Homeland Resources, Inc.
6555 S. Old Highway 91
McCammon, Idaho83250
208-254-3642
Dean Bollinger, President
July 13, 2006
Subject: Brief Homeland Resources, Inc. Business Plan - for- Wasatch Venture Fund
The following contains Proprietary Technology/Intellectual Property and is to be held confidential.
EXECUTIVE SUMMARY:
Homeland Resources, Inc. is a newly formed Idaho Corporation with proprietary technology in processing and briquetting coal to produce a "Decontaminated Solid Fuel". This technology will produce a cleaner burning, higher BTU coal for power plants, and aviation and diesel fuel with no damage to the environment.
The underlying process has been known since 1923. In WWII the Germans used it to produce 124,000 barrels of fuel per day. There are 249 related patents. Shell Oil is using the Fischer-Tropsch process in an operational plant in Malaysia. South Africa gets most of its diesel fuel from the process.
The advantage of Homeland's proprietary technology is that it removes almost all of the Sox, Nox, ash & mercury from coal without harmful emissions or residue. Besides aviation and diesel fuel, other byproducts are cresylic acid, coal tar extenders, and boiler-pure water. Also, the development of this technology will produce a wide range of products which include electricity, liquid fuels, chemicals, hydrogen's, and steam. in addition to near zero emissions coal gasification and hydrogen production focus, the need also to employ Western Coal. All of the nations sub-bituminous coal is located West of the Mississippi (which is 37% of the nation's demonstrated reserve base). With recent developments in the coal gasification process it was found that the sub-bituminous coal was not suitable for gasification, unless it is pre-processed. Thus this coal has become less valuable. The reason for the digression in value is that PRB's coal "particle size" is to small and it is to high in moisture content to run efficiently in the existing gasificiers. PRB coal is also generally low in BTU's. Homeland's technology includes utilizing this PRB coal. All the above supports the United States' Energy initiatives of: Reduced Dependency on Imported Oil. Maintain Diversity of Energy Technologies and Resources. Retain Energy Manufacturing Capabilities. Be Self Reliant by using Domestic National Resources. and Reduce emission by using Clean Coal Technologies rather than traditional technologies.
BUSINESS OBJECTIVES:
The following are Homeland Resource's Business Objectives:
1) Design, Build, and Operate a coal gasification based plant, with near zero emissions, coal fired electricity and hydrogen production plant (sell power produced to public utilities).
2) Create a sustainable economy for energy production nation wide.
3) Develop and patent its chemical process for enhancing PRB and other low BTU coal with hydrogen.
4) Develop and patent a cracking process of carbonized gases for liquid fuels.
5) Develop and patent an electrical gasifier that will efficient burn PRB and other low BTU coals.
6) Develop and patent the process to briquette stroker coal.
7) Develop and patent the briquetting process for high moisture, low BTU coals to produce the right particle size for the gasification process.
8) Reduce fresh water use and effectively utilize the water by-product from high moisture coal.
9) Create an alternate, efficient form of transportation coal to the eastern U.S. markets.
10) Develop and patent a unique carbon sequestration process.
11) Market and receive royalties on the patented chemical and technological processes.
PRODUCT DESCRIPTION:
From the above discussion you can see that there is a multitude of product descriptions. From water to steam. From gas to liquid fuels. From coke to coal briquettes. All are produced from the raw natural coal into various energy products. It should be noted that Homeland's projected pilot plant has been exempted by the Idaho State Legislature from its two-year moratorium on new coal-fired power plants. (Homeland would not be operating a power plant, but one for decontaminating coal.)
MARKET INFORMATION:
Recently, the President proposed billions for such research and development. The Department of Defense has a continuing need for a safe source of diesel fuel. We have met formally and informally with the State of Idaho Department of Environmental Quality. After reviewing our proposed processes, they have stated that Homeland resources, Inc. processes will not have to be issued any permits. Why? The contaminates are contained in the process and not emitted into the air or water.
COMPETITIVE SITUATION:
There are no known competitors presently in the market place. There are a few companies briquetting coal, in the U.S. and Australia. But none of them have a pre-process nor a briquetting press which compares to the "Bollinger Briquetting Press". To our knowledge, no one has commercially done this before. Homeland Resource's process is a proven process. Homeland's competitive advantages is that technically we know what we are doing.
PRINCIPALS OF HOMELAND RESOURCES, INC.:
Dean Bollinger, Engineer/inventor/president. Over 40 years experience in briquetting and in the coal industry.
Sidney W. Painter, former (retired) manager with FMC Corporation and working in the coal industry.
Charles R. Trieschmann, attorney with wide international experience.
Julie Foster, contract manager at the Idaho National Laboratory.
TECHNICAL STRATEGIES:
Pre-processing of the raw coal for briquetting is the essential of our technologies. Pre-processing removes moisture, undesirable (contaminates) matter, raises the BTU's, enhances fixed carbon, prepares a particular size for gasification, and makes a clean coal for blending with a lower grade coal.
There are three stages in the pre-processing of the coal:
1) The Washing Process.
2) The Heating Process.
3. The Briquetting Process.
The objective of this project is to demonstrate that the proprietary liquids from coal (LFC) technology can reliably and economically convert low BTU coal into a superior, high-BTU solid fuel (PDF), and an environmentally attractive low-sulfur liquid fuel (CDL).
FINANCIAL STATEMENTS/PROJECTIONS:
Homeland's business plan calls for two investments of $3 million each for the building and operation of the pilot plant; then $14 million to make the plant fully operational by taking the plant from 15kw of electricity up to 50kw's of electricity. The fully operating plant would use some 50 tons of coal per hour. The projected profit would be approximately $13 annually. We believe that part of the investment could come from the federal government, or government guarantees..