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                                                                                                                    2013

 

TABLE OF CONTENTS

 

 

TITLE PAGE

1

TABLE OF CONTENTS

2

PREFACE AND DISCLAIMER

INTRODUCTION

3

3

MESSAGE FROM THE PRESIDENT

4

EXECUTIVE SUMMARY

5

1.0 OVERVIEW

1.1 Mission

1.2 Objectives

6

7

7

LIST OF FIGURES

Fig. 1 Carbon Emissions 1800 to 2000

Fig. 2 Global Temperatures 1860 to 2000

 

6

6

2.0 BUSINESS OPPORTUNITIES

2.1 CO2 Emissions and Global Warming

2.2 MTBE Alternative 

2.3 Catalytic Converter Replacement

2.4 Sweet Sorghum for Ethanol Fuel

2.5 SOLO Technology “Solution to Poverty”.

8

8

8

8

9

11

3.0 COMPANY BACKGROUND

3.1 History of the H2O Catalyst 

3.2 Company History

12

12

13

 

 

 

 

4.0 ORGANIZATION

4.1 Management, Board of Directors and Advisors

4.2 Staffing Requirements

16

16

16

5.0 PRODUCTS  

5.1 The H2O Oxygenator System

5.2 AQUAGAS and AQUAHOL Systems

5.3 Sweet Sorghum Ethanol Production

5.4 SOLO Technology Process

5.5 Sweet Sorghum Comparison Chart

5.6 SOLO Technology Economics

5.6 Sweet Sorghum SOLO Technology Market

17

17

18

19

20

21

22

23

6.0 SWOT Analysis

24

7.0 COMPETITIVE ADVANTAGES

7.1 The H2O Oxygenator Market

7.2 Key Success Factors

7.3 Competitive Strength

7.4 Profitability

7.5 Market Position

 

25

25

26

26

27

8.0 MARKETING PLAN

8.1 Marketing Strategies

28

29

9.0 CONCLUSION

30

REFERENCES & GLOSSARY

31





PREFACE

 

This business proposal has been prepared for informational purposes. The material contained herein is considered highly confidential, and shall remain the property of Aquahol Injection Incorporated (AII). This document is not an offering of securities. All of the information is deemed to be proprietary and confidential, and shall not be divulged to any third parties without written consent of AII. This shall be covered in a Non-disclosure agreement that has been signed between AII & the receiving party of this material and is extended to include any and all affiliated parties of the second part.

 

DISCLAIMER 

 

All material contained in this document have been collected and re-presented in the interests of the company. None of the material is to be considered all inclusive or to encompass the full range of possible outcomes. Data has been presented in a manner which best describes its intents and purposes. All dollar values are in presented in United States Dollars (USD) and all data using the Metric & Imperial measurement systems.

 

INTRODUCTION - WHO ARE WE?

 

AII is an environmental company that has developed technologies to effectively answer the problems of global warming by reducing Green House Gas (GHG) emissions of CO2 from combustion engines. Our technologies include a patent pending internal engine conversion system called the H2O Oxygenator System using alternative fuels to what we refer to as

1. AQUAGAS which is what we refer to as straight cut low octane gasoline in conjunction with our system and alternatively,

2. AQUAHOL which the United States department of Agriculture (USDA) has defined as a blend of alcohol and water.

We also have an agriculture program using Sweet Sorghum as an alternative crop to produce Ethanol and Panel Board building materials using what we call SOLO Technology, a mass scale labour intensive employment program to make ethanol and other valuable commodities of grain, bio-mass, and chips as alternative feedstock for making electricity or pulp & paper.

 

GLOBAL VISION

 

A planet where we can all live a fully modern life while maintaining a clean and sustainable environment. A world where poverty can be eliminated through mass scale job creation in the agriculture industry and where developing nations can become energy self sufficient. 

 

GLOBAL MISSION

 

Our mission is to become a world leader in the development and commercialization of environmental, sustainable and renewable energy systems.

 

GLOBAL OBJECTIVE

 

1. Commercialization of our technologies on a global scale.

2. Open new markets for our technologies worldwide.

3. Continue to enhance our technologies to increase our market share.

 

PURPOSE AND SCOPE OF THIS BUSINESS PLAN

 

This business plan is prepared specifically to inform the reader about our technologies. In this plan we intend to grow and process Sweet Sorghum crops into ethanol using our SOLO Technology program in various countries and then to market our internal combustion technology the H2O Oxygenator System.

 

 

 

 

 

 

A MESSAGE FROM THE PRESIDENT

 

Welcome to Aquahol Injection Incorporated and the chance to participate in an incredible opportunity that will make our planet a cleaner and healthier place to live and that will contribute to the wealth of its shareholders.

 

I have personally spent the greater part of my adult life trying to alert the world to the damage being done to our environment by our current fossil fuel based infrastructure, and the fact that we do not have to forsake our well-earned comforts in order to be kinder to our planet. At times this exercise has felt daunting. At these moments I remind myself hat not too long ago smokers set the terms regarding the quality of air we all inhaled and now it’s hard to find a corner in which to indulge this habit.

 

AII has been, over the past 25 years, developing environmental friendly energy technologies. In 1979 with much publicity on major American television networks AII introduced an innovation that converted a gas powered engine into an alcohol and water based fuel plant. This innovation allowed engines to maintain their power output while producing 20% to 80% less pollution. From those modest beginnings AII has now added several environmental friendly technologies that when combined together form an “Energy Eco-System” that will revolutionize the way we as humans take energy from our mother Earth.

 

These technologies will usher in a new age, an age that uses its knowledge of the Earth to share then replenish the Earth’s energy, and not rob it of its vitality through massive resource depletion and pollution.

 

In 1991 the accounting firm of Price Waterhouse in Los Angeles California conducted a feasibility study on AII’s claims. They concluded that AII‘s technologies would be able to achieve success once environmental laws were enacted that mandated the use of alternatives.

 

The United States of America signed the Alcohol Energy Security Act

The United States of America signed the Clean Air Act

Canada passed the Alternative Fuels Act, 1995

163 countries ratified the United Nations Kyoto Accord, effective February 16,  

  2005

Other countries, states and provinces have enacted their own environmental laws.

 

These long awaited developments are a sign of a new awareness regarding the state of our planet’s health and the need to mobilize nations if we are to continue to depend on our planet for sustenance.

 

These laws now place AII in a position for success. I invite you to participate in this enormous opportunity for success, while at the same time bringing our generation and future generations a healthier environment.

 

Sincerely,

Nino De Santis, “El Nino” Friend of the Environment

 

 

 

 

 

 

 

 

EXECUTIVE SUMMARY

 

Aquahol Injection Incorporated (AII) has been at the forefront of developing immediate and available cost effective solutions to the problems that the United Nations (UN) has identified as the two main contributors to the escalating problem of pollution and global warming; fossil fuel emissions and deforestation. In conjunction with the sounding alarm over the state of our planet’s health, there is a growing sense of concern regarding the stability of a free flow of oil in the near future. These conditions are creating enormous business opportunities in non fossil fuel energy alternatives. As the V.P. of Research and Development for General Motors, Larry Burns points out

 

1: “More efficient petroleum based vehicles alone will not solve our petroleum dependence problem. We believe long term you’ve got to get energy sources beyond petroleum…”

In 2005, a landmark United Nations Environment Programme (UNEP) study conducted by 1,360 leading experts from 95 countries called the ‘Millennium Eco-Assessment Report’ concluded that about 60% of the ecosystems that support life on Earth are being degraded and used unsustainably with harmful consequences to human development.

 

2 “The over-riding conclusion of this assessment is that it lies within the power of human societies to ease the strains we are putting on the nature services of the planet, while continuing to use them to bring better living standards to all,”… “Achieving this, however, will require radical changes in the way nature is treated at every level of decision-making and new ways of cooperation between government, business and civil society. The warning signs are there for all of us to see. The future now lies in our hands.”

Statement by the board of directors of the Millennium Eco-Assessment Report

 

Over the past quarter century AII has advanced our technologies and know how in modifying vehicles on the road to reduce Green House Gas (GHG) emissions of internal combustion engines. Our technologies allow for manageable, sustainable and renewable energy in response to the growing demand for alternative fuel sources. We refer to them as follows:

 

A. H2O Oxygenator System; a system which converts internal combustion engines into flexible fuel power plants, allowing any vehicle to use alternative fuels such as

 

1. AQUAGAS which is what we refer to as straight cut unrefined gasoline in conjunction with our system, or

 

2. AQUAHOL which is a blend of alcohol and water that the United States Department of Agriculture (USDA) stated is 800% more efficient than gasohol (Appendix C). This is done without any decrease in power or performance of the vehicle to achieve an increase in fuel efficiency and resulting in a decrease in CO2 emissions by as much as 25% or more!

 

B. Sweet Sorghum SOLO Technology; a labour intensive agriculture program using Sweet Sorghum to produce ethanol, the essential element for AQUAHOL fuel. This mass scale employment program will help eliminate poverty in developing countries to create valuable commodities including; Ethanol, Grain, Pulp & Paper, Biomass and fabricated Panel Boards which we plan to use as alternative green building materials. Effectively this program will employ and feed the people while providing building materials for housing in the Developing countries of the world.

 

C. Energy Eco-System; the combination of the H2O Oxygenator System with the Sweet Sorghum SOLO Technology program will answer the problems of global warming by reducing CO2 emissions and deforestation. The technologies enhance each other’s marketing position as the solution to climate change.

AII is now positioned to commercialize our technologies on a mass scale. For this proposal we intend to grow and process Sweet Sorghum using SOLO Technology to supply the market with ethanol. In California we intend to sell the H2O Oxygenator System as a replacement for the catalytic converter.

 

 

 

 

 

1.0  OVERVIEW

 

The current situation of clean air and global warming is a monumental challenge for the 21st century. Almost every country in the world acknowledges that air pollution caused by the emissions of over an estimated 600 million vehicles is a very harmful reality of our daily lives contributing to climate change. The problems are so great that the international community was mobilized through the United Nations to officially declare that climate change and global warming caused by manmade environmental impact is the most important concern for the world’s future development. Figure 1 and 2 shows the direct result of carbon emissions on climate.

 

3. “Only by understanding the environment and how it works, can we make the necessary decisions to protect it. Only by valuing all our precious natural and human resources can we hope to build a sustainable future,”

Kofi Annan, Secretary General of the United Nations

 

 

 

                  

 

                        Fig. 1 source: http://en.wikipedia.org/wiki/Greenhouse_gas

 

 

 

             

 

 

Fig 2 source: http://en.wikipedia.org/wiki/Image:Instrumental_Temperature_Record.png

 

 

 

 

In 2002 a study by the world's two largest insurance companies Munich Re and Swiss Re warned that the increasing frequency of severe climatic events could cost $150 Billion each year over the next decade! These costs would have devastating effects to the insurance industry, disaster relief programs, consumers and tax payers making many areas susceptible to disasters uninsurable.

 

The UNEP announced that 2005 was the most costly year ever on record due to severe weather around the world. Munich Re estimated the economic losses to be more than $200 Billion and the insurance losses more than $70 Billion!

On February 16, 2005 the UN KYOTO Protocol was officially put into force to address this real and dangerous problem of climate change and global warming. It is now in 2008, an international law mandating the reduction of green house gas emissions below 1990 levels for 174 countries. This is considered the minimum breakeven level just to maintain the status quo of climate change on the planet. The world actually requires at least 25% in the reduction of CO2 emission to stem the progression of climate change.

 

Our H2O Oxygenator System is the solution for a cost effective, immediate and mass scale application.

 

Another major challenge of the new millennium is the rising level of poverty and hunger in developing countries, which has a direct link to the world’s dependence on fossil fuels as recently presented in many articles by International think tanks:

 

4. “… our global dependence on fossil fuels has dramatically increased the threat of global climate change – a threat that is real and carries catastrophic consequences especially for the world’s poor … “The Center for American Progress

 

5. “The only way to meet international poverty targets is by a massive switch to renewable energy …” The New Economics Foundation

 

Our SOLO Technology program using Sweet Sorghum can provide mass employment to thousands of workers for each project; keep farmers on the land, while providing each worker with many additional benefits; food on the table from the grain, houses built from our building materials and a cleaner, less polluting vehicle with our H2O Oxygenator system.

 

1.1 MISSION

Our specific mission for this business proposal is to become a leader in the development and commercialization of environmental, sustainable and renewable energy systems in the world.

 

1.2 OBJECTIVES

Our objectives for this business proposal are to grow Sweet Sorghum in participating nations and show their independence of fossil fuels order to:

 

1. Commercialize our H2O Oxygenator System initially through Federal vehicular fleets

    as an answer to the phase out of MTBE in gasoline and as a replacement for the

    Catalytic converter.

2. Implementation of a trade in exchange program; the H2O Oxygenator System to

    replace catalytic converters on vehicles.

3. Open new markets for our technologies across the participating nation.

4. Implement SOLO Technology in participating developing nations to produce ethanol.

5. Continue to enhance our technologies to increase our market share in world.

 

 

 

 

 

 

 

 

2.0 BUSINESS OPPORTUNITIES

2.1 CO2 EMISSIONS AND GLOBAL WARMING

 

Currently no other technologies provide a viable solution on a global scale in a very short time frame that could effectively address the problems of the more than 450 million vehicles in the world emitting CO2. Vehicles running on conventional fossil fuels are highly inefficient and clearly acknowledged by the auto industry through their development of alternative fuel vehicles. As the Chairman of the Honda Corporation, Takeo Fukui has stated:

 

6"Even the best internal-combustion engines still waste more than 80% of the energy created by burning gasoline."

 

Our H2O Oxygenator System provides a simple, immediate and cost effective system (approximately $ 500 retail) that can be implemented in a very short time (approximately 3 hours) by a general mechanic resulting in reduction of CO2 emissions by as much as 25% or more! If implemented on a mass scale we could effectively convert every vehicle on the planet within a few years to emit dramatically less CO2, and also NOx which is 300 times more dangerous than CO2! The return on investment could be very substantial, while answering the most important global crisis in the history of modern man.

 

2.2 MTBE Alternative

Pollution caused by vehicle emissions is a very real and deadly problem for millions of people around the world. Smog created by the emissions of vehicles has a deadly affect on the very young, the very old and a gradual long term negative effect on the rest of the population. The future health costs could be staggering! As an example, the state of California in the USA, has taken many measures to reduce emissions to curb pollution, but with no viable solutions at present it is very difficult to enforce these laws. In March 1999, Governor Gray Davis announced the phase out of the use of Methyl Tertiary Butyl Ether (MTBE) in gasoline by 2002 because they cause chemical pollution, especially in the water system. Clearly a new approach is required and our H2O Oxygenator System could provide the immediate solution for the state of California to comply with its high U.S. Environmental Protection Agency (EPA) emission standards. In fact, AII has completed EPA tests that already confirm the H2O Oxygenator System is effective at reducing CO2 emissions (see Appendix A).

 

2.3 Catalytic Converter Replacement

The catalytic converter originally was thought to help reduce Green House Gas (GHG) emissions of vehicles, but the EPA confirms that the catalytic converter actually produces extreme GHG that is 300 times more deadly than CO2. The catalytic converter can no longer be considered an Original Equipment Manufacturer (OEM) auto component to combat global warming in the future.

 

7 “The catalytic converter, an invention that has sharply reduced smog from cars, has now become a significant and growing cause of global warming, according to the Environmental Protection Agency … researchers have suspected for years that the converters sometimes rearrange the nitrogen-oxygen compounds to form nitrous oxide, known as laughing gas. And nitrous oxide is a potent greenhouse gas, more than 300 times more potent than carbon dioxide, the most common of the gases, that is warming the atmosphere, according to experts.

The New York Times, May 29, 1998

 

Our H2O Oxygenator System could replace every catalytic converter through a ‘trade in exchange program’. The platinum in the catalytic converter will generate substantial revenues to our company for its resale value as a commodity, thus increasing our gross margin by covering our costs of production for the H2O Oxygenator System unit.

 

 

 

 

2.4 SWEET SORGHUM FOR ETHANOL FUEL

 

In the United States of America over 12% of the fuel market is based on ethanol in a blend called Gasohol (E-10, E-85), which makes it the second largest ethanol market in the world using more than 3 billion gallons a year. This is expected to rapidly increase as ethanol is considered the alternative to replace MTBE to provide the necessary octane in gasoline.

Recent legislation in the USA points to becoming less dependent on foreign oil by mandating greater production and use of ethanol in the domestic fuel market.

With this increased demand expected for ethanol as the replacement octane booster to MTBE, corn is inefficient as the feedstock to produce ethanol. It is only through government support in the form of a $0.53 per gallon subsidy that it continues to survive. Clearly as ethanol prices rise, corn prices will continue to suffer and therefore cannot be considered as the feedstock from an economic point of view.

 

Alternative feed stocks are now being considered such as Switch Grass, but AII has based its research and development for SOLO Technology ethanol production using Sweet Sorghum for the economic value of its many by-products. Sweet Sorghum grows rapidly in 120 days anywhere Corn grows without the required fertilization, pesticides and water consumption volume. Where the climate allows for two harvests per year, it provides two crops per year, indicating an abundant supply is possible. Sweet Sorghum can grow in less arable areas where corn or Sugarcane cannot thrive. Management has indicated that Sweet Sorghum is able to yield over 180% more ethanol than corn or switch grass on a single harvest basis.

 

 

 

SWEET SORGHUM

 

 

 

 

 

 

 

 

 

 

 

 

In addition to ethanol, Sweet Sorghum also produces other valuable commodities; Grain for Human consumption such as flour or cereal, Feed for animal livestock, Wood Chips for  Pulp & Paper, Biomass (fuel to generate electricity) and as well, Panel Boards for building materials. Not to mention Seeds for future planting.

 

AII's long term focus is to eventually sell these by-products while producing ethanol and reducing worldwide deforestation.

 

When added together the value of this ‘cash crop’ has a substantial economic advantage over any other crop in the world. Our research shows that the by-products have a greater revenue potential than the Ethanol alone, especially true for the fabricated panel boards which has the greatest potential application as a building material. Bond the fibres with cement and coloring to provide aesthetically pleasing looks and combined, this produces a product with the strength of concrete but lighter in weight. This is an excellent, inexpensive, fireproof building material with insulating features and the strength of stone.

 

 

 

Commodity Price in USD (Approximated)

 

Commodity        Price     Volume per Acre     per Hectare
                                                                                            

Ethanol

$ 1.85 / Gal

1532 L / 404.71 Gal

3785 L / 999.89 Gal

Grain

$ 75.00 / LT

3.99 MT/ 3.93 LT

9.88 MT / 9.72 LT

Pulp / Paper

$ 92.00 / LT

8 MT / 7.88 LT

19.77 MT / 19.46 LT

Biomass

$ 20.00 / LT

8 MT / 7.88 LT

19.77 MT / 19.46 LT

Panel Boards

$ 20.00 / PC

90.25 PC

223 PC

       

 

Table 1: Commodity Prices – Sweet Sorghum Byproducts based on one harvest. (Approximated averages)

 

Note:

Gal = US Gallon / L = Litre / LT = Long Ton / MT = Metric Ton / PC = Piece

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.5 SOLO TECHNOLOGY “SOLUTION TO POVERTY”

 

It is a well known fact that there is a direct relationship between poverty and the fossil fuel industry. As the demand for oil grows and nations compete for their energy needs, poverty in the developing countries will increase dramatically for the simple fact that they do not have the economic power to compete and energy is the economic lifeblood for any economy’s growth. For these developing countries AII can create mass employment opportunities for local workers and farmers to produce ethanol through our SOLO Technology program based on manpower labor. This is the simple solution that so many experts have been recommending as the preferred method to eliminate poverty in developing countries. To borrow from an old truism, "Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime."

 

7. “For the 1.3 billion people around the world who live on less than a dollar a day, energy does not have to be a source of sickness or poverty. Renewable energy can be a source of opportunity. Developing a bio-based economy in conjunction with opening agricultural markets and reforming subsidies can help reduce poverty by creating new job opportunities and providing a major new source of food and revenue for farmers.”  The New Economics Foundation

 

Instead of investing more than $100 million for only 1 industrial ethanol plant that would take 3 years to build and then operated by only about 100 people, our SOLO Technology program can employ about 5,000 people to produce the same amount or more ethanol output, but without the high maintenance and expensive energy costs to operate.

 

Initial capital investment and lead time to implementation is reduced by a factor of about 5 times, thereby increasing our annual cash flows without having to capitalize huge fixed assets and waiting 3 years or more before generating any revenues. The nature of our program is extremely flexible which maximizes operational efficiency versus large immobile stationary plants. This will substantially reduce the risk of projects to increase our return on investment.

 

The lower risk factor is especially important in developing countries where investment risks are extremely high. This is the reason why many companies do not make huge capital investments in these countries are the risks are just too high.

 

AII’s SOLO Technology eliminates this uncertainty from the economic equation.

 

Our program will offer to these people self worth and dignity to be able to sustain their own livelihood to support their families. Worker benefits would include a green house built with our materials and a green car through an employee compensation program amortized over 10 to 15 years off their wages or as long as they remain with the company.

 

This is a guaranteed sale of our products for almost every employee and is a viable solution to poverty. Country benefits include tax revenues, growth in industries and energy self sufficiency.

 

 

 

3.0 COMPANY BACKGROUND

 

 

The Founder Mr. Nino De Santis is a former Senior Advisor to the United Nations Long Beach California USA chapter for “new and environmentally sound and sustainable technologies” for Earth Day International. He is a patent holder of several environmental technologies to reduce CO2 emissions including the H2O Oxygenator System, AQUAHOL and SOLO Technology to produce ethanol from Sweet Sorghum.

 

When combined together our technologies form an Energy Eco-System to form the basis of a ‘Green Revolution’ for green fuel, green vehicles, green energy, green employment and green housing. Effectively, we provide solutions for climate change, global warming, pollution, deforestation and poverty.

 

 

 

 

3.1 HISTORY OF THE H2O OXYGENATOR SYSTEM

 

1940’s - During World War II the U. S. Air Force commissioned the engineering firm of TRW to create an engine booster for their Mustang and Thunderbolt fighter aircraft to help them in the air war. Dr. Norman Waag a Senior Aeronautical Engineer with TRW invented a fuel injector using water to boost the octane in the combustion chamber. This gave the American fighter aircraft more power, enabling them to fly higher than the enemy fighters and was instrumental in winning the air war.

This marks the place of our technology in 20th century history.

 

1946 – James C. Porter of The Society of Automotive Engineers (S.A.E.) produced a complete analysis in Test Paper # 215 & 216 which concluded that the water / alcohol injection system increased horse power, increased engine efficiency, increased octane and decreased engine wear.

 

1950’s to 1970’s - Dr. Waag commercialized the invention in the auto racing industry. During this time he sold over 100,000 units. The system provided more power, cleaned the engine, improved fuel consumption, and reduced emissions. When nitrous oxide was introduced to racing, the injector became less popular, but at the cost of extreme GHG emissions. Dr. Waag retired to Florida with the invention in the mid 1970’s.

 

 

 

 

3.2 COMPANY HISTORY

 

1977

 

1979

            The increase in mileage (mpg) was between 26.6 to 40%. The EPA also

            confirmed a lab test which achieved a 25.2% increased mpg in a smaller engine.

 

1980 - 1987

 

 

1987

·         The first global environmental accord is signed in Montreal, Canada called the

             “Montreal Protocol” to ban Chlorofluorocarbons (CFC’s) to reduce ozone

              depletion.

 

1991

·         The company entered the 3rd Annual I & E Expo and InvenTech Trade Show for alternative technologies and won 1st prize for the best ecological invention award among other competitors including Solar powered cars, Electric cars, Hydrogen cars and major car manufacturing companies such as Nissan, Ford and GM.

 

·         The accounting firm of Price Waterhouse completed a feasibility study, which concluded that the technology could become feasible once more environmental laws would pass.

             “… increased consumer concerns over the environment and subsequent

             legislation has more recently opened a window of opportunity for

             manufacturers and distributors of these products.”… “Stricter requirements

            establish larger market for alternatives.” Price Waterhouse 

 

·         The company returned to Florida for new emissions tests and passed them with positive results.

1993

·         Nino De Santis was enlisted by the United Nations as a senior advisor on Earth Day International in Los Angeles, CA for new environmental, sustainable and renewable technologies.

 

·         After a demonstration he traveled to Thailand, and entered into a partnership with the KOSA MITSUI Group, a major shareholder of the Toyota Corporation.

 

 

 

1994

 

 

 

1995-1996

            development and to lobby the Canadian government to convert their fleet to the 

            H2O Oxygenator System to use straight cut (low octane) gasoline we refer to as

            the AQUAGAS system.

 

 

            officially banning CFC’s to reduce ozone depletion.

 

1997

 

 

1998

 

 

2000 - 2001

 

 

 

 

 

 

 

 

 

2002

 

2004

 

2005

 

 

            technologies.

 

 

 

2006

 

 

 

2007

 

 

 

 

 

 

 

 

 

 

 

4.0 ORGANIZATION

 

AII Corporation is a privately held company incorporated under the British Virgin Islands. AII has recently been operating in research and development in Montreal and as well Noyan, Quebec, Canada. 

 

Nino De Santis is currently the majority shareholder and sole director. The company intends to re-structure following sufficient funding to support full staffing and operational expenses.

 

4.1 MANAGEMENT, BOARD OF DIRECTORS AND ADVISORS

 

Management – AII consists of key individuals who will fulfill the following roles;

 

President / CEO - Nino De Santis,

Executive Vice President - Robert De Santis,

Secretary and Treasurer - Dawn Marie McLaughlan

Chief Financial Officer - David J.F. Chin,

VP Research & Development - Dominico Chiovitti,

Business Development - Ruby Shulman,

Business Development - Robert Gasparoni,

President Quebec Division - Tom Fournier,

Director of Transport – Michael Graham

President China Division - Mario Chiaputto,

Corporate Attorney - Jean Paul Gagnon

 

Board of Directors – AII will elect the following individuals to form the board of directors.

Chairman Nino De Santis                              Vice Chairman Robert De Santis

Director David J.F. Chin,                                Others to be nominated.

 

 

Board of Advisors – AII has the following individuals as key advisors to the company for their knowledge and expertise in various fields.

Dr. Bawahn Singh                                         

David Hodgkinson                                          

Elaine Randolph                                            

Hal Debor Eng.

Robin Laberge

USA legal advisor Kenneth Crenshaw

Canada legal advisor Eric De Santis

 

Others to be determined.

 

4.2 STAFFING REQUIREMENTS

 

TECTANE will operate administrative offices handling the functions to support our business development and licensing efforts. Operational activity will be general administration and business development. Licensees will be responsible to secure sales in our core fields of activity:

 

A. H2O OXYGENATOR SYSTEM sales and leasing program for government fleets.

B. H2O OXYGENATOR SYSTEM sales and leasing program for corporate fleets.

C. H2O OXYGENATOR SYSTEM sales and leasing program to the public.

D. SOLO TECHNOLOGY projects for ethanol production and fabricating concrete

                                          reinforced panels for green building materials.

 

 

 

 

5.0 PRODUCTS

 

5.1 THE H2O OXYGENATOR SYSTEM

 

Our main product is the H2O Oxygenator System we also referred to as the H2O Pump which was originally patented in 1976 based on the old carburetor system. Currently all vehicles are now controlled by computer chips that regulate the flow of fuel into the engine electronically. AII has applied for new patents based on the electronic fuel injection systems as well as other complementary patents that work together for our Energy Eco-System.

 

   DSC00023         

 

            Fig. 4 - The H2O Oxygenator System installed on a HONDA Prius 2007

 

AII has patent pending technologies to improve fuel consumption of vehicles, which can reduce CO2 emissions by 25% or more! Many independent studies, tests and expert opinions confirm these claims. (Appendix A, B)

 

We intend to sell our units to the existing after-market of vehicles, primarily government fleets of cars, trucks and buses. The return on investment to the consumer for total costs of production, distribution and installation will be achieved within a few months through improved fuel consumption. The system pays for itself in a very short time and provides AII with a large revenue potential for all vehicles.

 

The advantage we have over other alternative technologies is that we are a flexible fuel technology that can use any fuel source, be it regular gasoline (with electronic adjustments), low octane straight cut gasoline and water which we refer to as AQUAGAS, and a blend of ethanol and water classified by the USDA as AQUAHOL.

We intend to start with the AQUAGAS system, but our long term goal is to use AQUAHOL as the most economical fuel source in the future. As MTBE is currently in the process of being phased out from use, our technologies are a viable solution to provide the octane necessary for vehicles to continue running without any major change to the current oil infrastructure by using straight cut gasoline. Straight cut gasoline is essentially the first level refining of crude oil without the need for further refining, which will save enormous costs for oil refinement.

 

Our system is based on the principle of thermo-chemical splitting hydrogen dioxide at 1,600° F into its molecular components H2 + O to increase the octane ‘rate of burn’ within the combustion chamber. It is an internal octane booster, essentially using the heat & pressure of the engine to produce the octane, turning the engine into a flexible fuel power plant for increased efficiency and reduced emissions. The greatest feature is that it reduces CO2 emissions by a large margin 25% or more!

 

 

 

 

 

5.2 AQUAGAS AND AQUAHOL SYSTEMS

 

 

 

 

 

AQUAGAS System                                                                      AQUAHOL System

 

 

Aquagas

 

 

                                   

                                                Fig. 5 - AQUAGAS and AQUAHOL Systems

 

 

 

Our system uses a secondary tank that provides the water supply for injection into the combustion chamber, similar to receiving a booster shot this will increase the octane (rate of burn) to combust fuel more efficiently. Rather than loosing 80% of the fuel in combustion currently in today’s engines, we substantially increase the engine efficiency as confirmed by SAE Test Paper 215&216.

 

Either of the systems will burn a cleaner fuel substantially reducing HC, NOx, and CO2

emissions to reduce GHG emissions.

 

Normal Engine: Regular Gasoline + air  à   E + CO2 + CO + HC + NOx + H2O

 

H2O Oxygenator System: AQUAGAS or AQUAHOL + air   à   E + CO2 + H2O

 

 

We can implement the system on every type of vehicle including diesel trucks, tractors, marine engines and generator sets. It is suitable for the world’s more than 450 million vehicles, old or new cars. We intend for our system to be produced right on the assembly line as an Original Equipment Manufacturer (OEM) component to replace the catalytic converter.

 

 

 

 

5.3 SWEET SORGHUM ETHANOL PRODUCTION

 

AII has developed methods to reduce de-forestation, a major cause for GHG emissions by using Sweet Sorghum as an agriculture alternative to hardwood lumber for pulp & paper and wood products. Independent tests and feasibility studies have confirmed these

findings. The additional benefits of the separate by-products are grain for flour or cereal for human consumption or animal feed and sucrose for ethanol production. We intend to implement large scale SOLO Technology programs in Developing Countries to produce ethanol using low tech labour methods in distillation terminals.

 

The process of SOLO Technology is essentially a labour program to provide mass employment opportunities to the local population. Our objective is to organize farmers into an Agricultural Energy Cooperative (AEC) which will empower the people to become energy self sufficient and provide large economic benefits to the local economy, the workers and shareholders wealth.

 

After plantation in about 120 days the first harvest cycle begins which will run approximately 60-90 days to harvest and process into ethanol, grain and panel boards. With each project, the ethanol will be sold as an alternative fuel for the auto industry. The fibers can be sold as Biomass for producing electricity, building materials, or high quality paper. We intend to specialize in making panel boards 8’ x 4 ’x 3” reinforced with cement. The grain will be sold for animal feed or flour.

 

We will implement our technologies through organized farming co-operative projects based on 5,000 workers to farm, harvest and process 30,000 acres for at least 2 harvests per year. We intend to proceed in a three step scale up program to minimize the risks for each project.

Phase I: Feasibility study lasting 1-3 months,

Phase II: Pilot scale project of 1,000 acres,

Phase III: Full scale project of 30,000 acres.

 

At full production each project will generate employment for thousands of people, and a long term renewable, sustainable industry for the local economy. We will implement the following arrangement with a local company, co-operative or government agency to invest 25%-50% of the project costs in a joint venture with AII.

 

AII will continue to develop a world class bank of specialized Sweet Sorghum seeds for our projects. As a grain crop Sweet Sorghum has a big advantage over corn, and provides an alternative source to many industries: (1) fuel, (2) feed, (3) pulp & paper, (4) wood, (5) electricity, (6) building material, and others.

 

 

 

 

 

5.4 SOLO TECHNOLOGY PROCESS

 

Step 1             Step 2           Step 3            1st Product     Raw Material

Planting         Farming      Harvesting           Grain           Bio-mass and Fibres

 

          j0283927[1]        j0150152[1]        j0157673[1]       

 


                                                                                                                                     

                                                             

 

 

Step 4 Processing and Distillation Terminals

 

SOLO Technology Distillation Terminal_edited

 

Fig. 6 Each processing and distillation terminal is a warehouse about 25,000 square feet, where 50-100 workers process fibres, distill sucrose into ethanol, and produce panel boards for building materials.

 

 

Distilling Stations                                         Panel Board Manufacturing

                    j0231471[1]j0231471[1] 

 

 

 

 

 

 


2nd Product Ethanol                                   3rd Product Panel Board

                                                                     Building Materials 

j0333932[1]j0326640[1]                                       bd10424_[1] bd10424_[1] E

 

5.5

 

 

 

 

                      

                      Comparison Chart of Sweet Sorghum VS Alternatives

 

 

Tectane continues to develop a world class bank of specialized Sweet Sorghum for our projects.

 

As a grain crop, Sweet Sorghum has a big advantage over the alternative plants for the production of Ethanol and as well, other by-products. The following comparison chart will demonstrate its effectiveness and productiveness against the competition.

 

 

 

Commodity 

ETHANOL

GRAIN

PULP & PAPER

WOOD  CHIPS

PANEL

BOARDS

HARVESTS

Sweet Sorghum

3,785 L

9.88 MT

19.77 MT

19.77 MT

198 - 247

2 X YR

 

1,325 L

9.88 MT

0

0

0

1 X YR

Switch Grass

1,325 L

0

7.41 MT

7.41 MT

78 - 93

1 X YR

Sugar Canne

3,700 L

0

0

14.83 MT

149 - 185

1 X YR

 

NOTE: L = LITRE / MT = METRIC TON

 

These estimates are based on average yields per Hectare [HA] from widely available sources. (1 HA = 2.47105 Acres [A])

 

 Sweet Sorghum crops are based on 2 harvests per year.

 

Corn can be used to make Ethanol or Grain, but not both.

 

 

APRIL/ 2008

 

 

 

 Corporation

 

 

 

 

 

 

5.6 SOLO TECHNOLOGY ECONOMICS

 

AII intends to use SOLO Technology to produce ethanol as an alternative fuel to gasoline in Developing Countries. This will provide a valuable commodity to reduce their reliance on foreign imports for their energy needs.

 

The benefit to the petroleum industry will be less strain on their supply, extending the life of their reserves, reducing conflicts between rich and poor nations and providing more stability in the markets. Our goal is to produce at least 10% of the equivalent annual consumption of gasoline that the country uses.

 

As an example, in Mexico the annual consumption of crude oil is roughly 759 million barrels, which translates into 4.554 billion gallons per year and 50% is refined into gasoline for vehicles.

 

Therefore, our goal of 10% equivalent will be 227 million gallons of ethanol / yr. which requires 227,697 acres of land and 37,950 workers for SOLO Technology projects.

 

---------------------------------------------------------------------------------------------------------------------------------

 

 

 

 

 

 

RESULTS

 

Commodity

Expected Volume

Average Price

Expected Sales

@ 227,697 Acres

 

Ethanol

1,000 gallons / acre

$1.85 / gallon

$ 421,239,450.00

Grain

4 L tons / acre

$75 / L ton   

$  68,309,100.00

Panel Boards

80 panels / acre

$20 / panel    

$ 364,315,200.00

 

Total

$ 853,863,750.00

 

          

 

 

 

 

 

 

 

 

 

 

 

 

5.6 SWEET SORGHUM SOLO TECHNOLOGY MARKET

 

 

 

                    Fig. 7 World, Addressable, Target markets for SOLO Technology

 

The World market consists of 174 countries which ratified the KYOTO Accord, the Addressable market is made up of the developing countries in Asia, South East Asia (ASEAN), the Caribbean (CARICOM), Central and South America, Africa and Eastern Europe, AII will concentrate on the most important developing countries, and the initial Target markets being; China, Brazil, Mexico, the Philippines and Thailand.

In each of these target countries our goal is to initiate SOLO Technology projects to represent at least 10% of their annual gasoline consumption with the maximum number of projects limited by the scope and size of the country.

 

Country

Size

Bbl /day

Scope

10%

Number of Acres

China

6,930,000

693,000

29,106

Brazil

2,100,000

210,000

8,820

Mexico

2,078,000

207,800

8,728

Philippines

340,000

34,000

1,428

Thailand

929,000

92,900

3,902

         Table 3 Oil consumption bbl / day, source 2008 CIA World Factbook.

 

We define the market size as the amount of oil consumption bbl / day, where 50% is refined into gasoline, and the scope of our program to be 10% the equivalent ethanol production made from Sweet Sorghum. The number of projects is the equivalent of 30,000 acre project to produce 30 million gallons of ethanol per year, the number of workers is 5,000 per project.

 

 

 

6.0 SWOT ANALYSIS

 

In this section we analyze the overall market for AII’s products and any obstacles likely to be faced in the marketplace. We address each of the following items with strategies to leverage our position, answer concerns and to capitalize on opportunities.

 

Strengths

1. Alliances with the UN, corporations,

    organizations and key contacts

2. Simple and effective products

3. Successfully tested in the USA and

    Canada

4. Alternative to conventional methods

5. Skilled and committed team

6. High profit margins

7. Low costs

 

 

Capitalize on Strengths

1. Market entry supported by alliances

2. Favourable consumer perception

    leading to commercialization

3. California seen as initial market for the USA

4. Global solutions require alternative methods

5. Management has skills and experience in a

    Variety of areas

6. Ability to increase shareholders wealth

7. Reduces investor's risk and exposure

 

Weaknesses

1. Reliance on environmental laws

2. Exposure to increased costs

3. Management team has not worked

    together for a long period

4. Board of directors not yet finalized

5. Sales team not yet in place

6. Limited USA presence

 

Address Weaknesses

1. Lobby for current environmental laws to be

    Enforced.

2. High margins provide flexibility with

    Increasing costs.

3. Create corporate structures for

    responsibilities for efficient operations.

4. Directors will be nominated with re-structure.

5. Recruit professional sales team with

    experience in sales and marketing.

6. Alliance with partners, representatives and

    Key contacts in the USA

 

Opportunities

1. Expanding ethanol market

2. Increasing public acceptance for

    environment alternatives

3. New environmental laws

4. MTBE and catalytic converter phase

    out

 

Maximize Opportunities

1. Position Sweet Sorghum as the preferred

    alternative cash crop for production

2. Position the H2O Oxygenator as the global

    solution for vehicle emission reduction.

3. Leverage environmental laws with our

    technologies.

4. Offer the H2O Oxygenator System as a

    replacement in a Free exchange program.

 

Threats

1. Competition from other technologies

2. Special interest groups opposition

3. Possible negative public reaction to

    different fuel source

4. Patent infringements and copiers with

    similar products

 

Answer Threats

1. Patents, know-how and trade secrets protect

    our technologies

2. Alliance with UN, World Bank, governments

    And large corporations enable us to compete

3. Marketing campaign to educate the public

    our technologies won’t require changes or

    affect normal activities

4. Copiers will not be able to adequately

    achieve the best results without know-how

    and trade secrets

 

 

 

BUSINESS PROPOSAL TECTANE Corporation

 

 

7.0 COMPETITIVE ADVANTAGES

 

7.1 THE H2O OXYGENATOR MARKET

 

The H2O Oxygenator System is a 3 hour retrofit performed by a general mechanic. 

   Other systems require a substantial change to the engine or even require a new car.

• Many emissions reduction laws as in California require reduction of CO2. The H2O

  Oxygenator System delivers substantial emissions reduction.

• Our system would not affect people's daily habits, and would not require any major

  changes to the current oil infrastructure.

• The majority of the world cannot afford to buy a new vehicle. Off warranty cars are

  ideal for our systems.

• Over 450 million vehicles on the road today can be converted quickly and cheaply for

  CO2 emission reduction.

• AII’s system is ideal for stop-and-go use such as government fleets of the Postal

   Service and the Police Forces.

• AII could use straight cut gasoline; the cheapest form of gasoline with no harmful

  chemicals. Oil companies could save anywhere from 7-11% on direct refining costs.

• AII fuel pumps can be implemented with regular gas stations.

• AII has been pioneering the alternative fuels market for decades and has acquired

  the know-how and experience in the environmental industry.

• Our technology has a proven track record with over 100,000 catalysts sold to the racing

  Industry and R & D tests over 25 years on many different cars and trucks prove that the

  technology works. (Appendix A)

 

 

7.2 KEY SUCCESS FACTORS

 

• Ethanol is an environmental, renewable, sustainable and controllable resource. Oil is a

  fast depleting, non-renewable resource and "extremely" susceptible to disruption by

  acts of terrorism and climatic events such as hurricanes to offshore oil rigs.

• AII offers a simple, cost effective, long term, renewable, sustainable solution that can

  be implemented today.

• Oil companies like PETROTRIN, PETROCHINA, PEMEX, PETROBRAS,

  PETROCANADA & ARAMCO are examples of companies that could realize the

  benefits of reducing their refining.

• AII technologies can help extend the World oil supply, reduce pollution, save costs to

  Consumers, clean up the oil industry’s image and increase profits for Investors.

• AII is recognized by the United Nations (UNCTAD 1994 Appendix C) and qualifies as

  a Maximum Achievable Controlled Technology. (MACT)

• AII is recognized by the World Bank for GEF funding in Developing Countries.

• With the support of the UN and the World Bank, AII can help create an Agriculture

   Energy Co-operative (AEC) for ethanol production.

• The UN Commodities Development Program can help AII create a commodity

   market for Sweet Sorghum internationally.

• The UN can help AII develop a KYOTO emissions trading mechanism for our

   technologies and projects.

BUSINESS PROPOSAL TECTANE Corporation

 

 

 

 

 

 

 

 

7.3 COMPETITIVE STRENGTH

 

 

 

CRITERIA

H2O Oxygenator

Hybrid

  Ethanol

Hydrogen

Customer Exclusivity

 

5

5

3

5

Distribution Channels

 

1

4

3

1

Market Size

 

5

2

4

1

After Sales Service

 

3

4

3

1

Cost Structure

 

5

2

3

1

Sales & promotion

 

1

4

4

4

Total

20

21

20

10

 

 

 

Legend 1 = poor, to 5 = excellent, Maximum Rate = 30

 

AII currently has a 66.67% competitive strength rate and sits in between the hybrid and the ethanol market. Once we establish our sales and marketing, our rating on distribution and sales will increase to about 4 resulting in AII at the top position with a competitive strength of 86.67%.

 

 

   7.4 Profitability

 

 

 

Profitability

Rate

Time to

Market

Development Stage

Commercial

Viability

Maximum

Rate = 20

Rate

1  2  3  4  5

1  2  3  4  5

1  2  3  4  5

  1  2  3  4  5

Total

AII

                5

         2

                 4

                  5

16

 

For the business as a going concern, profitability is evaluated by a standard formula which rates the company’s profit potential in the market. The criteria are explained as follows:

 

 

AII can achieve an 80% profitability rate in the short term 3 yrs., but we expect starting by the medium term 5 yrs. to increase the profitability rate to 90% by moving “Time to Market” to a rating of 4.

 

 

 

BUSINESS PROPOSAL TECTANE Corporation

 

 

7.5 Market Position

 

 

 

Once the H2O Oxygenator system is implemented on a mass scale we expect to be positioned in Quadrant 1 as the top tier alternative fuel technology against the other major competitors for the following reasons.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.0 Marketing Plan

 

License Transfer Technology

 

We intend to sell licenses through transfer technology agreements with license fees determined by the territories. The license agreements will be priced commensurate to the market potential, and will entitle the licensees to represent AII technologies with an annual royalty on sales. Licensees will be responsible to sell or lease our auto pumps to government and corporate fleets, and the public in accordance to our marketing guidelines. License agreements are presented in a separate stand alone document.

 

Service Station Franchises

 

AII intends to create franchises for our auto systems. Licensees will have the right of first refusal to purchase these franchises in their territory. AII will be the exclusive supplier of the H2O Oxygenator System to franchisees with annual royalties paid on gross sales. Units will be delivered to regional service centers in the local territory for sales and distribution. Franchises will operate as independent profit centers providing retrofit services for cars, trucks, and buses as well as alternative fuel offering straight cut low octane gasoline with the H2O Oxygenator system as our AQUAGAS system, and ethanol with the H2O Oxygenator system as our AQUAHOL system.

 

Mechanics

 

AII will provide support and training for mechanics on technical aspects of our technologies. A general mechanic will be fully trained and once completed will be certified as a qualified AII mechanic.

 

Distribution

 

A typical gasoline service centre requires around 500 regular customers to be successful. Therefore, the first 500 units of our auto pumps would be provided at no cost in exchange for the catalytic converter in order to penetrate the market, and to increase the franchise success rate. This would also provide a recurring revenue source to refill at our stations.

 

After Sales Service

 

Follow up service would be the responsibility of the franchisee, in the same manner as a typical gasoline service station. AII would maintain a database of clients for statistical analysis to apply for any emission trading mechanisms on the open market.

 

GHG Emissions Credit Systems

 

AII will maintain an in-house emission credit tracking system that will compile a database for all green house gas (GHG) CR calculations using our own in-house agents, and contracted 3rd parties to broker these credits for cash equivalent on the international market with corporations and governments.

8.1 Marketing Strategies

 

 

AII intends to market our H2O Oxygenator System to replace the catalytic converter which is currently the OEM standard, but is now believed to be a major producer of extreme green house gas emissions. Our H2O Oxygenator System is more effective, cost efficient and proven through the EPA and SAE to drastically reduce CO2 emissions.

 

Our marketing strategy also includes the 174 UN member countries that have ratified the KYOTO Accord to implement our H2O Oxygenator System on all government fleets as their legal commitment to comply with reducing CO2 emissions. Fleets such as the Police departments and Postal services are ideal to convert because they employ stop and go use each day, which is a cause for the inefficient combustion of gasoline.

 

Government fleets will set the example to their citizens to change their personal vehicles once they see and realize the economic and environmental benefits of our systems. When implemented on a mass scale, government and corporate fleets will assure the investment success of AII technologies.

 

AII SOLO Technology for ethanol production is an ideal program to create mass employment and industry growth in developing countries. It also allows AII to ensure sales through a housing and car program offered through profit sharing employee compensation amortized on a 10-15 year basis, or as long as the employee remains with AII.

 

Our sales will derive from providing panel board building materials for the houses, while the cars operate on our ethanol fuel and H2O Oxygenator System.

 

A green job, a green house and a green car for every worker and their family.

 

This marketing strategy guarantees sales for at least 5,000 homes and cars per project without the need to spend huge marketing budgets on advertising or promotion.  It is a win / win situation for all parties.

 

 

INESS PROPOSAL TECTANE Corporation

 

 

9.0       Conclusion

 

Ironically it seems that CO2 emission reduction programs and alternatives are most likely to be applied by the nations that are among the least developed in the world due to simple facts;

 

1. Because they are not energy self sufficient they require alternative energy

    sources.

2. They have not yet begun their industrial growth and are able to choose

     among different alternatives.

3. They wish to become energy self sufficient to enable them to save huge

     amounts of their GDP by reducing their energy imports.

 

To recap, we stand at a watershed moment in the environmental industry where for the first time in history we have the unique combination of a global warming crisis, threats to human development by natural disasters, increasing poverty, and strong environmental laws. Altogether these provide an enormous business and social opportunity for our technologies to be implemented on a commercial mass scale basis.

 

The World Bank Global Environmental Facility (GEF) has already recognized AII’s Gas – Alcohol – Water - Sweet Sorghum Technology since 2000.

The UN Trade and Development New Commodities Division recommended our technologies and Sweet Sorghum program as a new commodities opportunity in 1993 under the UN Standing Committee.

AII is the only company in Canada, which has grown Sweet Sorghum for over four years and has proven that pulp and paper can be processed from the fiber. This was accomplished in conjunction with one of the major Canadian pulp and paper companies, CASCADES Corporation, who confirmed in a feasibility study that the Sweet Sorghum fiber can in fact produce high quality paper.

 

AII qualifies under the UN and World Bank criteria for Maximum Achievable Control Technology (MACT), which is considered the Gold Medal standard for any technologies to be implemented in developing countries. We intend for these recognitions to enable the formation of a Worldwide Agricultural Energy Cooperative (AEC) with all developing countries, similar to how OPEC originally formed for oil producing nations. It is this Cooperative organization which may offer the protection and worldwide acceptance far beyond what any patents, knowledge or know how could ever provide.

 

We hope that we have presented this proposal in a manner that you can understand and as well, recognize the importance of our technologies. Not just for the economic benefits, but also, as a real and viable solution to the problems we all face. Our world is a very delicate and fragile planet. It is a pearl in an ocean of darkness that provides life, nourishment and a safe environment protecting us from the external elements. We are the custodians of the future and as such it is our obligation to our children and future generations that we do what little we can in order to preserve what is left.

 

 

 

 

 

 

REFERENCES

 

 

 

1. Larry Burns V.P. Research and Development, GM Corporation.

 

2. The Millennium Eco-Assessment (MA) Report, www.milleniumassessment.org

 

3. Kofi Annan, Secretary General of the United Nations, addressing the MA report.

 

4. “Our Addiction to Oil is Fueling World Poverty” by Kathy Roche and Teresita Perez

 

    April 6, 2006 Center for American Progress

 

5. The New Economics Foundation, BBC News Online, June 21, 2004

 

6. Takeo Fukui Chairman of Honda Corporation, The Wall Street Journal, July 25th, 2005

 

7. "Autos' Converters Increase Warming As They Cut Smog: A Split Over Solutions" By

    Matthew L. Wald, The New York Times, Friday, May 29, 1998

 

8. The New Economics Foundation, BBC News Online, June 21, 2004

 

 

GLOSSARY

 

Aquagas is what we refer to as straight cut low octane gasoline in conjunction with our system

Aquahol a blend of alcohol and water

 

bbl – Barrel

Biomass - organic matter, esp. plant matter, that can be converted to fuel and is therefore

                  regarded as a potential energy source.

BTU- British Thermal Unit

 

CFC - chlorofluorocarbon

CO2 – Carbon Dioxide

 

EPA – Environmental Protection Agency

 

GHG – Green House Gases

Gasohol - a mixture of gasoline and ethyl alcohol

 

MPG – Miles per Gallon

MTBE - a mixture of gasoline and ethyl alcohol

 

NOx - nitrogen oxide

 

OEM - original equipment manufacturer

 

SAE – Society of Automotive Engineers

 

USD – United States Dollars

USDA – Unite States Dept of Agriculture

UN – United Nations

UNEP - United Nations Environment Program