TORONTO, Aug. 10, 2022 (GLOBE NEWSWIRE) -- FuelPositive Corporation (TSX.V: NHHH) (OTCQB: NHHHF) ("FuelPositive" or the "Company") is pleased to announce it is accepting pre-sale orders for its onsite, containerized green ammonia production systems, starting today. A new web page has been launched (www.fuelpositive.com/pre-sales/), providing an explanation of what to expect and a dedicated email address to start the sales process. Initial customers are expected to be farmers, who will use the Company's production systems to manufacture green ammonia on their farms. The green ammonia will be used as fertilizer and ultimately to power farm machinery, such as tractors and other farm vehicles, generators and grain drying systems.
"We consider opening for pre-sale orders to be an important step in our commercialization strategy. Pre-sales order volume is an accurate indicator of demand. Demand will drive a lot of our decisions, including our sales and operational planning, our near-term material and labour plans, and our long-term manufacturing capacity planning. Our production schedule and detailed order fulfillment plans will also be influenced by the volume of pre-sales," said Ian Clifford, FuelPositive CEO and Board Chair.
The Company's sales approach will be consultative. Interested farmers will use the dedicated email address on the pre-sales webpage to express interest in FuelPositive's onsite, containerized green ammonia production system. An introductory call will be scheduled to discuss their application, objectives and conditions on their farm. FuelPositive will tailor a proposal to individual farm requirements. This will provide the customer with an appreciation of what is required of them to produce their own green ammonia with the FuelPositive system. The customer will then have an opportunity to enter into a pre-sales agreement, and provide a nominal deposit, to secure a position in the production line-up. A series of subsequent calls will focus on developing a detailed plan to coordinate production of the system and prepare the farm for installation. At that point, a sales agreement will be considered to formalize the order.
Support for Farmers
"FuelPositive is investing in the development of an infrastructure to accelerate the adoption of our technology. Adopting our technology, sooner rather than later, will provide the benefits of supply chain independence for farmers at a time when they really need it. And the bonus is that more systems in the field will mean fewer carbon emissions associated with the production of ammonia," said Derek Boudreau, Strategic Advisor of Agricultural Implementation, FuelPositive.
Some of the initiatives FuelPositive is working on include speaking with various levels of government to capitalize on clean tech adoption programs including accelerating depreciation and other tax incentives. These programs dramatically improve farmers' return on investment timeframes. The Company is also forming strategic partnerships with financial institutions to help them understand the nature of the new technology to get them ready to help farmers finance their system purchases.
In addition, FuelPositive is working on the development of an international standard of accreditation and guidelines for using green ammonia. These standards will have significant impact on the value of carbon credits around the world and will also help farmers to influence local governments to reward the use of green ammonia in their operations.
"What matters here is that we consider our customers as our partners," said Boudreau. "We understand that our systems can bring transformational change to farmers. We are committed to working together to make it happen as easily and as soon as possible."
First Pre-Sales Customer
Tracy and Curtis Hiebert, FuelPositive's partners in its first demonstration system pilot project are being considered as the first pre-sales customer. They have committed to purchase a commercial system after the successful completion of the pilot project on their Manitoba crop farm. Being able to produce ammonia on their farm eliminates the need for the Hieberts to rely on the current undependable supply chain. "The FuelPositive system will give us stability. That's what we like about it. It's stabilizing the supply and stabilizing the price," said Curtis Hiebert.
The base system will include a hydrogen separator, nitrogen extractor, ammonia converter, control system with remote monitoring capability, nominal ammonia storage, and basic installation package. Each customer will consider adding options and potential deductions from this base specification. The customization will include production system features, storage system design, installation and delivery.
Base System Specs
The initial base system price of CA$950,000 was announced on August 4, 2022. However, the actual price paid by each customer will vary, based upon the particular situation at each farm. FuelPositive arrived at that price after a great deal of research. The initial pricing will allow it to gain some momentum on deliveries to farmers, and once it realizes scale efficiencies and moves to serial manufacturing, its profitability will grow accordingly, while offering farmers savings compared to buying grey ammonia. The return on investment and payback period will vary according to the situation for each farmer. FuelPositive will help farmers optimize the total return on their investment.
FuelPositive?is a Canadian technology company committed to providing commercially viable and sustainable, "cradle to cradle", clean technology solutions, including an on-site, containerized green ammonia (NH3) production system that eliminates carbon emissions from the production of the green ammonia. By focusing on technologies that are clean, sustainable and economically advantageous/realizable, the Company aims to change the course of climate change through practical solutions that can be implemented in the short term.
The FuelPositive onsite, containerized green ammonia production system produces pure, anhydrous ammonia for multiple applications, including fertilizer for farming, fuel for grain drying and internal combustion engines, a practical alternative for fuel cells and a solution for grid storage. Green ammonia is also considered a key enabler of the hydrogen economy.
FuelPositive systems are designed to provide for green ammonia production on-site, where it's needed. This eliminates wildly fluctuating supply chains and offers end-users energy and supply security while cutting carbon emissions from the production process. The first customers will be farmers. Farmers use 80% of the traditional ammonia produced today as fertilizer.
Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
This news release contains certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") that are based on expectations, estimates and projections as of the date of this news release. The information in this release about future plans and objectives of the Company, including the expected expenditures of the proceeds of the private placement, are forward-looking statements.
These forward-looking statements are based on assumptions and estimates of management of the Company at the time they were made and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect.
Many of these uncertainties and contingencies can directly or indirectly affect and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Forward-looking information is provided for the purpose of providing information about management's expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking information or to explain any material difference between subsequent actual events and such forward-looking information, except to the extent required by applicable law.
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