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 FIRST, ChemHEAT has an exponential Heat output which we control. Because the maximum heat output is at the vertical part of the output graph, the hardest to control, we may have to back off the highest temperature reaction to reduce the burn-up rate and save the boiler components in designing the first generation boilers. Slightly lower operating temperatures will make the boiler components last longer.

If we have to operate at 20,000 btus per lb instead of 40,000 btus per lb, we will simply make twice as much byproduct. Instead of $10,000,000 of input chemicals to get $31,000,000 in free heat, we may need to input $20,000,000 of chemicals to get the free heat in the first generation boiler.

It is our goal in the 2nd and 3rd generation boiler designs, to achieve higher and higher heat outputs with less and less chemical inputs. Ultimately, the world needs $6 trillion in energy sources and we don’t need that much fertilizer.

For the next 12 months, the ChemHEAT ethanol market is a big first step for the first generation boilers. SECOND, ChemHEAT saves a lot of operating cost dollars and we will charge up to 70% of the savings in fees to the ethanol plants. If the ethanol plants save $10,000,000 in annual operating costs, they will be very happy. The first plant to retrofit with ChemHEAT boilers will be the best bargain in the ethanol market place. The 2nd thru 100th plants will pay the higher fees and still save $10,000,000 in operating costs based on 100 mmgpy production.

THIRD, the ChemHEAT boilers will contain proprietary designs components that are hard to patent. We will maintain ownership of the boilers through a second LLC, named ChemHEAT Boilers, which will lease the boilers to the ethanol plants so that we can maintain ownership of the boilers. As we partner with a large boiler manufacturer, they will want a participating investment through ChemHEAT Boilers LLC.