Hydrofuel Canada Inc. - January 2024 Investor Update
To begin with, we would like to extend to you and your family our sincerest best wishes for the New Year.
Hydrofuel has made significant progress over the last several months and we are excited to share with you the highlights listed below.
As you may recall, In July of 2022 Hydrofuel negotiated an exclusive licence for a very promising green ammonia production technology, “Micro Ammonia Production System” (MAPS) from Georgia Tech (GATech). Soon afterward, we executed a two-year $1.5 Million USD commercialization agreement with Colorado State University (CSU).
We are very pleased to inform you that following lengthy discussions with the US Patent Office (USPTO), the USPTO approved the granting of the patent for MAPS to GATech on December 7, 2023. In addition, our CSU commercialization project for the MAPS technology is nearing completion and we expect a fully operational, full scale demonstration unit to be functional before the end of January 2024.
Initially targeted at over 250,000 large North American farms and select industrial customers, our MAPS units are an order of magnitude more technologically advanced than our competitors. MAPS unique approach to the production of green ammonia affords us a significant cost advantage as well. To that end, we are pleased to inform you that, one of our advisors, Hans Vrijenhoef, has expressed a very strong interest to purchase 5 units at $540,000 USD each for delivery in January 2025. These units will be targeted for sale to his customers in the EU. Hans is the president of the Ammonia Energy Association and the founder of Netherlands-based Proton Ventures, a provider of green engineering and turnkey solutions for world-scale ammonia storage terminals, ammonia production units and other process applications.
We intend to begin accepting MAPS unit orders in Canada and the USA once the details of the previously announced subsidy and incentive programs in those jurisdictions are finalized. We expect the details of these programs to be released before the end of the first quarter of 2024.
In June of 2023 we completed a two-year CAD $1 Million dollar research and licence agreement with the University of Toronto to develop opto-photochemical technologies that will use light energy as a replacement for the heat energy generated from fossil fuels currently used in the manufacture of 90% of global chemicals and fuels. These highly efficient and low-cost technologies separate hydrogen and other atoms from hydrocarbon, water and ammonia molecules from large to micro scale. Multiple patents have been filed with several more under development. These are extremely disruptive technologies that have garnered the attention of some significant global corporations. Hydrofuel is currently discussing collaboration with Signify N.V., formerly known as Philips Lighting N.V..
Technical Summary of Four UofT Photochemical Technologies
(click on above image to view PDF document)
We have raised $2.5 Million USD to date and intend to raise a further $2.5 million USD through the sale of 5 million shares at $0.50 USD/Share, for approximately 20% of the company, post money on a fully diluted basis. Proceeds of this raise will be used for commercializing the MAPS technology, development of the Opto-Photochemical technologies, and for working capital.
With the expected deposits on orders for our MAPS units and the over 50% estimated Gross Margins to be realized on unit sales, we hope to be able to fully fund our operations going into 2025. A public listing and a substantial capital raise to drive global sales of our MAPS Units and commercialization of our Photo Chemistry products are the next steps.
Chairman and CEO
Hydrofuel Canada Inc.
(Trademarks Reg. in Canada, USA & EU)