DD PACKET 04/19/2021

XFLS - Xfuels Inc. | Overview | OTC Markets

After doing further DD into Xfuels Blue Hydrogen technology, we feel that in the original DD (https://t.co/EfBUd7z5Zk?amp=1) we didn’t shed enough light on the revolutionary market they are about to enter with their truly unique technology which they use to produce the cheapest and most efficient blue hydrogen available in the market

The hydrogen market will be $11 trillion by 2050.

This DD will touch on the global Hydrogen market and explain why it will be the next oil boom for the next three decades, then will talk about Canada’s Hydrogen Strategy that was published in December 2020 with commitment to invest C$1.5 billion in a Low-carbon and Zero-emissions Fuels Fund making a C$100 billion hydrogen market per year by 2050

Finally and most importantly, this DD will explain Xfuels revolutionary blue hydrogen technology showing why it beats the most advanced SMR and ATR technology used to convert gas into hydrogen.

This document is not and should not be considered a financial advice. All statements are opinionated, and individuals are encouraged to do their own research. All information found within this document is publicly accessible, and referenced. The creators of this document did not work with the company described during the making of the document; the company neither knew of or encouraged its creation.

HYDROGEN, THE NEXT OIL BOOM

Hydrogen infrastructure investments have been estimated to surpass $10 trillion by 2025. Goldman Sachs last year estimated global green hydrogen projects were on track to become a $13 trillion-plus market by 2050 for the “utilities industry alone.”

Already, 18 economies comprising more than 75% of global GDP are developing and rolling out hydrogen strategies. Several countries, including Germany, Japan and South Korea, have dedicated substantial funds to national hydrogen strategies. On June 3, 2020, Germany released a stimulus package of €9 billion (C$13.7 billion) for the ramp-up of hydrogen technologies.

In the USA, the Department of Energy stated that by 2050, the United States could see a two-to-four-fold increase in hydrogen demand across the nation.

Hydrogen will help these sectors reach net-zero:

Transport
Road transport
Shipping and aviation
Rail
Industry
Electricity
Heat for buildings

CANADA’s HYDROGEN STRATEGY

It has been projected that hydrogen will supply approximately 27% of Canada’s energy demand by 2050.

Canada is fortunate to be among the world’s lowest cost producers of low or zero-carbon hydrogen. It’s positioned as one of the highest countries in the world for domestic consumption and potential hydrogen exporter.

On December 16, 2020, the Canadian federal government released its long-awaited Hydrogen Strategy estimating a market to be worth C$50 billion just for the domestic hydrogen sector. Canada Natural Resources Minister Seamus O’Regan has vowed to make the country a global leader in this field.

“Hydrogen’s moment has come,” Minister O’Regan said.

The Government will invest C$1.5 billion in a Low-carbon and Zero-emissions Fuels Fund to increase the production and use of low-carbon fuels like hydrogen.

XFUELS AND THEIR EVOLUTIONARY TECHNOLOGY

There are two standard methods to make blue hydrogen from gas, SMR and ATR, both are chemical processes and very expensive. Xfuels use their own patented technology which they have been developing since at least 2012, they call it non-thermal (NT) Plasmatron. Their technology is one of the cheapest and most efficient because of the following:

NT Plasmatron achieves 80% lower power consumption than thermal plasma and far better than distributed SMR-based systems.
NT Plasmatron can produce blue hydrogen from garbage and algae which means they diversify their resources for blue hydrogen production yet at relatively small cost!

It's a bulletproof simple process so staff on the field can use it
It’s a dry reforming process that uses only gas, air and electricity ( no need for steam or chemical processes)
The reactor is fully scalable
The reactor is mobile for field installations (doesn’t have to be in a lab like other systems)

This means that they produce blue hydrogen for much cheaper than the standard production cost of $1.50 to $2.0/kg H2 for other systems making their technology significantly more profitable.

Alberta’s recently issued Natural Gas Vision and Strategy stated that there’s a C$7.8-billion lost opportunity since 86% of plastics were landfilled in 2016. Xfuels have been developing their technology that converts existing landfills into electricity and liquid fuel since 2012.

See below link to CBC News interviewing CEO Mike McLaren

https://www.youtube.com/watch?v=2a0dKt_A7Q4

They also have a groundbreaking GTL (gas to liquid) system they are rolling out this summer. This technology turns gas into valuable chemicals and C5+ hydrocarbons as a 3-4x multiple which is extraordinary in Canada.

XFUELS FUTURE CATALYSTS AND PLANS ALIGNED WITH ALBERTA MOVING FORWARD

On April 14 2021, Alberta became home for Canada’s first Hydrogen HUB as Alberta is entering a potential C$100B per year domestic and international market.. This was after the government had singled out Alberta as a main fuel source for blue hydrogen production since it currently produces 69% of Canada’s natural gas at a low cost making Alberta able to produce blue hydrogen at a lower cost than virtually any other jurisdiction in the world.

ATCO (Canadian Utilities) have already started their trial project to blend 5% hydrogen in a 5,000-home neighborhood near Edmonton in Alberta with a C$2.8 million government grant. Xfuels had a C$1.1 million government contract last year.

Alberta is moving forward at a fast pace towards being a national and international leader in hydrogen production as it already produces more than two-thirds of natural gas in Canada.

https://www.youtube.com/watch?v=XRWBxDQ24f8

Xfuels not only have the technology to produce blue hydrogen at a low cost, but they are also aware of the hydrogen market development. This is clear from their tweet on April 10 saying ‘Sounds like our Hydrogen tech is well positioned’ with a share to Canada’s Hydrogen Strategy.

Xfuels is expected to have a significant role in blue hydrogen production and waste remediation in Alberta thanks to their unique technology.