Welcome to the Corporate Blog of Low Carbon Technologies International – LCTI

The management of Low Carbon Technologies International (PinkSheets:LWCTF) a.k.a LCTI, would like to extend to you a warm welcome to our new corporate blog.  This forum will be used to communicate with prospective investors and acquisition targets as well as our shareholders, business associates, partners, and the world at large.

This blog will be updated regularly so please visit often.  We look forward to staying in touch with you.

Low Carbon Technologies International Inc. Mitigation Bank Update ……. APPROVED TODAY !!!

The Company is pleased to announce that the United States Army Corps of Engineers Galveston District has formally signed off and approved the Gulf Coastal Plains Wetland Mitigation Bank, a 1,900 acre mitigation bank located along the Texas Gulf Coast.

This represents a huge success for the Company and its shareholders and the company will be issuing a detailed press release in the coming days.

Low Carbon Technologies International Enters Into LOI

LCTI is pleased to report that it has entered into a Letter of Intent to acquire 100% of an Central Texas based energy efficiency company. This company was founded in 1974 and had revenues of over $7.4mm in 2012 and expects revenues to grow to $14mm for 2013.

“Two of our subsidiaries currently provide these services along the Gulf Coast of Texas. This acquisition will immediately allow us to expand our geographic service area and be competitive in Austin and San Antonio, two of Texas’s largest metropolitan centers.

Low Carbon Technologies International Enters into Letter of Intent Continues to Execute its Business Plan

LCTI has entered into a Letter of Intent to acquire a Southeast Texas based construction management firm.  The firm was founded in 2000 and annual revenues are almost $40MM annually.   The firm provides a wide range of services and its primary customers are city, county and state governmental entities  The economy in Texas and its major cities is the strongest in the USA.   Due to the companies location, capabilities, reputation and experienced workforce, the firm is perfectly positioned to continue its rapid growth.

Low Carbon Technologies International Briefing Document

The Company

LCTI is a diversified company focused the Clean-tech, Construction, Energy & Energy Efficiency, Environmental, Mining and Real Estate business sectors.  LCTI is domiciled in Canada and all operations are located in the USA.

The company has offices in Vancouver, British Columbia and Houston TX.

Financial Reporting

The company’s consolidated financial statements are prepared within acceptable limits of materiality and are in accordance with accounting policies consistent with International Financial Reporting Standards (IFRS).  The Company is required to report its financial statements in accordance with IFRS.

LCTI Focus

LCTI focuses on three value “buckets”.  The first bucket consists of profitable operating businesses in which the company holds a controlling stake, the second consisting of investment in technologies, and third consisting of investment in real estate assets which are acquired for the development of future projects. (Example…Gulf Coast Plains Mitigation Bank).

LCTI Advantages

This arrangement provides several major advantages to LCTI.   First LCTI is able to rely on the cash generated by the operating businesses to provide LCTI with funds to redeploy into investments.  Second, the operating businesses are insulated from daily valuations (except to the extent that the parent company is publicly traded), giving it a much more stable net worth and estimated private market value. Thus, banks are more likely to loan on a long-term, fixed-rate basis to a stable business with real assets such as real estate, manufacturing facilities, and clean-tech energy projects etc. than they would be on a portfolio of stocks representing shares of those same companies.

What We Do

  • LCTI acquires legacy owned profitable businesses. (The Old)
  • LCTI acquires clean-tech technologies. (The New)
  • LCTI utilizes its clean-tech technologies in the development of clean-tech projects which are located on LCTI real estate assets.
  • LCTI combines the clean-tech technology licenses with the profitable operating businesses.  Creating profitable clean-tech companies.
  • LCTI issues sub-licenses or makes other asset contributions to third parties in exchange for project or company equity and licensing royalties.
  • LCTI plans to spin out each subsidiary into the public markets.
  • LCTI reinvests its profits in the acquisition of additional profitable operating businesses.

Business Model Example

  • Clean-tech Project:  400 Metric Ton Waste to Energy Facility
  • Clean-tech Project Owner:  Low Carbon Technologies International, Inc.
  • Location:  Luka, Mississippi
  • LCTI has long term lease of former Tennessee Valley Authority Nuclear Power& NASA Rocket Facility Located at the juncture of the Tennessee River & the Tennessee Tombigbee Waterway with connections to the Mississippi-Ohio-Missouri River Systems and the Gulf of Mexico
  • Project Management and Contractor:  Allco LLC (In negotiations to purchase)
  • Manufacturer of Facility:  Prestige Thermal Americas (LCTI owned company)
  • Clean-tech Technology Provider:  LCTI  (LCTI owns IPR rights GEI Green Energy Industries PTY Ltd.)
  • Future Potential Pubco:  Prestige Thermal Americas LLC brought to public market.

What We Have Accomplished

  • Shareholder Equity has increased from -0- in 2009 to over $139mm as of 5/31/13 and is expected to increase to $175mm as of 8/31/2013
  • Net Income:  9 months ending 5/31/13 of over $14mm.
  • Projects in Progress:  LCTI has 5 clean-tech energy projects in progress. Each Wast to Energy project is expected to generate annual returns of over $20mm for a total of $1.3 billion over the life of the projects.
  • Acquisitions: LCTI has acquired 7 operating businesses.
  • Technology:  LCTI has acquired the exclusive rights to 22 clean-tech technologies.
  • Real Estate:  LCTI has control via long term leases over $4B in additional real estate assets in USA and Mexico. Lease payments are based on a nominal revenue share of the clean- tech projects LCTI develops on the assets.

Sector Focus

The operations of LCTI, including its subsidiaries, are currently operation the  into the following seven sectors:

Energy

The Company plans to manufactures, build, owns and operates small to medium sized modular biomass and/or waste fired power plants generating renewable power to national grid systems, local municipalities, as well as mining and manufacturing operations which are approved for carbon accreditation.  LCTI has three projects in progress.  LCTI is also in negotiations with governments in Nicaragua, Mexico, USA and other private parties to manufacture and install LCTI’s W2E technologies for the development of Waste to Energy plants.

The total contract revenues over the life of these plants is expected to exceed $1B.

Real Estate Management

The company initiates, structures and manages real estate assets in commercial, industrial and residential markets. These assets assist subsidiaries and partners in the future development of the low carbon energy project and low carbon energy complex business model with plans for energy generation, environmental credit development, manufacturing and assembly of low carbon technologies.  LCTI plans to enter into agreements with real estate firms to market for sale and/or lease certain properties within its real estate located in the USA and Mexico portfolio.

The company has secured control of in excess of $4B in real estate assets.

Technology

The Company is actively seeking to expand its existing portfolio of technologies.  LCTI’s current portfolio of low carbon technologies are to be utilized to provide growth opportunities for sub-licensees, current and future affiliates and subsidiaries. LCTI has secured the rights for licensing, manufacturing, distribution, and marketing for the technologies necessary to support the growth of its current and future affiliates and subsidiaries.  To date, LCTI has acquired licensing rights to twenty-two technologies in various stages of development.  LCTI is currently in negotiations to enter into sub licensing agreements with third parties in the USA and Mexico for certain technologies in the LCTI portfolio of technologies.

The company has secured 22 Low Carbon Technologies.

Environmental

The Company through an affiliate is in the final stages of having the approval of a 1,900 acre mitigation bank located in Texas.  The affiliate is in current negotiations with oil and gas firms and expects to receive deposits for credits.  LCTI plans to work with its current affiliate to expand the current mitigation bank within the current real estate asset portfolio that LCTI owns adjacent to the current mitigation bank.  LCTI also plans to acquire additional real estate assets for the purpose of expansion.  LCTI also owns the water rights and plans to utilize these rights for the management of the development of a future solar desalination facility utilizing current LCTI technologies.

The anticipated revenues from the development of the two mitigation banks exceed $200mm.

Energy Efficiency

The Company provides a broad range of comprehensive energy solutions including designs and implementation of energy savings projects, energy conservation, energy infrastructure outsourcing, power generation and energy supply, and risk management. The company performs an in-depth analysis of the property, designs an energy efficient solution, installs the required elements, and maintains the system to ensure energy savings during the payback period. The savings in energy costs is often used to pay back the capital investment of the project over a five- to twenty-year period, or reinvested into the building to allow for capital upgrades that may otherwise be unfeasible.

Sector Focus:

  • Lighting
  • Solar
  • HVAC
  • Energy Efficient Windows, Roofs, Insulation
  • Boilers
  • Chillers
  • Geothermal Heat Pumps
  • Variable Frequency Drives
  • High Efficiency Motors
  • Energy Management Systems

Core competencies include the following:

  • Equipment Efficiency
  • Equipment replacement, system component retrofit, energy recovery equipment installation
  • Load Management
  • Energy source switching, dual fuel capability, operating schedule modifications, converted energy storage
  • Operational Efficiency
  • Operating procedures modification, controls addition, control sequence refinement, maintenance practices alteration
  • Process Productivity
  • Production flow refinement, capacity bottlenecking reduction, production line speed increases, new process technology

Construction

The Company offers project management, consulting and engineering services for low carbon energy projects and the development of low carbon energy complexes. LCTI receives negotiated fees for these services.  LCTI project management, consulting, and engineering services include but are not limited to the following:

a)     Cost and resource scheduling

b)     CPM and schedule development and monitoring

c)      Value engineering

d)     Constructablility reviews

e)     Design and construction schedules

f)      Contract document development

g)     Contract, bidding, negotiation and award

h)     On-site management and coordination

i)       Contract administration

j)       Quality control and inspection

k)     Safety monitoring

l)       Budget management

m)    Change control and management

n)     Audits and cost-to-complete estimates

o)     Operation and maintenance manuals

p)     Owner training and orientation

q)     Project completion and close out

r)      Final project walk-through

s)      Final billings and contract close out

Mining

The company focuses on taking advantage of immediate ground staking and development opportunities for high-grade deposits of Rare Earth Elements (REEs), technology metals (tantalum/niobium), industrial minerals, and associated precious metals, now identified for rapid monetization. The critical minerals and precious metals sectors of the mining industry are typically associated with long timelines leading up to mining and revenue generation.  The company applies proprietary selection criteria to target properties in order to select only projects that will cash flow in the near term. By avoiding the high burn rates associated with typical mineral exploration, the company is able to create shareholder value without excessive dilution.  This methodology allows the company  to generate quantity and quality prospects in permissive terrains using modern exploration techniques within reasonable time frames at acceptable costs. 

Projects

LCTI has 5 initial projects commencing in 2014, the graph below summarizes the forecast revenues and profits of those projects.

Gulf Coastal Plains Wetland Mitigation Bank

A mitigation bank is a wetland, stream, or other aquatic resource area that has been restored, established, enhanced, or (in certain circumstances) preserved for the purpose of providing compensation for unavoidable impacts to aquatic resources permitted under Section 404 or a similar state or local wetland regulation.

The value of a bank is defined in “compensatory mitigation credits.” A bank’s instrument identifies the number of credits available for sale and requires the use of ecological assessment techniques to certify that those credits provide the required ecological functions.

Mitigation banks are a form of “third-party” compensatory mitigation, in which the responsibility for compensatory mitigation implementation and success is assumed by a party other than the permittee. This transfer of liability has been a very attractive feature for many companies and other entities who have the required U.S. permits for activities conducted in wetlands or other U.S. waters. These companies and other entities would otherwise be responsible for the design, construction, monitoring, ecological success, and long-term protection of the site. Mitigation banks are the preferred compensatory mitigation method of the U.S. Army Corps of Engineers, the federal agency responsible for oversight of wetlands mitigation.

Project Description

In 2010, LCTI acquired a 27.5% interest in East Bay Farms LLC, a Texas limited liability company. East Bay Farms LLC is in the process of receiving approval from the U.S. Army Corps of Engineers for a 1900 acre mitigation bank site located along the Gulf Coast of Texas. The U.S. Army Corps of Engineers approval is expected in 2012.

The Mitigation Bank will be developed on 1900 acres which have functioned as an active rice farm. During the development Phases, areas not under active development will continue to be farmed under the U.S. Farm Service Administration guidelines.

The Mitigation Bank will develop approximately 1600 Functional Credit Units (“FCU’s”). The FCU’s will be developed for sale as credits for impacts to various wetland types including: freshwater (non-tidal), estuarine, saltwater (tidal), stream, and special aquatic sites including mudflats and sand flats. In addition, site specific mitigation credits are available. It is anticipated that the mitigation credits will sell for a minimum of $70,000 each.

The Mitigation Bank is located in Chambers County, Texas. The service area for the Mitigation Bank extends from the Texas-Louisiana border to the east and to the approximate middle of Harris and Galveston Counties, Texas to the west. This service area includes two of the busiest port systems and waterways in the United States; the Galveston-Houston and the Sabine-Neches waterways.

LCTI  Proposed Future Mitigation Bank Texas

LCTI expects to develop the future LCTI  Mitigation Bank.  The project is expected to be  developed on +/-3,500 acres owned by LCTI located in Port Bolivar, TX. The property is located southwest of Rollover Pass and is a barrier island making it unique in that tidal mitigation credits may be developed on the property. Tidal mitigation credits are typically sold at a higher premium.

The Mitigation Bank is located in Chambers County, Texas. The service area for the Mitigation Bank extends from the Texas-Louisiana border to the east and to the approximate middle of Harris and Galveston Counties, Texas to the west. This service area includes two of the busiest port systems and waterways in the United States; the Galveston-Houston and the Sabine-Neches waterways.

The LCTI Tidal Mitigation Bank is anticipated to consist of approximately 2000 Functional Credit Units (“FCU’s”). The FCU’s will be developed for sale as credits for impacts to various wetland types including: estuarine, saltwater (tidal), stream, and special aquatic sites including mudflats and sand flats. In addition, site specific mitigation credits are available. Tidal influenced credits have sold for $150,000 to $600,000.

 400 Metric Ton Waste to Energy Facilities

The company has interests in three waste to energy plants located in Iuka – Mississippi, Beaumont – Texas, and Campeche – Mexico.

General: Each facility will generate synthesis gas (syngas) for the production of electricity from biomass such as forest wastes, plastics and municipal solid wastes (MSW) for each phase/and or transportations fuels.

Plant Size: 400 Metric Tons per day

Owners: Low Carbon Technologies International Inc., located in Houston, TX will own and operate the projects that generate syngas to create electricity.

The process will use licensed technologies:

1) A proven and innovative gasification technology to generate the syngas from the waste streams

2) A catalyst and process that will convert the syngas into ethanol, diesel/biodiesel, or other chemicals such as naphtha. The plant will recover waste-heat to make steam that will be used to make electricity for on-site power consumption, limited peaking power, and black start capability.

Proposed Plant: The actual footprint of each plant is 4 to 6 acres, which includes the gasification process, the syngas cleanup process, the power plant, the feedstock storage area and tank farm for the alcohol storage.

Manufacturer: Prestige Thermal Equipment

Feedstock: The plant will receive 400 metric tons per day of wood wastes, MSW and related green wastes activities.

Off-Taker: It is anticipated that the company will enter into an off take agreement with the Tennessee Valley Authority.

Products: 4 MGW electricity or 10mm gallons of transportation fuels.

Employment: The plant requires approximately 30 operating/maintenance personnel. This includes the plant management, engineers, technicians, supervisors, and laborers.

Construction Time: Approximately 12 months.

Financial: The project funding for each project shall come from an investment by independent third party via 20 year lease back agreement and 100% financing.

  • 400 Metric Waste to Energy Facility, Iuka, Mississippi

Off-Taker: It is anticipated that the company will enter into an off take agreement with the Tennessee Valley Authority.

400 Metric Waste to Energy Facility, Beaumont, TX

Location: The proposed plant location will be located on the LCTI Goodyear site in Beaumont, TX.

Off-Taker: TBD

  • 400 Metric Waste to Energy Facility, Campeche, MX

 Location: The proposed plant location will be located at the LCTI Transforesta Lumber Mill site in Campeche, MX.

Off-Taker: TBD

It is anticipated that when complete each plant will generate $20mm in profits annually over the life of the plant.

Disclaimer

Forward looking information: Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company’s beliefs, plans, expectations, anticipations, estimates and intentions. The words “may”, “could”, “should”, “would”, “suspect”, “outlook”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “plan”, “target” and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company’s expectations as of the date of this news release and includes that: (a) the new leases and the project in general contain certain target formations and; (b) the project has multiple oil pay zones within those formations. The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from a conclusion, forecast or projection in such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events. The Company cautions that the foregoing list of material factors is not exhaustive. When relying on forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The author of, or an individual who assisted in the preparation of, this research (or a member of his/her household), or a person who although not involved in the preparation of the report had or could reasonably be expected to have had access to the substance of the report prior to its dissemination, has a direct ownership position in securities issued by this company. THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS DOCUMENT REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS DOCUMENT AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION ON AT ANY PARTICULAR TIME.

LCTI PROJECT LIST UPDATE $5,697,527.35

The Projects:

Pasadena Independent School District          $1,705,000.00

Altus Lumberton Hospital                                  $1,106,032.00

Hardin Independent School District                $    353,504.34

Lamar State College                                           $    769,500.00

Lumberton Independent School District         $    601,500.00

Lumberton Independent School District         $    106,365.00

Munro’s   Dry Ceaning                                       $    106,272.00

Alcoa                                                                     $    509,292.00

Lauberge  Du Lac Casino                                 $     14,650.00

Boise   Packaging                                               $     36,492.01

Lamar University                                                  $     13,450.00

Jasper Memorial Hospital                                   $       7,695.00

Sun Products   Corp.                                            $     12,500.00

Axiall                                                                       $        9660.00

BP Biofuel                                                              $     14,992.00

Hardin County   Courthouse                               $      12,688.00

BP Process                                                            $        7,152.00

Invista  S.a.r.l.                                                        $    455,576.00

Lamar Institute of Technology                            $      59,803.40

ISP Ashland Elastomers                                      $    119,852.00

EI Dupont De Nemours                                        $    107,344.00

EI Dupont  De Nemours                                       $      37,500.00

Huntsman Chemical                                             $      40,000.00

Total:                                                                     $ 5,697,527.35

LCTI LOW CARBON TECHNOLOGIES Q3 REVENUE AND YTD NET INCOME REACH ALL TIME HIGHS

The Company is pleased to announce that year-to-date financials (9 Months past) reflect a net income of $ 14,003,688 million and revenues of $3,167,748 for the third quarter of 2013 represent all time highs for the company.

“Management continues to execute on its business plan and the company is exploring additional acquisitions that will contribute to the continued growth of the company” stated Bryan Scott Jarnagin, CEO and Chairman of LCTI Low Carbon Technologies International Inc.