ag gas 20 investor deck water
TRANSCRIPT
AG Gas®
Solving the Global Water, Food, Energy, Climate
Nexus
Copyright 2014 – The Agricultural Gas Company
“The Environmental Company”
Carbogation℠ CO2 Crop Enrichment First Mover
AG Gas® is the “First Mover” and can make a lot of money, by applying carbon dioxide to the leaves of plants: 1. Solving California’s water crisis (& other nations) 2. Vastly improving crop production and maturation 3. Tapping existing global ag & forestry market(s) to
mitigate climate change 4. Solving Fortune 500s’ problem – CO2 emissions
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
First Mover – New Multi-Billion $$$ Industry
Carbogation℠ CO2 Crop Enrichment Solution
• 80-85% of California’s water goes to agriculture, and is simply lost into the atmosphere as transpiration from the leaves of plants.
• AG Gas® vastly improves crops’ water-use-efficiency. • Crop production improves, and the process mitigates
climate change. • AG Gas embodies the essence of sustainable agriculture
including organic crop production.
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
A Very Profitable Solution
Carbogation℠ CO2 Crop Enrichment Understanding Financial Implications
• IRS rules can’t book permanent crops’ expenses until reach “sustainable economic performance”
• $10,000 per acre opportunity cost of holding non-producing land
• Plow in additional $1,700 per year • Accelerate production phase of permanent crops • Accelerate net present value of a future revenue stream • Quicker reaction time to shifting markets’ demand &
pricing
MAJOR FINANCIAL IMPLICATIONS
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
Crop Production Accelerate Saplings & Increase Production
0 20 40 60 80 100 120 140 160 180
Normal
Air Pollution in Central Valley
Excess Heat Days of Wilting
CO2 Deficit Dense Canopy
Gain due to CO2 Enrichment
CO2 Gain & High Temp Gain
CO2 Gain, High Temp Gain & Deficit Gain
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Carbogation℠ CO2 Crop Enrichment Understanding the Potential
No Additional Water Requirement
Percent Production Capacity
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
Carbogation℠ CO2 Crop Enrichment Profit
The Company will make money:
• Selling hardware & software to growers • Through installation, service, & maintenance contracts
with growers • Through technology licensing for both domestic and
international markets • As First Mover assembling a portfolio of lucrative CO2
off-take (supply) agreements to service strategic ag markets
• Through value-added, high margin, gaseous media additives (patent pending); & more product offerings
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
• Plants acquire their carbon as CO2 gas • CO2 gas enters the leaf through thousands of tiny stomata
openings located on the underside of the leaves
Magnified Leaf Stomata
Carbogation℠ CO2 Crop Enrichment Photosynthesis Optimization
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
Managing carbon & “gaseous media” around the leaves
Global crops, orchards, plantations, and vineyards are starved for Carbon Dioxide surrounding the leaves of plants.
No company globally is providing “CO2 Service” to the ag sector today.
CO2 is just the first of numerous “gaseous media” opportunities for AG Gas; technology expansion.
AG Gas has perfected the delivery mechanism and holds some key Intellectual Property.
Background
Carbogation℠ CO2 Crop Enrichment Background
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
Carbogation℠ CO2 Crop Enrichment Critical Path
Critical Path to Value Creation
• BETA Projects Q1 2015 • 2016-17 first commercial systems • Applying for non-dilutive capital • Align Mutual Interest: Strategic Vendors & Supply
Chain Financing • Build Strategic Customer Base • Bring in Farm Credit Services • Build great University Relationships • Patents • Licensing • HR Build Out • Continued R&D Technology Leader
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
Carbogation℠ CO2 Crop Enrichment Opportunity
1. Probably the only opportunity out there, with the potential to double crop production with no additional land or water
2. Big existing market
3. Company holds a First Mover advantage
4. Tip of the iceberg for the technology opportunity
5. Solves global problems and Fortune 500 problems
Carbogation℠ CO2 Crop Enrichment
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
Carbogation℠ CO2 Crop Enrichment Carbon
• Orchard trees, vineyards and crops are composed of 50% carbon
• All carbon is acquired through the leaves as CO2 gas
The Following Slides Discuss the Science Carbogation℠ CO2 Crop Enrichment
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
Carbogation℠ CO2 Crop Enrichment Ambient Air
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
Carbogation℠ CO2 Crop Enrichment R & D
Science - Open Field Carbogation Readings
Daily trend of vertical profile
7/23/2002 (DOY=204)
0
100
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300
400
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6:00 7:12 8:24 9:36 10:48 12:00 13:12 14:24 15:36 16:48 18:00
Time
[CO
2] (
pp
m)
0.1
0.3
1.8
Height above
ground (m)
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
Carbogation℠ CO2 Crop Enrichment Plant Response
- Higher photosynthesis - More growth & yield - Better fruit quality
Reduced transpiration Increased CO2 uptake - Less irrigation
- Less water stress - Higher water use efficiency
Increased carbon allocation below ground
- More root development - Higher microbial activity - Improved water & nutrient uptake
source: Dave Bryla, Ph.D. Plant Physiology, USDA
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
Carbogation℠ CO2 Crop Enrichment R & D
Results
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
Carbogation℠ CO2 Crop Enrichment R & D
Results
0%
20%
40%
60%
80%
100%
120%
140%
Perc
en
t D
iffe
ren
ce
(CO
2-C
on
tro
l)/C
on
tro
l
Number 25.3% 98.1% 6.6%
Weight 65.2% 120.4% 29.6%
Total Picked Marketable Culled
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
Carbogation℠ CO2 Crop Enrichment Proposed Beta Site 2015
Proposed Project 2015 Planning and Engineering
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
Carbogation℠ CO2 Crop Enrichment Optimize
Technology and Optimize
CO2 “sniffers” monitor
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com
Carbogation℠ CO2 Crop Enrichment Scale Up
Throttle valves and headworks
Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com