We are developing a revolutionary new process, nano-MeOH, for direct conversion of methane (natural gas) to methanol at half the

cost and much smaller scale than current technology. This will allow monetizing an otherwise untapped source of energy into a higher value product that is a clean component for both gasoline blending and as an energy source for fuel cells. Competitive Advantage: Current gas-to-liquids (GTL) technologies are multistep, high pressure and high temperature, thereby requiring very large scale and investments to be economic. Due to the reduction in capital equipment and energy input required, nano-MeOH converts methane to methanol at half the cost, and does not require a large scale installation to be economic. Consequently, stranded sources of methane such as landfills and remote gas associated with oil production can be economically exploited. Business Summary: This technology is being developed exclusively for General Methanol by Edwards NanoScience (ENS) who has completed the first phase of R&D at Texas A&M University. A team led by Dr. John Gladysz, who holds the prestigious Dow Chair in Chemical Invention, has been commissioned to apply their catalyst design expertise to the direct conversion of methane to methanol. The key to the technology is that the catalyst is inside a nano-scale, carbon-based cage which absorbs the methane and oxygen and then expels the methanol before further oxidation. General Methanol is funding this applied research along with all associated patents, and in return has been granted the exclusive worldwide rights to the intellectual property. The first lab scale bench converter is scheduled for mid 2011 and the pilot converter by end of 2012. Management: Our team has extensive experience in developing ventures and commercializing technology in the oil and gas industry. Stephen Sims, our president, recently retired from ConocoPhillips has 35+ years experience in downstream strategy and business development, including negotiating joint ventures with new technology companies and sale of three process licensing technologies. John Edwards, our chief scientist, has successfully commercialized several technologies, led two public companies and taken one through IPO. Early investors such as John Filla, who worked for ABB in the upstream energy business, along with several key advisors, support this venture from a broad base of experience. Customer Problem: Gas at landfills, offshore platforms and in remote locations is being flared, re-injected or left in place because of the high cost to transport the gas to market or to convert it to a liquid. Asset owners are not able to monetize this resource nor report the associated gas reserves, hence depressing the value of their overall portfolio. Product/Services: General Methanol will license the technology for use in skid-mounted converters and larger scale plants. Customers: Landfill operators, oil companies and process licensors such as UOP, Lurgi, IFP. Sales/Marketing Strategy: Because of the scalability, this process will first be applied to small yet high return opportunities such as generating methanol from flared landfill gas in the US. Another early version of the process will convert natural gas directly to formaldehyde thereby bypassing methanol imports and subsequent processing into formaldehyde. A third early application will be the conversion of associated gas from offshore deepwater oil production. Business Model: Revenues will come from license royalties and sale of converters. Competitors: In the landfill segment, competing offerings are boilers and power generation. For the larger oil production facilities, re-injection and compressed natural gas (CNG) are the main competing applications. The largescale methanol plants monetize stranded gas and are the current low cost
June 2010

Company Profile: www.genmethanol.com Industry: CleanTech, Oil & Gas Employees: 2 Founded: 2008 Contact: Stephen Sims StephenPSims@genmetha nol.com w: 832-640-5921 Status: Current funding for the ongoing research and the initial portfolio of patents to protect the intellectual property Management: Stephen Sims, President John Edwards, Chief Scientist Advisors: Ron Sills - Methanol & DME Scott Morris - R&D Non-Executive Directors: Leo Womack John Filla Ralf van der Ven Susanne Richard Executive Directors: John Edwards Stephen Sims Financial: Funding Stage: Product In Development Previous Capital: $160,000 Monthly Burn Rate: $8,000 Pre-Money Valuation: $2,250,000 Capital Seeking: $500,000 Investors to Date: ENS, Inc. Womack Family Trust Highgate Ventures Coastal LNG Partners Ron Sills
General Methanol Dec 28, 2010

producers for the existing methanol market. The alternate route to market for very large quantities of stranded gas is by liquefied natural gas (LNG) which requires huge investment in liquefaction plant and cryogenic carriers and regasification terminals while still only delivering natural gas rather than a more valuable liquid transportation fuel.

June 2010