Bio en Holdings Corp.  (BENH)
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Background of the GPV Technology

The GPV was invented and developed by James Titmas, a professional engineer with 54 years of experience in water and waste treatment, and the founder of GeneSyst International Inc.

The process of using the GPV in Weak Acid Hydrolysis to convert celluloses to saccharides was discovered in the 1820’s and used by Henry Ford in the 1920-30’s to provide the feed stock for producing fuel grade Ethanol.

The use of a GPV increases the efficiency of converting celluloses to high value saccharides, and thus increases the resulting yield of Ethanol from Biomass and waste materials.

The GeneSyst system updates this conversion process by using a shallow commercial water well chamber modified to be a sealed vacuum chamber in which hangs the GPV. After receipt and initial shredding of cellulosic materials, the Biomass is mixed with water and impregnated with a mild alkali solution. The processed Biomass then enters the outer annulus of the GPV passing downwards, pre-heating and accumulating pressure. In the reaction chamber at the bottom of the GPV, Oxygen is used to destroy tramp organics that inhibit fermentation followed by the introduction of a catalyst (dilute carbonic acid) to instigate the disassociation of the celluloses to saccharides (sugars). This oxidation step is exothermic and after pre-heating, the temperature is trimmed to 455ºF (235o Celsius). With a small portion of un-reacted nitrogen and thermal expansion, the density of the mixture is lowered to allow natural convection to move the fluids through the GPV without pumping. The mixture, which is now sugar based, rises up the inner pipe after neutralization of its acid in the reaction chambers. The mixture continues to rise driven upwards past the downward flowing colder feed mix, and as it does, it allows its heat to pass through the wall of the inner heat exchanging pipe to the descending raw materials in the outer annulus of the GPV. At the surface the sugar mixture is then cleaned using conventional water processing equipment and forwarded for conversion to Ethanol or Biofuel ready for sale. All tanks and processing vessels are enclosed. The system is completely sealed to prevent loss of product, odors and environmental contamination. Ethanol produced from Biomass waste eliminates the production of new Green House Gases (GHG) arising from the waste. Ethanol is used up to an 85% concentration as a substitute for the refined fossil fuels as an additive to gasoline. It offers a further reduction in the emission of GHG giving additional benefits to the environment. The GHG emissions of landfill gasses are also dramatically reduced.

The Process Advantage

The process to extract the saccharides from cellulosic material uses a combination of higher temperatures with acid conditions. The higher the temperature, the lesser the amount of acid needed. This hydrolysis reaction process is nearly instantaneous and must be arrested before the acids decompose the saccharides created from de-polymerization of the cellulosic materials. In the case of the GPV the acidic conditions are neutralized to arrest the reaction and the heat energy is recovered.

The process described above is the specific advantage made available by using a continuous plug flow GPV reaction chamber, combined with the advantages of no moving parts, a tolerance for large size pieces and use of many types of raw materials, the internal recycling of pressure and heat energy all combine to create high availability.
The process is continuous and not batching which leads to increased productivity at lower costs.

The Malta Facility is intended to be a Finance, Design, Construct and Operate Facility and is currently estimated to cost approximately $150 million to complete and to put into full operation.

This facility is expected to be located on designated land allocated by the Government of Malta at the eastern end of the Hal Far Industrial Area. The site has an area of 55,000 square meters (13.25 acres) and is fully accessible being bounded on three sides by major roads suitable for HGV Class III vehicles. The site is in the south east of the island of Malta, within six (6)6 kilometers of Malta’s main airport (Luqa) and more importantly, three (3) kilometers of the Malta Free Port.

The Malta Biomass to Ethanol Facilities is targeted to make upwards of 88 Million liters per year of the Bio-Ethanol. The source material to make this will be 270,000 dry metric tons equivalent per year of the Raw Material Biomass. It is anticipated that 80% of the feedstock come from sources on Malta and Gozo.

The ethanol produced at the facility will be made using the process known as Dilute-Acid Hydrolysis in conjunction with GeneSyst’s patented Gravity Pressure Vessel ™ along with remainder of plant engineering and design obtained from the waste water (sewage) treatment industry and traditional fermentation and distillation plant technology used in the Ethanol Industry.

The issue of using non-invasive enzymes or GMO (genetically-modified-organisms) in the conversion process was a major point of discussion with the Advisory Board of Assessors and Engineers for the Government of Malta. Once it was proven that the plant did not pose a risk to humans, animals and the flora and fauna on the Island, the project was given an immediate go-ahead by the Malta Authorities.

The Company has been in discussions with an Engineering, Procurement, Construction (“EPC”) contractor to design, construct and operate the facility and to oversee local sub-contractors, such as the civil engineering construction company Attard Construction, supported by Panta Lesco, who specializes in mechanical, electrical and ICA/SCADA (Instrumentation Control and Automation/System Collection and Data Acquisition). Both of these local sub-contractors have worked on projects in the Water and Waste Water (Sewage) Treatment and the Food and Chemical Process Industry. EPC is a prominent form of contracting agreement in the construction industry. The engineering and construction contractor will carry out the detailed engineering design of the project, procure all the equipment and materials necessary, and then construct to deliver a functioning facility or asset to their clients. Companies that deliver EPC Projects are commonly referred to as EPC Contractors.

As soon as the project financing is in place, the Company’s in house engineers along with the EPC contractor and the sub-contractors will finalize the various protocols and strategies for the design and construction for the facility, and establish the parameters for the facility to be completed. During this period, the target dates for overall completion of the project will be set along with the purchase of Owners Protective Professional Indemnity Insurance to cover any risks concerning the design and operations of the project.

The Company anticipates starting delivery of Ethanol or Biofuel as soon as the first phase of the plant is completed. The Company’s business implementation strategy has been to assemble a first class team to design and construct and operate the plant at the earliest possible time. Company will be using the appropriate FIDIC (Fédération International Des Ingénieurs-Conseils) Conditions of Contract to ensure that any issues are normalized under traditional working practices as used in the EU.

This Biomass to Ethanol Facility will be developed according to a Design and Construct contract where a portion of the design may not be fully developed until construction is about to start. However, as soon as the financing is in place and mobilization of the designers and construction companies has occurred, this process will be started. This whole procedure will be nurtured through a VM/VE (Value Management/Value Engineering) audit trail which will be under constant review by the in-house staff and consultants for the Company.

All the confirmatory site investigations and the residual planning assays with MEPA (Malta Environment and Planning Authority) need to be finalized before the actual construction begins. These investigations may be carried out simultaneously with the need to assess and confirm the supply of the raw materials used to make the Biofuels, and should be confirmed by the necessary laboratory testing which will be carried out in the local testing centers and University. At the same time, pre-orders should be lodged with the longest lead time items including that for the drilling company that will be needed to drill the bore-holes for the installation of the three gravity pressure vessels. All boreholes should be drilled to the common depth of 610 meters (2000 feet) needed for the process. The drilling of these boreholes and the installation of the steel-work will take approximately six (6) weeks. Two major drilling companies have been asked for quotes for this part of the operation and early indications suggest that one will be the most acceptable in terms of practice, record and price for this part of the work. Again, the lead time to obtain the fermentation and concentration plant for the production of the Ethanol will also be required to be ordered early on and this should be organized at the same time.


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