(SYMBOL: OTCBB: SYNI)
BUSINESS SUMMARY
March
22, 2006
Syngas International Inc. (Parent Company)
Syngas Energy Corp. (Wholly
owned subsidiary)
Overview of Syngas International
Syngas
International Corp. (SYNI), through its subsidiary, Syngas Energy Corp., is an
emerging leader in the development and marketing of low-cost alternate fuels
worldwide. Syngas Energy Corp. is the
owner under exclusive worldwide license of proprietary technologies used to
generate hydrogen and syngas (synthesis gas from any carbonaceous material). Our
products and processes can be used to create power and also as a component in
refining Oil Sands to synthetic crude through hydrogen enrichment (instead of expensive
Natural Gas), thus tapping the Oil Sands, which is widely regarded as North
America’s largest source of crude oil in the future.
Syngas’ flagship
technology, “PyStR”, uses proprietary
processes developed by inventor R. Sadowski, who has received numerous grants
and funding from the US Department of Energy. His funding of 10’s of millions
of dollars and contacts in industry and government alike have earned him wide
recognition as one of the most knowledgeable, advantaged energy experts in
Syngas has
achieved a competitive advantage over other Advanced Energy Technologies such
as wind, fuel cell, hydroelectric and solar through increased reliability and
lower productions costs via its acquisition of exclusive PyStR licenses. It is not limited by geography or feedstocks
Syngas
International is actively engaged in bringing this technology to market and
assessing the commercial viability of various energy generation projects. Commercializing the processes and applying the
technology to numerous projects to produce low cost energy is key to Syngas’ success.
Currently
Syngas is evaluating projects involving inputs like Oil Sands, wood waste,
coal, and biomass that create profit centers that traditionally were cost
drivers due to technological limitations:
·
Unlock Oil from Tar Sands
·
Economically Create Hydrogen
·
Convert Waste into Synthetic Gas
Product
Offering:
Products of Combustion
from M2 (Our Primary Gasificatin Unit):
M2 Fuel Gas
Generator
The M2 is
an air blown fluid bed gasifier, which converts waste solid fuel sources into a
gaseous form. The M2 gas produced can be
used in most boilers, kilns and furnaces to offset the use of natural gas.
Products
of Combustion (POC) from burned gas.
Pound basis
Dry Wood (one pound) at theoretical combustion air
(stoichiometric) will produce:
0.55 pounds Water (formed)
1.63 pounds Carbon Dioxide CO2
3.88 pounds Nitrogen (from air)
“Because the amount of CO2 produced
when you burn wood is exactly identical to the CO2 that's absorbed from the
atmosphere while the plants are growing,” Noble says. “So, biomass energy is regarded
as a global warming friendly fuel. So that's actually one of the big, big,
environmental plusses here, is the elimination of one of the greenhouse gasses
that are changing the climate.”
Municipal Waste (one pound) at theoretical combustion air (stoichiometric)
will produce:
0.315 pounds Water (formed)
0.25 pounds Water Contained (25 %
Moisture)
0.955 pounds Carbon Dioxide CO2
2.533 pounds Nitrogen (from air)
CO2
produced on the combustion of Municipal Waste (MSW) is more than offset by the amount
of Green House Gases (methane and CO2) produced by naturally decomposing
garbage.
Any sulphur
and chlorine in the MSW are absorbed in the fluid bed media, which is
supplemented with dolomite or lime (calcite).
Products
from the PyStR
The PyStR technology
is an inexpensive and simple method of reforming hydrocarbons (carbonaceous
materials) and calcining lime to chemically separate hydrogen and carbon
dioxide into two separate streams. It
converts common cheap ingredients (coal or wood, air, water) into near pure
streams of hydrogen (H2), carbon dioxide (CO2) and nitrogen (N2). It produces no flue gas.
The carbon
portion of the incoming fuels is what is used for the reforming process.
C + 2H2O =
CO2 + 2H2
12 grams
carbon + 2(18) grams water = 44 grams carbon dioxide + 2(2) grams hydrogen.
Or
3 tonnes of
carbon and 9 tonnes of water produces 1 tonne of hydrogen and 11 tonnes of
carbon dioxide.
The CO2 is
captured in the lime and released in the pyrolitic calcining process. H2 and atmospheric air is used to create the
heat in the calcining process… this is where the N2 comes into the process.
The H2 can
be used for fuel cells, oil upgrading, hydrogasification and many more uses.
The CO2 can
be used as food grade CO2, dry ice, enhanced oil recovery, methane production
from deep coal* and other uses.
The N2 has
many commercial uses.
The H2 and
CO2 can be combined to make methane CH4.
The H2 and
N2 can be combined to make ammonia NH3.
The NH3 and
CO2 can be combined to make Urea CO(NH2)2.
*Injecting carbon dioxide into deep,
unmineable coal seams where it is adsorbed to displace methane (effectively:
natural gas) is another potential use or disposal strategy. Currently the
economics of enhanced coal bed methane extraction are not as favourable as
enhanced oil recovery, but the potential is large.
Captured
carbon dioxide gas can be put to good use, even on a commercial basis, for
enhanced oil recovery. This is well demonstrated in Southern Saskatchewan and
Key
Demand Drivers:
·
Increased demand from
·
Continued
energy demand from North American economy as it continues to expand
·
Oil
and Gas exploration experiencing diminishing returns
·
Oil
and Gas refining at capacity
·
Geo-political
climate change
·
Security
issues in OECD countries
Projects:
Syngas’
list of potential projects is extensive. Each of
Syngas’s current projects involves a variety of input fuels allowing the technology to utilize
“opportunity fuels” (those feedstocks that present themselves), eliminating the
geographic restrictions related to other green technologies such as solar or
wind, as well as minimizing the cost of input. Syngas is currently focusing on
the following projects for several long-term energy generation plants as
follows:
Beiseker –
Beiseker represents a Joint Venture Medical Waste Recycling
Facility that employs our gasification technology. Beiseker has hospital and
government contracts and revenues projected in excess of $10 million. High
margins, EBITDA projected at 35% are expected from the project
Touted as the next
Zhung Dong (
Zhung Dong is a rapidly growing city in
Future Project Opportunities:
Syngas has
been approached for other projects such as:
Electricity needs in
PyStR can utilize the coal to produce clean burning hydrogen,
the key ingredient in natural gas, gasoline, methanol and ethanol. Hydrogen is the key and PyStR produces
it. The hydrogen can then be used to
provide a clean, pure, high energy source and is favored by the Department of
Energy as one of the three most promising technologies for alternative fuel,
and is the lowest cost when compared to other alternative energies compared to
Pumping Oil - Carbon
Sequestration to maximize well utilization
In producing Hydrogen from carbonaceous materials, waste CO2
is produced. Traditionally thought of as a pollutant, it is now in demand to
stimulate “depleted” oil wells into production. CO2 can be pumped into these
hydrocarbon reservoirs to enhance the production of the oil or natural gas.
This type of operation is termed either Enhanced Oil Recovery (EOR) or Enhanced
Gas Recovery (EGR). As the hydrocarbons are produced, some of the CO2 remains
in the formation, or in other words, some of the CO2 remains sequestered.
Energy Mania
"Keeping
President George W.
Bush
January 31, 2006
“First of all,
there's huge pressure on natural gas -- people in
-- President George W. Bush
February 21, 2006
“Now, when you
hear people say coal, it causes people to shudder, because coal -- it's hard to
burn it. But we have got -- we're spending about $2 billion over a 10-year
period to develop clean coal technologies. If technology can help the way we
live, technology can certainly help change the way we utilize coal. And it's
important that we spend money on new technologies so we can burn coal cleanly,
because we got 250 years worth of coal reserves.”
-- President George W. Bush
February 21, 2006
“Good morning.
This coming week, I will visit
-- President George W. Bush
February 18, 2006
Short Term Outlook / Milestones:
March 2006:
·
Finalize
Beiseker Medical Waste Recycling Facility Plan
·
Sign
Official Joint Venture Agreement
·
Commence
negotiations with Patch Oil Sands Consortium
April 2006:
·
Raise
funding in a JV for Beiseker (approx. $8 million)
·
Raise
funding (approx. $2million) to commercialize PyStR
·
Develop
MSW contracts
·
Sign
letter of intent with Patch Oil Sands Consortium
·
Establish
contact with Chinese coal interests for JV
·
Contact
·
Announce
Syngas editorial contributor for CryoGas Magazine
May 2006:
·
Demonstrate
Advanced Gasification System
·
Develop
Coal partnerships (two interested parties already)
·
Establish
contact with Indian gasification firms for possible JV (coal is government
regulated in
·
Close
funding for Beiseker
June 2006:
·
Announce
Bio Mass initiative
·
Follow
up on South American opportunities
·
Initiate
plans for Enoch Hydrogen Plant
·
Commence
build for Beiseker
·
Close
funding for PyStR
July 2006:
·
Commence
PyStR upgrade
·
Press
·
Begin
negotiations for Enoch
History and Background
Syngas International was
incorporated in 1997 in
Since the acquisition, Syngas has
added management to grow the business, and has been pursuing large contracts
for Syngas’ products in The United States,
Syngas recently acquired PyStR (once again pronounced Pie Star), an advanced Hydrogen production technology. The revolutionary technology will enable Syngas to produce hydrogen at a much lower cost than current technology. Currently, Syngas believes it can produce hydrogen at less than half the cost of widely known figures. Hydrogen is considered by many to be the fuel for tomorrow, and new hydrogen based technologies are the focus of The Department of Energy’s $1.2 billion hydrogen initiative.
Corporate share Structure:
Issued and Outstanding: Approximately 37,805,050
Restricted: Approximately
30,305,050
Free trading: Approximately 7,500,000
Pystr
and Gasification Technology
Syngas (Synthetic Gas) – The Syngas gasification process converts any carbon based material into a synthetic gas. Gasification uses heat and pressure which converts any carbon containing materials into synthetic gas which can then be used much like natural gas. Gasification adds value to low or negative value feed stocks by converting them to marketable fuels. The feed stocks used to create gas can be selected based on what is readily available. Low cost, low grade coal is a readily available supply.
In
The PyStR technology was developed by Richard Sadowski in conjunction with his work with the U.S. Department of Energy (DOE) and represents over a decade of work and millions of dollars invested. Syngas has an exclusive world wide license to the technology. Sadowski was Director, Gasification Technology, and Principal Investigator for DOE contract “Gasification Product Improvement Facility”, a $30-million gasifier test facility to test the PyGas (Pyrolysis Gasification) Gasifier.
According to the U.S. Department of Energy, gasification may be one of the best ways to produce clean-burning hydrogen for tomorrow’s automobiles and power-generating fuel cells. Hydrogen and other coal gases can also be used to fuel power-generating turbines or as the chemical “building blocks” for a wide range of commercial products.
The PystR demonstration
model will be available in 2006 which will be used to obtain contracts and
demonstrate to potential purchasers in a visual way what the process
accomplishes. Our gasification demonstration model will host a demonstration in
May 2006 in
Technology highlights:
·
Advanced
energy technology (gasification) that is endorsed by the
·
PyStR
can make the synthesis gas for less than $5.80 per million Btu (natural gas
sells for approximately $9.00 per million Btu now).
·
Large
cost saving over natural gas (35-45%)
·
Large
cost savings over synthetic crude in oil sands project (up to $5/barrel)
·
Produce
synthesis gas and 99% pure hydrogen for less than the DOE’s stated $0.30/kg.
ideal cost, while capturing all carbon and nitrogen emissions for sequestration
or sale.
·
Gasification
system can use almost any type of carbonaceous fuel source such as coal,
municipal waste, petroleum waste, and biomass.
·
Does
not rely on energy sources like wind or sun which are unreliable due to weather
conditions and geography
·
Technology
is “lowest cost” per megawatt power when compared to the figures ranked in a alternative
power study published by the Government of California
·
Can
generate electrical power in remote areas, into the power grid or supply power
to users of power that have a waste problem.
·
Valuable
byproducts include carbon dioxide and nitrogen.