Global Energy Inc. (Address of Principal Executive Offices) Global Energy’s Vision
16 Menachem Begin Street
Gama Building 5th Floor Ramat Gan, Israel Phone: 972-03-609-1690 Website: http://www.global-nrg.biz
is to develop sustainable, distributed sources of liquid fuels that advance the local economic and environmental interests of the world’s urban and rural communities. Toward this end, Global Energy continuously sources proof-of-concept technologies and selectively commercializes them with the assistance of strategic partners and institutional investors.
Global Energy believes that producing local fuels from local feedstocks for local consumption achieves an ongoing virtuous cycle whereby economic and environmental interests synergistically reinforce one another Company Profile http://www.global-nrg.biz/?page_id=29 Company Technologies
Company Overview (From 10Q) http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9610776
Global Energy Inc. is a development stage company that intends to build and co-own, with strategic partners, industrial scale facilities that will utilize a proprietary technology (called KDV or KDV process) to produce synthetic diesel fuel from different types of hydrocarbon-based waste. With each project, our strategy is to form partnerships under long term contracts with local companies that have the ability to supply large, consistent quantities of appropriate waste feedstock and have the necessary operational and technical expertise to operate such diesel producing facilities. Since June 2007, we have observed efforts in the United States and the European Community to develop facilities for the production of renewable, alternative fuels - primarily biofuels based on corn and other feedstocks. Interest world-wide has recently focused on second and third generation of cellulosic ethanol, which is biofuel produced from wood, grasses, and the non-edible parts of plants, as well as different technologies utilizing gasification of biomass to liquid. Today, the production of both ethanol and biodiesel has been constrained by price increases for their respective primary feedstocks, corn and rapeseed (Canola). Recent interest in the U.S. market has focused on Renewable Drop-In Fuel ("RDIF"), an area well-suited to KDV technology. Against this background, the emerging alternative fuels industry has placed a high priority on developing and deploying new technologies capable of utilizing abundant waste streams instead of corn and other feedstocks for the production of alternative fuels. While we have noted that much attention has been focused on high profile waste streams such as municipal solid waste (“MSW”) and biomass waste derived from agriculture and forestry, we believe that there are many other high volume industrial waste streams available to be converted into alternative fuels. We have also determined that unlike traditional biofuels based on corn and other food-based feedstocks, which must be purchased in order to be converted into ethanol or biofuel, the utilization of waste streams as feedstocks to produce alternative fuels also offers the potential of earning additional revenues from garbage tipping fees and through the recycling of waste. With the above factors in mind, we developed our business plan to take advantage of these potential dual revenue streams through the utilization of patented KDV technology. The KDV process has been developed during the past thirty years by a German scientist, Dr. Christian Koch. The KDV process, which Dr. Koch describes as a catalytic de-polymerization, utilizes hydrocarbon-based feedstocks such as biomass, wood and paper as well as plastic, rubber and waste oils, to produce high quality synthetic diesel fuel, similar to diesel fuel publicly available at refueling stations today.
KDV PROCESS & ADVANTAGES "Global Energy’s first projects will utilize the KDV process, which incorporates a low temperature, vacuum process with a special, patented catalyst and high-speed friction turbine. This process converts waste materials containing hydrogen and carbon into diesel fuel. Production facilities will be scaled according to a given community’s needs and supply of organic feedstock such as MSW, oil residuals, refinery wastes and biomass." About Alphkat from 10Q: On May 2, 2007, the Company entered into an agreement with AlphaKat GmbH (“AlphaKat”) in order to cooperate in commercialization of AlphaKat's technology of producing mineral diesel oil from municipal waste using machines that converts hydrocarbon waste into diesel oil invented for that purpose by AlphaKat ("KDV machines"). As of September 30, 2013 the Company net paid AlphaKat an amount of $781 thousand on account of a KDV500 plant that has yet to be ordered. This amount is presented in the financial statements as an advance on account of acquisition of machinery as part of property plant and equipment. The total amount that the Company will have to pay for the KDV500 plant will be at least Euro 2.5 million (approximately $3.4 million).The final amount depends on the final configuration of the KDV500 and additional features that will be ordered. On July 10, 2007, the Company entered into an agreement with AlphaKat to incorporate and operate a company, named AlphaKat - Global Energy GmbH (“AGEI”). Each party holds 50% of the shares of AGEI. AGEI is to provide worldwide marketing and sales services of KDV machines in consideration of 10% sale commission. The Company is responsible to finance AGEI if such financing is required; AlphaKat has the right to object to any sale of KDV machines. The Company has consolidated AGEI.
Since 2003 Alphakat GmbH invented and patented what today is our main product, known as "KDV technology" based on our catalytic low temperature pressureless process.The KDV plants use a catalyst with the same structure as what occurs in nature, outputs the same product and with the same environmentally benign process.The plant executes this process much faster than in nature since the structure of the catalyst is advanced (fine-molecule, ion-exchange and 100% crystallized) and the process takes place in an oil cycle instead of a water cycle, with a turbine rather than in a sediment.The result is that a conversion that took 300,000,000 years in nature happens in just 3 minutes.
The highest energy efficiency (up to 80%) -- No gas emissions Neutral CO2 balance by using of biomass -- Low process temperatures (about 350 °C) -- No dioxins and furans -- Significant reduction in volume of waste -- High safety of the production process -- Scalable plant size http://www.alphakat.net.pl/english/index.php?option=com_content&view=article&id=131&Itemid=155
KDV process as diagramed for explanation by Alphakat
Alphakat is organizing on April 8th & 9th, 2014, the 28th edition of the well known
seminar "Landing your KDV project".
The seminar normally have participants coming from Europe, Asia, America and Africa that should choose one of the selected dates.The Venue will be again the conference center at the Alphakat production facilities of Eppendorf, Germany. This informative and instructive seminar is providing everything attendees needed to know about the KDV technology and project management process included, the business model, financial viability, global investment, building site requirements , feedstock considerations,permits, and a long list of various issues for the correct completion of a KDV project. All the seminar participants will visit our installed KDV 150 system. The plant was processing and converting a 100% biomass (coconut residues) into synthetic diesel. http://www.alphakat.de/temp/noticias.php?id=1 COVANTA connection (NYSE:CVA) About Covanta from 10Q: On February 6, 2008, AlphaKat and its President, Dr. Koch and AGEI, entered into agreements, which were amended on July 8, 2008, with Covanta Energy Corporation, a wholly owned subsidiary of Covanta Holding Corporation (“Covanta”), owner and operator of waste-to-energy and power generation projects. Under the terms of these agreements, Covanta has the exclusive right to purchase, use and make improvements to the KDV technology in the United States for household waste feedstock, and non-exclusive rights to use the KDV process in China, UK and the Republic of Ireland. If Covanta's tests on its first unit are positive and it wishes to proceed further with its deployment of the KDV process it must begin by ordering five additional KDV500 units within twelve months of the commissioning date of the first KDV500 unit. Over a ten-year period, which begins on the commissioning date of its first unit, Covanta must order a total of 600 KDV 500 units or the equivalent in terms of production capacity. Covanta also granted the Company the right to fund and own up to 35% of each of Covanta’s KDV-based projects. In addition, Covanta has agreed to pay the Company an amount equal to 10% of the gross revenue of each of Covanta’s KDV-based projects, regardless of whether the Company invests in these projects or not. On July 8, 2008, Covanta purchased a KDV500 unit through AGEI. Until September 30, 2013 Covanta had paid $3,743 thousand on account of the purchased KDV 500 unit, according to the payment schedule. This amount was advanced by AGEI to Alphakat and is presented in these financial statements as a liability to Covanta ("Advance from third party") and as an asset ("Advance to related party"). On November 23, 2010, the parties signed the Second Amendment to the February 6, 2008 License Agreement between Alphakat-Global Energy GmbH and Covanta, which incorporated changes from an earlier amendment. Pursuant to the Second Amendment, the license rights of Covanta were amended to provide that Covanta, with certain limited exceptions for “Carve-Out Projects”, would have the exclusive right to use the Technology in the United States throughout the term of the original agreement subject to meeting its minimum purchase requirements. As a result of this Second Amendment, permissible feedstock now includes all materials capable of being processed by the Technology. In addition, the term of the original agreement was extended to July 1, 2030. On September 19, 2011, the Company entered into an Amended and Restated Business and Royalty Agreement (the “Business and Royalty Agreement”) with Covanta. The restructuring of the Business and Royalty Agreement converts company’s right to invest capital in, and receive royalties on the sale of diesel from, Covanta projects into a combination of (i) the payment of a supplemental commission (this is in addition to the commissions being paid under Covanta’s License Agreement), (ii) a continued (albeit reduced) royalty on the sale of diesel and (iii) a royalty on the sale of U.S. Government Renewable Identification Credits. In addition, the Company has been given the right to convert its right to receive royalties in all Covanta projects developed following the exercise of the conversion option into a net cash flow position in all future projects. The restructured agreement enables the Company to use all of its capital to invest in the projects which it develops outside the U.S. for its own account. The agreement also includes an agreement by Covanta to use commercial reasonable efforts to provide equipment lease financing for GEYI’s initial projects outside the U.S., subject to standard underwriting terms, appropriate approvals and other conditions.
Covanta is the country’s largest operator of energy-from-waste facilities and it employs approximately 3,500 people in North America.
Key Executives Mr. Asi Shalgi (CEO)
has over 20 years of senior managerial experience in the energy sector. He served as the Director General of the Israeli Ministry of Energy & Infrastructure and as a director or CEO of several industrial and agriculture companies. He has had leading roles in several energy related projects, including the development, construction and operation of the first private power plant and the first private water desalination plant in Israel. Mr. Shlomo Zakai (CFO)
is a Certified Public Accountant since 1998 and currently owns an accounting firm, which provides services to public and private companies. He has served as CFO and controller of a number of private companies. Previously, Mr. Zakai was for nine years a senior manager in the Hi-Tech department of Kost, Forer, Gabbay & Kasierer, an independent, registered public accounting firm that is a member firm of Ernst & Young Global. During this period, he worked primarily with publicly traded companies on Nasdaq and the Tel Aviv exchange. He holds a B.A. in Accounting from the College of Management in Rish Yuval Ganot (VP of Business Development)
is a lawyer specializing in commercial law, mergers and acquisitions, real estate investments, business management and business rehabilitation. Among his clients are some of Israel’s largest companies, academic institutions and charitable funds. In addition, Mr. Ganot serves an investment adviser and financial consultant to several investors and private companies. He recently joined the company’s Board of Directors. His appointment to the board was in accordance with the Securities Purchase Agreement entered into by Mr. Ganot and the Company on September 10, 2009 and previously disclosed by the Company.He holds a L.L.B (Bachelor of Law) from the IDC, Israel, and is a member of the Israeli Bar. Dr. Christian Koch
Founder of Aplhakat GmbH and the KDV Process http://www.alphakat.de/temp/history1.php
Insider Holders CASPI NISSAN Director Nissan Caspi
(CPA, MBA) is experienced in analysis and financing in the infrastructure sector and is the founder and Co-CEO of Eco Capital Ltd. which operates in the field of energy and related projects. Previously the CFO of Veolia Israel (formerly Vivendi), Mr. Caspi has also led the financial closing of one of the world's largest sea water desalination projects - the VID Project, which produces approximately 100,000,000 cubic meters of fresh water per year. Mr. Caspi is the former Chairman of the Insurance Fund for Natural Risks in Agriculture (INFRA), an Israeli government-backed entity. Previously, Mr. Caspi served as the head of the accounting department at the Hebrew University of Jerusalem. Mr. Caspi holds an MBA and BA degree in accounting and economics from the Hebrew University of Jerusalem and is certified as a CPA in Israel. ELBAZ AMIR Director Amir Elbaz
serves as the Chief Executive Officer of Skeiron Energy, Inc. Prior to his current position Mr. Elbaz served as Executive Vice President & Chief Financial Officer of the Lithium Technology Corporation (LTC). Mr. Elbaz has also worked as a director at Prime Capital Investments, BV, a Dutch venture, and as Vice President of Corporate Finance at Cornell Capital Partners, LP. A former financial analyst with the Economic Department in the Procurement Mission of the Israeli Ministry of Defense in New York City, Mr. Elbaz holds a BA degree in geography focusing on environmental studies from the University of Haifa, Israel, and an MBA in finance and investments from Bernard Baruch College, CUNY, New York. GANOT YUVAL Director Yuval Ganot (VP of Business Development)
Mr. Ganot holds a L.L.B (Bachelor of Law) from the IDC, Israel, and is a member of the Israeli Bar. His practice specializes in commercial law, mergers and acquisitions, real estate investments, business management and business rehabilitation. Among his clients are some of the largest companies in Israel, as well as academic institutions and charity funds. In addition, Mr. Ganot serves as money management and finance consultant to several investors and private companies. MENDELOVITS NAFTALI Other RAANAN AVNER Director Avner Raanan
has vast technical and managerial experience in venture capital investments, business consulting, managing multi-million dollar projects, developing airborne electronic warfare systems and air to air missiles. Mr. Raanan founded Avnan Enterprises Ltd., an investment company that invests in early stage start up companies. Mr. Raanan is currently in a PhD study at Bar-Ilan University, Israel. He received an M.Sc. in Business Administration and a B.Sc. in Electronic and Computer Engineering at Ben-Gurion University in Israel. SHALGI ASI Officer How it works pictorial; http://www.global-nrg.biz/it_works3.html http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=GEYI http://www.faqs.org/sec-filings/100415/GLOBAL-ENERGY-INC_10-K/