THE MARKET

The market potential for ENVI’s technology is vast and varied. The Company is initially targeting a specific application in its first 3 years of operation;

• Diesel Emissions – Land applications such as stationary generators, compressors, container handling and mining equipment.

The ENVI-clean™ Scrubber has been designed for the following reasons:

• There are large markets in all industrialized nations;
• The cost of the Scrubber is moderately inexpensive to produce;
• Potential competitors are not able to remove SO_X;
• The Scrubber design can be adapted to other applications;
• The Scrubber is scalable, which allows ENVI to service large industrial exhaust streams.

The estimated North American market potential of these targeted applications is in excess of 3 billion dollars. The world market is much larger but not quantified at this time.

1. DIESEL EMISSIONS – Land and Marine Applications
a) Land Based Applications

The U.S. Environmental Protection Agency (EPA) is the driving force behind the changes to diesel emissions in the U.S. The EPA deemed diesel emissions from buses, trucks and other diesel engines a health hazard that can cause cancer and death. This has been validated by studies done by other organizations such as the South Coast Air Quality Management District in Los Angeles, which attributed 70% of the total cancer risk to diesel particulates. In response to these new findings, the EPA mandated that the sulphur content in diesel fuel be reduced to 15 parts per million (ppm) in 2007.

At the present time alternative technologies to the ENVI-clean™ Scrubber are various particulate filter traps. These traps only collect the solid portion of the particulate matter in the exhaust stream and must be cleaned out continuously or at regular intervals. Failure to shut the engine down for filter regeneration can lead to severe engine damage or complete failure as a result of excessive back pressure caused by a clogged filter. The cleaning process introduces additional CO₂ into the environment and does not permit continuous operation in applications such as power generation.

ENVI’s technology can virtually eliminate sulphur emissions (96%+), decrease particulate matter by 85% and reduce NO_X emissions. Targeted applications may include natural gas compressors, stationary generators, mining equipment and large container-handling equipment servicing port facilities. ENVI has received requests for distributorships for many of these applications from interested parties around the world.

b) Marine Applications

The impact of diesel exhaust emissions from marine vessels on air quality is significant. A study prepared by the Greater Vancouver Regional District (GVRD) in 2001, reported that marine traffic is responsible for 61% of the sulphur oxides, 25% of the nitrogen oxides, and 38% of the particulate matter (pollution) in the GVRD region. Large ocean-going diesel vessels burn low-grade diesel fuel (bunker fuel) containing very high levels of sulphur (up to 45000 ppm) thereby causing most of the pollution problems. Cars and trucks in North America are now limited to 15 ppm sulphur.

The European Union and the United Nations have enabled legislation to further reduce harmful diesel emissions within 200 miles of land. The U.S. has formed a committee of representatives of various west coast port cities and is passing similar legislation.

The Company believes that marine applications have enormous global potential. The initial target market is regional ferries, tug and barge towing companies and regional cargo vessels with ships following at a later date.