Flax Biomass

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CLIMATE CHANGE SOLUTIONS




CLIMATE CHANGE ACTION PLAN

Climate change is undeniable according to 97% of scientific studies. It is believed that CO2 concentration levels in excess of 400 ppm will result in catastrophic consequences. We have just surpassed this level.

Strategies to combat “Climate Change” by reducing pollution have been adopted by most first world countries, including Canada. The use of biomass has been identified as a carbon neutral energy source and is one of the new alternative energy platforms the world has stated is necessary to combat “Climate Change”. Eco-Growth Environmental technologies fit perfectly with the global “Climate Change” objectives and are both simplistic and cost effective. Canada, per capita, is the most wasteful country in the world, Eco-Growth plans on changing our wasteful habits by converting organic wastes into cleaning burning energy. Significant carbon emission reductions are achieved in the way of avoiding landfill pollution (methane gas which is 23 times more potent than CO2) and reduced use of hydrocarbon energy (natural gas and diesel).


Climate Strategy Alternative Energy


PRICING CARBON POLLUTION CREATES NEW GREEN MARKETS! Eco-Growth Environmental proposes new biomass upgrading facility for flax and hemp stubble. Phase 1 plant calls for an annual capacity of 150,000 metric tonnes of stubble to be upgraded to high calorific biomass to replace fossil fuels and compliment biomass hog fuels used currently in electrical generating plant in Kamloops B.C. The $10 million upgrading facility is proposed for the Regina area Global Transportation Hub. Flax stubble is currently burned by farmers in the field after harvest. 150,000 tonnes burned creates 265,000 tonnes of CO2 pollution. Priced at $50/tonne = $13,200,000 annually ($88.33 / metric tonne).

Replacing the use of fossil fuels with zero carbon emission biomass drives measurable carbon offsets. Phase 1 flax fiber used to replace natural gas will generate 1.25 million mt of CO2e. Offsets. At a market price of $50 would produce $62.5 million of marketable offsets. Phase 1 carbon reduction would equate to over 327,000 cars off the road or 1.5 million new trees planted.


Coal Carbon Capture Technology – Texas, Houston https://www.youtube.com/watch?v=0Fxrs1a7fD0&feature=youtu.be

Project Cost: $1 billion + CO2e captured per year: 1.7 million tonnes Capital cost per tonne CO2e captured: $571.43+



ENVIRONMENTAL IMPACT OF BURNING FLAX STUBBLE IN THE FIELDS 1 – carbon molecule (atomic wt. 12) 2 – oxygen molecules (atomic wt. 16) 12 + (16x2) = 44 12 kg of carbon combusted = 44 kg CO2 1 kg carbon combusted = 3.67 kg CO2 Flax = 48.2% carbon (1.77 kg CO2 emitted per Kg flax stubble burned in the fields) Saskatchewan: 800,000 acres planted 80% burned in field = 640,000 x .65 (tonnes stubble/acre) = 416,000 416,000 tonnes x 48.2% x 3.67 = 735,879 tonnes CO2 735,879 x $50 carbon rate (Federal) = $36,794,000

Carbon Pollution cost $88.45/tonne

Burning flax stubble in the fields is a waste of a clean energy resource!


Biomass Type MJ/Kg BTU/lb Flax Straw 18 7,810 Wood bark 19 8,432 Lignite coal 22 9,350

Ash% 3.7 1.5 22

Total Hydrogen Chlorine Carbon % % Nitrogrn % Sulpher % Oxygen % (ug/g) 48.2 5.6 0.9 0.1 41.6 2,594 47.8 5.9 0.4 0.1 45.4 257 58.8 4.2 0.9 0.5 13.6 25

Potential availability 500,000 tonnes / Saskatchewan


Flax – Wonder Health Food & Climate Change Solution!


Kamloops, B.C. ▪ Domtar – Kamloops ▪ Electrical Generation: fuel source = biomass hog fuel & Natural Gas ▪ Annual use of hug fuel (wood bark) = 350,000 tonnes ▪ Annual use of natural Gas in boiler: 433,000 mtbu (~$2 million) ▪ CO2e = 433,000 x 117lbs/2,200 = 230,277 tonnes/CO2e ▪ Phase 1 Project: 70,000 mt flax fiber / annum ▪ Biomass replacing Natural Gas: 1 tonne biomass produces 8.5 tonnes reduction in CO2e pollution (see Brightspot Climate Inc.) Value Carbon Offset: 230,277 @ $50 mt = $11,513,850

Domtar Kamloops Pulp & Paper Facility



BRIGHTSPOT CLIMATE


Business Overview Flax Stubble is baled at farm.

Flax bale is transported.

Flax bale is delivered to upgrading facility at the Regina Transportation Hub.

Upgraded flax stubble is densified and shipped to end customer in Kamloops.


MAKE THE EASY SOLUTIONS FIRST

Agricultural Waste-toclean energy is low hanging fruit

Carbon Capture: Capital cost to build: $571+ / metric tonne Capital project: $1 billion + Operating cost / metric tonne: $80 - $90 Eco-Growth Technology: Capital cost to build: $38 / metric tonne Capital cost: Phase 1 (265,000 metric tonnes CO2e / 150,000 metric tonnes flax fiber). Operating cost (subsidy): $88 / metric tonne


Flax Fiber Upgrade Plant Regina Global Transportation Hub

150,000 – 180,000 tonne/year capacity Upgrader budget: $10 million Includes: Building Equipment Installation Capital cost / mt = $56 – $67 metric tonne flax processed CO2 = 1.76 / mt flax burned in fields Capital cost / mt CO2 = $32 - $38


Shipping Logistics

Distance: Regina – Kamloops 1,371 km

70,000 tonnes flax shipped CO2e = 1,436 tonnes Estimated volume per rail car: 40 mt Estimated cost: $40 metric tonne


Hog Fuel

Market Price Biomass per million btu (mbtu) Hog Fuel Flax Fiber Price metric tonne ($/mt) $ 60.00 $ 90.00 mbtu/mt (bone dry wt.) 18.7 17.2 % moistue 56% 10% mtbu / mt. adjusted for H 2O 7.3 15.5 Price / mbtu adjusted for H 2O $ 8.22 $ 5.81

Domtar Kamloops – consumes 35,000 mt hog fuel per month. Phase 1, 6,250 mt of flax fiber represents 17.9% of total usage. Flax fiber would be blended with hog fuel currently used at a ratio of 17.9%. Pictures taken at Domtar Kamloops site showing hog fuel entering boiler house. Energy produced is used on-site and/or sold back into he BC Hydro grid.


Hog Fuel Market B.C. SIMULATED SUPPLY/DEMAND CURVE HOG FUEL BC

SUPPLY 2 SUPPLY 1

DEMAND 2

DEMAND 1 Reduced supply through plant closures and increased demand from new biomass electrical plant is putting upward pressure on the price of Hog fuel.



Phase 1: Economics Revenue Domtar 75,000 mt @ $90 mt

$

6,750,000

Farmer - 75,000 mt @ $15 mt Baler/Hauler to Regina @$30 mt Upgrader - $40 mt Transport Regina - Kamloops @ $45 mt Carbon Offset @ 75,000 mt @ $88.33 Total Expense

$ $ $ $ $ $

1,125,000 2,250,000 3,000,000 3,375,000 (6,624,750) 3,125,250

Profit before tax

$

3,624,750

The project is not feasible based on current logistic costs without monetizing carbon offsets generated. Monetizing Phase 1 offsets into the project makes the project feasible. Action Plan: Secure grant for $10 million to build upgrade plant and staff venture. Secure Federal carbon offsets to be paid from Carbon Tax fund of $88.33 per metric tonne of flax fiber processed.


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