Lambton County Fuels Project Stakeholder Pres Oct 09

Blue Water Sustainability Presentation

November 2009

“When Waste is No Longer

Waste!”

Alternative Fuels Corporation Process

“Nature’s multi-million year crude oil production cycle reduced to hours…and a

better end product!”

Each year North Americans landfill more than 1,300,000,000 tons of municipal waste…

Each ton of waste can be converted into 75 gallons of the world’s greenest fuels and petrochemicals

The truth about landfills

• 56% of what we throw out still ends up in landfill

• Landfills are our largest source of methane, accounting for 37% of our annual emissions

• Solid waste contains on a tonne for tonne basis 50% of the energy of coal

• Only 2% of the energy potential in waste is used

Waste is a distributed energy resource…

Transformation

Energy Recovery

Reuse/Recycle

Incineration/Fuel

Disposal

Prevention/Minimization

AFC is transforming the way

we view and use waste. Instead of a liability to be disposed of, waste should be seen as a domestic, distributed energy source.

Waste-to-Liquid fuels

ProcessProcessProcessProcessFeed Feed Feed Feed ----

Carbon rich Carbon rich Carbon rich Carbon rich

wastewastewastewaste

ProductProductProductProduct

CO2

Feedstocks – Engineered Pellets

• Municipal waste

• Scrap tires

• Auto shredder residue

• Refinery sludge

Remote Waste Transformation

Engineered Fuel Pellets�No need for pre-sorting

of waste�Sterile�Inert�Odorless�80% volume Reduction�Consistent energy value�Resistant to water�No methane from landfill�No leachate from landfill

Fuels Manufacturing

�Temp > 10,0000C breaks chemical bonds�No emissions�No incineration�90% efficiency�Syngas (H2 and CO)�Excess heat�Technology license for the Americas

© 2009 Alternative Fuels Corporation | Restricted and Confidential 10

Green Products…

• Fuels –Gasoline and

Diesel

• Oils

• Waxes

• Electricity•Sustainable•Clean, no Sox, Nox, particulates•Affordable•Complements existing refining and distribution infrastructure•Aligned with social policy

Product Mix (COMPS High or Low Temperature Process)

Property High Temp

Fischer Tropsch

Low Temp

Fischer Tropsch

Crude Oil

Paraffins >10% major product major product

Naphthenes <1% <1% major product

Olefins major product >10% none

Aromatics 5–10% <1% major product

Oxygenates 5–15% 5–15% <1% O (heavy)

Sulfur species none none 0.1–5% S

Nitrogen species none none <1% N

Water major by-product major by-product 0–2%

Confidential

Product Distribution

Customer traction

• Worldwide market for sustainable chemicals growing at

CAGR

• Value chain


38%

The Business Plan…

170 BBL/DayDemonstration

Plant

1700 BBL/DayCommercial

Plant

WorldwideExpansion

Stage 1 Stage 2 Stage 3

Goal: Become a worldwide leader in the

production of sustainablefuels and chemical feedstocks


Environmental Footprint

�No emissions

�No effluent

�Carbon advantage

• 16 million tonnes

CO2 over 25 years

�Ultra-clean fuels

�Fewer trucks on the

road transporting waste

�Zero landfill

Lifecycle Greenhouse Gas Research

Proprietary 2nd Generation Fischer Tropsch Technology

Agreement with Centre of Materials and Process Synthesis (COMPS) situated at The University of Witwatersrand.

�Exclusive rights to the process for the Americas

�Non-exclusive rights for rest of world

�New IP to be developed for each plant will be owned by AFC

�Technology licensing fee to be paid based on plant capex

�Running royalty to be paid on expected plant performance

COMPS Concept

• Modular concept

• Once through process

• No air separation

• No air reforming

• Produces both syncrude

and electricity

CO2 and S

FT SynthesisGasification

Liquid Products

Gas Products,

unconverted CO

and H2

Gas

Clean Up

Electricity

Generation


Pilot Plants - Successfully Producing Liquids…

1.) Linc Energy Australia 2.) Golden Nest, China

Multiple revenue streams on $44 million investment for Phase 1

Total Potential Revenue =

$37,565,826 CAD

Feedstock and Output Market is Global

• 336 cities worldwide with more than 1,000,000 people (1 to 1 relationship between tires and people)

• Mandates for percentage of fuel from renewables� Ontario� Minnesota� Oregon� Washington� Pennsylvania� New Mexico� Louisiana

• Market for bio-renewable chemicals forecast CAGR 17.0%

Competition - Fuels

Capital intensity

CleanTechnology

AlternativeFuels Corp

Bio-diesel

ConventionalFossil Fuels

SyntroleumRentech

CellulosicEthanol

Ethanol from Crops

Waste toElectricity

1st GenFischer Tropsch

��Feedstock

independent

��BOOM business model

��Scalable/

modular

��Multiple revenue streams

��Profitable at $70 oil

��Uses existing fuels refining infrastructure

��Does not require subsidy

��No landfill or effluent

��Up-front waste processing

��Proven technology

Ze-genPlascoCoskataEnerkemInEnTecAFC

Alternative Fuels CorporationCompetitive Overview – Waste Processing

Benefits to Region

• 200-400 quality green jobs

• Inject > $100,000,000 per year into local economy

• World first for molecular level recycling

• Every thing we make can be sold in Sarnia

• Everything we need can be found in Sarnia

• No local waste to landfill

• Reduced cost of recycling and waste handling

Timeline

• Incorporation 2008 August

• Off-take agreement 2010 February

• Site selection 2010 February

• Private Placement 2010 April

• Detailed Engineering 2010 September

• Spin-off/IPO 2010 November

AFC Milestones

Alternative Fuels Corp’s proprietary waste transformation process reduces the multimillion year crude production cycle to a few hours and produces a better end product.

Milestones achieved� Exclusive technology license

� 1st site selected

� Industry support

� Political support

� Feedstock secured

� Demand > Capacity

� Canadian Government funding

proposal readyAdvocacy project


About Alternative Fuels Corporation

• Subsidiary of G4G Resources Ltd. (TSX-V: GXG)• Production of ultraclean/green fuels and sustainable

chemicals from:� Waste and biomass.

• Exclusive supplier for COMPS 2nd generation Fischer Tropsch technology for the Americas� 2 operating pilot plants (China, Australia).� Commercial scale technology� 15 years + comprehensive technology development.� Numerous patents within FT process� Trainers of Sasol engineers

• Cost competitive process:� Not dependant on subsidies or peak commodity cycles� Capital costs 20-30% per barrel below traditional Fischer Tropsch

• Scalable & modular process• Ability to be in production within 3 years


Contact Information

Michael Hepworth, VP Business [email protected]+1.416.204.0352

Lambton County Fuels Project Stakeholder Pres Oct 09

Technology

Transcript of Lambton County Fuels Project Stakeholder Pres Oct 09