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FAQ

Fuel For A Mindful World

FuelPositive receives questions every day from interested investors and stakeholders. In the interest of providing as much transparency as possible, we have compiled and curated our answers, organized by subject. These FAQs are regularly updated and added to as we learn more and receive additional questions.

Investment Details

You will need a broker to buy our stock.

FuelPositive is traded in Canada on the TSXV under the trading symbol NHHH

In the U.S. FuelPositive is traded on the OTCQB under the trading symbol NHHHF

The Annual General Meeting was held on April 19, 2022. You can find a link to a video of the management presentation and a downloadable PDF of the presentation here

The benefits of the technology accrue solely to FuelPositive and its shareholders. There are no other organizations involved at this time. If we take on any partnerships that would result in royalties or fees, we will make that public. Right now, we have no plans to do that.

We don’t publish our shareholder lists unless required under regulatory policies. It’s up to the individual investor if they want their positions to be known publicly.

Business Model

Our business model is outlined here: https://fuelpositive.com/business-model/

 

Details about our containerized modular, scalable, green ammonia production system for in situ applications can be found here: https://fuelpositive.com/green-ammonia-system 

We mostly see opportunity, with possibly the greatest risk being the time it takes to build our initial systems. However, we are a mighty, nimble team and we are working quickly to be among the first to market in the green ammonia space. Since FuelPositive was established in January of 2021, we have acquired our core technology, filed for our initial provisional patent and raised the funding necessary to allow us to produce multiple commercial scale demonstration systems. We have hired a stellar team, finished the engineering and are currently building our first demonstration prototypes. This has been done in an astonishingly short period of time, so while the timing to get to market quickly is a challenge, we know we are up to the challenge.

 

The one unforeseen global issue that could slow us down is delays in international deliveries because of the COVID-19 pandemic and a severely challenged supply chain, but we are doing everything we can to prevent possible delays from happening. Items
have been sourced locally, whenever possible. While waiting for items that must be shipped, we are building other aspects of the system so there is no down-time and no time is wasted.

 

Ultimately, our plan is to have everything manufactured in Canada, but for the prototypes, we are importing some components from other countries. While we have funding in place today to deploy our first few demonstration systems, we are talking with governments and exploring other avenues to expand our demonstration plans.

 

As all of that is going on, we are developing plans for large-scale manufacturing. We are also looking for partners to produce conversion technology to adapt fossil-fuel-powered engines to run on our green ammonia.

 

All of this is challenging, but we are confident we will continue to move ahead according to our plan. Meanwhile, the cost of renewable electricity generation is dropping and people all around the world are finally understanding that stopping greenhouse gas emissions is at a crisis point. So mostly, we see opportunity.

Our business model is to manufacture and distribute the units under the FuelPositive brand.

We are leaning towards selling our units. That’s because at this point in our development, we want to build up our working capital. The prices we are considering are well within the range that is considered affordable by the agricultural sector – especially the larger producers that use large quantities of anhydrous ammonia. We see a sales approach as realistic, and it would help us expand the company as rapidly as possible and serve as many customers as possible. Outright sales would be in our best interest.

We are currently producing our first full-sized demonstration system. Once it is completed, it will be launched on a farm in Manitoba. We expect that to happen in late summer 2022 or shortly after that. You can see information about the farm here: https://fuelpositive.com/fuelpositive-announces-first-demonstration-project-partner/

 

We will be validating the first system before it leaves our facility for the farm.

 

We have already begun to work on our second and third systems which we will be rolling out in “real world” demonstration pilot projects later in 2022.

 

The first sales agreement is being developed right now as part of the first demonstration pilot project. That sales agreement will be the model for the next two systems that will be used for our second and third pilot projects. We expect we will be taking more pre-orders for the next batch heading towards the end of the summer 2022.

We expect there will be a down payment when the pre-order is placed. There would be a payment at the 50% point of manufacturing, another payment when the factory acceptance testing is complete and a final payment once the system is delivered and commissioned, but we haven’t determined the exact percentages of each payment.

We expect to validate the first demonstration system before it moves to the farm in late summer 2022. The validation will prove the rate and purity of our green ammonia and will allow us to validate the operating expenses we released in our November 18, 2021 news release and webinar. Our first significant income will come from pre-orders, which will begin once this validation is completed.

 

FuelPositive also expects significant revenue from the carbon credit value that will be generated as our systems produce carbon-free, green ammonia. Our green ammonia is so efficient and energy-dense that for each ton produced, we will effectively reduce carbon emissions by more than 2.5 tons, based on the global average of grey ammonia production emissions.

 

As soon as we start producing green ammonia on the first farm, we will also begin banking carbon credits.

We plan to build as many systems as we can sell.

 

Demand will be the primary driver of our manufacturing capacity. Once we have a price to the customer determined, we will begin to receive pre-orders and accept down payments. If demand is high – even right from the beginning – we will scale up quickly. Our team members know how to do it and have done it before. We expect our manufacturing growth to be steep and we will do what it takes to meet demand. The key is to plan for it – and that is what we are doing.

 

The other significant driver of our manufacturing capacity is funding. When demand takes off, we will have a number of different options to ensure we can afford to do what we need to do. We will have deposits from customers to work with, we will have government support, and we will explore the need for other forms of non-dilutive measures, such as debt financing. We will look for the most non-dilutive financing options available to us.

 

We are exceedingly aware that the world needs our technology as soon as possible and in order to really affect climate change, we need lots of systems in the field, not just a few.

All of the above. We are already involved in conferences, direct marketing and partnerships. As we grow and become better known as a leader in the field, we will build a sales capability that ensures we will be the go-to source for developing and providing practical, clean, scalable and sustainable carbon-free technologies and products that can be implemented economically now.

By the end of 2022, we hope to have a number of pilot projects in the field and to have begun to build our manufacturing systems for sale around the world. For more details on our Business Model, please click here.

André Mech has been advising organizations and governments focused on sustainability, energy efficiency and carbon reduction worldwide since 2001 – most recently in North America and Europe. As one of the most knowledgeable emissions reduction and carbon credit specialists in the sector, he has assessed the emission profiles of hundreds of technologies. His expertise is already helping to guide us as we make critical decisions about the technologies we choose to develop and our market entry strategies. His analysis of our first product – green ammonia – is providing valuable insights into where and how we can have the most impact, looking at it sector by sector. He is also providing counsel on the best way forward regarding carbon credits.

Our production system is a low-carbon economy product, so we have an opportunity to take advantage of the price on carbon. In fact, FuelPositive expects significant revenue from the carbon credit value that we generate as our carbon-free, green ammonia is produced. We plan to generate carbon credits for voluntary and compliance markets that are active in areas where our production systems are used. Although procedures and carbon schemes exist, we are working on an ammonia-specific protocol and policy to address this targeted opportunity in a targeted manner. The revenue derived from carbon credits and emission reductions will fund future growth and investment in new carbon-conscious technologies. It will also help to offset the cost of our systems for our customers.

 

Our initial demonstration system will produce up to 300 kg per day of green anhydrous ammonia, which is enough for a farm in the 2,000-acre range, depending of course on the crops grown and the location of the farm. That equates to just over 100 tonnes per year of carbon-neutral, green ammonia. 

 

Natural Resources Canada calculates that every tonne of grey ammonia produced in Canada causes 1.81 metric tonnes of greenhouse gas emissions – and that number increases to 2.87 metric tonnes on average globally! The numbers differ depending on the jurisdiction. For this meeting, we will use Canadian and European models, just to give us an example of the potential.

 

One tonne of emission reductions in Canada in 2022 is priced by the Government at $50 per tonne and that price will rise by $15 a tonne every April until it hits $170 a tonne as an incentive to spur movement of the economy to a low carbon economy.  

 

So let’s do the math to get an idea of the scope of the value we will realize by selling our carbon credits.

 

Since each system installed and operating in Canada produces 100 tonnes of green ammonia annually, each system will generate $50/tonne x 100 tonnes x 1.81 tonnes of emissions. That equals $9,050 in 2022. This becomes $11,765 in 2023 etc., until $30,770 in 2030, when the Canadian system caps out at $170/tonne.

 

Note that this is per system! FuelPositive expects to deliver hundreds and then thousands of systems a year.

 

Here are some examples of the value we expect. With 100 systems in operation, say in 2024, it would be reasonable that the carbon credits would be worth 1.448 million Canadian dollars. With 1,000 systems in operation, say in 2025, it would be reasonable that the carbon credits would be worth 17.195 million Canadian dollars. Needless to say, it’s a pretty significant potential return.

 

It’s important to note that these are recurring annual values that will recur as long as the carbon market remains in force. It is expected to remain until the economy is decarbonized in 2050.  It is also important to note that the price for carbon, in tonnes CO2e, and the carbon intensity attributed to the production of ammonia varies from region to region.

Europe is also a market for us that will provide us with significant and recurring income streams.  In Eastern Europe the price of carbon is in the order of $110 Canadian dollars and carbon intensity is about 2.96.  100 units in Eastern Europe would provide about $3.256 million Canadian dollars in 2022. 

We will be collecting them and then utilizing them either to fund future research and development or to offset costs for customers. Right from the start, we will be collecting them so we can get them into tradable volumes. We have to collect them to get an appropriate volume to transact them efficiently.

We will be aggressively working with our advisors to ensure we take advantage of all of the tax breaks and incentives that apply to us and to our customers and partners. We are working intensely with Sussex Strategy Group to develop relationships with governments and key stakeholders in Canada and will set up similar relationships in other countries as we go forward. For more details on hiring Sussex Strategy Group, please click here.

 

André Mech is a strategic hire for us in this regard. As an expert in international carbon credits, he will play a critical role in introducing us to markets to compete in for space so we can have the greatest possible impact and benefit from appropriate tax breaks and incentives. For more details on hiring of André Mech and Carbon Credits, please click here.

We are continuing to work with a group associated with NASA that is looking at novel ways of creating test units. We have nothing material to announce now, but we will provide updates as the improvements are independently certified. Given the history of this technology, we want to ensure we are never in an “over-promise and under-deliver” situation again. So, we are moving forward carefully. The level of skill and relevant experience of the team members is incredible, as are the approaches the team is taking. Some of the tech being applied to advancing our CMBT materials now didn’t exist five years ago. We are very intrigued with the possibilities of moving the technology commercialization.

Not surprisingly, we are deeply committed to our vision, mission and values and as such, we are not interested in being acquired or taken over. There is huge potential for FuelPositive in the clean energy space and we do not want to step away or see our vision and mission watered down. What we are doing is too important to put at such risk.


In the event that there is a hostile takeover bid initiated, the company has in place a Shareholders Rights Plan that will ensure that the Board and all shareholders have adequate time to pause and analyze the bid and respond accordingly.

We have been approached by a number of large companies, but we do not see ourselves working with them at this time. We are focused on green ammonia, while the larger fuel producers are looking at other models, including blue ammonia with carbon capture. That simply isn’t of interest to us. We are also focused on our decentralized model which is not attractive to large fertilizer and fuel producers. They just don’t work that way.

Our plan is to schedule maintenance once a year. Tech support will be handled both remotely and with a team that can travel to the site for the initial units. Site training will be provided for all standard maintenance and operation so the owner will be trained to run and maintain their system. The plan is to also train and certify local distributors or service representatives to be capable of providing these services.

 

Our system is modern, with over 145 remotely monitored points, which allows for predictive maintenance from our host location with our monitoring package. That means there will be little for customers to do, because we will than 145 aspects of the system from our location.

 

The system lifecycle is expected to last several decades, with only periodic upgrades necessary. For instance, a catalyst upgrade will be implemented at the 15-year mark.​ The Company will be continually advancing the technology. Due to its modular design and remote connectivity, each customer will be able to take advantage of new technologies as they become available.​ Delays, in that context, for upgrading a component, as an example, will be minimal.​ Unlike a large grey ammonia refinery, the green ammonia containerized FuelPositive system can be started and stopped quickly and safely as needed.

Yes. We continue to evaluate new technologies, both to make our system more efficient and to bring our system costs down. This is part of our commitment to continuous improvement. Out of the gate, we are hoping to make the cost of our system much lower by developing and using our own technology. There are about three or four technologies that we are currently evaluating, so in parallel with building our current system and staying focused on that commercialization, we are also developing some other technologies to improve our systems for the future.

Competition

There is a lot of attention on green ammonia as a potential fossil fuel replacement with research being conducted around the world. But, there aren’t many players in the small containerized market. Our technology is exemplary in the smaller generation space. We are focused on on-site, end-user application. That’s a big differentiator because it gives our customers independence from the traditional supply chains of fertilizers and fuels. The market is massive and there are more opportunities than any one company can take advantage of. Over time, there will be lots of competition, but we believe we will have the first-in-market advantage and we have a tremendous, versatile design and technology. We expect to dominate the market for many years.

There are enough enterprises, provinces, states and countries that are avidly interested in green technology for us to perform extremely well. We believe in decentralization, so extremely large applications are not as interesting to us. We are also looking for solutions that can be implemented now – not 10 years from now because that will be too late. We will focus on partners who share our vision, mission and values. For more details on our Vision, Mission, Values, please click here.

Market Size

This is a complex question to answer. First, it’s important to understand that traditional or grey ammonia production not only produces a tremendous amount of fossil fuel emissions in its manufacturing but, some analysts suggest that the transportation of ammonia makes up nearly 50% of its cost to the end-user! Not to mention adding dramatically to its carbon-intense footprint.

 

One of the fundamental reasons why we are focussed on a decentralized, modular and scalable business model is to essentially eliminate the unsustainable supply chain associated with both ammonia manufacturing and distribution, but also eliminate the supply chain for fossil fuels, when green ammonia is considered as a viable fossil fuel replacement.

 

At this growth stage of our technology rollout, it is impossible to state with accuracy what the potential marketshare penetration will be for the company. But, suffice to say, when farmers embrace the idea of a green fertilizer, as well as energy and supply chain independence, the potential markets are virtually endless for the company.

We are not concerned about having enough sustainable electricity to produce the volumes that will be needed.  

 

The price of renewables is continually dropping and this will make them preferable to fossil fuels. According to a recent report from the International Renewable Energy Agency (IRENA): “The decade 2010 to 2020 saw renewable power generation becoming the default economic choice for new capacity. In that period, the competitiveness of solar (concentrating solar power, utility‑scale solar photovoltaic) and offshore wind all joined onshore wind in the same range of costs as for new capacity fired by fossil fuels, calculated without financial support. Indeed, the trend is not only one of renewables competing with fossil fuels, but significantly undercutting them, when new electricity generation capacity is required.”

 

In Canada alone, if only off-peak power from non-polluting electricity generation was used to produce green ammonia using FuelPositive’s production systems, 100% of the passenger and freight aviation and rail, passenger bus, freight trucking, freight rail and freight marine shipping in the country could be replaced by our green ammonia. This alone would cut Canada’s greenhouse gases by over 15.3% significantly supporting our commitments under the Paris and COP26 agreements! Click here to view the André Mech report.

Patent Protection

Yes, all of the relevant intellectual property is assigned to the company. We have a robust intellectual property protection program in place and have engaged the leading patent and trademarking law firm, Cassels Brock, to support our work.

 

For more information about our intellectual property protection, please click here: https://fuelpositive.com/intellectual-property/

Dr. Dincer and his team are strategic advisors and lead technologists to the company. They have a vested interest in the successful commercialization of the technology and work with us daily. Dr. Ghassan Chehade, co-inventor with Dr. Dincer, has also joined the staff of FuelPositive as Lead Engineer.

Our Green Ammonia Production System

The first demonstration system is scheduled to be on the farm of Tracy and Curtis Hiebert in the late summer of 2022. Here is a link to our news release about our partnership with them: https://fuelpositive.com/fuelpositive-announces-first-demonstration-project-partner/

 

By the time the first demonstration leaves our facility in the late summer, it will have already passed complete validation.

 

This pertains to all performance specs and standards as engineered, including some form of climatization – we’ll be simulating very hot and very cold temperatures to ensure it will operate consistently in the harsh Canadian weather.

 

The objective of this first pilot project is to place the system on the farm and run it on the sustainable energy supply available there, evaluating the interface between the customer and the system, proving the ease of use and ensuring the system performs over time as expected.

 

While we have stated late summer 2022, it is possible that we might experience some delays that are out of control. For example, the farmers must have local permits in place before the system can be operated. A delay from the municipality in granting the permits could mean the system could be shipped and in place, but not running yet. The farmers must also have storage tanks in place to store the green ammonia produced by the system. The farmer is buying those storage tanks, but if they are delayed, we would have to delay starting up the system.

 

What we can say, though, is that the first demonstration system will be “farm-ready” by late summer, if not already on the farm.

 

We also expect to be in the field with our second and third demonstration pilot projects later in 2022. For more details on our Business Model, please click here.

It uses sustainable electricity, water and air to manufacture green ammonia in relatively low pressure and low-temperature proprietary process. There is no waste. Sustainable electricity includes hydroelectric, wind, solar, recycled waste biomass and geothermal power. For more details on our green ammonia production system, please click here

FuelPositive believes that modular, scalable and portable green ammonia systems will meet with profoundly positive acceptance. Worldwide, there is recognition of the need to shift to decentralized systems in order to reduce risk, spend less, improve efficiency, allow for independent access to commodities and reduce pollution.

 

 

Massive power plants, refineries, traditional ammonia and grid systems are expensive, inefficient, outdated and unsustainable. Centralized production facilities requiring complex infrastructure systems result in environmental degradation and supply chain disruptions.

 

 

Smaller systems, designed specifically for end-use applications, will allow customers to have the means of production to meet their specific needs. This is a deeply liberating concept that will allow end-users to truly have independence from global systems that have profoundly and negatively affected the environment and economies for centuries.

The first demo system is comprised of three 20-foot containers. It isn’t being built to be fully miniaturized. It’s designed to be convenient for testing, improving and validation. By having three separate sections, we can make sure we can get the scientists and engineers into the operating system safely with their laptops and other equipment to generate tests and validation receipts, etc. The second and third systems will be designed focusing on miniaturizing/optimizing. We do expect it to get to two 20-foot containers for each system. Moving to the two 20-foot containers as opposed to the one 40-foot container provides more options for the farmer pertaining to placement and configuration of the modules, thus increasing the possibilities for the farmer. It will also be easier to transport and manoeuvre into locations.

First, we are focused on decentralizing the system, so traditional models of massive production and distribution applications aren’t of interest to us. We are favouring the concept of producing green ammonia onsite, in the quantities needed where it will be used.

 

Our initial demonstration systems are being built to be fully modular, scalable and containerized, with a targeted capacity of up to 300 kg/day of green anhydrous ammonia. Output can absolutely be increased (or decreased) based on the end-user requirements.

 

We have had some interest from people who want extremely small systems – to power a boat or a single-family home, for example. Providing smaller green ammonia systems, for homes as an example, would be a natural progression for us once we have developed our system, miniaturized it and commercialized it. The modular design we are implementing can be scaled down. The idea is to make it as cost effective as possible over time. The natural progression would be to offer it for homes at some point in the future, for now, we are pretty singularly focused on the agriculture sector.

 

Our technology is extremely flexible and we do plan in the future to develop systems allowing individual end-users to benefit. Access to FuelPositive solutions should be universal.

The short answer is “yes”. As electricity is the primary input on our systems the cost of electricity has a direct affect on the cost per unit of green ammonia. With the combination of sustainable sources becoming more and more cost effective and the ability for many end users of ammonia to produce their own sustainable electricity, the cost of in situ production of our green ammonia will only decrease in time. Additionally, carbon credits, which have never been available for traditional ammonia manufacturing, will play a significant role in the end cost of our green ammonia production.

 

From an environmental perspective, if the power company’s source of electricity is sustainable, then you will be able to produce our green ammonia. Sustainable electricity includes hydroelectric, wind, solar, waste biomass and geothermal power.

 

From a carbon emissions perspective, if the source of the electricity isn’t carbon-free, then the resultant ammonia is not carbon-free. So, a sustainable carbon-free source of electricity is a fundamental requirement.

Keep in mind that you are producing an entirely carbon-free form of ammonia, on-site where you need it, without any of the supply chain and transportation issues that exist with traditional ammonia. So, all of the savings related to these facts will be available to the end-user.

 

The unreliability of the traditional ammonia supply chain cannot be overstressed. Supply chain disruptions and extreme price fluctuations are common and a cause of constant stress for farmers; recently, record high gas prices are forcing traditional ammonia capacity to drop in Europe, while damage from hurricanes has been cutting production in the U.S. In Manitoba, Canada, farmers have seen a price increase from CA$600 per tonne to CA$1,200 per tonne in just six months in 2021.

 

For information about our costing model, please click here: https://fuelpositive.com/business-model/.

Our cost model makes our green ammonia affordable. To see our costing model click here: https://fuelpositive.com/business-model/.

 

But you should consider that traditional ammonia must be phased out as we move away from fossil fuels. In a short period of time, traditional or grey ammonia will no longer be an option.

Our systems are modular and can be reconfigured with a seawater treatment process. There would be no complications and the cost would only reflect the upgrade to pre-treated seawater.

Our system will output a liquid form of green anhydrous ammonia (pure ammonia), which farmers will use as fertilizer by injecting it deep into the soil. Deep injection of liquid ammonia is already a common farming practice. In some cases, the green ammonia will be made into UREA, which is a dry granule, also used widely by farmers.

We have not published our capital expenses or the price to the customer yet. We need to complete the building of our initial demonstration systems first, and as we do that, determine how we can reduce the costs in each subsequent batch as we refine and improve our systems. The intention is to create a return on investment that works for farmers, at the same time as generating a good margin for the company.  Those are our criteria. The first systems always cost more than a production system, so we aren’t locking it in yet.

We are currently building our first demonstration systems and will have the energy requirements determined soon. The amount of energy required will vary depending on the size of the system.

Our initial prototypes have a targeted capacity of 300 kg (500 litres) per day of our green ammonia, and our systems will be fully adaptable to farms that range in size from hundreds of acres to thousands of acres.

To store our green ammonia in large quantities, it is either liquefied under pressure (about 10 bar at 25°C) or is refrigerated (liquid point –33°C). It can be contained in tanks made of carbon steel.

 

This depends on how you define the Haber-Bosch process. The original 1916 Haber patent is actually quite broad, basically saying that you add heat and pressure to nitrogen and hydrogen to produce ammonia. However, if you speak to global experts in the field, including the inventors of the patent-pending FuelPositive technology, our process is not Haber-Bosch.

 

The current method of producing traditional ammonia used by refineries around the world, is widely recognized as the Haber-Bosch process. It uses massive amounts of fossil fuels to provide the heat and pressure required to make ammonia from nitrogen and hydrogen, and it is well known to be one of the most polluting industrial processes on earth. The grey ammonia produced is made in huge refineries and transported to end users via a vast transportation infrastructure and supply chain that spans the world. Another key characteristic of the Haber-Bosch system used in refineries is that it’s a continuous process and is extremely slow to ramp up.

 

FuelPositive’s technology is different in three distinct ways. First, the green ammonia we produce is done without using fossil fuels and produces no carbon emissions. Second, it is being done on a small scale using a containerized, modular, scalable system that produces the green ammonia in situ, on the site where the customer requires it. Third, our process is easily set up, stopped and restarted on demand, which is crucial when you deal with intermittent renewable energy sources.

 

With the FuelPositive system, no fossil fuels are used, the end product is carbon-free, and there is no supply chain that causes shortages, delays and price fluctuations (or experiences leaks at transfer points along the way). And the process is quick to set up, stop and start again.

 

The FuelPositive system comprises a nitrogen generator to produce nitrogen from air, a water electrolyzer to produce hydrogen from water, and a proprietary green ammonia synthesis converter to produce ammonia from the hydrogen and nitrogen. In that way, it can be likened to the Haber-Bosch process. But the scale, easy start-and-stop of the FuelPositive system and the lack of pollution in the production and the resulting green ammonia distinguishes the FuelPositive system from Haber-Bosch. Moreover, the scientists who invented the FuelPositive system and who are recognized as experts, advise us that the FuelPositive system is not Haber-Bosch.

We have a specific program to validate the volume, energy consumption and purity of our product. Every validation is performed following a standard gage repeatability and reproducibility (gage R&R) process involving three different tests performed by three different sources. Sources are FuelPositive, an institution such as a university and a private professionally accredited lab.

Once our system is safely in place and operating on the farm, we will set up tours. We expect a great deal of interest from both the farming and investment communities. Tracy and Curtis Hiebert, our partners who own and work the farm, want to help us get the story out.

Green Ammonia Applications - General

With 200 million tons of dirty ammonia consumed worldwide per year (80%+ utilized by the agricultural sector), FuelPostive is initially targeting farming to realize the greatest and most immediate environmental impact. We are actively planning with farming partners who are deeply compelled by the potential of having in-situ FuelPositive green ammonia production systems on their farms, allowing them to produce all of the green ammonia they need for fertilizing, drying crops and operating their generators, farming equipment and other vehicles. The advantage to them is to be energy- and supply chain-independent, while significantly reducing their carbon footprint. For more details on our farming applications, please click here

 

To learn about our first demonstration pilot project partners – Tracy and Curtis Hiebert of Manitoba, Canada, click here: https://fuelpositive.com/fuelpositive-announces-first-demonstration-project-partner/

 

It is important to keep in mind the significant problems associated with the traditional ammonia supply chain, which is not at all reliable. Supply chain disruptions are common and a cause of constant stress for farmers; recently, record high gas prices are forcing traditional ammonia capacity to drop in Europe, while damage from hurricanes has been cutting production in the U.S. In Manitoba, Canada, farmers have experienced a price hike from CA$600 per tonne to CA$1,200 per tonne in just six months in 2021.

We are first targeting the agriculture sector to fill its fertilizer and fuel needs. That just makes sense since 80% of ammonia today is used in that sector. Farmers who use anhydrous ammonia today already know how to handle ammonia. We expect quick sales there, as well as income derived from the sale of carbon credits.

 

We are also exploring relationships for grid storage and enabling the hydrogen economy because that makes perfect sense. As well, we have received a great deal of interest from all around the world in using our green ammonia as a fossil fuel replacement in internal combustion engines. Finally, the industrial ammonia users, which purchase 20% of traditional ammonia today are expected to switch to green ammonia in the near future as the need for greenhouse gas reductions becomes mandatory.

 

We see green ammonia as a critical material to rapidly facilitate change as countries all around the globe seek to eliminate greenhouse gas emissions. The growth potential is massive but for FuelPositive today, our greatest challenge is to stay focused. We need to ensure our first market entry is successful. While we do that, we are keeping an eye on other sectors, the green technology that is gaining a foothold in each sector, and the opportunities that are evolving. As each month goes by, there are new developments that we spend time understanding and evaluating. Once we are well established in the agriculture sector, with a strong revenue stream, we will be able to quickly determine the other markets and applications for us to grow into.

At this early growth phase, FuelPositive is focused on the manufacturing of prototype systems that will be suitable for larger operations, such as farms. However, the technology is extremely flexible. Providing smaller green ammonia systems for homes or small businesses would be a natural progression for us once we have developed our system, miniaturized it and commercialized it. The modular design we are implementing can be scaled down. The idea is to make it as cost effective as possible over time. The natural progression would be to offer it for small applications at some point in the future, but for now, we are pretty singularly focused on the agriculture sector.

We plan to build as many systems as we can sell.

 

Demand will be the primary driver of our manufacturing capacity. Once we have a price to the customer determined, we will begin to receive pre-orders and accept down payments. If demand is high – even right from the beginning – we will scale up quickly. Our team members know how to do it and have done it before. We expect our manufacturing growth to be steep and we will do what it takes to meet demand. The key is to plan for it – and that is what we are doing.

 

The other significant driver of our manufacturing capacity is funding. When demand takes off, we will have a number of different options to ensure we can afford to do what we need to do. We will have deposits from customers to work with, we will have government support, and we will explore the need for other forms of non-dilutive measures, such as debt financing. We will look for the most non-dilutive financing options available to us.

 

We are exceedingly aware that the world needs our technology as soon as possible and in order to really affect climate change, we need lots of systems in the field, not just a few.

We will be looking seriously at ammonia fuel cell technology over the next year. There’s no need for converting to hydrogen; the ammonia will be utilized directly in an ammonia fuel cell converting NH3 to electricity. We will share more in the coming year.

Transportation

Interestingly, ammonia has been used historically as a fossil fuel replacement. During World War II, when access to fossil fuels was scarce, the conversion of existing internal combustion engines to run on ammonia was not uncommon. As well, NASA’s X-15 aircraft, which set speed and altitude records in the 1950s, was fueled by ammonia.

 

 

The fundamental reason that ammonia has not been adopted as a viable fossil fuel replacement is that the way traditional ammonia is produced has such a significant greenhouse gas footprint that the environmental benefit of converting internal combustion engines to run on ammonia just wasn’t there. However, now that we can produce carbon-free, green ammonia at an economical cost, we can safely say that green ammonia is an ideal fossil fuel replacement – it burns carbon-free and there are 100 years of experience related to the safe handling of ammonia.

 

 

For more details on Fuel, please click here. For more details on our costing model, please click here.

Switching from fossil fuels to green ammonia offers an ideal transition strategy for Canada’s transportation sector as we adopt new practices to address climate change. Click here to read the André Mech report “Can Carbon-Free Ammonia (NH3) Derived from Green Power Sources Cover Transportation Fuel Needs in Canada?

 

 

The conversion of internal combustion engines to run on alternative fuels is a well-established industry and technology. Think of all the propane and natural gas conversions that have taken place over the decades and continue to take place today. The conversion of an internal combustion engine to run on green ammonia is similar and well understood in the sector.

 

 

We are talking to a number of groups who specialize in alternative fuel conversion kits for internal combustion engines today and we expect there will be many low-cost, industry-endorsed solutions in the near future.

We are starting off focusing on agriculture, because that is where 80% of traditional ammonia is used now. However, all of the transportation sector is interesting to us and we are engaging advisors who can help us navigate that complex sector. Rail, aviation and marine transportation are all areas where green ammonia could make a significant impact.

 

We are working on that. Converting a diesel tractor to use green ammonia will require a kit, which will make the conversion straightforward.

 

We are talking to a number of groups who specialize in alternative fuel conversion kits for internal combustion engines today and we expect there will be many low-cost, industry-endorsed solutions in the near future.

 

We are heavily focused on agriculture now, but we are being approached by virtually every sector that uses fossil fuel, plus the refrigeration sector that is interested in green refrigerants. It’s a really broad world out there in terms of potential for us.

 

Right now, our greatest challenge is to stay focused. We need to ensure our first market entry is successful. While we do that, we are keeping an eye on other sectors, the green technology that is gaining a foothold in each sector, and the opportunities that are evolving. As each month goes by, there are new developments that we spend time understanding and evaluating. Once we are well established in the agriculture sector, with a strong revenue stream, we will be able to quickly determine the other markets and applications for us to grow into.

Safety

Ammonia is well known to pose a risk to human health via direct contact and inhalation. However, it has been determined that ammonia is far safer than highly flammable fossil fuels, and considerably more stable than hydrogen. Ammonia is less likely to ignite than fossil fuels because it requires an extremely high temperature to ignite (651C). In the case of a leak, ammonia is lighter than air and rises when released, reducing the risk to people on the ground. It also has a detectable smell that alerts people to go downwind.


With 200 million metric tonnes of ammonia used per year, primarily in agriculture, the regulations and practices already exist for safe and extensive use of ammonia. This is one of the reasons why we have chosen to make agriculture our first market. The farmers that work with ammonia are trained and certified to ensure they handle it safely. See our statement on Our Next Challenge with Ammonia here

 

When used properly as a fossil fuel replacement, the only discernable emissions will be water vapor. Nitrous Oxide (NOx) emissions, associated with traditional ammonia, will be avoided by using a modified catalytic convertor in engines.

FuelPositive