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. With key components to this technology recently proven, CDP could potentially convert 75% of the carbon in one tonne of CO2 into diamond dust. The amount of diamond dust produced 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. Tests at Nordex Explosives clearly show the mixture can be used in explosives applications and a byproduct sample analysis at Queen’s University revealed the faint presence of sp3 carbon bonding, which is the type of bonding in diamond.
Commercialization testing is tentatively scheduled at Nordex Explosives in Kirkland Lake, Ontario in June and July 2010. The plan is twofold:
1. Explore the explosive parameters of the CDP formulation for coal mining and other mining applications and
2. Optimize diamond yield per tonne of CO2 processed.
CDP will produce diamond dust 50% cheaper lower than the competition from a method that consumes the greenhouse gas CO2, rendering CDP a “green” technology. Laws passed in North America require its contractors to use recycled products and green technology first, so Envirodiamond Technologies Inc. will become a prioritized 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 company has completed verifying the ability to detonate the CDP formulation and has received promising results from a byproduct analysis: faint sp3 carbon bonding, meaning the type of bonding in diamond.
With the recent testing success, the project is moving to the commercialization phase, which costs $3.2 million to complete and consists of building a pilot plant. Investors will receive 30% equity and dividends derived from tapping 70% of the profit stream over 5 over 5 years.
Diamond production can begin upon determining the ingredient ratio necessary to optimize diamond yield. Diamond purification equipment can be built and installed during production either at the production location or at another location entirely.
Marketing packages containing a 10 carat sample will be distributed to 2,000 diamond suppliers around the world and sales teams will followup as required and arrange customer trials. 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 will be tapped, and the technology ultimately offers a unique means of carbon capture and storage.
The long-term goal is to establish a green-powered recycling process that regenerates a special ingredient consumed in the CDP process. Building a remote 600-megawatt wind/solar/hydro stage could power the process of recovering 10 tonnes of ingredient per hour. The cost for a facility with a 60 MW green source that recovers 1 tonne/hour is estimated to be roughly $100 million.
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 fully 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.
kirkland lake, ontario
Apr 3rd, 2010
[...] … Crow and worked in underground mines in Kirkland Lake until he was old enough to join the …Executive Summary of the Envirodiamond Dust Project …The project is underway with equipment being designed and testing planned for spring 2010 at Nordex [...]