Frontieras and Investors Embrace Innovation to Exploit Long-Term Value of Coal
Written by Matthew McKean, CEO and co-founder of Frontieras North America (LinkedIn)
The world needs oil and gas.
Warren Buffett is famous for his investment prowess. I was watching a recent YouTube clip and Mr. Buffett was talking about the virtue of owning and investing in fundamentally sound companies (i.e. The Coca-Cola Company). Applying Buffett’s investment strategy with my own experience, I recognize the value of investing in those companies that compete in what I refer to as necessity markets (food production, energy, water, etc.). Energy is a necessity market and while it is currently trading at a rampant pace, it is the long-term investment in the future of our society that gets me up every morning.
As the world grapples with a lack of reliable and affordable energy, Frontieras and the broader investment community is set to capitalize on the long-term impact that Frontieras North America’s introduction of Solid Carbon Fractionation™ (SCF) will have on reinvigorating the coal industry and addressing the current energy crisis. Frontieras deploys a continuous-feed refining process for coal and other solids that uses continuous heat and pressure to reform, refine and liberate the constituents of solid carbonaceous materials that contain volatile compounds. The result of this process is that Frontieras’ extracts maximum value from coal and other hydrocarbons in the form of a diverse group of energy yields (hydrogen, methane, naphtha, jet fuel and diesel as well as high value solid, FASCarbon™). These fuels and yields are used across a wide gamut of industries, including transportation, manufacturing, agriculture, and creation of energy.
Coal’s positive role within the history of industrialization is without question. It was not that long ago that the use of coal was common in the industrial, transportation, residential, and commercial sectors. As the world embraced the great transition towards renewable energy, it set in motion a series of poor energy policies, shuttering of operational plants and the reduction of investment within the energy sector. This tripod of negative actions relegated the main use of coal in the United States to generating electricity.
Now that renewable technology has been exposed as not keeping up with demand, we are seeing a global backpedal towards coal. This backpedal toward coal is best captured with Germany who embraced the green concept early only to see energy prices rise more than 5X this past month. Germany now faces a winter that will test a depleted energy supply that is no longer propped up by the natural gas supplied by Russia. Russa’s turning off the valve to the rest of Europe has left many European countries in a similar spot as Germany -- struggling with identifying a viable energy solution. Countries without a contingency plan in place and slow response to the negative impact of not enough energy are having dire consequences both economically and on citizen’s safety. Germany’s lack of action to address energy shortcomings should serve as warning for the rest of the world. However, those countries that are now returning to proven coal production are struggling to overcome an assortment of infrastructure, manpower and logistical issues.
According to a recent Wall Street Journal article, Mark Mills of the Manhattan Institute is expected to release a report, “Dangerous Delusion” that looks at the global energy transition that eliminates the use of fossil fuels. Mr. Mills highlights several staggering facts, including:
Civilization still depends on hydrocarbons for 84% of all energy, a mere two percentage points lower than two decades ago.
Solar and wind technologies today supply barely 5% of global energy.
Electric vehicles still offset less than .05% of the world oil demand.
Frontieras’ introduction of SCF represents an innovate technology for reinvigorating the coal industry and aligning the investment community with both short- and long-term gains. Frontieras, with outtake contracts already in place, will sell the produced energy yields by SCF directly into the established commodities markets. This financial stability created by Frontieras’ offering, combined with the Frontieras’ no-waste process, maximizes the investment returns generated by Frontieras’ processing more than 2.1 million tons of coal annually within its 7,500 ton a day FASForm Plant. Secondly, Frontieras FASForm plants’ small footprint allows it to expand the lifecycle and value of existing coal plants. Frontieras believes that this cooperative approach allows it to modernize existing coal plants, meet changing regulatory requirements and improve the output with higher quality products. Combining these two revenue engines with the current deficit of abundant, affordable, and available energy and Frontieras is poised to be solid long-term investment.
The extraction and processing of coal has been a foundation for the world’s economies since the industrial revolution. Frontieras’ offering to the market is going to reshape the use of coal, extend the lifespan of existing coal plants, and increase the output of available hydrocarbon-based yields. Below is the quick snapshot of the market opportunities that Frontieras addresses.
Oil: The global oil and gas market is expected to grow to $7.4 trillion in 2025
NAPHTHA: The global demand for NAPHTHA is estimated to be worth $183 billion by 2022
Jet Fuel: Global Aviation Fuel Market is projected to reach $450 billion by the end of 2026
Metallurgical Coal: Metallurgical Coal market was valued at $120 billion in 2020 and is anticipated to grow more than 2% per year 2021-2027.
To learn more about Frontieras North America and its patented energy solution or to invest in the company, please visit www.Frontieras.com.