Monthly Archives: July 2012

The Phoenix “Replacement Energy” Initiatives — 2012 Outlook

The energy world is increasingly in a state of flux — which includes the pivotal Phoenix role in advancing our proprietary Hydrogen and “Synfuel” technologies — technically, financially and legally. The relevant statistics point towards the foreseeable commerciality of these breakthrough replacement (not “renewable” nor “alternative”) energy systems.

Phoenix maintains exclusive ownership of its proprietary “Synfuel” technology, having filed for U.S. and international provisional patents covering the novel compounding of Hydrogen with diverse captured carbon emissions. The Hydrogen and carbon components of Phoenix “Synfuel” may derive from widely diverse sources. The “Synfuel” equivalents of conventional liquid transportation fuels, ranging from light-end jet fuel and kerosene, to mid-range gasoline, and heavy-end diesel oil products, can all employ the existing, long-established (and long paid for) liquid fuel distribution infrastructure with the massive investments already in place for commercial operation.

The “Synfuel” technology will also play the important, central role in advancing economic Carbon Capture and Storage/Sequestration (CCS) systems — which can be further upgraded by the environmentally benign Phoenix Carbon Capture and Recycling (CCR) strategy. The Phoenix plans for a leading role in the increasingly inevitable future “Hydrogen Economy” deriving from our proprietary technologies, including “Synfuel,” covering the light-powered generation of low cost Hydrogen gas that is sourced by “splitting” ordinary water feedstocks (including seawater and impure waters).

The world Hydrogen gas market, now at $300-billion annually, is growing at more than 10% per year. Major ancillary Hydrogen gas generation will also be required for our future proprietary “Synfuel” production. The full range of conventional liquid hydrocarbon transportation fuels, deriving from the compounding of Hydrogen gas with captured carbon emissions from any source, is in the Phoenix replacement energy future.

The recent very widely publicized development of large scale shale gas and oil reserves as another energy resource is suggested as highly over-rated. By definition, shale is a tight source rock — with minimal porosity and permeability, which obviously limits economically produceable hydrocarbon reserves. Hydraulic fracturing (or “fracking”) of the tight source rock logically does not increase the aggregate of oil and gas reserves. Drastic, and precipitous, production decline curves are a virtual certainty in the not too distant future.

With world oil demand now over 88-million barrels per day, a real hard number, each increasingly rare billion-barrel oil discovery covers less than 12 days of current world oil consumption! We must logically conclude that the proven Hydrogen energy alternative is the only obvious and preferred replacement for conventional liquid transportation fuels.

A Canadian Government Collaborative Grant for Phoenix research on the Company’s “Synfuel” research project, entitled “Efficient Catalytic Systems for Reverse Water Gas Shift (RWGS) Reactions Based on Nano Structured Nickel Catalysts,” has been approved by the Natural Sciences and Engineering Research Council of Canada (NSERC). The program will focus on the electrochemical promotion of catalytic reactions and for the design of novel catalytic systems to be employed in the application of diverse metals, alloys and composites in special catalysts and fuel cells.

The research program Collaborative Grant will help fund the development of our Low Carbon Hydrocarbon Fuel (LCHF), or “Synfuel,” a proprietary synthetic hydrocarbon fuel that is compounded from widely diverse sources of Hydrogen and carbon. “Synfuel” is chemically identical to conventional petroleum-based liquid fuels. The research funding will advance the further development of the basic Phoenix system of converting carbon dioxide to generate carbon monoxide and water. The proprietary flowsheets, designed for commercial “Synfuel” production, will employ the generated carbon monoxide for compounding with Hydrogen.

SABIC IP, the North American petrochemical unit of Saudi Basic Industries Corp. of Riyadh, Saudi Arabia, is evaluating the Company-developed, proprietary, scalable, reactor unit designed for the photo-chemical generation of Hydrogen gas. Also covered in the SABIC accord is the limited disclosure of the Phoenix production system for “Synfuel,” our proprietary process for generating the full range of conventional liquid transportation fuels by compounding Hydrogen with captured carbon dioxide emissions, both of which components can be derived from a diversity of sources.

A current overview of the primary energy, fuel and power alternatives is considered appropriate:

• Wind and Solar Power:
The wind and solar power alternatives are complicated by unpredictable atmospheric conditions, including intermittent and directionally-variable air movements. There are also the recognized inherent environmental downsides to wind and solar power installations that severely limit their locations for optimum operations. Capital cost intensive standby power and storage capabilities are essential. Wind power systems currently require upwards of 400% increases in consumer tariffs above those for conventional power generation (further consumer and taxpayer subsidies?).

• Biofuels (including Ethanol):
Edible crop sources (largely corn) for biofuels consume essential food commodities which can generate disastrous food price inflation. Not to be overlooked are the increasing input costs of fertilizers, planting, harvesting, storage, processing, transport, and infrastructure — while waste sources of biomass are subject to costly collection and delivery for processing.

• Algae:
Algae’s sensitivity to temperatures, and need for nutrition for cultivation, suggest that its batch-production system will result in a very costly energy alternative.

• Coal and Nuclear:
Coal and nuclear are recognized as environmentally degrading and/or dangerous in their commercial production and use, with substantial costs and dangers in routine power operations — not the least of which is the essential provision of spent nuclear fuel disposal sites that must be secure for upwards of 1,000 years!

Phoenix will continue to expand its Hydrogen energy power initiative — which will employ this virtually inexhaustible, pollution-free, energy resource to generate low cost, sustainable, clean energy while emitting, upon combustion, only pure water vapor. Slated for mitigation, or complete elimination, are the costs and dangers of the wide range of noxious emissions of carbon dioxide, sulphur dioxide, nitrous oxide, and other greenhouse gases, as well as the costly and problematic nuclear energy requirement for the long term disposal and/or storage of the spent fuel.

Copies of all Company releases may be further referenced on the regulatory filings website — www. SEDAR.com — and on the corporate website — www.phoenix-pco.com. July 2012