Our Environmental Technology Business

OVERVIEW

The Company’s objective is to become the premier provider and innovator of clean technology (“cleantech”, also known as green technology or “greentech”) solutions focusing on China and India, and as appropriate, other key emerging markets.  The Company seeks to develop, license and invest in environmental technologies and market them into China, India and key emerging markets.

The emphasis will be placed on developing global solutions for targeted environmental issues in emerging countries experiencing rapid growth in their economies putting extraordinary pressure on the environmental infrastructure.  Countries such as China, India, Brazil, Vietnam, the Philippines, etc.

Greentech Hotel and Dry Kitchen – URBN

The Company has a proprietary water recycling scalable technology and a product under the trademark Water Technology. The Company has developed two (2) products: Water Technology and Water Technology Dry Kitchen™.  Water Technology is for hotels which have need to have highest water quality and provide high recycling its water supply, and Water Technology Dry Kitchen™ is a small dedicated unit the size of a kitchen cabinet for facilities that do not have water outlets but want to provide drinking water quality and recycling.

Our initial offering is to commercialize ourWater Technology Dry Kitchen™ and Water Technology Hotel™ products.  The Water Technology Dry Kitchen™ is a product using the Company’s  Water Technology for facilities which do not have direct water outlets.

The Company has secured an agreement with a Green Hotel to deploy its Water Technology Hotel™ technology.  Through this agreement, the Company intends to provide a unit that can treat and recycle up to 8,000 gallons of water per day with a recycling efficiency of 75% or better.

The Company intends to initially deploy the Water Technology Hotel™ product through a network through China and later Asia Pacific.  The Company is establishing a commercial network of representatives and distributors for our products in collaboration with Advanced Water Technologies, Inc. (AWT)   The Company has signed a license with AWT to jointly develop and use AWT’s Asia Pacific commercial network to deploy the Water Technologyand products.

We intent to consult with … scientist to assist in market research, to advance the state of the art for existing products in the cleantech market place and to develop new products.

STRATEGY AND PRODUCTS

The Company intends to make available through its own development, by licensing, or by investing into technology and products to address the increasing need for environmental technologies and products.

The world economy in 1970 was US$2.25 Trillion (in 1970 US Dollars) and became US$60.59 Trillion in 2008, or nearly 3,000% after 38 years. The huge economic development in these recent decades in the world, particularly led initially by now established countries like the United States, Japan and the European Union, has come at a significant environmental cost to the world and its inhabitants.  Even more significant is the speed and magnitude of the negative effect of the environment in places where exponential economic growth has occurred in the emerging countries like China and India where, reportedly, where the majority of its available freshwater is biologically and chemically unsound.

The emerging countries including China, India, Brazil and others are still developing and growing and the effect on the environmental and the resulting pollution levels will continue to increase until these countries rising incomes pass beyond a turning point according to the Environmental Kuznets Curve (EKC) hypothesis.  Time turning point remains far beyond our time horizon primarily because of the huge number of population (over 3 Billion inhabitants with low per capita income level) covered by these economies.[1]

We believe there is a strong and growing need for a new innovative approach to cleaning and protecting the environment using environmentally sound technologies like ozone for water treatment, wind energy for energy generation and many others.

Through our intended product line offering, we intend to create real product solutions that encourage adoption and use of environmentally sound products and solutions.

Our intended products do not need any mandatory certifications.

We will develop programs that are compliant where required, with Department of Commerce, Office of Environmental Technologies Export Industries.

We intend to provide liaison with organizations such as the Office of Environmental Technologies Industries of the U.S. Department of Commerce, International Trade Adminsitration, the U.S. and Foreign Commercial Service, Beijing, and The China Greentech Initiative.

Efficiency Through Green Business

Companies are beginning to find that smart business simultaneously generates revenues and protects the environment including positive public relations and higher margins from common competitors as they enter international markets.

With the increasing demand for natural resources, the increasing cost of a reducing supply becomes a necessity to increase efficiency of resource utilization.

Key Segments

There are three (3) primary opportunity segments the Company will focus on.  These are: Water, Air and Waste.  These three areas are the primary focus of environmental protection initiatives (which we believe will attract governmental policies and initiatives) during China’s 10th five year Plan.

Water Segment

Water challenges in China, India and other key emerging markets are dual: Water scarcity and water pollution.

The vast majority of water in China is biologically and chemically unsound, primarily as a result of: Industrial waste discharge, municipal wastewater discharge and non-point pollution (generated by agriculture, livestock and so forth). Water resources in 50% percent of the major cities and towns in China cannot meet drinking water standards.[2] This also applies in different but similar percentages in India and other emerging countries.  Forty percent  (40%) of China’s river water is ranked as poor by international standards.  In addition, approximately 25% of all lakes in China are affected by eutrophication (is an increase in the concentration of chemical nutrients in an ecosystem to an extent that increases in the primary productivity of the ecosystem. Depending on the degree of eutrophication, subsequent negative environmental effects such as anoxia and severe reductions in water quality, fish, and other animal populations may occur – Wikipedia), almost almost all of the coastal seas are moderately to highly polluted.[3]

In addition, according to the Office of Environmental Technologies Industries of the U. S. Department of Commerce (OETI), parts of China are dramatically short of water.  In some areas, reportedly, water availability is as low as 355 cubic meters per hear (international water scarcity definition is 1,000 cubic meter per head).  North China’s water resources is a mere 11% of those in South China (on a per capita basis) but the expected near term industrial growth is in the North.

Demand for clean water in China is projected to grow to 654 Billion cubic meters in 2030, a 47% increase over 1980.  The annual cost of China’s water scarcity (ie. Imbalance between availability and demand), due to pollution and depletion of groundwater is estimated at US$21.8 Billion or almost 1% of China’s annual economic output.[4]

Air Segment

Ambient air quality in many large urban areas has shown optimistic trends worldwide and in China and India as well, however air quality in more than 500 major Chinese cities remains below World Health Organization (WHO) standards.  Small cities have seen little or no improvements in recent years.[5]  In general, China alone is now the world’s largest emitter of greenhouse gases, responsible for over 20% of annual Co2 emissions from the burning of fossil fuel, although emissions per capita are still reasonably low to most developed countries.

Coal consumption is the most dominant source of air pollution in China contributing to 80% of these emissions. Motor vehicle emissions are expected to continue to rising over at least the next 10 years. Non-combustion-related airborne particles from construction and land degradation are on the rise.  Of the three ambient air quality parameters consistently monitored in China (sulfur dioxide – SO2 , nitrogen oxides, and total suspended particles, all three remain formidable concerns and numerous other pollutants remain unmonitored.

Waste Segment

According to the OETI, as of August 1999, more than 6 billion tons of municipal refuse had accumulated and claimed 5.4 billion square feet of land in China. Approximately 600 million to 750 million tons of that is industrial solid waste, and 5 to 30 million annually of hazardous waste.  Hazardous waste is often incinerated and disposed of improperly and frequently mixed with non-hazardous waste in landfills and dumps.

 

Market Size and Growth

The global market for cleantech products and services was approximately US$284 billion in 2008 and projected to grow to over US$1.3 trillion in 2017, according to Multimedia Research Group, Inc. (MRGI). Of this amount more than one-third (US$467 billion) is attributable to renewable energy sources, such as biofuels, solar, tidal, and wind power. Together these segments are expected to grow from a current value of US$104 billion to approximately US$467 billion in 2017.  According to MRGI, the outlook through 2017 is strong for clean technologies, and is expected to grow at about 16.7% over the next decade. [6]

From China’s perspective alone, China’s economic output (real GDP) has grown on average 10% annually since late 1970s and as this economic growth continues, it is estimated that the total addressable market size for environmental solutions could be between $500 Billion to $1 Trillion annually by 2013, according to the China Greentech Initiative.[7]

 

 

References

[1]Chaitanya V., Krisna, “Rapid Economic Growth and Industrialization in India, China & Brazil: At What Cost?”, The William Davidson Institute, University of Michigan, October 2007.

[2] , U.S. Department of Commerce, International Trade Administration, “China Environmental Technologies Export Market Plan”, Washington DC, September 2002.

[3] U.S. Department of Commerce, International Trade Administration, “China Environmental Technologies Export Market Plan” pp 3, Washington DC, September 2002.

[4] China Greentech Initiative, “The China Greentech Report 2009” pp. 134, September 2009.

[5] U.S. Department of Commerce, International Trade Administration, “China Environmental Technologies Export Market Plan” pp. 4, Washington DC, September 2002.

[6] Cleantech: Current Status and Worldwide Outlook, MRG Co. Inc., February 2008.

[7] China Greentech Initiative, “The China Greentech Report 2009” pp. 14,, 21, September 2009.