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Page 1 OTC Global News  Page 2 Companies  |  Page 3 Features Page 4 Editorials   Page 5 Post Mortem

Special Feature


WATER Co. negotiates $1.3m on a 50/50 deal with a restructure?
          It appears Dew South Limited has turned a corner with talk of a big order emanating out of Dubai, apparently that has evaporated, now the gossip is Japanese market is to be targeted. Recently its CEO spent extensive time negotiating a supply contract reputedly worth $5 mil for its Tasmanian bottled water, which its CEO believes is better than the French or other European preparations.

    Due South was previously is in a three way Take-Over battle for control by what appears to be three individual investor syndicates with each Director in the corners. This appears to have been resolved and a more harmonious board its the result. Although the company has traded poorly due to financial stress, it is still a very interesting opportunity to consider, since anything to do with water is highly prospective, particularly pure drinking water which is shipped in ever increasing quantities around the world. 

     Recently the City of Adelaide outlined its contingency plan to supply its whole city population bottled drinking water in 2008 as the quality of Murray River water became untreatable for drinking purposes due to drought conditions, hence water is becoming like gold. The company has been approached by a number of key stakeholders to inject from $1 million to $2 million in order to revamp the company and scale up its Tasmanian production. It is claimed the company may become a preferred supplier under the Brunei Hal Lal global brand scheme for export to other local and Asian markets.


    The company has been on the OTC market for over two years and commissioned new bottling plant imported from Italy for bottling at it Tasmania spring water site.
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Australian OTC picks another grass roots winner.
Bracket company gears up production. Company proposes a 5:1 split of its share base.

     Latest update: Its encouraging that some Aussie companies decide to manufacture in Australia and dump the Asian manufacturers as 'not the ideal source'. After being listed for less than 6 months, the company is trading well with a expanding core of contributing shareholders, Board representation have changed that include professional.
Tool & die pressings for a 300,000 unit production run is expected to commence in the second half of 2008.
     This is an excellent example how down to earth, humble SMEs can get started and perform in a short space of time. Listing on the Australian OTC Bulletin Board has accelerated this start up company. The old saying, Keep-it-Simple (KISS) has very strong merits when designing any new product, the world is full of dumb simple products that become part of everyday life which make millions of dollars every year, such as the ball point pen, cigarette lighter, post-it-notes, now the most useful guttering system (patented) is about to go into production after it secured minimum capital for production set up. 
      The company (I-115-MAK) recently was restructured to accept share capital and has already conduct its initial share placement, the company also had good conversations from Australia's largest national hardware chain store such as Bunnings who may stock the product. The company launch its equity offering in October to December 2007. Product should be in-store before December 2008, which a great effort for a small team. 

    Although the company has only been listed on the AOTCBB for a few months, investment capital is already flowing into the company. The product is a unique bracket that allows roof guttering to 'drop-out-n-flip' for cleaning leaves, rubbish or easy replacement, it also has attraction in high fire danger areas for quick action cleaning by the average home owner. It will be made in a variety of dimensions to suite homes, commercial and industrial applications, additional applications may include a new hinge system.

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Revolutionary shock absorber levels the playing field.

     A determined emerging company focus ensures there is plenty on the horizon. With a new improved patented shock absorber unit for the heavy transportation industry completed, development on the shocker absorber in a coil - over or spring-less unit, suitable for off road, 4WD, RV’s, Motorcycles, ATV’s, snowmobiles and high performance racing applications is well underway.

     Not one to settle for second place, the Inventors come manager and manufacturer are heavily advanced in the development of a computerised automated servo adjust system and interior cabin seat shocker, to further extend the on and off road economical performances. 
     A recent observation by an OTC Reporter states that a 100 hour test jig destroyed the worlds best brand name shockers, while the new patented model outlasted all other with an unknown lifespan.

    With the rugged Aussie outback the ultimate testing facility, the Australian owned Suspension System’s was developed to improve “life on the road”. Designed to deliver a smoother ride under the harshest conditions, across all terrains, it will change the way you feel about shockers....forever.

    Whether you’re on the road or off it. If you want improved handling, rebound reduction, increased fuel efficiency and tyre longevity. Originally designed for off-road racing, the shocker has been developed to improve the ride performance of heavy transportation vehicles. It uses a adjustable rising rate compression stroke with a unique valve body design that has the ability to dramatically improve handling, braking and cornering stability. A one piece unit, built to outlast, the construction is  from superior quality racing materials. Compact and affordable, the world wide patent pending design ensures workshop installation and adjustments are effortless.

Fully adjustable shock absorbing unit can be supplied custom configured to any vehicle make or workshop adjusted to accommodate ranges from the heaviest of loads, to the inclusion of an additional passenger. Working in conjunction with conventional leaf, coil or airbag suspensions, the system significantly improves vehicle stability and rebound dampening, as well as increasing the life expectancy of existing suspension components and tyres.

An K100E Kenworth prime mover, which has been fitted with the new Shock Absorber travels up to 500,000 km per year with four drivers. The Kenworth was put into service in May 2005 and the shocks were fitted. The shocks have now operated for more than 245,000 kms without failure.

     Large truck’s particularly B-Doubles and road trains have a tendency to react quite severely to bumps and variations in road camber, this I believe is caused by a bump steering effect on the beam axle, caused by a lack of shock control. The shockers have totally eliminated that behaviour and made the truck much more predictable to drive and therefore much safer. The flow on effect is a smoother ride and a more direct feel, which in turn means a much happier and less fatigued driver, in fact our drivers are openly reporting a very significant reduction in fatigue.

We have also noted a much more even front tyre wear pattern and longer front tyre life. As an example, we have recorded a front tyre life of 173,000 kms, on a new Kenworth T904 that is fitted with RSS Shockers, which is an 80% improvement on what we are recording on trucks fitted with standard OE shockers".

I've been driving trucks throughout Australia for over thirty-seven years and have estimated I’ve clocked approximately 10,000,000 kms in this time. I have driven Kenworth trucks extensively and have always regarded the cabover truck rough to ride in. The particular Kenworth fitted with the new Shock Absorbers has a marked ride improvement over past models and also compared to current model trucks".

Editorial, world technological breakthrough

Aussie Engine Co to scale up for mass production of radical new super efficient engine.

      Emerging Australian engine company to manufacture under licence its new patented high efficiency engine for the small engine market of scooters, pumps, saws, rural applications.Engine assembly is proposed to be in Victoria, Australia.
     
The industrial market for small single or multi cylinder engines is vast, most people readily identify small engines from household names such as Honda, Briggs & Stratton, Robin to name a few. Now a newly designed 4-stroke internal combustion engine with higher efficiency (37%), pneumatic valves, self 'supercharging' and less parasitic mechanical loss in a compact light alloy casing is becoming a reality for the company, which could become one of the great engine brand names. Special feature is single piston ring, needle bearing, roller rockers, and a plenum chamber for the crankcase charged-induction system via reed valves which gives up to 6psi of boost without parasitic loss, BMEP is approx 2.65 bar.
    The design of this engine has proven (University tests) in prototype stage to out perform all other engines in its class to the extent that it has attracted racing enthusiasts who desire to take the engine into World Class Motorcycle race events.
     The company is planning to restructured to raise between $3 million to $5 million for tooling up and production of the first run of 10,000 units which are under a pre-order application expanding to 100,000 units per annum. The production schedule is to use a base single piston engine block for its 100cc engine, a 125cc, 150cc and a 250cc capacity by simply increasing bore size, larger engines will be available later by increasing the crank shaft stroke with additional engine blocks up to 800cc coming onto line.
   Statistics show there is 50 million small engines for lawnmowers, boats, chainsaws, generators, compressors and the like manufactured each year, this being the company's target market. Approximately 35 million two-stroke engines are sold each year which will soon be outlawed and banned. Reputable estimated put the total number of small engines in use globally at 400 million.
   According to independent trial conducted by Prof H.C. Watson, the engine has a efficency of 37% operated over a usable range of 1,000 to 6,000 rpm and attained a Lamda 1.2, BMEP is at 2.62 Bar, quite remarkable for an internal combustion engine with lowest HC, NOx and CO to any comparable engine, further improvements are planned. 


 Latitude '40
The purest spring water in the world  from Tasmania


Oil: What's the alternative
FACT: We will never run out of oil.

     There has been a lot of talk about Peak Oil, it's all hog wash, did the World reach Peak Timber in the 1700s, did it reach Peak Coal in the 1800 & 1900s, will it reach Peak Uranium, it is equally unlikely to reach Peak Oil, why?

      Going back 300 years, the same question was asked; Timber: what's the alternative, steel. Coal: what's the alternative, oil, and now we ask Oil: what's the alternative, Hydrogen. It's been proven and used since 1926 for home heating, cooking, motor vehicles, tractors and rail. Hydrogen is well understood.

     Did the world run out of timber when it switched to coal, or run out of coal, nor will it run out of oil when the world switches to hydrogen & solar. The savage price rises in oil has little to do with Peak Oil, regardless of the fact that new fields in Brazil equal to Persia (Iran) have been recently discovered. Even in Australia there is vast tracts of un-tested land which the government has not allowed for exploration. But extracting more oil is not the future.

     Already available in electronics shops are an array of hydrogen generators, solar panels and a wide variety of super low high intensity lighting alternatives. In the USA, China, Japan, Europe many companies have constructed successful vehicles running on hydrogen, in fact one car has been privately in operation since the late 1970s, Honda built a race car, BMW has a fleet of celebrity Hydrogen Cars for rental. There is even a house that has been running on hydrogen since 1926. Hydrogen is as safe as LPG, years ago LPG was considered dangerous, now a 12 year old is sent to the hardware store to swap the gas cylinder for a BBQ. Oh,.... but what about the Hindenburg,... you fool, the Hindenburg made about 14 trans Atlantic trips, the famous explosion saw most of the heat rise, nearly all deaths were caused by panic and people jumping to their death. The US Military tested a hydrogen gas tank by firing a case hardened bullet at it, which punctured the tank and ignited the gas escaping out of the holes, the tank did not explode, then they tried the same with a petrol tank, which exploded and destroyed the cylinder.

    The average suburban house today can be simply convert all its lighting to 12 volt LEDs by just disconnecting the wiring circuit from the mains switch board and fitting a medium size 12 volt transformer and installing LES lights that draw from 1 to 5 watts. Cost is probably about $1,000 including the electrician to disconnect the 240 volt mains circuit.

Solar hot water on a natural siphon system of rising heat is now well understood and accepted with installation universally accepted.

      Fossil fuel (oil) will soon go the same way with hydrogen taking over, already modern cars are being adapted to run on LPG, the principle for hydrogen is similar, except its likes a retarded ignition and a multipoint injection close to the inlet valve. Already there is a new gas injector which incorporates a spark plug that can be screwed into a common combustion engine, thus a step towards hydrogen refits. Storage of hydrogen is also well understood and gas tanks will soon be available similar to LPG. hydrogen can be generated on the move, swappable cell packs, or from stationary rapid hydrogen generator, all increase travel distance. 

    Few people today go much further than 100 Kms per day, so overnight recharges will become acceptable. Longer distance of 300 to 500 kms will require better planning until swap packs are available and Hydro-Stations are built which will most likely be Multi-Fuel Stations of Gasoline, Fuel Cells, LPG, Battery Packs and the yet to be invented the 'Flux Capacitor'.

    Lastly, there are very high aspiration for the new rare earth Magnetic Engine (pictured) which promises virtual perpetual power source. This motor has been tested as an alternative car engine with good results.

     It is doubtful we will ever run out of oil, but the alternative will be better, after all, who really misses the ole steam engine, each technology becomes antiquated and relegated to the dinosaurs museum.



Editorial: Predicting the Future
Will Rural Enterprises become the next BIG deal, threat of starvation in industrial countries will change investment forever.
      Warmer climates may be a boost for agriculture. There are few commodities that radically dictate how consumers, markets, investors, the wealthy or governments will react, except food. Yes, with the global population expanding to seven billion soon and climate change affecting farm production, dwindling water reserves, plus transport distribution dislocation and rising fuel/production costs, this is a recipe for food shortages and threat of starvation, it is the perception or fear of less food that creates changes. Some governments are already fighting for population survival.
      Many consumers have no knowledge of how limited the supply of food is available on the supermarket shelfs, most supermarkets carry less than 5 days supply, the worlds grain supply is less than 8 weeks, most of the nations food has to be made or processed daily, such as bread, possibly half our food is in transit at any one time. Without global food exchange such as wheat, beef, fish, corn, cereals, the situation could be a lot worse for some countries. Primary production is absolutely critical to a stable cohesive society, co-operative distribution is essential to avoid panic and hoarding and violence which is now occurring in Indonesia, Haiti, Philippines, Cameroon, more will follow. 
   
There are many examples of civilisations disappearing due to the breakdown of the food chain of staple items such as grain, fruit, vegetables, dairy, meats and fish. Clean water is already a thing of the past, everything now needs to be filtered, chlorinated and debugged. The food chain is tainted with insecticides, petroleum residues, plastics, chemicals or so over-processed that its worse than chaff. An example of governments in dire straights to 'economise' on water is the Australian Federal and State Governments recently buried a 150 year feud over the 'water wars' since 1851 to secure and protect Australia's largest food bowl of the Murray-Darling basin which extends from Queensland to South Australia, over 2,000 miles and 1,000 miles wide. This is a clear sign of desperate rationalisation of infrastructure to avert the threat of food shortages, even though most rivers are dead, dry or will take a generation to be corrected, the same is occurring in other countries.

     No one can live on cola, french fries or anchovies.

    Hedge Funds and Ethanol fuel contribute to  killing millions of people every year. It is questionable if Hedge Funds should operate in the food commodities markets, since they never take delivery of one grain of rice, wheat or corn, or eat it, the Funds make a margin on the contract as it momentarily passes their hands, but bid up the price to goggle eyed farmers who then get artificially locked into Commodities Contracts, the next level of poor are priced out to by overpriced staple food. why don't the hedge Fund corner the lobster, calamari or anchovy market instead?

    Next, ethanol fuel is the greatest threat to the food chain, America alone now uses 18% of its corn for ethanol production in an attempt to wean itself of oil, the prediction is 45% will be used for ethanol fuel. Llets look at the mathematics, it takes 240 kilos (quarter of a tonn) of corn to produce 100 litres of fuel, 240 kg of corn will feed a person 1 year as opposed to 100 litres of fuel will last about 5 days, consequently world grain surplus is diminishing and more will starve. Lets give thanks to the brilliant Analyst who thought up this great money making scheme, any idiot can see it doesn't stack up, furthermore grain is substandard for ethanol as it contains protein, unlike sugar cane contains carbohydrate; ideal for fuel. Wouldn't it be more beneficial to adopt hydrogen fuel from solar/nulear electricity and refit existing fuel stations and accelerate small hydro cars for commuters.
    The other drag on grain crops is feeding it to beef, chicken and pork production.

     Thus, there is good reason to believe that SME collective Rural Enterprises may make a strong comeback in the future as the demand increases in milk, vegetables, root and leaf crops for direct human consumption at the supermarket door. Already skilled farmers are exiting the industry, farming has always had its roots in the man on the land who can read the environment, soil, weather, timing, all these show up at the ecology level with each passing variable season, big Co-Operatives attempt to analyse extensive satellite data, find it is not always translated into real useable info. This is born out in the world driest continent, Australia, which is having trouble working out or understanding La Nina and El Nino cycles, frequencies and durations.
     Other countries are also facing similar problems with climate, ecology shifts, salinity, floods, drought, dead rivers and loss of arable land, fished out oceans.  Forget Peak Oil, we may have passed Peak Food or Peak Water availability, the prognosis is for a strained ecology that may snap.
     All it needs is a sequence of bad events to cause a catastrophe, and all of a sudden the Rural Enterprises would hit the highest priority of national security importance, third world countries have adapted to low food supply for decades, but not the industrial nations, so,... what if,... there is a climatic reversal of situations due to climate change, such as the Sahara become arable and Kentucky a desert, or desert creep hits the Mallee and Western Victoria, while the North becomes monsoonal, or the American food bowl becomes the dust bowl of the 1930s?
     It would be a strange sight to see the local farmer as a multi million dollar celebrity on stage take yearly awards for producing food to feed the metropolis, .... nah,.... that can't happen, better to give awards to more useful people like a celluloid movie star.

So it looks like predicting the future is a 50/50 hit and miss like Nostradamas, or is it?. Will Rural Enterprises become the next big thing, the answer is, most likely.


Case Study No 91

Elastomeric Alloys from Shredded Waste rubber launches ratchet offering of 30 Mil Ords.
 

      UK owned German recycler has developed a unique system that granulates unusable tyres into industrial useful products. The company is  rapidly expanding and has selected a larger industrial site to relocate has commenced. It is planning to release its 2007 Offering to raise 3,000,000 by the issue of 30 million ordinary shares in its Australian JV company for a 60% stake hold in the German operations.  
      This Elastomeric Alloy (EA) is a thermoplastic elastomer (TPE) which combines the qualities of rubber with the processing behaviour of thermoplastics.  Due to special parameters, such as a permanent elongation remaining higher than 50% (according to DIN 7724) and higher melting range, the new compound belongs to the group of Thermoplastic Elastomers (TPE).
     Compared to the conventional EA's of approximately the same Shore Hardness, these polymer base these alloys of polypropylene and ground tyre rubber exceed demands of commercial thermoplastic elastomers.  Not only most kinds of ground tyres, but also technical waste rubber with NR or SBR bases are suitable raw material for the new compound.The production became possible as a result of the optimisation of the melt-mixing procedure using a radical-donator-acceptor system with simultaneous dynamic stabilization.  The ground tyre rubber acts as elastomeric component likewise the rubber phase is in cross-linked TPE's.  Chemical or mechanical-chemical activation of both the disbursed and the matrix phases results in a proper linkage of the ground tyre rubber acting as dispersed elastomeric domains with the thermoplastic matrix, thus leading to a high quality level, due to a special stabilizing procedure of the new compound, its tensile strength reaches values of more than 20 MPa and an elongation at break of more than 300%.
      The mechanic-physical characteristics similar to those of TPE's are determined by the properties and proportions of the single phases, by the efficiency of the radar-donator-acceptor system, being the additives and the processing chosen. The utilisation of special cross-linking systems, adhesion promoters and additives allows varying the properties of the new material in function in a wider variety of uses.  The impact shock resistance of the new compound which remains effective at low temperatures makes the material ideal for use in the automotive industry, e.g. for the manufacturing  of buffers, frontages, wheelhouses, side protection strips, fenders, bumpers and much more.
 
    Both in the material groups of thermoplastics (especially flexible PVC) and elastomers of Thermoplastic Elastomers which has the biggest growth rate of all polymer groups at the present time the new compound can be used as a substitute.  The high quality of the granules enables complicated technical shapes to be processed by injection moulding. All test results obtained from laboratory regarding the mechanic-physical properties of the compounds where checked and confirmed in pilot experiments on industrial facilities. The main advantage of the new compound is an excellent price-performance ratio.  The price of this material amounts to one third of the price of comparable EA's on the market.


Will Financial Markets Decline? 
   
Sir Isaac Newtons law of physics says, "whatever goes up, must come down", obviously Newton was an idiot and never studied a Stock Market which says "what ever goes up, will exceed all past corrections", hence stock markets in modern society ALWAYS rise, its a known mathematical formula and calculation in an inflationary capital system that keeps them rising.

    Are real emerging markets also set for boom times as others artificial paper markets and derivatives go into decline, can markets cope with a deflationary cycle?

      Recent statistics and analysis of various markets in Europe, USA  and Pacific indicate a steady slowdown (translate 'steady decline'), however, emerging markets and SME companies are waiting for the next big hit. Investors see SMEs as more controllable. Influential entities such as George Soros, Buffett, the IMF, and many others statements indicate the US sub prime crisis was the small spark that set a trillion dollar domino into action now affecting other global and local markets, will these markets flip and go into a 2 or 5 years decline. The IMF indicates America will go into a Recession. Could it escalate into a Depression, can we survive without US dominance? Economics today are internally driven by a nations population mass, unlike 50 years ago. SME investment could be the new intra-alternative investment.
      One of the strengths of emerging markets and companies is their ability to ride out changing circumstances and times, investors can control SMEs easier, many smaller companies have strong fiscal positions and are waiting for larger companies to fall over to feed of the asset carcass at bargain basement prices. Investors know the old saying "small fish are the tastiest". Even in the housing market signs are that investors have pulled out, cashed up, and now waiting for the bust, then they will move in and clean up on cheap property options. This is being reported in Europe, USA and starting to appear in Australia with smaller companies and investors playing the waiting game. Its a game of micro economics that has real power in numbers in a down turn. 

     A classic example of this was a small company with strong cash flow that spent the last 10 years acquiring twenty odd metropolitan residential properties at very cheap prices in the $100K-150K bracket, holding for 3-5 years and then selling out at $500K per property, now the company is a $10 million predator investor searching for stressed companies or properties. Many larger investors have become predators also, like sharks swarming around a sinking boat, there is a lot of money waiting to be invested by 'picking the eyes' out of good deals. The same has happened with many who had high quality securities that rose over a the past 10 years, sold out and now waiting for the Stock Market to 'flat-line' at the bottom before starting their next investment strategy. This good news for quality SMEs, they will always attract investment. Multiply these types of situation over a few million times over, then it can be seen that there is a lot of capital on hold, the next generation of emerging company and investors have loads of time to wait for markets to bottom out, unfortunately, others can't wait, nor can social politics and fiscal monetary programs.
     So why is this happening? Well, this is part of the domino 'greed' effect, the US sub-prime market is unclear, no one knows its size and is suggested to be up to a $2 Trillion problem, a lot of these home loan contracts are due to be reset in in 2008, the problem is large amounts of these delinquent loans will come back onto the Banks balance sheets, and move the debt onto Investors will need huge discounts. Hedge Funds face substantial redemptions in the last part of 2008 fiscal year. Mortgage markets Lenders have already faced serious asset damage, many have already bellied up and been reincarnated. Next, Insurers are facing serious ratings down grades that will affect about $3.5 Trillion of Bond Guarantees which will ricochet around in both Europe and USA markets and further abroad.
Commercial property financing is at a standstill in some markets, in the USA some market have been at a stand still for nine months. And they say "the worst is yet to come", the 1950s are starting to look like good times.

      Now for the domino effect, stressed home owners are using their credit card link to their property as a means to pay their mortgage instalments, with the onset of higher unemployment and rising living costs, interest rates, fuel, food, home owner asset backed credit will be drawn on further, thus diminishing surplus built up over the past 10 years ultimately will result in higher defaults. Companies are anticipating a slower economy scale down production, sacking workers, Consumers sentiment becomes nervous and spending slows, resulting in slower production and so on. The dominos roll on to affect exports and imports, then, rolls around the world on an ever expanding cloud getting bigger and greyer and darker, until a point is reached at the base of the real economy triggers investor speculation and then emerging companies and markets boom with activity, M&A, LBO, MBAs with financial feasting on cheap investments and so it goes around again. We have seen in the 1970s, 1929, Gold Boom-Bust, South Sea Bubble etc....
      Although there will be some collateral damage on individuals and reduction in life styles, the end game is those that have low debt, time on their hands, and high skills to re-enter the market at its bargain basement prices will do well, but, by the time this occurs, global warming will need to tackled, the ethanol bubble will burst, food shortages and the world generally will un-shackle itself from America to reduce the impact. (see Ethanol Big Crash editorial on this page).
      2020 will see substantially a different world. Introverted markets are the greatest threat to global trade, it is already starting to show up. China will likely have a fiscal correction and probably become introverted expanding within its own population mass of one billion people, the same may apply to India. Europe will consolidate itself and expand further as an EEC conglomerate introverted market, Africa may become a future resource/fiscal power house with a weakened USA and Europe. 
      Australia and S.E. Asia will become an integrated trading block probably with a single currency similar to the Euro, its been suggested for many years and may happen over the next decade. The Middle East is likely to become less influential as alternative energy particularly solar, geophysical, hydro and nuclear becomes the source for base load power and heating. Iran (Persia) technically is out of oil, they have been pumping oil out of Persia since John D'Arcy Knox discovered it in the late 1800s, surely they reached Peak Oil ling ago. Middle East oil dollars will be recycled through propping up the global banking system. The next big investor on the block is the tax flush Sovereign Wealth Funds (SWF), which become the modern financial war machine that countries will battle to gain strategic position of equity in large conglomerate companies so they can block take overs or influence direction internally at the shareholder level, we will probably see national super funds siding with SWF to battle out different strategies and market positions in food, resources, commodities.
     Recycling and products with longer life cycle will be in the strongest demand. Up to 50% of motor vehicles will convert to hydrogen, rail will again overtake road for bulk freight movement, oceanic wind powered shipping is likely to re-emerge, speed will become less important, mass numbers of solar power cells, LED lighting, dry waste toilets, consumer efficiencies will become a threat to power utilities who previously needed high base loads, local industries will boom to counteract wasteful transhipping, the labour market will shift significantly to local employment. Governments will become more administrative and less political driven to cater to consumer expectations and whose demands will become health, ecology, leisure. Market product saturation that lead to the throw-away-society will pass away as wholesome values re-emerge. Resource wasters will be penalized, the average Australian household uses about 1000 litres of water per day, that is over 350,000 litres a year, 80 years ago its was about 100 to 200 litres per day or about 70,000 litres per year, the flush toilet must eventually be banned, or reticulated sea water for flushing purposes.


(Case Study No 53)

Bio-Fuel Power, 
the next Generation
    The biomass power plant was originally planned as a biomass heat plant for the special use commercial consumers with heat requirements in rural area (for instance non urban areas, greenery and fish farmers). 

      The plant has three heating installations. The new main system can generate 3600 kW (thermic). The other two systems supply 400 kW (thermic)/per unit. The providence of the urban area with heat is now fully realized by the two small tanks (current highest usage 570 kW). In the future they only needed to secure the corporate continuity in case of drop-out of the bio wood power plant. The mean heat plant could be transformed in an energy powered biomass power plant. In case of onward construction of the power plant the existing main fire module would be used further on. Instead of the current steam-cycle an Organic-Ranking-Cycle-system (ORC)  connected to a separated heat cycle carrier. The maximum electricity capacity is app. 510 kW. The surplus of heat is used for the drying of biomass and other users.
    With rebuilding of the arrangement (implementation of ORC) the power station already works economically. The additional use of a gasification module allows the thermal use of a wide variety of biomass. This reduces the costs of biomass input completely.

Company photo - Bio-Fuel, the next agricultural bonanza

     The energy policy speaker of the European Union accentuated clearly, that in the energy field the political aim of the EU is to reach the Kyoto–targets that is to multiply the part of renewable energies, to increase the energy efficiency and to improve the supply guarantee. With regards to the promotion of renewable energies it is planned by the EU to increase the Promotion instalment from 14 % in 1997 to 22 % in 2010. In such a way the national aims of the member states are also fixed. The Renewable Energy Sources Act (Germany) entered into force on 1 August 2004. The overall objective of the law is to contribute towards doubling the share of renewable energy in the electricity market from 5 to 10% by 2010. This is fully in line with the targets set in the European Commission's 1997 Renewable Energy White Paper. By setting specific tariffs for each renewable energy technology based on its real cost, the new law clearly recognises the contribution of renewable energy to reducing greenhouse gas emissions and saving finite fossil fuel reserves. Its aim is to initiate a self-sustaining market for renewable energy by compensating distortions in the conventional electricity market. Simultaneously the critical mass is to be created by means of a massive market introduction programme to avoid any additional burden for the taxpayer. Under this framework renewable energy sources are to be made competitive with conventional energies, in the medium and long-term.

     

The law also includes both digressive and differentiating elements, as well as a regular bi-annual revision process. It allows a regular adaptation according to technological and market development. A time limit of 20 years is set for each plant.  Burning is the most prominent way of producing heat and power in private households as well as thermal power stations running with biomass. In this context, the Combined Heat and Power Technology (CHP) is the most effective way of using biomass as a source of energy.

Bio-energy carriers have the following advantages:

  • They are renewable -  i.e. with prudent use & re-growth they can be replaced by natural processes;
  • They are to a large extent CO2-neutral - i.e. they do not contribute to the greenhouse effect;
  • They store solar power - i.e. the sun's energy can be stored and used when required.  
  • They are available in solid, liquid or gaseous forms.
  • This means that it is possible to use them in a wide range of areas.

      Through the refurbishment of the old existing wood heat plant to a heat from biomass and green electricity the CHP can be profitable without outsourcing heat capacities from the start in the form of distant heat. The sale of heat production will increase the profit situation in the forthcoming years. Extension of the distant heat infrastructure is to be considered because of the increasing heat consuming needs by new settlements of urban areas, and because of the connection obligation by the community. Moreover the scaling up of more heat consumers is possible in the localised region of the power plant because of the presence of commercially available fuel sources.

    The extension of the power plant with a suitable wood drier will stabilize the costs of biomass power resource of wood.

     The production of "green electricity" has been utilised in Germany for a period of 20 years already. There is even a legal right for likewise defined payments in the energy production. Next to the basic fee for the production of electricity and heat output of renewable resources there are higher fees offered/available:

  • A bonus of 0,06 €/kWh is given for the use of clean wood fractions if not mixed with waste wood;
  • On top of that another 0,04 €/kWh if modern technologies like the Organic Ranking Cycle (ORC) and heat engines are implemented.

    The height of the basic fee is orientated the year that the bio-power plant of Hartmannsdorf was put to use. The site has a definite competition advantage:

  • The power plant has a work licence already issued by German Authorities.
  • The tank and other crucial parts of the installations and equipments are already constructed.
  • A maximum fee is executable.
  • A connection with a heat infrastructure is already established.
  • In the near future more heat consumers will be connected to the existing infrastructure.  

     The providence by the local suppliers or through the contracts with the relevant forest institutions could insure a constant and cost-effective supply of bio-power wood resource.


HYDROGEN - The Ultimate Future Energy Fuel 
"We have officially entered the new fuel age in the 21st century" 
       Hydrogen was originally the preferred fuel for the internal combustion engine (gas engine) when it was designed in the last century, petrol was essentially unknown in the late 1800s with its poor grade and absolutely no distribution, furthermore petrol was considered too dangerous and had a far too narrow fuel/air range for ignition. Petrol was expensive and too slow to distil. Other liquid fuels such as alcohol, ethanol were also discarded, thus a gas was decided as best for the internal combustion engine which effectively has remained the same since its invention, it runs on a gas vapour.
       Unfortunately, at the time, hydrogen  and the internal combustion engine's characteristics was not fully understood, it would take another 50 years before technology perfected accurate ignition timing, lean burn metering and a better understanding of flame propagation within the combustion chamber which would allow hydrogen to become the alternative fuel source. Hydrogen's unfortunate 'bad press' from the Hindenberg disaster in the 1930 is well behind us, and its future is now fully assured as the only and ultimate fuel for most gas engines for road, sea, rail. Dozens of DIY mechanics have converted their vehicles, so its not too hard,... it all comes down to mass distribution.
     Hydrogen has many advantages over petroleum spirits, namely, it is already a gas, it does not need the the engine to convert a liquid through the stage of atomisation to vaporisation before the engine can fire the fuel/air charge. Next, hydrogen has a very wide range of fuel/air ignition ratios and can be ignited at lower voltages, thus smoother running.  In fact static electricity can fire the charge with a spark plug with a gap as little as 0.001". Its principle operation in a motor vehicle engine is similar to LPG usage. Exhaust emission pollutants are virtually non existent. 
    The main obstacle for hydrogen is compact storage in a motor vehicle, however, this has mostly been addressed by the motor industry. BMW, General Motors, Toyota and others are already committed to converting to hydrogen vehicle production. BMW has hydrogen cars on the road and hydrogen fuel stations at major Euro airports. Distribution is recognised as installing a new style fuel station which is a fully stand alone independent Gas Generation Liquefaction Plant converting water into hydrogen by electricity, thus cheap electricity is the key, preferably not from coal fire plants unless these are modified with special stack filters and sulphur scrubbers.
    The real good news will probably come from SMEs who understand the principles and make available conversion/adaptors for exhaust emission reduction for vehicles, already a cottage industry is emerging for hydrogen conversions. Mass production of hydrogen will happen jointly with the development of fusion energy for cheap electrical source and storage capacity.

Can your company get its story to the market?

Where are YOU, can YOU be seen by Investors? 

"Make a Corporate or Market announcement to your Shareholders, Institutions, Investors, report on the Australian OTC Bulletin Board,  get your message to investors ".

 CALL: Richard Stacy (Syd), Steve Burrows (Melb), Ulf Brosowski (Swiss), or Ray Cross, Rob Slattery, Garry Simmons on +(613) 9629 2288 
or fax for Info Pack on +(613) 9629 2233.



Where is YOUR company
Getting your story to Investors is critical


WANT MAXIMUM EXPOSURE

Getting listed in this multi national OTC Capital Market and send the right signal to your Peers, Customers and Investors.

Call CIR, +613] 9629 2288


  Australian OTC Market 'the quiet achiever' incubates next generation of Exchange corporations,... it works.
          According to the results of  2005, the Australian Unlisted Capital Market may have picked  more winners than smaller Australian regional Exchanges both Start-Up and Emerging companies. The results of performance are startling and often overlooked by industry peers and sophisticated investors building up nest eggs.
          Some highlights are, Visionglow obtains approval to re-list on the ASX, former OTC explorer Red River becomes quoted on the ASX, Aerobic Biotec Ltd went from a mere start-up to securing pre-orders and feasibility capital for its Municipal Solid Waste technology, and went onto identifying up to $16 mil worth of orders and a syndicate of investors in S.E. Asia in less than 6 months. Emerging gold explorer Tenaj Enterprises grew from 100,000 shares to over 25 million shares with a rising demand for its script after it changed its core business to become a gold miner, the company is now valued at about $35 million and is accelerating its proposed ASX listing, not bad for 6 months of activity. Another is restructured Opal Miner who restructured itself in preparation to commercialise its open cut black opal pit by combining 42 opal mining leases into 3 operations, the company is reputedly valued at about $150 million upon initial sales of it product.
Euro company Thermoforce is another example of a company attracting serious interest from Latvia, after a disastrous start, becoming insolvent and rising again with a multinational global partner then changing its business model. Eco-Duro, invented a flat-pack relief housing that was only an mere idea in July 2005, now it is in production and soon will supply foreign markets. Tastimco the forestry manager and contactor has progressed well after its corporate consolidation. The list goes on.
         Tasmania water bottler Dew South, started with an idea, saw an opening, secured only $600,000 in capital and recently  commissioned its new bottling plant for highly valued spring water to the export market, it is now valued in excess of $3.5 mil and growing. Even big hitters like Environinvest which has gross assets over A$100 mil choose to be listed on the OTC for simplicity and ease of compliance. The OTC is expecting more emerging companies to move to an Exchange as did Red River and Visionglow. There is no doubt that the smart companies get listed first and then go through rapid growth and a total metamorphosis.
         The catalyst to these companies succeeding is the 'trigger' that the Australian OTC Bulletin Board provides which sets them on the right path, the OTC provides hard straight talk from experience where its counts, with out all the frills. The Australian OTC Bulletin Board is a new market model providing real opportunity for companies to create a market for their tradable securities. Many companies Re-List to satisfy their shareholders desire to receive information, updates, news and ability to trade their share  portfolio.

The meaning of PROCRASTINATION : 
Waiting for a Lotto win to capitalise the Company.


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