Teknatura Business DNA Revolutionize (1) the production of clean, renewable energy, and (2) the growing of organic, nutrient-dense food for local villages, towns and communities in China. Develop, market and sell 3 revolutionary product lines: (1) the LEO Plant, (2) the Super Heat Pump and (3) the Hamaker during the first 1st Decade (2023 - 2033). Develop super alternative generation of energy and super alternative technologies during the 2nd D ecade (2034 - 2044). Contribute to China’s Rural Revitalization and National Rejuvenation. 1. Community Alcohol Fuel Plant aka the “LEO” (“Liquid Energy Oasis”) A. Historical Background • In 1905, Germany had more than 70,000 cooperative alcohol distilleries. German farmers grew potatoes. They supplied their local cooperative alcohol distillery with potatoes as the alcohol feedstock. • The local cooperative alcohol distillery turned potatoes into alcohol fuel and the leftover mash. No money exchanged hands. The farmers got 1/3 of the alcohol fuel and 100% of the leftover mash. The leftover mash is excellent animal feed. The cooperative alcohol distillery kept 2/3 of the alcohol fuel as profit. • Between 1903 and 1905, Germany manufactured 765 million liters of alcohol fuel from potatoes using this very successful cooperative model. B. Our Business Model • Teknatura partners with local farmers and the local government in rural China to make and sell alcohol fuel for cars and trucks. • Teknatura builds a Community Alcohol Fuel Plant called the LEO plant in a local farming community. The LEO plant capacity is (1) 1 million liters of alcohol fuel produced per year, (2) 5 million liters per year, or (3) 10 million liters per year. The local LEO plant is built, owned, employed, and operated by Teknatura. • Local government provides Teknatura with 99-year lease on free land to build the local LEO plant, and gives Teknatura other tax incentives. • Local farmers (within a service radius of 20 km of the LEO plant ) grow potatoes or other alcohol feedstocks (such as corn, sugar beets, comfrey, cattails, etc.). The 20 km service radius is to keep the cost of transportation to a minimum for the farmers. • Local farmers supply their local LEO plant with their alcohol feedstock at no cost to Teknatura. ~ ~ 1-23-202 3 1 Teknatura Harnessing the Power of Nature for National Rejuvenation • The local LEO plant produces alcohol fuel, the leftover mash and other byproducts. • 100 % of the leftover mash is returned to the farmers. They can use this excellent animal feed for their own animals, or sell it to other livestock farmers. • Alcohol feedstocks can come from many sources, depending on the local farming conditions and growing environments. As a matter of company policy, Teknatura will not use grains or fruits as alcohol feedstocks. • Here are a few examples: C. Our Revenue Model (Alcohol Fuel Only) • Teknatura sells the alcohol fuel at the same price as regular gasoline. • 1/3 of the net profits from the sale of the alcohol fuel is paid to the local farmers. • 1/3 of the net profits from the sale of the alcohol fuel is paid to the local government. • 1/3 of the net profits from the sale of the alcohol fuel is kept by Teknatura. • For example: ★ (1) A LEO plant of 1 million liters per year. (2) The selling price of our alcohol fuel is the same price as regular gasoline: 8 renminbi per liter . (3) The total cost of operating the LEO plant and all other expenses is no more than 20% of total annual revenue. The total annual gross revenue is 8 million renminbi. ★ The total annual net profit is 6.4 million renminbi. ★ 2.133 million renminbi is paid to the local farmers. 2.133 million renminbi is paid to the local government. 2.133 million renminbi is kept by Teknatura. • 10 0% of the leftover mash is returned to the farmers. This saves the local farmers on their animal feed costs or they can sell it to other livestock farmers. This saving or extra revenue for the local farmers is significant. ~ ~ 1-23-202 3 2 Alcohol Feedstock (Raw Input Material) Alcohol Fuel Produced From Growing Feedstock on Farmland (Liters per Hectare) Farmland Needed To Make 1 Million Liters per Year Percentage of Farmland Needed In A Total Land Area of 20 Km Radius (125,700 Hectares) Potato 1,700 (min.) 588 Hectares 0,500% Corn 2,800 (avg.) 357 Hectares 0,300% Sugar Beets 3,200 (avg.) 313 Hectares 0,250% Comfrey 4,600 (max.) 217 Hectares 0,170% Cattails 23,000 (max.) 44 Hectares 0,035% LEO Partners Annual Net Profits 1 Million Liters/Year Annual Net Profits 5 Million Liters/Year Annual Net Profits 10 Million Liters/Year Local Farmers 2,133,000 renminbi 10,666,000 renminbi 21,333,000 renminbi Local Government 2,133,000 renminbi 10,666,000 renminbi 21,333,000 renminbi Teknatura 2,133,000 renminbi 10,666,000 renminbi 21,333,000 renminbi • The fermentation process in making alcohol fuel will also produce carbon dioxide gas (CO2) which can be liquified or compressed for use in greenhouses or for sale as extra profits for Teknatura. For every 1 kg of alcohol fuel produced, approximately 1 kg of CO2 is also produced during the fermentation process. D. Research and Development Phase (Pilot Plant Phase) • Teknatura will use and build a “Floyd Butterfield Alcohol Fuel Plant” to test the proof of concept. The complete technical and cost information including fabrication and installation drawings is provided in a PDF document called “Butterfield Alcohol Plant”. • The “Floyd Butterfield Alcohol Fuel Plant” cost approximately $60,000 USD to build in 1982 in the USA. The actual cost to build it in China using Chinese materials and parts is estimated to be $250,000 USD (~1,700,000 renminbi). This cost includes all labor and materials. • The “Floyd Butterfield Alcohol Fuel Plant” can produce up to 285,000 liters of alcohol fuel per year, based on a nominal production capacity of 38 liters per hour, operating 24 hours per day, 6 days per week, and 52 weeks per year. • The pilot plant building size is to be determined and the cost of the building is estimated to be $50,000 USD (~340,000 renminbi). This includes all labor and materials. • Total costs for the pilot phase is estimated to be $300,000 USD (~2,000,000 renminbi). E. Commercial Phase • Teknatura will develop the LEO plants for (1) 1 million liters per year capacity [called the LEO 1], (2) 5 million liters per year capacity [LEO 2], and (3) 10 million liters per year capacity [LEO 3] • Teknatura will negotiate with local governments and farmers to build and implement these local LEO plants, depending on local needs and conditions. • During a 20 year period, Teknatura will build and implement 1,000 LEO plants throughout rural China. This is an average of 50 new LEO plants per year. The total annual production for 1,000 LEO 2 plants could be 5 billion liters (equivalent to 2.86% of China’s entire annual gasoline consumption). • The potential annual net profits for Teknatura are as follows (alcohol fuel only): ~ ~ 1-23-202 3 3 Plant Size Total Number of Plants: 1 Total Number of Plants: 10 Total Number of Plants: 100 Total Number of Plants: 500 Total Number of Plants: 1000 1 Million Liters/Year (LEO 1) 2,133,000 renminbi 21,333,000 renminbi 213,333,000 renminbi 1,066,666,000 renminbi 2,133,333,000 renminbi 5 Million Liters/Year (LEO 2) 10,666,000 renminbi 106,666,000 renminbi 1,066,666,000 renminbi 5,333,333,000 renminbi 10,666,666,000 renminbi 10 Million Liters/Year (LEO3) 21,333,000 renminbi 213,333,000 renminbi 2,133,333,000 renminbi 10,666,666,000 renminbi 21,333,333,000 renminbi F. National Phase (Optional) • If the Central Government of China or the CPC decides to use the LEO model to produce enough gasoline to supply the entire nation, Teknatura will gladly assist the CPC in such an undertaking. • China’s gasoline consumption is approximately 1.1 billion barrels per year (based on 2018 and 2020 data). This is equivalent to 175 billion liters per year. • The total number of LEO type plants needed to produce 175 billions liters of alcohol fuel per year: G. Benefits and Solutions • Alcohol fuel defined as 190-proof alcohol (95% alcohol, 5% water) can be readily used in any gasoline car or truck , up to 50% (50% alcohol fuel, 50% gasoline) without any modifications. • To use 50% to 100% alcohol fuel in a gasoline car or truck, a simple plug-and-play conversion kit needs to be installed under the hood in the gasoline car. This simple device converts a regular gasoline car or truck into a flex-fuel vehicle, capable of running on either 100% gasoline or 100% alcohol fuel or any combination of gasoline and alcohol fuel mixture. The device takes about 15 minutes to install and costs around 2 ,000 renminbi. • Alcohol fuel (190-proof) is 105 octane. Premium gasoline is 95 octane. This means that for the same price of regular gasoline (which would be the sale price of our alcohol fuel), drivers can have a higher octane fuel than premium gasoline. • Alcohol fuel burns much cooler than gasoline. This means that cars using alcohol fuel can extend the engine life by two to three times than those that use gasoline. • Alcohol fuel is at least 100% Carbon Neutral. This means that the amount of CO2 released during fermentation and then combustion in cars is less than the amount of CO2 that is sequestered when the alcohol feedstock is grown on farmlands. If the CO2 that is released during fermentation is captured and then used in greenhouses and for other productive uses, the production and use of alcohol fuel can be a Carbon Sink or Carbon Negative. • Cars using alcohol as fuel emit significantly less pollution causing emissions than those that use gasoline. Significant reduction in pollution causing emissions (like carbon monoxide, nitrogen oxides, and hydrocarbons) contributes to cleaner air and less smog. This means that towns and cities that completely use alcohol fuel for their gasoline cars and trucks will experience significant improvement in air quality and no smog. • Alcohol fuel is a clean fuel that can also be used for cooking, heating, lighting, refrigeration, and generating clean electricity. These other benefits are tremendous and can be very significant for rural China. See the PDF article titled “Liquid Sunshine Article” for more information. • Depending on the scale of implementation, the production of alcohol fuel in rural China will help China to achieve Rural Revitalization and National Rejuvenation: ~ ~ 1-23-202 3 4 Plant Size Total Number of Plants Required 1 Million Liters/Year (LEO 1) 175,000 5 Million Liters/Year (LEO 2) 35,000 10 Million Liters/Year (LEO 3) 17,500 ★ Rural China will be able to produce a new source of clean and renewable energy. ★ Rural China will be able to create a new source of sustainable wealth. ★ China will be able to achieve Carbon Neutrality sooner. ★ China will depend less and less on foreign sources for oil and gasoline. 2. Super Heat Pump A. Historical Background • During the late 1980s and early 1990s, there was a US company that manufactured and sold a super efficient heat pump called “t he Alternative”. • Residential homes and commercial businesses like restaurants and laundromats used “t he Alternative” to supply hot water and heating very inexpensively and very efficiently. • Heat pumps are machines that move heat from one place to another. Refrigerators, air conditioners, freezers, etc. are all heat pumps. • Heat pumps are rated by their Coefficient of Performance or COP. The COP is a number that is calculated by the useful energy output (in kW) divided by the input energy (in kW) that is needed to run the heat pump. For example, existing air heat pumps are approximately 2.0, existing water heat pumps are approximately 3.0, electrical resistance heaters are only 1.0, etc. • “The Alternative” is a special air heat pump with a supersized evaporator (aluminium panels that look like solar panels). It has a minimum COP of 5.0 and a maximum COP of 12.0, depending on the ambient weather conditions. ★ This means that “t he Alternative” is at least 2.5 times (150%) more efficient than existing air heat pumps. And it could be 6 times (500%) more efficient, when the hot sun is shinning and the strong wind is blowing. • “The Alternative” used an old and now illegal refrigerant (Freon 22). When Freon 22 was made illegal in the 1990s, the US company that manufactured “the Alternative” went out of business (and for a lot of other reasons). B. Research and Development Phase • Teknatura will completely redesign “The Alternative” using a new refrigerant. The newly designed heat pump will be called the “Super Heat Pump”. • All technical details and parts information on how to build “The Alternative” is contained in a PDF document called “The Alternative Installation Manual and Cost Estimate”. This document also contains a cost estimate that was done in 1992. • The cost of the materials and parts required to build a 4 hp (3 kW) version of “The Alternative” was $4,400 USD in 1992. The actual cost to build it in China using Chinese materials and parts should be around $30,000 USD (~200,000 renminbi). This cost includes all labor and materials. C. Commercial Phase • Teknatura will develop and sell 3 models of the Super Heat Pump: ★ Multi-family model (rural villages, small towns, small apartments, etc.). ★ Commercial model (large apartments, large restaurants, large laundromats, etc.) ~ ~ 1-23-202 3 5 ★ Industrial model (LEO Community Alcohol Fuel Plants, factories requiring large amounts of hot water, manufacturing plants requiring large amounts of hot water, electricity generation plants, energy farms, etc.). D. Benefits and Solutions • The Super Heat Pump is the most efficient machine to extract the heat energy from the sun and the ambient environment (air, wind, rain, snow, ice) to produce useful energy in the form of heat energy or hot water. • The Super Heat Pump will save on the use of electricity tremendously. For example: ★ If it takes 5 kW to heat water electrically, the Super Heat Pump can do it with just 1 kW (minimum COP efficiency of 5.0) which is a saving of 80% in electricity. ★ Under optimal conditions, the Super Heat Pump can do it with 0.42 kW (maximum COP efficiency of 12.0) which is a saving of 92% in electricity. • The Super Heat Pump can operate in freezing weather conditions and temperatures, down to -2 0 degree Celsius. Existing air heat pumps stop working when the ambient temperature reaches 0 degree Celsius (freezing point). • In the future, there is a strong possibility that the Super Heat Pump can be used to generate almost free electricity: ★ At a COP of 10.0 to 12.0 (which is possible in hot desert areas of China), it could be possible to use the Super Heat Pump with a special refrigerant turbine to generate clean electricity. ★ If the Super Heat Pump is powered electrically by solar panels, the clean electricity generated by the refrigerant turbine would be 100% free. ★ Unlike solar power or wind power, this method of electricity generation using the Super Heat Pump works when it is night time or during cloudy days or when there is no wind. It works continuously 24 hours per day, 365 days per year. 3. Super Rock Grinder aka “The Hamaker” A. Historical Background • In the late 1890s, there was a pivotal and monumental battle between the agricultural philosophies of two German agricultural chemists, Dr. Julius Hensel and Dr. Justus von Liebig. The outcome of that “agricultural war” resulted in today’s overwhelming use of chemical fertilizers, toxic pesticides and herbicides, and other toxic products of modern agriculture, including the latest GMO blight. ★ Dr. Justus von Liebig is the father of the modern chemical fertilizer industry. He was the one who first put forth the phosphorus-potash-nitrogen theory for agricultural fertilizers. This philosophy later become the foundational basis of the NPK chemical fertilizer industry (Nitrogen, Phosphorus and Potassium). ★ Dr. Julius Hensel is the forgotten father of the modern organic farming movement. He accidentally discovered a natural and organic source of fertilizer in pulverized rocks, such as granite, gravel, etc. This “rock powder” organic fertilizer contains not only Nitrogen, Phosphorus, and Potassium, but a complete spectrum of minerals and, equally importantly, trace minerals that all plants, vegetables, grains, and trees need. ★ Unfortunately for humanity and the environment, Dr. Julius Hensel lost that “agricultural war” and Dr. Justus von Liebig won. ~ ~ 1-23-202 3 6 • There is a tribe called the Hunza people who live in the Himalayas near Pakistan. Before the modern world intruded into their isolated world with highways and junk food, the Hunzas could live 120 to 150 years. They used the glacial ice melts to fertilize their farmlands and they even drank this milky liquid. ★ Mother Nature would grind various rocks underneath the glacier into a fine powder, as the glacier slowly moved. ★ As the glacier mixed with rock powder melted, a milky liquid is produced. ★ This is Mother Nature’s best organic and compete fertilizer. • In the late 1960s and early 1970s, an American engineer, ecologist, agronomist, and science writer named John Hamaker patented a rock grinding machine. He also made a prototype of his invention to prove that it worked. Mr. Hamaker died 1994 and his patent on his rock grinder has since expired. ★ Existing cement mills, mining mills, and other existing rock crushers are only 10% to 15% efficient. They wear out quicker, as they use steel metal to impact the rocks. ★ Hamaker’s invention is at least 85% efficient, at least 6 times more efficient than existing machines. It uses rocks to crush against rocks. Therefore, his machine is much more efficient and it can last much longer. B. Research and Development Phase • Teknatura will perform agricultural experiments to determine the validity and efficacy of using Rock Powder as a natural and organic fertilizer for growing vegetables, fruits, grains, and trees. • Currently, there is a US organization that has a lot of research data on the validity and efficacy of using Rock Powder as a natural and organic fertilizer. It is called “Remineralize the Earth” and their website is www.remineralize.org • Teknatura needs to verify two main parameters of Rock Powder: ★ What are the specific types of rocks (or mixture of rocks) that are most effective (containing the most minerals and trace minerals) for use as Rock Powder: granite, gravel, basalt, rhyolites, limestone, etc. ★ What are the approximate application rates of Rock Powder and the resultant effectiveness in years (how many years will a single application of Rock Power last for as an organic fertilizer?): • Teknatura will build a prototype based on John Hamaker’s Patent #3,552,660 and his original prototype. See the PDF documents titled "Hamaker Patent 3,552,660” and “Hamaker Prototype”. • Teknatura’s prototype and the subsequent commercial units will be called “the Hamaker” in honor of John Hamaker. ~ ~ 1-23-202 3 7 Single Application Rate Single Application Effectiveness 7.5 tons / hectare 750 kg / 1,000 square meter 75 kg / 100 square meter 750 grams / 1 square meter 3 years 25 tons / hectare 2.5 tons / 1,000 square meter 250 kg / 100 square meter 2.5 kg / 1 square meter 10 years 50 tons / hectare 5.0 tons / 1,000 square meter 500 kg / 100 square meter 5.0 kg / 1 square meter 20 years • The materials and labor costs to construct our Hamaker prototype should be approximately $30,000 USD (~200,000 renminbi). C. Commercial Phase • Teknatura will develop and sell 3 models of the Hamaker: ★ Small portable model (the size and configuration of a portable cement mixer) for small and community family farmers. ★ Commercial model (the size and configuration of a cement truck) for small to medium scale farmers ★ Industrial model (stationary units to be used in conjunction with our LEO Community Alcohol Fuel Plants) for large scale farmers • Teknatura will work with local farmers and sell them Rock Powder, based on their needs and requirements: ★ Teknatura will sell a single application of Rock Powder of 7.5 tons per hectare for the same cost as what a farmer would pay for one year of chemical fertilizer. This single Rock Powder application will last 3 years. Therefore, the farmer will save 66% in fertilizer costs over 3 years. ★ For small farmers and gardeners, Teknatura will sell Rock Powder in bags: 10, 20, 30, and 50 kg. D. Benefits and Solutions • Organic foods (vegetables, fruits, and grains) grown using Rock Powder contains a full spectrum of minerals and trace minerals. They are healthier, tastier, more vitaminized, and more mineralized. They are nutrient-dense foods. • Organic foods grown using Rock Powder are more immune to insect infestation, fungi and plant diseases. Therefore, the use of toxic pesticides and herbicides can be decreased significantly, if not eliminated completely. • Rock Powder increases the storage and shipping quality of organic produce , such that they keep a longer time than those grown with chemical fertilizers or even animal manures. • Rock Powder will help growing plants to resist drought and frost. • Rock Powder will produce larger and a greater abundance of crops. • Rock Powder will help trees to grow faster and bigger. This benefit is extremely useful for areas of China where reforestation is occurring. • Using Rock Powder as the dominate agricultural practice will eventually eliminate the use of chemical fertilizers and all of its associated toxic chemicals. • Using Rock Powder as the dominate agricultural practice will eventually eliminate the use of GMO seeds and all of its associated toxic chemicals. • Depending on the scale of implementation, the use of Rock Powder in rural China will help China to achieve Rural Revitalization and National Rejuvenation: ★ Rural China will be able to produce new organic vegetables, fruits, and grains without the use of chemical fertilizers. These organic products can be shipped anywhere throughout China via super trains and anywhere outside of China via the BRI (Belt and Road Initiative) railways. ★ Rural China will be able to create new sources of sustainable and significant wealth via organic farming using Rock Powder. ★ China will be able to achieve a cleaner and non-toxic environment sooner. ★ China will depend less and less on foreign sources for GMO soybeans and corn (currently used as animal feed in China) and toxic agricultural inputs such as chemical fertilizers, pesticides and herbicides. ~ ~ 1-23-202 3 8