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Carbon Sciences, Inc. (OTCBB: CABN)
Untitled Document
Carbon Sciences, Inc. (OTCBB: CABN) is developing an innovative technology for transforming harmful carbon dioxide (CO2) into earth-friendly carbon products such as building materials, fertilizers and plastics. The technology is based on a patent filed by the Company and developed under the brand name, GreenCarbon™ Technology. By eliminating harmful CO2 emissions, the technology will provide a partial solution to the problem of global warming.
GreenCarbon™ Technology is initially targeting emissions from coal-fired electrical power and fuel production plants, since about one-third of CO2 released into the atmosphere is from the combustion of coal. Coal is increasingly in use as a power plant fuel substitute for oil and gas. The International Energy Agency estimates overall world coal use will increase 50% by 2030.
The Global Climate Change Initiative proposed by President Bush calls for an 18% reduction in the carbon intensity of the United States economy by 2012. Technology solutions that reduce greenhouse gas emissions are the President's preferred approach to achieving the Global Climate Change Initiative goal.
Business model capitalizing on innovative technology and environmental concerns
CABN is developing and intends to commercialize its innovative GreenCarbon™ carbon dioxide capture and transformation technology for coal powered plants. This technology may offer a partial solution to global warming by transforming human-created CO2 emissions into earth-friendly carbon products.
Advantages of GreenCarbon™ Technology
Currently employed technologies for reducing CO2 emissions are based on "capture and store" methods, which, however, are not commercially viable due to the high costs and impracticality of capturing and depositing several billion tons of carbon in deep geological formations each year. None of these technologies have been deployed on a large commercial scale.
CABN's GreenCarbon™ Technology provides:
- Stability over the long term - The production of mineral carbonates insures a permanent fix rather than temporary storage of the CO2, thereby ensuring no legacy issues for future generations;
- Immense Capacity - Raw materials for binding CO2 exist in vast quantities across the globe in amounts that far exceed even the most optimistic estimates of coal reserves (~10,000 × 109 tons);
- Economic Viability - The sale of value-added products created during the carbonation process has the potential to offset carbon sequestration costs.
Potential to reduce the cost of CO2 transformation by selling the transformed mineral carbonate products
The Company's technology transforms mineral feedstock into GreenCarbonate, a highly stable, useful mineral carbonate product with numerous applications:
- Agriculture: Fertilizer for agricultural land and forestry;
- Coatings:
Extender in paints and coatings;
- Construction/Architecture:
Effective fillers in concrete to improve density, stability and durability;
- Plastic:
Important mineral in compounding plastic polymers;
- Paper:
Widely used in paper-making to help increase whiteness, gloss and printing quality;
- Environment:
Acts as a natural buffer and pollution filter.
Prototype plant for demonstrating the technology
The Company's goal is to further develop GreenCarbon™ Technology and position this technology as a commercially viable method of sequestrating and converting CO2. The Company is planning to build a prototype plant for concept demonstration, field testing and scalability optimization. In addition, CABN is working on refining the technology to meet US Department of Energy objective of sequestration with less than a 10% increase in energy costs, or roughly $10/ton of CO2.
Increasing coal use drives demand for CABN's technology
Coal remains the most inexpensive and abundant source of energy on the planet. The total known deposits recoverable by current technologies could supply US energy needs for 300 years at current consumption levels. Unfortunately, coal-burning is also the world's leading source of CO2 emissions.
Rising oil and gas prices are driving the commissioning of additional coal-fired power plants, which in turn will require solutions to economically address the CO2 emissions issue. CABN's GreenCarbon™ Technology is initially targeting coal-fired power plants. As a result, demand for the Company's technology will rise as the number of coal-fired power plants multiplies. The International Energy Agency estimates overall world coal consumption will increase 50% by 2030.
Large potential market
The US Department of Energy has set guidelines calling for 90% CO2 capture from the environment with 99% storage permanence achieved with less than a 10% increase in energy costs. Environmentalists argue that a 30-40% reduction in global greenhouse gases will be necessary by 2030 to make any significant difference in global warming. Global spending to reduce CO2 emissions is estimated at around $2.0 trillion. Decarbonizing electricity, seen as the quickest way to reduce CO2 in the near-term, accounts for about 10% of total investments. The World Bank estimates that approximately $40 billion per year will be required to decarbonize electricity.
The Kyoto Protocol mandates a 5.2% reduction in greenhouse gas by 2012 to below 1990 levels. This voluntary treaty has been signed by 172 countries, including the European Union, Japan and Canada. The Kyoto Protocol is non-binding on the United States unless ratified. The penalty for non-compliance set by the protocol in the first phase, which ends in 2008, is €40 per ton of carbon dioxide equivalent. In the second phase, from 2008 to 2012, the penalty increases to €100 per ton of CO2. A technology such as GreenCarbon™ Technology that can cost-effectively reduce greenhouse gas emissions and help businesses avoid the €40 per ton penalty will experience strong demand.
Emissions trading creates additional opportunities for GreenCarbon™ Technology
CABN's technology can be used in conjunction with the Kyoto Protocol's Clean Development Mechanism to reduce greenhouse gas emissions, generate carbon emission receipts (CERs) and earn profits from trading CERs. The CERs trading mechanism allows companies to generate returns on investment in greenhouse gas emission reduction programs by selling CERs that will allow other companies to avoid the €40 per ton penalty.
 

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