AuraSource, Inc. was incorporated on March 15, 1990 and is focused on the
development and production of environmentally friendly and cost effective industrial
energy and feedstock used for industrial applications. AuraCoal, AuraSource’s
core technology, includes ultrafine grinding and impurities removal. Initial
industrial applications of AuraSource technology are ultra-fine coal water mixture
for heavy oil substitution, and low grade iron ore fine and slimes beneficiation.
AuraSource formed AuraSource Qinzhou Co. Ltd., a wholly owned subsidiary in
China (“Qinzhou”), to acquire these types of Hydrocarbon Clean Fuel
(“HCF”) technologies, performing research and development related
to the reduction of harmful emission and energy costs for HCF technology and
products based on this technology, licensing HCF technology to third parties
and selling services and products derived from this technology. We have developed
seven patented technologies: 1) ultrafine grinding and 2) ultrafine separation.
We believe our AuraCoalTM technology is a next generation of hydrocarbon clean
fuel technology. It involves grinding coal into very fine particles, mixing
it with water and selected additives to make slurry mixture and using a proprietary
biological treatment of the coal slurry to reduce heavy minerals, such as sulfur.
We believe such fuel will have sufficient fluidity to move through pipelines,
process delivery piping and burner injection nozzles. Our goal is to demonstrate
to power plants, coal-gasification plants and similar users that our AuraCoal
technology can convert their plants to use the technology at a lower cost than
any current alternative. Given sufficient capital and development of our AuraCoal
technology, we plan to market it to plants in China and the United States (“US”)
with the objective of having a beta demonstration site in each country.
Given sufficient capital, development and protection of our AuraCoal technology,
among other factors, AuraSource plans to utilize the AuraCoal technology as
follows:
- license AuraCoal technology to international clients in applicable industries,
such as coal producers, power plants and coal-gasification plants;
- develop strategic partnerships to deliver consulting services with respect
to design, engineering, procurement and construction for AuraCoal applications;
- enter into joint ventures with coal producers to supply AuraCoal treated coal
to power plants;
- process coal using AuraCoal technology and sell such coal to end users at
a marked-up price;
- assist customers to convert their plants to AuraCoal rather than oil, gas
or other natural resources in order to save energy costs; and
- establish centers for processing coal with our HCF technology to supply power
plants, coal-gasification plants, and other customers.
AuraCoalTM Clean Coal Technology
AuraCoal is patented technology designed to remove sulfur and ash from coal
pre-combustion. This reduces energy costs and helps to eliminate harmful emissions.
This proprietary clean coal technology produces a coal water mixture, which
contains only trace amounts of sulfur and ash and constitutes an alternative
to oil or natural gas. AuraCoal can be delivered via pipeline in a non-volatile
state. AuraSource’s intellectual property portfolio includes ultrafine
grinding and ultrafine separation processes, which will enable us to produce
a high purity, cleaner burning fuel and to reduce the cost for several industrial
applications.
Ultrafine Grinding
Ultrafine grinding utilizes a fluid shock wave to grind slurry materials into
ultrafine scale. The shock wave is generated when pressurized slurry (5-30 magapascal
(Mpa)) goes through the grinding chamber. The shock wave carries energy and
creates shear, collision and cavitation effects which cause particles in the
slurry to reduce to an ultrafine size. As a result, when used in coal water
slurry grinding, the coal water slurry can be pulverized and its fluidity improved.
Ultrafine Separation
Ultrafine separation separates different size particles with different densities
in the slurry. The minimum particle size for conventional jigging and heavy
media cycloning is 0.2 mm which makes it difficult to remove inorganic minerals.
The settling velocity of particles in the slurry becomes very low under normal
gravity when particles are fine. Particles settling may even stop due to interaction
between particles and disturbance caused by other ultrafine particles in the
slurry. Therefore, conventional separation equipment based on gravity is not
effective. Our technology enables particles separation by applying 10-100 gravity
which allows impurities and unwanted substances to be removed.
The conversion to an AuraCoal system is designed to deliver immediate and substantive
reductions in harmful particle emissions as well as savings in transportation,
processing and safety costs. With the adoption of our proprietary AuraCoal Clean
Coal technology, we believe we will be able to convert old coal systems into
power generating systems that produce emissions containing only trace amounts
of sulfur and ash.
We believe our HCF technology will provide an emerging type of energy saving
and emission reducing fuel substitute for oil. The HCF coal product appears
to exhibit fuel economy, liquidity and stability, ease of loading and unloading,
storage and transportation without precipitation of the product. It seems to
be conducive to pumping over long-distance pipelines, transport by railway and
truck tankers and maritime shipping.
HCF atomization performance depends on the energy value of coal preparation
and concentration, which we believe is generally the equivalent of half the
energy value of heavy oil, industrial boilers, industrial kilns, power generation
boiler oil and coal combustion generation.
We believe HCF has a broad range of industrial applications. Our initial objective
will be to pursue applications related to power plants and industrial boilers,
including steam and hot water boilers.
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