1. Nutrient Recovery in Today’s Market:
Why, How, and Why Not?
October 4, 2011
Matt Kuzma – Vice President, Wastewater Solutions

2. The Urban Phosphorus Nexus
• Urban areas greatly concentrate nutrients
• Complete phosphorus fertilizer “bans” are a knee-
jerk reaction
• Urban wastewater utilities have the opportunity to
provide a better solution
© 2011 OSTARA NUTRIENT RECOVERY TECHNOLOGIES INC. ALL RIGHTS RESERVED. PEARL AND CRYSTAL GREEN ARE REGISTERED TRADEMARKS. | Ostara.com 2

3. Today’s Phosphorus “Lifecycle”
Fertilizer Production
Fertilizer Application
Phosphate Rock
Mining Food Consumption
Production Wastewater
Return to Environment
Wastewater Treatment
© 2011 OSTARA NUTRIENT RECOVERY TECHNOLOGIES INC. ALL RIGHTS RESERVED. CRYSTAL GREEN IS A REGISTERED TRADEMARK. | Ostara.com 3

4. Phosphorus – Friend or Foe?
Friend as a “Nutrient”:
– Necessary for agriculture and essential
component for life
• 160 million tons of phosphate rock mined annually
Foe as “Pollution”:
– Recognized as leading cause of eutrophication
in water bodies
• ~365,000 tons/year of phosphorus in US sewage
Result: Phosphorus is really a mismanaged resource.
© 2011 OSTARA NUTRIENT RECOVERY TECHNOLOGIES INC. ALL RIGHTS RESERVED. PEARL AND CRYSTAL GREEN ARE REGISTERED TRADEMARKS. | Ostara.com 4

5. Phosphorus as an “Emerging Issue”
Sustainable P Initiative
© 2011 OSTARA NUTRIENT RECOVERY TECHNOLOGIES INC. ALL RIGHTS RESERVED. PEARL AND CRYSTAL GREEN ARE REGISTERED TRADEMARKS. | Ostara.com 5

6. Future Phosphorus “Lifecycle”
Fertilizer Production
Fertilizer Application
Phosphate Rock
Mining Food Consumption
Production Wastewater
Return to Environment
Wastewater Treatment
© 2011 OSTARA NUTRIENT RECOVERY TECHNOLOGIES INC. ALL RIGHTS RESERVED. CRYSTAL GREEN IS A REGISTERED TRADEMARK. | Ostara.com 6

7. Market Barriers
• Technology Acceptance
– Does it work?
– Are there reliability or complexity concerns?
• Company Viability
– Will the company be around to support the technology?
• Value Proposition
– Does it “help” me?
– Does it save me money?
• Budget Allocation & Timing
– When will funds become available if we decide to proceed?
– What budget does the project get allocated to?
• Procurement & Contracting
– Sole source & competitive process
© 2011 OSTARA NUTRIENT RECOVERY TECHNOLOGIES INC. ALL RIGHTS RESERVED. CRYSTAL GREEN IS A REGISTERED TRADEMARK. | Ostara.com 7

8. “Solutions” Lead to New Challenges
• “Performance Contract” Model
+ Eliminates Technology Risk
+ Eliminates Company Viability Risk
+ Eliminates Capital Expenditures
─ Not “standard” process
─ Procurement Challenges
• “Sole Source” & competitive procurement (RFP)
• History and model for performance contracting
© 2011 OSTARA NUTRIENT RECOVERY TECHNOLOGIES INC. ALL RIGHTS RESERVED. PEARL AND CRYSTAL GREEN ARE REGISTERED TRADEMARKS. | Ostara.com 8

9. “Solutions” Lead to New Challenges
• Revenue Sharing
+ Eliminates client risks with byproduct
+ Emphasizes both organizations core competencies to
maximize value
+ Creates mutually beneficial objectives
– Few existing models for revenue collection
– Evaluation challenges
© 2011 OSTARA NUTRIENT RECOVERY TECHNOLOGIES INC. ALL RIGHTS RESERVED. PEARL AND CRYSTAL GREEN ARE REGISTERED TRADEMARKS. | Ostara.com 9

10. Outside Challenges
• How does a conservative and resource-limited market
“reward” thinking ahead?
• What framework can be developed to support addressing
challenges “outside” our industry?
• How can we develop relationships with the regulatory
agencies to reach the intended result (and avoid the
unintended consequences)?
• Where does the water/wastewater industry fit into “resource
management”?
• How can we consolidate support to define objectives and
fund the work to reach them?
© 2011 OSTARA NUTRIENT RECOVERY TECHNOLOGIES INC. ALL RIGHTS RESERVED. PEARL AND CRYSTAL GREEN ARE REGISTERED TRADEMARKS. | Ostara.com 10

11. A Father’s Advice…
Market Daily News
Plant Manager Fails to Act on
Opportunity to Improve Water Quality
While presented with the opportunity to add an exciting new technology to the local
wastewater facility, Sewer District declines to add new technology that would cost-
effectively improve water quality to the Market River.
© 2011 OSTARA NUTRIENT RECOVERY TECHNOLOGIES INC. ALL RIGHTS RESERVED. PEARL AND CRYSTAL GREEN ARE REGISTERED TRADEMARKS. | Ostara.com 11

12. Thank you
For more information, please contact:
Matt Kuzma
Vice President, Wastewater Solutions
mkuzma@ostara.com
Office (206) 402-5867 / Mobile (206) 419-1993
© 2011 OSTARA NUTRIENT RECOVERY TECHNOLOGIES INC. ALL RIGHTS RESERVED. CRYSTAL GREEN IS A REGISTERED TRADEMARK. | Ostara.com 12