The following message details yesterday's MangeGas presentation. It was posted to the MagneGas message board on YahooFinance. The account name that posted it is "unclegianni".
The demo day was very informative and quite fun...it is always good to put a face to a name and the folks I met yesterday at the event were genuine and provided very good information.
There were questions posted that I would like to answer, so here we go:
1: The gas that is produced from "sewage" based feedstock is not as potent as the gas produced from "oil" based feedstock. It will not have the same characteristics as the gas that is being positioned for the co-combustion plans.
2: MNGA has experience processing sewage in Italy, they have been doing it there for a long time. The sterilization process is faster and eliminates all pathogens - so the water and other by-products (clean "sludge") can be used for irrigation, put back into the environment cleanly and be used in the other application like fertilizer.
3: The European, and other distributors, are independent companies, MNGA does not maintain any ownership in them.
4: A lot of time was spent on the slow adoption of MNGA versus Acetylene. The long and short of it are that they are breaking into a market that has not changed in 40 plus years and that quite simply takes time, consistency and effort. There are lots of road blocks but the team at MNGA has opted to take a top down approach and work with the trade unions and Fire Departments to educate them on the benefits and have them endorse and use the product to that others will see instant validation. Think of the process that someone would have to go thru in NYC in order to use a new gas, it does not happen unless the Fire Department is on board, plain and simple. Start at the top and will flow down. There was a continuous theme about the level of success in the demonstrations and presentations to everyone from pipe cutters and emergency service all the way up to former GE scientists that feel once the market accepts the facts and adopts the change that this valuation could be well into the billions.
5. They company has ZERO debt, they are self funding at this point. Sales are fairly steady and on the rise and they did not express an immediate need to bring in capital.
6. The Co-Combustion process was discussed in detail - what they told us was practically unbelievable. MagneGas will be used in the "cleaning" process at coal plants. It will be introduced to the smoke and particulate matter that comes out of a "smoke stack" and applied to burn the particulate and reduce smoke emissions to "zero". The additional heat that is created can be re-introduced into the steam creation process kind of like a turbo charge or after burn and enhance the overall output for the facility while at the same time practically eliminating emission issues.
7. Syngas VS Magnegas - the process is different in creating the gas and MNGA does it faster and cleaner and the resulting MagneGas burns more the 3X hotter than any of it's possible competitors. Competition is not that deep - acetylene and propane are the majors and there are inherent problems with both from volatility with acetylene and wide burn area with Propane.
8: Flame temp. was discussed and it should be considered a fact that MagneGas burns at temps pushing 12000 to 15000 degress - period end of story. They are working on perfecting a new verison of the gas that will consistently burn at 15000 degrees, it is derived from oil based feedstocks. This was the most impressive part of the day for me. It was a very enlightening discussion.
9: IP and possible Patent Infringement - MNGA is not infringing on anyone else's patents. There process is different than other processes intended for "Liquid Gasification" process, in addition to the desired end result being only Magnegas.
So that answers the questions posted.
AI
