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Electrogrow pitch v7

Electrogrow fundraising pitch July 2023

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Electrogrow pitch v7

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  1. Electrogrow Inc. By Calvin Liu .July 9, 2023

  2. $2.5 billion of energy is wasted annually Flared US Natural Gas in 2021 was equivalent to the electricity consumed by 21 New York Cities for a year Copyright Electrogrow 2023

  3. $2.5 billion of energy is wasted annually Curtailed wind electricity in Texas in 2021 was equivalent to San Francisco for a year Total electricity curtailments in Texas in 2021 equivalent to 3 New York Cities’ electricity use for a year Copyright Electrogrow 2023

  4. $2.5 billion of energy is wasted annually Curtailed solar electricity in California alone in 2021 was equivalent to 4 months of New York City electricity use Copyright Electrogrow 2023

  5. Why Is This Wasted Energy Not Used? Flaring Grid Electricity Curtailment Pipeline Cost Too High vs. NG value NG Pipeline NG Processing Center Supply vs. Demand Mismatch Increasing due to Wind, Congestion and Solar PV Copyright Electrogrow 2023

  6. The Solution: Electrogrow Reactors • Re-imagining of BirkelandEyde (BE) process • Create nitric acid from air, electricity and water • Industrial production from 1910 to 1930 • Replaced by Haber Bosch + Ostvald • 98%+ of nitric acid production today Copyright Electrogrow 2023

  7. What Is Nitric Acid Good For? Nylon Polyurethane Ammonium- Nitrate Calcium- Ammonium- Nitrate Explosives Pharmaceuticals Industrial Chemicals Precious Metal Refining 60 million tons of nitric acid consumed annually, worldwide 7.8 million tons a year in the US Copyright Electrogrow 2023

  8. Why BE and not HB+O? • According to Brookhaven National Labs Research Chemist Sergei Lymar • “The current way nitric acid is produced is kind of backwards from an electron flow point of view,” … “It would be more practical to directly oxidize nitrogen with oxygen” • https://www.bnl.gov/newsroom/news.php?a=212919 • This is what BirkelandEyde does Copyright Electrogrow 2023

  9. Electrogrow Value Proposition Portable No Supply Chain Electrogrow Not Complex Highly Responsive Copyright Electrogrow 2023

  10. Marketing Plan • Initial Target: flared natural gas • North Dakota fracked oil wells: State law requires no more than 9% of natural gas from a well be flared • https://flaringventingregulations.worldbank.org/united-states-north-dakota • Oil output from fracked wells is being limited by how to handle accompanying natural gas. • Total Market flared NG • 286.7 billion cubic feet of NG flared in 2021 • This New York City total yearly electricity use-21 • Market Category • Chemical producer (nitric acid) Copyright Electrogrow 2023

  11. Competitive Overview Existing HB + O Electrogrow Electrogrow potential additional advantage via carbon credits HB+O emits 1.7 tons CO2 per ton ammonia output Copyright Electrogrow 2023

  12. Competitive Overview • Electrogrow reactors directly consume electricity competitive vs. HB + O if under $0.02/kWh electricity. • Average cost of curtailed electricity = -$0.016/kWh • Texas ERCOT 2017 to 2021 average • Negotiate with wind/solar PV farms for electricity cost between -$0.016 and $0.02/kWh • Net cost may be even lower than -$0.016 depending on green credit setup Copyright Electrogrow 2023

  13. Marketing and Sales • As a chemical producer selling into a large commodity market • Build brand reputation through quality product • Gain market entry through price and “more green” nature of product Copyright Electrogrow 2023

  14. IP Strategy • Electrogrow technologies are in the process of being patented. • Basic BirkelandEyde has been published for 110 years • Industrial production in Norway and Iceland until 1930 • Electrogrow reactors are not using basic BirkelandEyde but a fundamentally different process, thus are both patentable on process and specific implementation basis

  15. Marketing and Sales • Franchise Model Possible • Leased Electrogrow reactors • Electrogrow handles maintenance and sells product Copyright Electrogrow 2023

  16. Marketing and Sales • Partnerships with oil companies to achieve ESG goals Copyright Electrogrow 2023

  17. Product Strategy • Integration of 90 years of research into BE • Re-engineered BE • Submerged Rotating Gliding Arc Reactors • ElectrogrowReactors focus on portability & simplicity. • Ongoing increase of yields > base 20 kWh/kg • Electrogrow research believes 10 kWh/kg achievable • Vs. 1930 era BE: 16 kWh/kg Copyright Electrogrow 2023

  18. Management and Board of Directors • Calvin Liu, Founder • Upper management positions for the following to be filled • Manufacturing • Field Operations • Research: Drexel Institute of Plasma Physics Alexander Fridman • Futures and Markets (sales) • BoD • Alexander Fridman, nonvoting Copyright Electrogrow 2023

  19. Financials Copyright Electrogrow 2023

  20. Investment Required • Proof of Concept: done • “Electrogrow Reactor base cell” = 10-15 kW: $100K • Design full manufacturing prototype: $3M (?) Copyright Electrogrow 2023

  21. Additional Financial • Capital Structure • TBD • Exit Strategy • Produce ROIC for owners • REIT endgame • Expand domestically and internationally • Electrogrow as First Mover in capturing/utilizing “junk” energy Copyright Electrogrow 2023

  22. Questions? Copyright Electrogrow 2023

  23. Food and Fertilizers Copyright Electrogrow 2023

  24. Types of Nitrogen Fertilizers • Raw Ammonia • Caustic, smells, evaporates • UAN (Urea, Ammonia and Water) • Evaporates • “Synthetic” nitrogen fertilizers • Ammonium Nitrate • Stable but can be explosive • Calcium Ammonium Nitrate • Stable and non explosive • Other 8.43 million tons 2.87 million tons Copyright Electrogrow 2023

  25. What Is A “Synthetic” Nitrogen Fertilizer? • Chemical compounds to add other elements to ammonia or to increase “fixed” nitrogen content • “Fixed” nitrogen means diatomic N2 from air split into 2- N- ions. • Ammonia contains fixed nitrogen (NH3), but so does nitric acid (HNO3) • Ammonium Nitrate is ammonia + nitric acid (NH4NO3) Copyright Electrogrow 2023

  26. NG Prices Likely To Be Structurally Higher Fracking Shortfall Copyright Electrogrow 2023

  27. Solar PV and Wind Changing Duck Curve Copyright Electrogrow 2023

  28. The equation • Haber Bosch • CH4 (methane) + N2 (pure)  NH3 (ammonia) + C • HB process outputs CO2 (carbon emissions) • Ostvald • NH3 + O2 (pure) + H2O  HNO3 • BE or Electrogrow process • N2 (air) + O2 (air) + H2O  HNO3 • No Carbon Emissions

  29. The Vision: Methane to Food with Zero Net Carbon Emissions • Methane, Air and Potash In  Nitrogen and Potassium Fertilizers plus Chlorine Dioxide for disinfection and cleaning Out • 2-CH4 + 4-KCl2 + 7-O2 (from air)  2-K2CO3 + 4-HNO3 + 4-ClO2 + 2-H2O • Stage 1: Methane Combustion • 2-CH4 (methane) + 4-O2 + 4-H2O + 2-CO2 + electricity • Stage 2: BE • 2-N2 (air) + 3-O2 (air) + 2-H2O + electricity  4-HNO3 • Stage 2.5: H2O capture • Stage 3.5: Carbon Capture • 4-KCl + 2-H2O + 5-O2  4-KOH + 4-ClO2 • ClO2 used for agricultural disinfection and sterilization • 4-KOH + 2-CO2  2-K2CO3 + 2-H2O • K2CO3 = potassium fertilizer

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