Executive Summary of the Envirodiamond Dust Project
Posted on 13. Nov, 2009 by admin in B) Executive Summary
Executive Summary
A detonation process called CDP has been developed to convert the greenhouse gas CO2 into diamond dust used extensively in the abrasives industry. Once the technology is proven, the converted carbon in one tonne of CO2 would represent one million carats of diamond dust that could be sold for $350,000 on the market. Global consumption of industrial diamond is over one billion carats per year and diamond dust represents 40% of that market. CDP is a billion dollar opportunity.
CDP is being developed through Envirodiamond Technologies. Majority owner and inventor Daren Swanson, B.Sc. (Eng.) (Hons.), with the involvement of several private investors will be incorporating the company in 2010. CDP has received positive peer reviews from Queen’s University and Dyno Nobel, a global explosive giant.
The project is underway with equipment being designed and testing planned for spring 2010 at Nordex Explosives in Kirkland Lake, Ontario. The plan is to produce large volumes of diamond dust inexpensively from CO2 and sell it viably through a pilot plant.
CDP should produce diamond dust $0.50/carat lower than the competition and 10 times cheaper than market prices. The method consumes the greenhouse gas CO2 in the process, rendering CDP a “green” technology. Laws passed in North America require its contractors to use recycled products and green technology first, so Envirodiamond Technologies will become a preferred supplier to fulfill government contracts (President Clinton Executive Order in US; Green Procurement Policy in Canada).
On our team, we have in place a seasoned marketing professional, Bob Heflin, who has invested over 30 years in the global industrial diamond industry. Bob will manage marketing and product sales. Inventor Daren Swanson has a background in chemical engineering and explosives and will handle all process engineering, testing, and design. Administrative, production and support jobs are planned to be a combination of employees at Nordex Explosives (planned pilot plant and test location) and subcontracted professionals. Business mentors from OCETA and ISCM are assisting with the development of the business model and plan.
The project is currently in Phase 1, the initial stage of testing the technology, which requires up to $200,000 to complete. Phase 1 investors receive equity in the company and 10 x their investment, payable as dividends planned to commence year 2.
With the success of Phase 1, the project moves to Phase 2, the construction of a pilot plant, which will cost $3 million. Phase 2 investors will receive 20% equity and 70% of the profit stream over 5 years.
Diamond production can begin immediately with Phase 1 assets, and the remainder of the pilot plant can be built during production. Marketing packages containing a 10 carat sample will be distributed to 2,000 diamond suppliers around the world.
We will advertise an excellent product with ideal physical properties at a price that will increase the diamond suppliers’ profit margin. The properties and cost benefits create an incentive for suppliers to purchase from us instead of the competition.
The projected long-term outcome is that we secure 40% of the industrial diamond market, which is approximately 700 million carats valued at over $200 million/year total revenue. Meeting the global diamond dust demand can be achieved with 10% of projected maximum output.
Production above 10% maximum enables supplying additional markets. Adding diamond dust to polymers enhances strength, addition of nanodiamond material to industrial lubricants decreases lubricant consumption, permissible explosives applications may be tapped, and the technology ultimately offers a unique means of carbon capture and storage.
Phase 3 is the construction of a green-powered recycling process that regenerates a special ingredient consumed in the reaction. The long-term goal is to build a remote 600-megawatt wind/solar/hydro stage and recover 10 tonnes of ingredient per hour. The cost is estimated to be roughly $100 million for a facility with a 60 MW green source that recovers 1 tonne/hour.
According to the U.S. Geological Survey, Mineral Commodity Summaries, January 2009 the US industrial diamond industry is comprised of two producers and nine processors. Five percent of total US consumption is comprised of diamond dust recovered from spent diamond tool applications.
Once proven and commercialized, CDP offers a viable means to make and sell hundreds of millions of dollars of industrial diamond dust in a way that is priceless to our environment. CDP is a financially and socially responsible step in the right direction.
