cQuest™: The Ultimate In Carbon Recycling

• The escalating levels of carbon dioxide (CO2) emissions pose a significant challenge to global sustainability, necessitating urgent attention and innovative solutions. While CO2 is naturally present in the Earth's carbon cycle, human activities, notably the consumption of fossil fuels and agricultural practices, are exacerbating its accumulation in the atmosphere. This rise in CO2, along with other greenhouse gases (GHGs), is driving climate change, with far-reaching implications for ecosystems, economies, and human well-being. 
• Research indicates that the combustion of fossil fuels constitutes the largest contributor to CO2 and GHG emissions worldwide, followed closely by agricultural activities. The consequences of these emissions are profound, manifesting in altered weather patterns, rising sea levels, and disruptions to ecosystems and biodiversity. Furthermore, the contamination stemming from livestock waste exacerbates air, water, and soil pollution, compounding the environmental challenges posed by anthropogenic activities. 
• Addressing the unrealized potential for massive reductions in CO2 and methane emissions requires overcoming two primary barriers. Firstly, the high energy costs associated with emissions reduction strategies have traditionally hindered widespread adoption. Secondly, the absence of low-cost, distributed systems has impeded progress in emissions mitigation efforts.  
• OTC's cQuest™ technology offers a promising solution by simultaneously reducing CO2 and methane emissions while generating valuable outputs. By converting multiple waste inputs into high-value products, cQuest™ not only mitigates environmental pollution but also offers economic benefits for stakeholders. Its modular design and small footprint enable scalability and adaptability, making it suitable for deployment across various industries and geographic locations. 
• The market potential for efficient and cost-effective carbon sequestration and utilization solutions is substantial. The global Waste to Energy (WtE) market, valued at USD 32.15 billion in 2021, is projected to experience significant growth, reflecting increasing demand for sustainable waste management solutions. Moreover, the carbon capture and storage market present a lucrative opportunity, with estimates suggesting a potential market size of up to $221 billion by 2030, driven by regulatory pressures and corporate sustainability commitments. 
• In conclusion, the challenge of mitigating CO2 and methane emissions is multifaceted, requiring a holistic approach that integrates technological innovation, regulatory support, and market incentives. By harnessing the potential of innovations, businesses, policymakers, and stakeholders can collaboratively tackle the pressing issue of climate change, fostering a more sustainable and resilient future for generations to come. 

cQuest™ is a cutting-edge carbon recycling technology solution designed to tackle CO2 emissions from specific sources. It's an integrated system that combines Optimal's innovative VIA™ technology platform with High Temperature Co-Electrolysis (HTCE) and advanced hydrocarbon production methods. 

Here's how it works: 

• VIA™ Technology: This is the heart of the system. VIA™ is a groundbreaking hybrid solar technology that generates electricity not only from visible light but also from the heat in the infrared part of solar radiation. This unique approach enables Optimal to produce solar energy at a significant discount compared to conventional solar systems. Moreover, VIA™ occupies much less space and operates with higher efficiency than traditional solar panels. 
• High Temperature Co-Electrolysis (HTCE): Once the solar energy is harnessed through VIA™, it's used to power a process called High Temperature Co-Electrolysis. This is a proven technology that efficiently converts utility steam, flue gases, or organic waste into hydrogen at a low cost. Higher temperature and the combining chemistries lower the electrical energy required for electrolysis which allows our VIA™ to have such a great impact on the solution portfolio.
• Synthetic Fuel Production: The generated hydrogen and CO from the HTCE (which are converted from point sources) is then processed to form synthetic fuels and higher hydrocarbons through Fischer-Tropsch chemistry. These products hold high demand in commodity markets, offering both environmental benefits and economic opportunities. 
• In essence, cQuest™ takes advantage of Optimal's expertise in solar technology, electrolysis, and hydrocarbon production to create an innovative solution for reducing CO2 emissions. By harnessing solar energy efficiently and combining it with advanced conversion processes, cQuest™ offers a cost-effective and scalable approach to carbon sequestration and utilization. 
• With strategic partnerships in place and a track record of expertise in various relevant fields, Optimal is well-positioned to introduce cQuest™ to the market, potentially revolutionizing the way we address carbon emissions and contribute to a more sustainable future. 

• cQuest™, developed by Optimal Technology Corporation (OTC), serves to address the urgent need to reduce carbon dioxide (CO2) and methane emissions, major contributors to climate change, while also creating economic opportunities for underserved communities. The target population includes small and large farmers, particularly those located in rural and disadvantaged communities, as well as industrial complexes that contribute to environmental hazards in low-income and disadvantaged (LID) communities. 
• Additionally, small farmers in rural and disadvantaged communities often struggle to find additional revenue streams and face challenges related to waste management on their farms. With cQuest™, they have the opportunity to address these issues by converting waste inputs into high-value outputs while simultaneously reducing emissions. By implementing this technology, small farmers can produce high-volume products for sale, reducing their reliance on low-profit activities like selling waste for fertilizer. Moreover, cQuest™ helps decrease their electricity bills through energy captured by solar panels, providing economic relief and promoting sustainability. 
• Large industrial complexes operating in LID communities often contribute to environmental pollution, impacting the health and well-being of residents. cQuest™ offers these organizations a solution to mitigate their environmental footprint by utilizing their waste streams as economic and workforce generators. By integrating cQuest™ into their operations, these complexes can reduce emissions, create economic value, and engage with the local community in a mutually beneficial manner. 
• The impact of cQuest™ extends beyond economic benefits to include environmental and health improvements for the communities it serves. Residents living near industrial complexes, particularly in areas with concentrated animal feeding operations, experience adverse health effects due to pollution from hazardous chemicals and gases. By reducing emissions and providing cleaner air and water sources, cQuest™ contributes to improved public health outcomes, including reduced respiratory illnesses, asthma, and cancer rates. 
• Furthermore, cQuest™ incorporates a community benefit strategy aimed at empowering local residents and providing job opportunities. Through partnerships with USDA Agriculture schools and extension offices, job training programs will be offered to residents, preparing them for roles created by the adoption of cQuest™ technology. Additionally, a requirement is set for 75% of new jobs created to be allocated to local residents who have undergone job training, ensuring that the economic benefits directly benefit the communities being served. 
• In summary, cQuest™ serves to directly and meaningfully improve the lives of underserved communities by offering economic opportunities, reducing emissions, and promoting environmental and public health. Through its innovative approach to waste management and energy production, cQuest™ addresses pressing challenges while fostering sustainable development and community empowerment.

• The cQuest™ team, led by Dr. Reginald Parker, is well-positioned to deliver this solution to the target population due to its diverse composition and deep expertise in both technology and business. The team members represent a blend of academic excellence, industry experience, and a genuine commitment to addressing environmental challenges. 
• Firstly, the team's proximity to the communities they aim to serve is evident through their backgrounds and experiences. Dr. Parker's extensive experience in developing renewable energy projects, including the first African American-owned utility-scale solar farm in the US, demonstrates his understanding of the importance of sustainability and community impact. Similarly, Charelle Lans, with her background in industrial engineering and experience in mentoring small businesses, brings a perspective rooted in community empowerment and economic development. 
• Moreover, the team's approach to solution design and implementation is meaningfully guided by community input, ideas, and agendas. The engagement strategy outlined in the plan focuses on building partnerships with USDA Agriculture schools and extension offices, which have established relationships with local farmers and communities. This approach ensures that the solution is tailored to the specific needs and priorities of the target population, allowing for greater buy-in and adoption. 
• Furthermore, the team's execution history demonstrates a track record of inclusive development and collaboration. Past advances, such as co-electrolysis experiments and engagement with agricultural programs, reflect the team's commitment to involving stakeholders at every stage of the process.  
• In terms of readiness and capability, the team's diverse skill set positions them to overcome potential obstacles and deliver on project goals. From project management and research expertise to technical proficiency and commercialization experience, each team member contributes unique strengths to the endeavor. This diversity ensures that the solution is robust, well-rounded, and capable of addressing complex challenges effectively. 
• In summary, the cQuest™ team's composition, proximity to the target population, and inclusive approach to solution design and implementation make them the right people to deliver this solution. Through their collective expertise and commitment to community engagement, the team is poised to make a meaningful impact on environmental sustainability and economic development in underserved communities. 

• The cQuest team has made significant progress in advancing their technology and conducting experiments to validate its efficacy. 

  • Optimal Tech’s labs have shown that co-electrolysis experiments demonstrate high temperatures of CO2 and H2O (HTCE). 

  • Successfully demonstrating the conversion of methane into CO2 and H2O, they have identified potential commercial venues for equipment procurement. 

• While integration of these technologies is pending, recent efforts have focused on identifying user facilities at DOE laboratories and cathodes for HTCE integration. 

• The plan to launch cQuest™ is Q4 2024. The team aims to finalize development, conduct system checks, and ensure seamless integration with existing processes.

• Financial barriers: 

1. Funding constraints: Despite the mitigation strategy of diversifying funding sources and securing commitments in advance, there may still be challenges in securing sufficient funds for critical project phases. This could impact the ability to conduct thorough feasibility studies, prototype testing, and engage experienced engineers. 

2. Cost fluctuations: Fluctuations in commodity prices could affect the cost-effectiveness of the project, especially during the establishment of pricing agreements with new OEMs. Despite hedging strategies and fixed-price contracts, unexpected shifts in commodity prices may still pose financial risks. 

Mitigation: Continuously monitor market conditions, adjust pricing agreements accordingly, and explore alternative procurement strategies to mitigate the impact of cost fluctuations. 

  

• Technical barriers: 

1. Unexpected technical complexities: During the final engineering development phase, unforeseen technical issues may arise, potentially leading to delays in project timelines. Despite conducting thorough feasibility studies and prototype testing, unexpected challenges could still occur, impacting the scalability and predictability of the system. 

2. System integration issues: Ensuring seamless integration with existing processes may pose technical challenges, particularly in optimizing the supply chain for competitive pricing. Delays in addressing system integration issues could impact the launch timeline. 

Mitigation: Implement robust project management practices, conduct regular testing to identify and address system integration issues early on, and establish contingency plans for potential delays. 

  

Legal barriers: 

1. Supplier contracts: Dependence on new or untested suppliers may introduce legal risks, such as contract disputes or breaches. Despite performing rigorous supplier evaluations and establishing backup plans, legal challenges with suppliers could arise, potentially impacting project timelines and deliverables. 

Mitigation: Ensure clear and comprehensive supplier contracts that outline roles, responsibilities, and dispute resolution mechanisms. Regularly review and update contracts to address changing business needs and mitigate legal risks. 

  

Cultural barriers: 

1. Stakeholder communication: Inadequate stakeholder communication could hinder project progress and impact the successful launch of the supply chain optimization solution. Despite establishing clear communication channels and conducting regular status updates, cultural barriers within the organization or with external stakeholders may impede effective communication and collaboration. 

Mitigation: Foster a culture of open communication and transparency, involve key stakeholders in decision-making processes, and address cultural differences through training and awareness programs. 

  

Market barriers: 

1. Negative public perception: Negative public perception or media coverage could undermine confidence in the project and affect market acceptance. Despite developing a comprehensive communication plan and engaging in reputation management strategies, unforeseen issues may arise that damage the project's reputation. 

Mitigation: Proactively address potential issues transparently, communicate openly with stakeholders, and leverage positive messaging to counteract negative perceptions. Continuously monitor public sentiment and adjust communication strategies as needed to maintain market confidence. 

Technology innovation.

cQuest™ believes that there are two reasons that the massive reductions in the emissions of Methane and CO2 have not been realized: 1) the energy costs are usually too high and 2) the modified VIA platform has not existed before now. Given major components of cQuest™ are off-the-shelf, and the integration of the parts needs to be done only through a controller system. The solution is an optimization of the parts as a whole using controlled experiments coupled with machine learning algorithms to generate predictive capabilities.  

Market Validation.

There are 1+ million beef and milking cow, and hog and pig operations and slaughtering units reported by the USDA. The global Waste to Energy (WtE) Market size was valued at $32.15B in 2021 and is projected to grow from $33.28B in 2022 to $44.62B. Reports estimate the total global spend for carbon capture and storage at more than $1.3B in 2020. It is predicted that the carbon capture and sequestration market could reach $128B by 2030 and as high as $221B with more aggressive global carbon limits. These factors create a substantial market for efficient and cost-effective carbon sequestration and utilization solutions.

Business innovation.

Overlooked Market and Impact. Low-income and disadvantaged communities are often the first and worst hit by climate change and the last (if ever) to recover. One glaring example is the livestock industry. NC has two of the largest hog farms in the country. Research shows minority households are 1.39 to 2.18 times more likely to live near a hog farming facility than their white counterparts. Animal feeding operations are mostly concentrated in rural and lower-income areas. Large hog farms are polluting the air and water with hazardous chemicals, including carbon monoxide, methane, antibiotic residues, and pathogenic bacteria. Some research suggests an increased occurrence of respiratory illnesses, asthma, and cancer in people living near hog farms.

Our first target is small farmers located in rural and disadvantaged communities. Small farmers are looking for additional ways to create revenue. One of their biggest issues is what to do with waste on the farm. They sell it for a penny on the pound for fertilizer. With our proposed process, they can put this technology on the farm and produce a high-volume product and sell it. Their electricity bill will also decrease because of the electricity the system creates.

Our second target is large industrial complexes who produce environmental hazards in LID communities. They typically move to the region under the guise of providing jobs and boosting the local economy but the environmental effects of their processes have adverse health effects. We’re able to help the community by helping the organizations use their waste stream as economic and workforce generators. Our offering becomes an economic value-add for the operations and encourages the local community to participate. 

Summary.

Because of the technical innovation, we are open to a large known and an overlooked market for the innovation.

Problem Statement: Low-income and disadvantaged communities, particularly in the Southeast states, face disproportionate impacts from climate change, exacerbated by industrial operations like large hog farms. These communities suffer from environmental hazards, health issues, and economic challenges.

Assumptions:

1. Small farmers in rural and disadvantaged communities are seeking additional revenue streams.
2. Large industrial complexes in these communities are open to mitigating their environmental impact and contributing to local economic development.
3. Collaboration with USDA Agriculture schools and extension offices can effectively reach and engage local farmers and communities.
4. The implementation of cQuest™ technology can address waste management challenges, reduce energy costs, and create economic opportunities for both small farmers and large industrial complexes.
5. Job training programs in partnership with educational institutions can equip local residents with the skills needed for new roles created by cQuest™ technology.
6. Allocating a significant portion of new jobs to local residents will benefit the community economically and socially.

Theory of Change:

1. Engagement: Partnering with USDA schools and extension offices, we will engage small farmers and rural communities in the Southeast states, addressing their needs and concerns regarding waste management and revenue generation.
2. Technology Implementation: By introducing cQuest™ to small farmers, we empower them to transform waste into high-value products, reducing waste disposal costs and generating additional revenue. Simultaneously, we assist large industrial complexes in repurposing their waste streams, mitigating environmental hazards, and creating economic opportunities.
3. Job Training and Placement: Through partnerships with educational institutions, we provide job training programs tailored to the needs of the emerging roles in waste management and renewable energy sectors. We prioritize local residents for these job opportunities, ensuring economic benefits directly benefit the community.
4. Community Benefits: The implementation of cQuest™ not only addresses environmental concerns but also reduces energy costs for small farmers and improves air and water quality for local residents. Additionally, job training programs offer residents a pathway to technical careers, leading to long-term economic stability and improved well-being.

Outcomes:

1. Small farmers increase revenue and decrease waste disposal costs.
2. Large industrial complexes adopt sustainable practices, reducing environmental hazards and contributing to local economic development.
3. Local residents gain access to job opportunities and technical career pathways, leading to economic empowerment and improved quality of life.
4. Overall, the community experiences improved environmental, economic, and social well-being, mitigating the disproportionate impacts of climate change and industrial operations on low-income and disadvantaged communities in the Southeast states.

We anticipate a 2025 launch for cQuest™. Currently, the project is awaiting final engineering development. Our next step is to construct a competitive supply chain. Our aim is to achieve a 20% improvement in key supply chain efficiency metrics.

 

Table 4.1 Commercialization of VIA™

Quarter

2024 Critical Milestones

Q2 2024

- Finalize VIA™ development

 

- Initiate initial testing

 

- Begin quality testing

 

 

Q3 2024

- Complete all testing; UL/ INTERTEK

 

- Make necessary refinements based on user feedback

 

- Develop comprehensive training materials for manufacturing development and support assembly

 

 

Q4 2024

- Conduct final system checks

 

- Ensure seamless integration with existing processes environmental regulations

 

- Officially launch the supply chain optimization solution in the first week of Q1 2025

 

4.2       cQuest™ KPIs

The following chart outlines metrics for that will be used for the project lifecycle which will offer valuable insights into the system's performance, commercialization, and supply chain efficiency.

Table 4.1 Key Performance Indicators:

Category

Metric

Unit of Measure

System Effectiveness

Energy consumption & conversion

Percent difference

 

System Reliability and Stability

Downtime Hours

Commercialization

Destructive testing

Number of Issues

 

Engineering Review and Inspection

Compliance Rating

Supply Chain

Lead Time for Product Delivery

Days

 

Supplier Performance Score

Performance Rating (1-10)

 

4.3       Commercialization mitigation strategies.

Below is the risk mitigation plan to execute our strategies for deployment.

Q2 2024:

●       Finalize Engineering Development.

●       Begin negotiations with new OEMs for the final product build.

Q3 2024:

●       Establish pricing agreements with new OEMs.

●       Optimize the supply chain for competitive pricing.

Q4 2024:

●       Conduct final system checks.

●       Ensure seamless integration with existing processes.

●       Officially launch the supply chain optimization solution in the first week of Q1 2025.

The core technology of the cQuest solution is the integration of Optimal's hybrid solar technology, VIA™, with High Temperature Co-Electrolysis (HTCE).

• VIA™ Technology:

  • A hybrid solar system that provides both heat and electrical energy to the HTCE unit.
  • Significantly more efficient than standard solar technology at 45% compared to 21%.
  • Requires 70% less space than standard solar photovoltaics.
  • Under patent protection, captures approximately 40% more radiant energy for storage.

• High Temperature Co-Electrolysis (HTCE):

  • Heat from VIA™ is directly fed into the HTCE unit using heat exchange units.
  • VIA™ also supplies electricity to a system of batteries, ensuring constant electrical input into the HTCE.
  • The system boosts HTCE efficiency and can store heat for later use to complement other heat sources.

• Integration with Fischer Tropsch:

  • HTCE feeds carbon monoxide and hydrogen into a Fischer Tropsch reactor.
  • This produces waxy or liquid, long-chain hydrocarbons.

The combined use of VIA™ and HTCE provides efficient and constant energy inputs, significantly reducing system energy demands and enabling sustainable production of hydrocarbons.

The three technologies of cQuest™ has each individually and collectively been proven that it works and can be scaled over several point source areas. 

In our past work, the team has:

• performed the required literature search and maintained our literature review, 
• performed co-electrolysis experiments demonstrating the impact of high temperature of CO2 and H2O (“HTCE”),
• demonstrated the conversion of Methane into CO2 and H2O and identified commercial venues to purchase equipment, 
• demonstrated the ability of Optimal Tech’s solar tech (VIA™) as the source for electrical and thermal energy, and
• not yet integrated the technologies. 

Lastly, the team generated interest from several ag programs for sources for Methane. In doing so, we have found untapped markets in small farmers.

More specifically, we have status as defined in the three technologies as detailed below.

• VIA™ Technology:

  • Prototypes were built and used to demonstrate the basic technology.
  • Prototypes were then tested by the North Carolina Solar Center at the North Carolina State University.
  • Boeing and NREL performed a third-party test that confirms the capability of the solution.
  • OTC is launching and seeking UL listing. 

• High Temperature Co-Electrolysis (HTCE):

  • This is a known, commercial technology currently used in the marketplace.

• Integration with Fischer Tropsch:

  • This is a known, commercial technology currently used in the marketplace.

The cQuest team comprises experienced professionals in commercialization, project development, and research.

• Dr. Reginald Parker and Ms. Charelle Lans - commercialization expertise.
• Ms. Tarryn Henry and Ms. Charelle Lans - development experience.
• Drs. Jesse Edwards and Reginald Parker - research expertise.
• William McCarroll and Robin Parker - project management and administration expertise.
• Two interns.

Full-time: 4

Part-time: 2

Contractors: NREL’s user facility and staff

cQuest™ was invited in 2015 by Dr. Reginald Parker. He and Dr. Jessee Edwards performed the majority of the initial tests and building the agricultural relationship the following summer. Dr. Parker has worked with Charelle Lans over the past 24-months in launching VIA™, the core innovation for cQuest™.

Optimal has a unique and diverse team. 50% of the staff is female. 7 of the 8 staff is of African American descent. The age of the staff is from 14 to 57 years of age.

Optimal seeks to make significant impact in low-income and disadvantaged communities, as well as increasing the workforce in these spaces. Therefore, we will seek to grow our team in collaboration with several partners (hopefully, including future graduates and interns from MIT).

Further, our hiring strategy will include seeking hires who have a great understanding of rural America. We commit to actively sourcing candidates from diverse backgrounds, including underrepresented groups in the tech industry and local rural communities. Our hiring processes will be designed to mitigate bias, ensuring fair and equitable treatment for all applicants. We will implement outreach programs to engage with community organizations, vocational schools, and job training programs to identify and support talented individuals. Additionally, we will provide resources and accommodations to ensure accessibility for candidates with disabilities, fostering an inclusive workplace culture that celebrates diversity.

The business model for our company begins with offering comprehensive engineering and installation services to our customers, ensuring a seamless setup of our equipment. Additionally, we will provide ongoing maintenance services to guarantee optimal performance and customer satisfaction. These initial steps not only establish a strong foundation for our business but also allow us to gather valuable feedback for continuous improvement.

In the longer term, we plan to transition to a franchise model for our end-customers. Franchise owners will purchase the rights to use our equipment within their respective territories. Our product will be distributed through Optimal sales contracts, utilizing a profit-sharing model to incentivize franchisee success. By leveraging economies of scale, we will negotiate optimal pricing for franchisees, enhancing their profitability and competitiveness in the market.

Furthermore, we will capitalize on our expertise by offering installer and maintenance licenses for our equipment. This strategy not only generates additional revenue streams but also expands our reach by empowering other professionals to work with our technology. Overall, our business model combines innovative product offerings with strategic partnerships and scalable distribution channels to drive sustainable growth and value for all stakeholders.

As we embark on our growth journey, our immediate focus lies in securing undiluted capital to fuel pilot projects and bolster our manufacturing capabilities. These pilot projects serve as a crucial steppingstone towards cultivating a robust customer base. By leveraging undiluted capital alongside access to debt financing and the burgeoning customer demand, we aim to mitigate risk for investors while laying the groundwork for future growth.

Once we've successfully demonstrated the viability of our offerings through pilot projects and garnered substantial customer interest, we will strategically pivot towards raising equity capital. This infusion of equity funding will facilitate the scaling of our manufacturing operations to effectively meet the burgeoning demand from our customer base.

While sustainable revenue generation from manufacturing sales is our primary objective, we acknowledge the ongoing need for capitalization to sustain and propel our growth trajectory. Through a judicious blend of capital procurement strategies and meticulous financial planning, we are poised to navigate the challenges and capitalize on the opportunities that lie ahead.