Investor Information

Company Profile

Terra Systems, Inc. is a development stage company focused on advanced, clean and renewable energy technology applications and projects. TSYI is engaged in the development and commercialization of it's patented pneumatic accelerator system technology, upgrading of specialty and waste carbon products, control of emissions via carbon re-burn technology, advanced clean energy development. Terra Systems was founded in 1996 and is headquartered in Salt Lake City, Utah with satellite offices in Price, Utah and Soda Springs, Idaho.

June 4, 2007
Terra Systems, Inc. (TSYI) 2007 Q1 Statements
United States Securities and Exchange Commission FORM 10-QSB
May 28, 2007
Letter from the CEO to the Shareholders of Terra Systems, Inc. (TSYI)

Projects and Activities

Pneumatic Accelerator System (PAS) Technology

The patented Pneumatic Accelerator System (PAS) Technology comprises a gas linear particle accelerator that transports and processes bulk material at high velocity in a particle isolated state, using air as the medium of movement.

The system is a unique gas linear particle accelerator, which permits a uniform dispersal of materials at a high degree of particle isolation. The dry process method utilizes air (or other gases) as the medium of movement, carrying bulk materials at high velocity but low pressure. The system can transport almost any particle, for any duration of time, at any temperature, and at any velocity/density ratio (a key principle in fluid dynamics). The combination of the system's ability to isolate particles and to transport them at high (and varying) velocities permits bulk materials to be accelerated, stratified, and electrified (the particles absorb electrical properties). As a result, the system can process industrial bulk materials in a variety of ways, including: separating, pulverizing, drying, classifying, mixing, forming, transporting and transloading. These processes are seen as broadly applicable to handling coal, coal ash, rice, grains, precious metals and waste materials, to name just a few.

The system has six basic components:

  1. Pneumatic injector feed system
  2. Motive force delivery package
  3. Transmission lines to the exclusive accelerator assembly
  4. Accelerator assembly
  5. Product lines through which bulk materials are transported
  6. Computer operated controls

In 1998, the Company applied to the US Patent Office for 31 claims on a number of features of its low pressure, pneumatic particle conveyance system. In 2000, TSYI announced that the US Patent Office had allowed all of its 31 claims. These claims specify the uniqueness of the features. In general, they relate to the system's ability to put particles into a dilute phase during conveyance and processing procedures.

TSYI's patented system utilizes slow-moving laminar gas to transport bulk materials through a carrying duct. The gas flows at high velocity, but at low pressures and temperatures. Differential velocities create a "boundary" layer of air next to the outside wall of the conduit pipe and the center flow of the material much like "currents in a river". The main central current is faster than the outside current, thus protecting the bulk material from the walls of the pipe. When the gas in the pipe is accelerated, it creates an optimal differential environment, in which velocity controls density. The faster velocity in the center of the duct and the differential velocity with the boundary layer, puts the particles into a "high-spin state". This "spin state" provides a mechanism to dry the material while it is being transported as well as creating electro-magnetic, electro-static and electro-plasmatic properties if so desired.

In this accelerated state, the particles can be reduced in size by: 1) colliding the particles with each other as they move irregularly through the duct at high velocity or 2) directing the particles to strike an ablative plate - the particle size determined by the impact velocity which can be finitely adjusted by the system's unique accelerator.

Functionally, TSYI's unique system can perform a variety of physical procedures. These primarily include:

  1. Isolating particles
  2. Pulverizing (down to very fine pharmaceutical compound size)
  3. Drying
  4. Classifying/Sorting
  5. Mixing
  6. Forming (pelletizing, briquetting, etc.)
  7. Transporting
  8. Transloading (transferring from one mode of transportation to another)

Economic benefits from utilizing the system include:

  1. Higher unit prices of end products through drying, classifying, upgrading, beneficiating, concentrating, etc.
  2. Lower unit costs of production through greater efficiency, use of air as a medium of movement rather than water, systems ability to perform multiple task at the same time, no requirement for chemical additives and lower maintenance costs.

The PAS Technology is applicable to both organic and inorganic materials. Virtually all bulk materials used in basic industries can use the technology, such as:

  • Agriculture
      Drying of grains, sugar, etc. Soil reconditioning by restoring depleted trace elements
  • Coal
    • Moisture Reduction
    • Ash Removal
    • o Micro-pulverization (to 80% less than 325 mesh)
    • Bulk Transportion
    • Reclamation of gob (waste) piles
  • Mining
    • Precious metal classification and concentration
  • Environmental
    • Dry/Extract/Remove of Waste from:
      • Industrial Process Streams
      • Animal Agriculture
      • Food Processing
      • Human Waste
  • Construction
    • By-product beneficiation (i.e fly ash)

Ronald L. Frank, Executive Vice President of Ecology and Environment states: "We are impressed with the potential applicability of TSYI's Pneumatic Accelerator to a wide variety of environmental issues. In particular, we believe the ability of TSYI's system to operate without water will become an increasingly attractive attribute in the worldwide marketplace."

TSYI anticipates it will share in the economic returns from the use of its technology through fees, royalties and/or profit sharing.

PAS System Configurations

PAS Drying and Classifying Process

Configuration set-up

Configuration set-up on location

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Carbon Upgrading

In alliance with Combustion Resources (www.combustionresources.com), TSYI has constructed a Pilot Carbon Upgrading Facility at the College of Eastern Utah's newly established technology center at the old Willowcreek Mine just outside Price, Utah. TSYI is the exclusive licensee of Combustion Resources Clean Coke Upgrading technology. The Pilot Plant will provide the foundation on which TSYI intends to build Clean Coke and Carbon Upgrading technologies into commercial operation.

Willow Creek Plant: Briquetter

Willow Creek Plant: Dryer

Willow Creek Plant: Briquettes

Carbon Upgrading Video

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Fuel Reburn

Carbon Reburn/NOx Reduction Project -- Utilizing TSYI's proven pneumatic accelerator system (PAS) technology; clean coal is dried, micropulverized and ultimately injected into the upper regions of power plant's boiler to create a "reburn" zone to reduce NOx emissions.

Micropulverizing coal yields important operating and economic benefits and can be used as a major technique to reduce NOx emissions using Reburning Technology. In alliance with power plant operators, TSYI's PAS technology is planned to be used to micropulverize and dry coal to less than 325 mesh. The PAS technology will micro-size coal much cheaper and more efficiently than conventional coal mill technology.

Reburning is a process whereby a portion of the total fuel (i.e. micropulverized coal) is diverted from the main burners to a downstream location, thereby establishing a fuel-rich zone in which NOx emissions are reduced. Overfire air is then added to burn out remaining combustible material. Economically, it is ideal to use an inexpensive material such as coal as the reburn fuel (coal reburning). Typically, the amount of reburning fuel used is 10-30% of the total fuel. US Department of Energy sponsored projects have seen significant reductions in NOX utilizing this process. Utilizing the PAS technology, TSYI expect the reburn zone can achieve nitric oxide reductions of over 80%.

Micronized Coal Carbon Reburn/NOx Reduction Project

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Clean Coal Electric Generation Station

Mountain Island Energy, LLC (MIE) is a wholly owned subsidiary of Terra Systems, Inc (TSYI). MIE is located in Soda Springs, Idaho and is engaged in power project development work.

The following Fundamental Baseline Work has been completed in support of the development of the power projects:

  • "Permitting and Environmental Feasibility Analysis" - Mountain Island Energy, LLC Project Site, Ecology and Environment, May 2005
  • "Mountain Island Energy LLC Water Right Evaluation: Concept Paper on Water Right Acquisition Process and Structure Alternatives"; Brockway Engineering, PLLC; March 20, 2006
  • "Mountain Island Energy, LLC: Water Right Consolidation Plan"; Holland and Hart Law, Brockway Engineering, PLLC and Mountain Island Energy, LLC; April, 2006
  • "Mountain Island Energy, LLC: Preliminary Hydrological Review for the Proposed Project Site Near Soda Springs, Idaho"; conducted by Brockway Engineering, PLLC - Principal investigator: Daren T. Nelson, M.S.; May 9, 2006
Soda Springs Power Plant Project (SSPP)

The SSPP is dedicated to the purpose of providing a stable, affordable, and environmentally responsible base load electric power supply by building a clean coal-fueled power plant. From its location in Soda Springs, Idaho, MIE will set a clean-energy standard for the West.

The project is currently focused on planning, licensing, and developing the SSPP. Mountain Island Energy, LLC has purchased the proposed project site north of Soda Springs, Idaho. The Project will entail one or more 200 to 250 megawatt (MW) units.

The SSPP will utilize state-of-the-art advanced clean coal gasification technology. Rather than traditional integrated gasification combined cycle technolgy or "IGCC", MIE plans to use pressurized fluidized bed combustion or "PFBC" technolgy. IGCC is not currently as efficient at elevation or proven with western coals. Whereas IGCC has minimal operating hours, PFBC technology has over 270,000 successful operating hours. MIE has formed a strategic alliance with a technology provider and continues to pursue a PFBC projects in Idaho and Wyoming. TSYI expects that it will add project partners as the development process progresses.

The following picture shows the MIE 423 acre Project Site.

The location of the MIE 423 acre Project Site

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Carbon Calciner - Clean Coke Project

The Carbon Calciner Project (CCP) is an alliance between Mountain Island Energy, LLC and Combustion Resources. Utilizing innovative and proven carbon conditioning and calcining technology; coal and other carbon products and by-products will be upgraded to meet specialty carbon needs in the western US.

The alliance will fill a gap in the specialty grade carbon product markets that has developed over the past decade with the closing of most all metallurgical and specialty carbon producing facilities west of the Mississippi.

The CCP will produce high grade carbon (coke) for metallurgical and specialty carbon users. The project will have the ability to use traditional and non-traditional carbon feed stocks, including: coal, pet coke and by-products of the coal and coke industries. The project will produce custom size and grade for the varying specialty carbon users.

TSYI intends to build several coking plants that utilize the technology and qualify for Internal Revenue Code Section 45k tax credits.

Carbon Calciner - Clean Coke Project: Process

Carbon Calciner - Clean Coke Project: Roller Kiln

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Wind Power Generation

With the potential of up to 120 megawatts of wind energy potential in and around Soda Springs, Idaho, MIE has carved-out the feasible locations for up to 40 megawatts of wind energy potential. Lands controlled by Mountain Island Energy, LLC look favorable as to: Wind Class Ranking, Accessibility, Ownership and Proximity to Transmission and Distribution lines.

Potential customers for the wind generated power include: the City of Soda Springs, PacifiCorp-Utah Power, Idaho Power, Bonneville Power Administration and Lower Valley Energy Electric Co-op.

The following is a picture of the proposed Wind Energy Project on Rabbit Hill.

The proposed Wind Energy Project on Rabbit Hill

Wind Energy Project

Wind Energy Project

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