialize and deploy its unique and proven green S-t-O™technology for recovering useful oil products from sludge.

This occurs through chemical reactionscatalyzed by a proprietary chemical reagent that destabilizes the emulsion and centrifugation to effectively recover valuable hydrocarbons.

In addition, S-t-O™ separates water and solid components cleanly from sludge or emulsions for safe disposal so as to unfetter site owners from continuing environmental liability.

Complete & Proven Solution: Complete & Proven Solution: SS--tt--OO™™


The culmination of over 12 years of research and development, pilot testing, field demonstrations, and with a U.S. patent application, HRS’ S-t-O™ technologyenables efficient recovery of valuable hydrocarbonsfrom sludges or emulsions.

The reagent formulation is a clear liquid in appearance. There is virtually no environmental risk associated with its use due to its rapid decomposition into inert, non-hazardous components.

The sludge or emulsion is treated with HRS’ proprietary reagents of a predefined ratio to form a mixture for treatment. The mixture is processed to break a micelle structure of the sludge or the emulsion.

The crude oil is recovered from sludge or emulsion through chemical reactions and centrifugation, effectively separating the sludge/emulsion into free water, solids and valuable hydrocarbon.

SS--tt--OO™™ Proprietary ReagentProprietary ReagentU.S. Patent Pending


From Engineering Design to Proven From Engineering Design to Proven SS--tt--OO™™ Field ApplicationField ApplicationS-t-O™ Processing System Implemented Successful in South East Asia

S-t-O™ Technology Modular Processing System


S-t-O™‘s technical effectiveness and economic feasibility for emulsion resolution and crude oil recovery was proven through this technology demonstration. These tests also helped determine the scale up parameters (residence times, operating temperatures, agitation energy, etc.).

David Nahmad’s paper on the novel, patentable S-t-O technology was selected, published and presented at the 2008 Society of Petroleum Engineers (SPE) Asia Pacific Oil & Gas Exhibition in Perth, Australia. Amongst the findings:

“The best results showed complete emulsion resolution with clean solids and water layers.”

Bottom line conclusion: “These results (field & lab testing/analysis) show that scaling up the process (X-O-T) is just a matter of proper equipment sizing”

The Society of Petroleum EngineersThe Society of Petroleum Engineers’’ (SPE International) Paper(SPE International) Paperon the on the SS--tt--OO™™ TechnologyTechnology

The X-O-T Technology (now called S-t-O™) as pioneered and developed by Helios’ Chief Technology Officer, David Nahmad, was implemented on actual field testing at the PETRONAS Carigali Miri Crude Oil Terminal (MCOT).


June 2010

Hydrocarbon Recovery Solutions Company is now initiating commercial deployment of S-t-O Technology in SE Asia beginning with emulsion treatment & crude oil recovery projects with world’s 2 major oil companies.

Both companies have knowledge of the technical advantages of S-t-O.™One of these major oil companies has already approved our engineering design. Combined with our familiarity with the site conditions and of the economics of this technology vs. competitors’, provide us confidence that we can capitalize on this opportunity.

The project would involve resolution/remediation of emulsions and a follow on responsibility to maintain the environmental integrity of a large production field.

Specific information/details for each project available upon execution of Helios’ Non-Disclosure Agreement.

Initiating Commercial Deployment of SInitiating Commercial Deployment of S--tt--OO™™ TechnologyTechnology


SS--tt--OO™™ Technology Technology -- Proven, Rapid & Complete Solution:Proven, Rapid & Complete Solution:GULF OF MEXICO BEACHES, HAZARDOUS TAR & GULF OF MEXICO BEACHES, HAZARDOUS TAR & ““BEACH OILBEACH OIL”” CLEAN UPCLEAN UP

One of the WorldOne of the World’’s Worst Environmental Disasters Worst Environmental Disaster

The catastrophic explosion on April 20, 2010 that caused an oil spill from a BP offshore drilling rig in the Gulf of Mexico has reached the shoreline. Efforts to manage the spill with controlled burning, dispersal and plugging the leak have so far been unsuccessful.

This oil spill has now obtained the dubious distinction of being the worst oil spill in US history, surpassing the damage done by the Exxon Valdez tanker that spilled 11 million gallons of oil into the ecologically sensitive Prince William Sound in 1989.

Unlike the Exxon Valdez tragedy, in which a tanker held a finite capacity of oil, BP's rig is tapped into an underwater oil well and could pump more oil into the ocean indefinitely until the leak is plugged.


91 million gallons of leaked oil crude as of June 8, 20101.8 to 2.1 million gallons leaking per dayFederal Scientists Estimate Gulf Oil Spill Leaks an Exxon-Valdez Disaster Worth of Oil a Week

BP Disaster Gulf Oil Spill Numbers:BP Disaster Gulf Oil Spill Numbers:


States Already Affected

Local Seafood Industry Threatened

Scientists watch for environmental effects…

Concerns over the health effects of the spill grew this week as more workers and residents of the coastal areas reported symptoms such as headaches and breathing problems.


Gulf Oil Spill Now ReachedGulf Oil Spill Now Reached ShorelinesShorelinesCredit Suisse says as much as $15 billion to $23 billion may be needed to cover cleanup costs, plus $14 billion in claims, according to The New York Times.


Wildlife and their Natural Habitat in PerilWildlife and their Natural Habitat in PerilAs the Gulf of Mexico oil spill continues to extend, concern is growing for

the wildlife that stand in its path, especially since many of the coastal animals are currently in their reproductive seasons.


SS--tt--OO™™ Technology Technology -- Rapid & Complete Solution:Rapid & Complete Solution:GULF OF MEXICO HAZARDOUS TAR & GULF OF MEXICO HAZARDOUS TAR & ““BEACH OILBEACH OIL”” CLEAN UPCLEAN UP

Exothermic technique for separation of hydrocarbons from sand and

other solids

Yields clean water, EPA compliant inert solids, and recovery of pure

hydrocarbons

Lower costs than any other remediation technology

1,000 ton per day throughput in mobile, utility - independent skid-

mounted processing units

No toxic emissions/ reconditions original sand for replacement &

relocation

Proven to scale

Units available for deployment within ninety (90) days or less

Applicable to large scale remediation on Gulf of Mexico shoreline

Documents

HRS Sludge to Oil Technology