Essential Innovations Technology Corp. (OTCBB: ESIV) provides cutting-edge Geoexchange solutions for residential, commercial and industrial applications as both a Geoexchange energy service company and as a manufacturer of proprietary geothermal heat pump technology.
Essential Innovations manufactures and distributes its proprietary cutting edge GeoExchange System, the “EI Elemental Series”, in Vancouver, Canada. The EI Elemental family of products are high efficiency, eco-friendly comfort systems providing heating, cooling, dehumidification as well as domestic hot water production for residential, commercial and industrial applications.
Geoexchange
Geoexchange technology harnesses the earth’s clean, renewable thermal energy stored just below the surface or in large bodies of water for purposes of heating, cooling, domestic hot water and/or dehumidification. A Geoexchange system is used to “exchange” the earth’s natural heating and cooling properties between a building and the ground. This non-combustion transfer of energy is the source of performance and environmental superiority, as Geoexchange systems need only a small amount of electrical energy to then capture, move and concentrate a large amount of free energy provided by the earth.
GeoExchange earth loops are a series of high density, polyethylene pipes buried in the ground/water and connected to the GeoExchange unit. A few feet below the surface, earth temperatures remain relatively constant and moderate. During the heating season, heat is extracted by the loop system and moved into the home or building. The earth serves as a “heat source”. A GeoExchange unit can also cool. During the cooling season, heat is extracted and transferred into the cool earth through the loop system or well-water. The earth serves as a “heat sink”.
The GeoExchange system consists of three integrated components:
* The Earth / Water Loop: provides the infrastructure for continually exchanging thermal energy between earth and building.
* The EI Elemental Series: concentrates and moves heat energy.
* The Distribution System: moves thermal energy to and from all parts of the building.
Geoexchange technology is proven through 20+ years of implementation. It has the lowest CO2 emissions of all “green” technologies. There are 2 million GeoExchange installations worldwide, and the number of GeoExchange installations is growing by 30% every year. The Environmental Protection Agency and the U.S. Department of Energy recognize Geoexchange technology as “the most energy-efficient, environmentally clean, and cost effective space conditioning system available today.”
Geoexchange Energy Service Company
Making successful international investments is not just a matter of identifying business opportunities. They are best made when they occur within true peer-to-peer corporate environments and industry networks that are based on reciprocity, evolving trust and partnerships. CHVC’s U.S. based public company provides a vehicle for Chinese businesses to become participants in America’s economy and free enterprise system. Through CHVC’s aggressive merger and acquisition strategy in China, the Company intends to acquire multiple technology companies primarily through the use of their securities. This key strategy enables CHVC shareholders to quickly realize the benefits of valuable intellectual property, revenue and profits from these Chinese businesses.
A Geoexchange Energy Service Company (Contractor) examines new or existing non-residential or residential project opportunities and subsequently designs, engineers, manufactures, installs, and in some cases manages innovative geoexchange energy solutions for that specific application. The Company provides these solutions through a TURNKEY program that offers comprehensive, customized geoexchange energy services to the customer. In return, the Geoexchange Energy Service Company is paid a premium for its services, whether on a standard purchase contract, or on a long-term finance or lease-to own value proposition. To the benefit of the end user, the latter reduces or eliminates customer responsibility for the up-front equipment purchase, operation, service and maintenance.
The EI ESCO Model
Essential Innovations as a domestic Geoexchange Energy Service Company, utilizes proprietary turnkey geoexchange systems and solutions to deliver heating, cooling, dehumidification as well as domestic hot water supply. Essential Innovations unique “One-stop shop” approach to geoexchange reduces technological uncertainty and concerns over system design and performance associated with geoexchange systems by incorporating all of the requisite pockets of technological expertise required for �best practices� design and implementation in one concise and cohesive package. In addition, long-term financing or lease payment programs may be structured within the turnkey solution to enable the end-user to gain system ownership while at the same time overcoming the initial high cost of capital often associated with geothermal technology. In the international marketplace, Essential Innovations is intent on being recognized as a manufacturer and distributor of the most cutting-edge geothermal heat pumps systems available in the World today and is dedicated to long-term expansion programs focused on sales and distribution of it�s technology into and throughout overseas markets.
Financing Support
Essential Innovations announced in mid-April that it had successfully continued to raise on-going financing for the Corporation in the form of private placement investment and unsecured loans in excess of $1,100,000 USD since May 2007. The funds invested in the Company from the sale of Rule 144 shares and non-interest bearing, non-recourse loans, were utilized to provide the Corporation with the capital necessary to effectively execute its continued growth and re-structuring plan as had been previously described in the last public news release of May 11, 2007. During the remainder of Fiscal 2008, the Company intends to focus on the aggressive ramp-up of its manufacturing and distribution activities for its proprietary Geoexchange heat pump technology.
With regards to additional financing, the Company is now currently engaged in multiple discussions and negotiations with other outside equity investment sources and/or strategic business partnership candidates that could be capable of providing the Company with a larger scale equity financing during the Calendar year of 2008. The proceeds of such financing would then allow the Company to further expand operations, move in to full-scale production of it’s Geoexchange product line, launch a widespread sales and marketing campaign, take-out senior secured debt, begin working on further existing project opportunities and installations and as well as to provide some general working capital.
Says Jason McDiarmid, President/CEO, “As our Company moves through Fiscal Year 2008 and looks ahead to 2009, we are extremely thankful for the continued support that we have seen from those longstanding shareholders and management of the Company who have willingly re-invested significant capital over the last 12 month period so as to ensure the Company will have long-term success. The business relationships we have now solidified over this last year, most particularly in relation to the distribution and installation of our EI Elemental Geoexchange product line, should now provide a firm base to drive our business forward not only domestically, but into the international markets for many years to come. With the prospect of a larger financing round in the latter part of this year to provide to us the necessary capitalization to implement our overall business objectives now looking extremely promising, we remain ever confident that the future of the Company shall be a profitable one, and our many shareholders will achieve a strong long-term return on their investment.”
Growth Wave of Renewable Energy
Renewable energy has become big business. Large commercial banks are starting to take notice, and several are “mainstreaming” renewable energy investments in their lending portfolios. Other large investors are entering the renewable energy market, including venture capital investors and leading investment banks like Morgan Stanley and Goldman Sachs. Major investments and acquisitions have been made in recent years by leading global companies, such as GE, Siemens, Shell, BP, Sanyo, and Sharp.
Half a billion dollars goes to developing countries each year as development assistance for renewable energy projects, training, and market support, with the German Development Finance Group, the World Bank Group, and the Global Environment Facility (GEF) providing the majority of these funds, and dozens of other donors and programs providing the rest. Government support for renewable energy was on the order of $10 billion in 2004 for the United States and Europe combined, including direct support (”on- budget”) and support from marketbased policy mechanisms (”off-budget”). This included more than $700 million per year in research and development spending.
It has been estimated that there were 1.6 Billion Buildings or structures (residential, commercial or industrial) in the World in 2004, of which it has been noted that Geoexchange (Geothermal Heat Pumps), were applied in only 2 million.