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GLOBAL H2 ENERGY GROUP

Unlocking the Global Potential of eH2Fuel

“Spending hundreds and hundreds and hundreds of billions

of dollars every year for oil, much of it from the Middle

East, is just about the single stupidest thing that

modern society could possibly do. It’s very difficult to think

of anything more idiotic than that.”

- R. James Woolsey, Jr., former Director of the CIA

Innovating our way out of a century - old energy market

dominated by fossil fuels and big utilities.

There's no doubt that perpetually high oil prices is creating a new economic

world order, shifting the economic balance between OPEC and the West in

the direction of those who own this commodity. In 1972, the U.S. spent $4

billion for oil imports, an amount that equaled to 1.2% of the U.S. defense

budget. In 2011, it paid $560 billion which equaled to half of the U.S.

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defense budget. Over the same period, Saudi oil revenues grew from $2.7

billion to $300 billion and with it their ability to fund radical Islam.

Unchecked, in the years to come this economic imbalance will grow by leaps

and bounds. To understand the degree of the forces at play it is constructive to

visualize the scale of OPEC’s potential wealth in comparison to the

consuming countries: Imagine that OPEC members are corporations and a

barrel of oil is a share. The resulting transfer of wealth is already creating a

structural shift in the global economy, causing oil importers economic

disruptions such as swollen trade deficits, loss of jobs, sluggish economic

growth, inflation and, if prices continue to soar, inevitable recessions. At

$100 an oil barrel, OPEC’s market capitalization is based on its unproven

reserves which stands today at roughly $92 trillion. This is about half of the

world’s total financial assets or almost twice the market capitalization of all

the companies traded in the world’s top 27 stock markets. We are running

out of time and cannot afford to continue to rely for another decade or

two on imported oil.

The refining of oil is a very energy intensive process. Approximately 7.5% of

the total U.S. energy consumption goes into running oil refineries.

For illustration, it takes 7000 liters (1,850 gallons) of water to refine

only one barrel of crude oil to usable products such as gasoline or

diesel.

If 7000 liters of water is used for generating clean eH2Fuel, it will

produce 308,693 kWh. Deducting 4% for losses, it would only generate

296,000 kWh of clean power for us to use. Crude oil @ $100 a barrel x 7.33 barrels per ton = $ 733 per ton.

However, with all external costs included the true cost of a gallon of

gasoline/diesel is around $15 or $630 a Barrel, which = $ 4618 per

ton.

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Converted to kWh the NET gain - kWh well-to-wheel energy value of

fuels products from one barrel of oil is only about 184 kWh.

This is why

Gasoline contains ~ 120 MJ/US gal equaled to 3.785 liters, weighs on

average 2.8 kg/6.16 lb with a heating value of about 42.86 MJ/kg that

translates to 11.93 kWh/kg. 13% efficiency 10.3791 kWh/kg loss,

which is net usable 1.57 kWh moving the car. Assuming ~13%

efficiency of the car engine = 87%, the energy from the gasoline is lost,

and only 1.57 kWh is moving the car, which is like driving our cars

with a true cost of gasoline of $ 15 gal.

A gallon of C8H18 - the C8 portion is = 2.4 kg/5.28 lb. = 86% carbon.

When we burn a gallon of gasoline in the engine, we are primarily

burning carbon mixed with 13% hydrogen and some sulfur and oxygen

in the air, inescapably creating 8.78 kg/19.32 lb of CO2 emissions.

The H18 is hydrogen 13%; this is the part of the gasoline that is the

good stuff and the one we want to keep. So why not use only hydrogen

that doesn’t have all the bad stuff in it; after all it may be produced

cheaper, cleaner, and we have much more water than oil. That is

precisely the problem for oil companies, how you attach the meter and

make money selling fuel from water that anybody can make in their

home just by turning on the tap and using a little electricity.

At the true cost of gasoline of $15 we keep wasting the fuel, polluting

our environment, and burning our money, at a staggering $ 9.55 per

kWh!!! , when the price of retail electricity is on average 12 cents per

kWh, not reflecting the additional cost of environmental damage and

other societal costs that are not included in the price of power.

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Adding all external costs may raise the cost of electricity 3 to 4 times to

around 50 cents per kWh, but driving electric cars is by far cheaper

and doesn't produce CO2 emissions.

Note: Think about this the next time when you spend $60 to fill your

tank, $52.20 of your money is actually totally wasted.

In the West, the landscape of coal burning is already changing, and major

coal users are already embarking on alternative energy sourcing. In the U.S.,

burning 50% cleaner cheap natural gas due to the use of fracturing is on the

rise but not without its sins; nevertheless, the shift towards cleaner burning

gas-fired power generation is already firmly underway in the United States.

The main problem for central power is emerging (and fast) as is the

worldwide generation and distribution of electricity. In fact; we have

witnessed several warning signals in this area over a number of years in

Europe especially in Germany.

The challenge has been to change how the utility companies deal with

renewables, to build it into their business so they make it into a profitable

business for their shareholders.

The “Hidden Costs of Coal Electricity” - it is foolish to maintain that “clean”

can be measured by a single emission rate, ignoring the land and water

impacts and ignoring the fuel technology’s full lifecycle. What the public

requires is a full and honest account of the true costs of fossil fuels used in

our electric generation and our transportation technologies in as accurate a

form as possible. Providing an accurate comparison of the lifecycle costs will

inform the public dialogue about the direction our global energy policy

should take. The general public must understand that whatever the resource,

it must be deployed in a sustainable manner. Whatever the resource, it must

meet the public requirements in the avoidance and waste of natural resources

and public funds; it must provide affordability, reliability, adequate water

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availability, enhanced public health, improved environmental protection,

and mitigation of climate change.

New sources of energy are harder to find and more expensive to get. In 2012,

the world’s top 200 listed oil, gas, and mining companies spent $674 billion

on finding and developing new sources of oil and gas, according to OECD. The

bulk of this expenditure was derived from retained earnings - pointing to the

duty of shareholders to exercise stewardship over these funds so that they are

deployed on financially gainful opportunities consistent with climate

security. To minimize the risks for investors and savers, capital needs to be

redirected away from high-carbon options.

Capital spent on finding and developing more reserves is

largely wasted.

Despite the growing demand, investors need to understand that 60 - 80% of

coal, oil, and gas reserves of the listed firms are unburnable.

A precautionary approach means only about 20% of the total fossil fuel

reserves can be burnt to 2050. As a result, the global economy already faces

the prospect of assets becoming stranded, with the problem only likely to get

worse if the current investment trends continue - in effect, a carbon bubble.

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The world's fossil fuel burning power plants will make or

break the Global Warming struggle

This is why it must happen:

The world's soaring carbon dioxide emissions remain the proverbial elephant

in the atmosphere. They are the single biggest contributor to rising

temperatures, which will remain in the atmosphere for 1000 years, and

unless drastic action is taken to mitigate them, the costly and dangerous

climate change will not be averted.

If we keep burning our current reserves of fossil fuels, we will emit enough

CO2 to create a prehistoric climate, with Earth’s temperature elevated to levels

not experienced for millions of years. Such a world would be radically

different from today; there are climate changes we are already experiencing,

the intensity and frequency of extreme events, such as floods and droughts is

becoming more frequent, the melting ice sheets will bring higher sea levels

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and re-draw the coastlines of the world, along with desertification will re-

define where people can live. These impacts will lead to mass migrations,

with the potential for widespread conflicts, threatening economic growth and

any hope for stability with a very costly societal price tag, and we all will

pay the price.

Unburnable Carbon

The carbon dioxide and particulates produced during the combustion

of coal are responsible for atmospheric pollution.

Coal-fired plants have operated in an environmentally unregulated

manner for a century because greenhouse gases (GHG) were accepted as

part of the plant output by designers, operators, and most regulators.

Today, GHG are front and center in the design of every coal fired power

plant, as well as liquid-fuel-and gaseous –fuel-fired generating plants.

The coal ash produced by the combustion of coal is categorized as a

toxic pollutant in landfills to which is sent for disposal.

Even though some of the coal ashes produced by the combustion of coal

is recycled in the manufacturing of building construction materials

and concrete, much of the coal ash is disposed of in landfills.

Toxic lead and arsenic in the coal ash can pollute ground water in the

landfills in which the ash is dumped. Published statistics shows that

some 1300 million tons of ash are produced annually by the

combustion of coal in power plants in the United States alone. There

are over 30,000 coal fired power plants around the world.

Just a prospective: One inch of rain falling on one acre of surface if collected

represents 27,200 gallons of water (gal/3.785 liters) that equals to 102,952

liters/kilos or almost 103 tons of fresh water, which = to 11,523 kg or ~11.5

tons of eH2Fuel may be produced from an acre, and anybody can do it and

for oil companies there is no money to be made.

11.5 ton of eH2Fuel will displace 207 ton/ 1517 bbl of oil or 63,727

gal of gasoline.

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With the true cost of $15 gal that equals to $ 955,905.00 may be saved

by collecting rain water from one acre of land.

No imported oil is necessary; one inch/acre of rain water collected is a

free domestic resource and will avoid spending close to a million

dollars and avoid sending money to unfriendly nations.

Now, since we are able to generate unlimited clean and cheap electricity it is

time for plug-in electric vehicles. The transportation life cycle of an ICE car

is about 17 years and switching to EV will make the transition gradual and

expected not fast. But worldwide there are over 75 million cars manufactured

every year; if we were able to switch to manufacturing 75 million EV a year,

we may accomplish the transition in the next twenty years.

WHY ELECTRIC VEHICLES

Carbon in any combustion process is the contaminant, and oil companies

spend billions trying to clean it up from their fuels. Oil companies are the

largest consumer of hydrogen, and using it for what? Yes, to clean up their

fuels, however, as long there is a carbon present in the fuels it is becoming an

ever more expensive and futile effort in keeping up with and satisfy the ever

more stringent regulatory compliance.

Repeating this one more time because this is important! We protecting ICE

engine and oil industry why? The ICE (has 87% losses) net work performed

moving the car burning a gallon of gasoline is only 1.57 kWh, from the

original 11.93 kWh energy content in gasoline. This is like driving our cars

for $ 9.55 per kWh!!, when the price of retail electricity is 12 cents per kWh .

EV is ~ 90% efficient and producing zero CO2.

Electric motors are profoundly simple. The motor converts electricity into

mechanical power and also acts as a generator, turning mechanical power

into electricity. Compared to the myriad of parts in an engine, the Roadster

motor has only one moving piece — the rotor. The spinning rotor eliminates

the conversion of linear motion to rotational motion and has no mechanical

timing issues to overcome.

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With an electric motor, instant torque is available at any RPM. The entire

rotational force of the motor is available the instant the accelerator is pressed.

Peak torque stays constant to nearly 6000. Tesla's electric motor for example

is not just a great generator of torque - it is able to create torque efficiently.

The Roadster achieves an overall driving efficiency of 88%.

Energy efficient

Reduce energy dependence. Electricity is a domestic energy source.

Electric motors convert some 90% of the chemical energy from the

batteries to power the wheels - internal combustion engines (ICE) only

convert 13% of the energy stored in gasoline.

Electric vehicles (EVs) are propelled by an electric motor powered by

rechargeable battery packs. Electric motors have several advantages over

internal combustion engines (ICEs).

Performance benefits. Electric motors provide quiet, smooth operation

and stronger acceleration and require less maintenance than ICEs.

Environmentally friendly

EV emits no tailpipe pollutants, although the power plant producing

the electricity will emit them.

Electricity from eH2Fuel, nuclear-, hydro-, solar-, or wind-powered

plants causes no air pollutants.

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Electric motors convert some 90% of the chemical energy from the batteries to power the wheels.

Replace the Engine with an Electric Motor.

Compared to the myriad of parts in an engine, the Roadster motor has

only one moving piece — the rotor. The spinning rotor eliminates the

conversion of linear motion to rotational motion and has no

mechanical timing issues to overcome.

With an electric motor, instant torque is available at any RPM. The

entire rotational force of the motor is available the instant the

accelerator is pressed. Peak torque stays constant to nearly 6000. Tesla's

electric motor for example is not just a great generator of torque - it is

able to create torque efficiently. The Roadster achieves an overall

driving efficiency of 88%, about 6.69 times the efficiency of a

conventional car. The Tesla Roadster uses a three-phase Alternating

Current (AC) Induction motor. The AC Induction motor was first

patented by Nikola Tesla in 1888. AC Induction motors are widely used

in the industry for their reliability, simplicity, and efficiency.

Oil

• About ninety percent of the oil in this world is controlled by national

oil companies: not multi-nationals like ExxonMobil, etc.

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• If even one major oil-exporting country decides to reduce exports,

recognizing that they should preserve a valuable and waning resource

for their own future, the decline gets that much worse sending prices

higher and tempting more countries to do the same.

• If export prices double, a nation figures it can sell half as much and

still keep its economy on an even level.

• Approximately two billion dollars a day of petroleum are traded

worldwide, which makes petroleum the largest single item in the

balance of payments and exchanges between nations. Petroleum

represents the largest share in total energy use for most exporters and

net importers.

• The petroleum taxes are a major source of income for more than 90

countries in the world; poor countries' net importers are more

vulnerable to price increases than most industrialized economies.

• Unlike most commodities, petroleum is a major factor in international

politics and socio-economic development. These characteristics of the

petroleum sector largely explain why many producing and importing

countries have, at least at some point during the course of history, opted

for direct state intervention rather than more liberal governance

regimes.

• Governments’ petroleum sector policies often pursue a variety of

development and socio-economic objectives, including the

maximization of the net present value of the economic income derived

from the exploitation of petroleum, inter-temporal equity, the

promotion of backward and forward linkages, the promotion of

bilateral trade, energy self-sufficiency, and security of supplies.

• It’s unlikely that the fossil fuel industry will be heading for the

bunkers any time soon. They will continue to do the green dance while

undermining at the same time all efforts behind the curtain, in order

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to maintain their cash machine. They spent over 674 billion of the

investors’ money last year to find new sources.

• Not only are such corporations coming under increasing pressure from

regulators and from climate legislation limiting CO2 emissions, but a

high-profile campaign is also under way to persuade investors to

withdraw from companies involved with the fossil fuel industry.

This Energy Revolution will require a wholesale reconfiguration of the

electricity sectors, transport, and construction while creating new goods and

services, spawning new businesses, and providing millions of new jobs that

are desperately needed in the post global economic crisis.

Why is important? There are over a billion vehicles on the

roads around the world.

No carbon emissions to deal with means CO2 = regulatory compliance savings.

If we manage to convert our grid to burn cheap eH2Fuel, we will generate

electricity with much higher efficiency, more cheaply, and most importantly

much cleaner. We may then start to transform our gasoline and diesel

powered cars to electric cars and become truly energy independent from our

own domestic resources.

What are the main reasons to phase out the IC engine entirely? Technically,

an internal combustion engine can run on any gas fuels, such as coal gas,

producer-gas, bio-gas, landfill gas or natural gas, but its efficiency will still

only be a disappointing 13% or even lower. Switching to an electric motor

that has efficiency 90% is the only way to change ICE's inefficiency. Electric

cars charged in our own garages will work better, run quiet without any CO2

emissions, and save thousands in fuel cost year after year. And just as

important, we can avoid the millions of barrels of oil imports from

unfriendly or unstable countries.