A Message From Our Chairman

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Hardly a day passes without news of some kind of “crisis” – health care, housing, financial, immigration, armed conflict, energy or environment. In reality, our Country has faced many such challenges. Our Country’s strength is our willingness to meet them head-on, using our ingenuity, passion and natural resources.

We at CETA see two of these serious problems require this head-on thinking now: 1) our continued reliance on foreign energy suppliers, and 2) the need to pass on a cleaner environment to our children.

A sustainable energy future requires solutions to both of these problems. Hence, CETA’s initial focus: Innovative Energy Technologies™ that can help create a sustainable energy future using technologies that are environmentally sound, economically viable, can be produced at home and can be accomplished now.

CETA’s technologies are solutions the business and investment community can support – sustainable for future policies of energy, while providing a return on investment in a reasonable period. This economic reality is at the core of CETA’s five-year plan for return on investment.

At the same time, today’s energy technologies must also improve environmental performance. Because CETA’s technologies do that, our solutions can earn environmental community support and respect. CETA provides a balanced solution to our energy supply and answers to environmental and economic challenges in today’s market place.

New energy technologies must also earn the respect and support of our Government, both State and Federal and our Universities and their research projects that better us all. CETA will work hand in hand with Government and our Universities to meet or exceed all environmental, safety, and other requirements. Doing this will speed our technologies to the marketplace.

CETA’s Plan

Focused on helping solve our nation’s energy and environmental challenges, CETA’s team analyzed a wide range of resources including solar, water, wind, nuclear, oil, natural gas, coal, energy efficiency, biomass, wood products and blendings.

All of these resources have important roles for a sustainable energy future. In considering how CETA can make the strongest contribution, we observed:

  • Many new companies are entering the wind and solar industry, with Government support.
  • Domestic natural gas production has increased, but prices are expected to remain volatile and are presently very low.  This may cause a short-term shift to gas as the preferred energy source, but such low prices cannot sustain the necessary continued drilling programs to make this fuel source the long-term solution.  This will result in either current reserve depletion or higher gas prices in the mid-term future.
  • High capital costs limit nuclear power to really large energy companies, with government support.
  • Energy efficiency can slow the growth of energy use, but it can’t stop it as populations continue to grow and demand rises.
  • Coal accounts for half of U.S. electricity generation, but environmental pressures may reduce this proportion over time.
  • Crude oil is our primary transportation feedstock. But even with increased domestic drilling, we import more crude oil than we did during the energy crisis of the 1970s.

We believe the final two points of this analysis reveal the greatest opportunity for a company like CETA: by clarifying the misconceptions that have limited our nation’s vision on the use of its most abundant resource (coal), we can make a significant and timely contribution to putting our nation in charge of its own energy destiny.

Specifically, a significant opportunity exists in transforming our abundant coal and biomass (e.g., wood and other biomass) resources into cleaner, more flexible fuels and other products. Processing coal and biomass using CETA’s distillation technology, instead of burning it, will yield vast new supplies of crude oil and other petroleum products, enough to lessen dependence on foreign suppliers. At the same time, we can squeeze additional potential energy, agricultural, construction, and other products from this resource. And all of it can be done in a way that substantially improves the environmental performance of these resources.

As a result, we have identified our first commercial venture, CETA’s Project to Reinvent Coal™. The Project, using CETA’s technologies, promises to enhance domestic oil and chemical supplies while substantially improving the efficiency and environmental performance of our nation’s most abundant energy resource.

Burning coal currently only yields about one-third of its energy potential in a product stream. CETA’s technology promises to nearly double that product stream, while enhancing environmental performance and reducing unwanted waste streams that require costly disposal. That’s good for investors, consumers, the environment, and the Nation.

Drawing from a process that has been around since the turn of the last century whereby materials were heated in the absence of oxygen, CETA has taken this idea and patented a process that uses a unique design to heat and process the coal. This process economically breaks down coal into its components which can be used to make transportation and industrial fuels, lubricants, plastics, fertilizers, chemical building blocks for things such as pharmaceuticals, cosmetics, feedstock for gasification, cement additives, and even pure hydrogen.

2009 and 2010 have been exciting years for CETA. We have filed two patents for converting abundant solid energy resources into cleaner fuels and other products, and are working on a third. We have built and operated a research prototype from one of our designs, successfully run laboratory-witnessed tests, and have completed our first “proof of concept” plant in  Freestone County, Texas.

2012 looks even more promising as we focus on building a Commercial Plant to further prove out the economic viability of our technology. We will then turn our attention to building additional commercial-sized production plants around the Country to turn the tide on foreign petroleum imports and chemicals.

We know this is a really big challenge requiring the cooperation and effort of us all. Working together, we can help our Nation move toward energy independence, enhance the environmental performance of our solid energy resources and help build a sustainable energy future for our children.

As John F. Kennedy said, “For in the final analysis, our most basic common link is that we all inhabit this small planet. We all breathe the same air. We all cherish our children’s future. And we are all mortal.”

Kindest Regards,

Roy W. Hill

Chairman of the Board, CETA

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