We are a small public company in the early commercialization stages of a heavily patented technology that generates substantially pollution-free electricity and heat energy using refined natural gas, industrial waste gases or Volatile Organic Compounds (VOCs) from a wide range of industrial plants as well as agricultural operations.
Our technology is designed to enable participants in a wide range of industries to lower their operating costs by generating clean, on-site electricity and thermal energy from their waste gas by-products. We estimate that the global market for waste gas-to-energy equipment is approximately $75 billion based on methane gas emissions reported by the U.S. Environmental Protection Agency, or EPA, and data from government ministries of other industrialized countries. We provide an opportunity for industry participants to reduce spending for compliance with environmental standards, and instead use these gases to generate and/or sell energy.
Our technology enables industrial companies that produce and emit low quality, by-product waste gases to develop their own on-site co-generation plants that will consume these waste gases as low-cost fuels, in order to generate low-cost energy for their operations. In traditional co-generation plants, fuel is purchased to run the plant, and the fuel costs typically represent 60-70% of the operating cost of the plants. The on-site co-generation plants that utilize our technology tend to generate far more attractive internal rates of return than traditional co-generation plants (due to the use of low-cost or zero-cost fuels) while also producing almost no Nitrogen Oxide gases, or NOx, which is critical in states like California that have significant environmental regulations. Further, we believe that there is an indisputable trend in the energy infrastructure markets, whereby many industrial sites wish to have an on site co-generation plant, but prefer to have these facilities owned and operated by a third-party energy services company. This provides an opportunity for us and other project developers, owners and operators to structure and manage these long-term assets. We believe that co-generation, or Co-Gen, plants used at industrial sites should typically pay for themselves in approximately four years, and should be able to generate consistent cash flows by selling power and clean heat energy to the industrial facility providing the waste gas (or to a creditworthy third-party customer).