Early Stage Initiative – Supercritical Water & Carbon-Free Energy

 In Early Stage Innovation

Over the years I have attended conferences, workshops and lectures seeking the Early Stage Initiative; from past or present. Occasionally I attend one that focusses on the future… not many mind you!

It is these people who present their vision, their beliefs that capture your attention… they are the Steve Job’s and Mark Zuckerberg’s of the future, of the dream world, of the innovation world!

For these inventors it is the start of a long road of pain and dedication to their cause of bringing a new product or process to the market.

Many are in the early stage of their innovation, it is their Early Stage Initiative.

Current technology can take a solid and convert it into liquid and then to gas using heat at high temperatures. But, imagine converting coal to oil to gas. Or even converting municipal waste to bioethanol, a fuel you can use in your motor vehicle in place of petrol.

The carbon emission king of the world… coal… can be controlled and the emissions considerably reduced! So why isn’t this happening today? Because new technologies need to be tested against current known technologies that have many years of practical application. And there lies in the problem of raising seed capital for new technologies. Can you imagine a new source of power, of energy that will be carbon-free?

Clean fuel at a lower cost – why not?

It raises the question – will the current suppliers (e.g., the global oil companies) allow the new technology to enter the power energy market? The answer is no, not easily.

A good example of the conflicts that can occur is the objection to the Carmichael Coal Mine in central Queensland being developed by the Adani Group an Indian company that will supply cheap coal to the Indian population. The objection is the fear that the mine will pollute the waterways especially those that leak to the Great Barrier Reef… and kill the reef. This is on top of the bleaching of coral reefs around the world caused by global warming!!

As a side story. Did you know that the super poor people in India use kerosene to cook and keep their shanty warm during winter and have enough light for the children to study and read at night? Did you also know that kerosene in an enclosed area can kill you… succumb to carbon monoxide poisoning! So, the Adani Group will supply better quality thermal coal than is available in India at a price that will eliminate the use of the kerosene heater. Did you also know that LPG gas (in our barbeque gas bottles) can be made from coal!

The technology that can convert coal to oil to gas is known as Super Critical Water. The same base technology combined with custom built natural enzymes can produce bioethanol from biomass (e.g., sugarcane residual and natural grasses) and municipal waste i.e., rubbish. Can you imagine the future full of clean energy using leftovers… using waste!

It is these technologies that will drive the future of the world. There are other Early Stage Initiatives that will assist the world in different market sectors.

To assist these innovators and their early stage investors the Australian Government on 1st July 2016 released new Australian Legislation on Tax Incentives for Early Stage Investors.

Yes, it is an Australian Government initiative!

What is your risk appetite?

Can you imagine receiving a 20% tax deduction on your dollars invested in an Early Stage Innovation Company (better known as an ESIC)? If you invest say $50,000 this month in an ESIC, being April 2017, you will be able to make the $10,000 tax deduction claim on your 2017 tax return. Be quick. Complete your tax return in July and it is possible that you could receive the benefit of the $10,000 by August 2017.

Even better. If you hold onto your investment of $50,000 for more than 12 months but less than 10 years, the profit is tax-free. That is correct! If you sell your $50,000 investment for say $1,000,0000 in early December 2020 the whole difference of $950,000 is tax-free. Just in time for your skiing trip to Switzerland!

All of these intricate aspects of the new legislation are explained in plain English in my eBook:

Explaining New Australian Legislation on Tax Incentives for Early Stage Investors

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