Ag gas 10 investor deck water - confidential

AG Gas®

Solving the Global Water, Food, Energy, Climate

Nexus

Copyright 2014 – The Agricultural Gas Company

Carbogation℠ CO2 Crop Enrichment Elevator Speech

AG Gas® is an innovative “First-Mover” and can profit, by applying carbon dioxide gas to orchards, vineyards, crops and plantations:

• Helping solve California’s water crisis (& other nations)

• Generating $1,000s additional profit per acre by vastly improving crop production and orchard maturation

• Tapping global ag & forestry market(s) to mitigate climate change

• Monetizing CO2 for the $6 trillion energy industry

Copyright 2014 – The Agricultural Gas Company #10 Birkmose Park Hudson, WI 54016 651.503.7706 www.aggas.com

First Mover – New Multi-Billion $$$ Industry


• 80-85% of California’s water goes to agriculture, and is simply lost into the atmosphere as transpiration from the leaves of plants.

• AG Gas® vastly improves crops’ water-use-efficiency.

• Crop production improves up to 100%, and the process mitigates climate change.

• AG Gas embodies the essence of sustainable agriculture including organic crop production.


Solves Problems

• Crops, orchards, plantations, and vineyards are starved for carbon dioxide gas surrounding the leaves of plants.

• No company globally is providing “open-field CO2 service” to the ag industry today.

• CO2 is just the first of numerous “gaseous media” opportunities for AG Gas; technology expansion.

• AG Gas has perfected the delivery mechanism and holds some key intellectual property.

Background

Carbogation℠ CO2 Crop Enrichment Background


• Plants acquire their carbon as CO2 gas • CO2 gas enters the leaf through thousands of tiny stomata

openings located on the underside of the leaves

Magnified Leaf Stomata

Carbogation℠ CO2 Crop Enrichment Photosynthesis Optimization


Managing carbon & “gaseous media” around the leaves

Crop Production Accelerate Saplings & Increase Production

0 20 40 60 80 100 120 140 160 180

Normal

Air Pollution in Central Valley

Excess Heat Days of Wilting

CO2 Deficit Dense Canopy

Gain due to CO2 Enrichment

CO2 Gain & High Temp Gain

CO2 Gain, High Temp Gain & Deficit Gain

C

U

R

R

E

N

T

P

O

S

S

I

B

L

E

No Additional Water Requirement

Percent Production Capacity


Carbogation℠ CO2 Crop Enrichment Understanding Financial Implications

• IRS rules can’t book permanent crops’ expenses until reach “sustainable economic performance”

• $10,000 per acre opportunity cost of holding non-producing land

• Plow in additional $1,700 per year

• Accelerate production phase of permanent crops

• Accelerate net present value of a future revenue stream

• Quicker reaction time to shifting markets’ demand & pricing

MAJOR FINANCIAL IMPLICATIONS



The Company can make money:

• By selling hardware & software (patents pending)

• Through installation, service, & maintenance contracts with growers

• Through technology licensing to both domestic and international markets

• As First-Mover assembling a portfolio of lucrative CO2 off-take (supply) agreements to service strategic ag markets

• Through value-added, high-margin, gaseous additives (patent pending); & more product offerings


Carbogation℠ CO2 Crop Enrichment Business Relationship

Business Development & Value Creation

• BETA projects Q1 2015 • 2016-17 first commercial systems • Applying for non-dilutive capital sources: grants &

prizes • Align mutual interest: supply chain financing • Bring in Farm Credit Services • Build strategic customer base • Continue to foster great university relationships • Patents • Licensing • HR build out • Continued R&D - be the technology leader


Carbogation℠ CO2 Crop Enrichment Opportunity

• Probably the only opportunity out there, with the potential to double crop production with no additional land or water

• $1,000s of additional profit per acre

• Big existing market

• Company holds a First-Mover advantage

• Tip of this technology opportunity with intellectual property

• Solves Fortune 500 problems and global problems

Carbogation℠ CO2 Crop Enrichment


Carbogation℠ CO2 Crop Enrichment Carbon Matter

• Orchard trees, vineyards and crops are composed of 50% carbon

• All carbon is acquired through the leaves as CO2 gas

THE FOLLOWING SLIDES DISCUSS THE TECHNOLOGY Carbogation℠ CO2 Crop Enrichment


Carbogation℠ CO2 Crop Enrichment Ambient Air


Carbogation℠ CO2 Crop Enrichment R & D

Science Daily trend of vertical profile

7/23/2002 (DOY=204)

0

100

200

300

400

500

600

700

800

900

1000

6:00 7:12 8:24 9:36 10:48 12:00 13:12 14:24 15:36 16:48 18:00

Time

[CO

2] (

pp

m)

0.1

0.3

1.8

Height above

ground (m)


Carbogation℠ CO2 Crop Enrichment Plant Response

- Higher photosynthesis - More growth & yield - Better fruit quality

Reduced transpiration Increased CO2 uptake - Less irrigation

- Less water stress - Higher water use efficiency

Increased carbon allocation below ground

- More root development - Higher microbial activity - Improved water & nutrient uptake

source: Dave Bryla, Ph.D. Plant Physiology, USDA



Results



Results

0%

20%

40%

60%

80%

100%

120%

140%

Perc

en

t D

iffe

ren

ce

(CO

2-C

on

tro

l)/C

on

tro

l

Number 25.3% 98.1% 6.6%

Weight 65.2% 120.4% 29.6%

Total Picked Marketable Culled


Carbogation℠ CO2 Crop Enrichment Proposed Beta Site 2015

Proposed Project 2015 Planning and Engineering


Carbogation℠ CO2 Crop Enrichment Optimize

Technology and Optimize

CO2 “sniffers” monitor


Carbogation℠ CO2 Crop Enrichment Scale Up

Throttle valves and headworks


Carbogation℠ CO2 Crop Enrichment Optimize

PLC: wind, light, CO2, temperature


Carbogation℠ CO2 Crop Enrichment Gas Corrals

New Product Development Underway Gas Enclosures for Baby Trees


Date post:	30-Jun-2015
Category:	Business
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