Clean Electric Power for Texas Datacenters
 |
Tina Vital | Managing Director
|
 |
|
 |
(917) 432-8474
|
OVERVIEW
Seeking +/-$1.07 billion (excluding $11.3 million from prior investments) to construct a gas-fired power generation facility and to provide clean electricity for datacenter in Texas.
-
- Diversified revenue streams – power generation to datacenters; excess power to grid; power utility leases; EOR oil production; and carbon & tax credits (including 45Q); projected high cash flows achieving payout (break-even) within 3 years
- Phase 1 ($36 million plus contingencies/closing fees) – site acquisition in Frio County, Texas (30 miles Southwest of San Antonio)
- Phase 2 ($778 million plus contingencies/closing fees) – construction of off-grid gas-fired power generation facility using commercially proven technologies; proposals in-place for 1.13 GW of power generation units; feedstock LOI in-place for natural gas from local pipelines; offtake power lease MOU in-place for the bitcoin datacenter
- Phase 3 ($119 million plus contingencies/closing fees) – development of EOR oil production; development & testing of proprietary NetZeroNow® Enhanced Oil Recovery (EOR) technologies with over 30 U.S. and international patents
- Experienced management team – proven track record in commercializing new energy and power technologies
NetZeroNow® – Competitive Advantages
Clean power generation to datacenters, crops/greenhouses, upstream oil & gas production, and/or excess power sold to grid.
- Power generation equipment – committed proposals in-place for up to 5.8 GW
- Datacenters and Bitcoin Miners – relatively low-cost, power, waterless cooling and sustainable locations
- Fast and modular deployment – scalable design (“plug & play”) design
- Proprietary environmentally-compliant technology – waste heat and GHG emissions (CO2 sequestration creates carbon tax credits) are repurposed to value-added EOR of oil from mature wells
- Off-grid solution for commercial projects/remote locations/power outages – no distribution/transmission line losses; excess power sold to grid
- Multiple fuel feedstocks – conventional fossil (oil, natural gas, coal) and renewable (solar, wind, nuclear, geothermal, and municipal solid waste)
NetZeroNow® – Upstream Oil & Gas Benefits
Enhanced oil recovery (EOR) using GTherm NetZeroNow® proprietary waste heat, carbon sequestration, and wave oscillation technologies.
- Harvests stranded oil and enhances oil production from mature and underperforming wells
- Lowers drilling costs using GTherm’s “5-Spot” strategy
- Lowers production/lifting costs using GTherm’s proprietary EOR technology
- Integrates legacy extraction technologies (such as water flooding, thermal flooding, CO2 flooding, and pressure) to synergistically enhance extraction
Opportunity – Demand for U.S. Power Generation Climbs on New Datacenters
Strong demand for power generation is being driven by the rapid expansion of U.S. datacenter demand reflecting increased data processing, especially for AI and cloud computing.
- Large-scale datacenter developments are needed to meet immense demand for data processing – characterized by significant land area, massive building size and power capacity
- Texas data center market is booming – Dallas-Fort Worth and Abilene areas being key U.S. locations
- Several large-scale projects are underway in Texas
- Stargate Project – major AI infrastructure project involving OpenAI, SoftBank, and Oracle; first site in Abilene, Texas and aims to be a major hub for AI development
- Dallas-Fort Worth – aims to be a significant hub for data centers – over 2,100 acres designated for new facilities
Opportunity – New WTP Technologies Capture Waste Heat and GHG
Nearly three-quarters of all energy produced by humanity is squandered as waste heat – but new Waste-to-Power (WTP) technologies are emerging to capture and reuse this vast renewable resource.
- Fossil fuels are major contributors to waste heat pollution and GHG emissions – which has led to negative environmental concerns such as global warming, weather changes and a variety of illnesses
- Industrial, utilities, and transportation – largest source of waste heat with enormous potential to be converted to renewable power (WTP)
- Landfills, waste incineration, and agricultural waste – emit methane and biogas which contribute to GHG emissions
- Global WTP market is projected to climb to $25.7 billion in 2026 from $13.4 billion in 2021
SOLUTION/STRATEGY
GPOWER1 uses GTherm NetZeroNow® technology to provide clean (zero-emissions) off-grid gas-fired electric power to datacenters in Texas.
- Site acquisition – LOIs in-place on the Big Foot Field property (GPOWER1 – about 600 acres)
- Power generation facility – 1.13 GW gas-fired and waste heat; engineering, procurement & construction (EPC) and facility design – LOIs in-place
- Permitting & Studies – Environmental Impact Study (upon funding); Power Plant Permit (upon funding)
- Feedstock contracts – LOI in-place for natural gas from pipeline
- Offtake power contracts – MOU in-place for (1) bitcoin datacenter
Datacenters – Bitcoin
- Location – Big Foot (oil) Field, Frio County, Texas (30 miles Southwest of San Antonio)
- Site acquisition – LOIs in-place for acquisition of private ranches (GPOWER1 – about 600 acres)
- Permitting – no building permit required for rural area; site registration required with Frio County
- Architects and Facility Design – LOI in-place
- Building and Utility Leases (including design & construction and power contract) – MOU in-place for (1) bitcoin datacenter
- game changing power solution – 1.13 GW clean GPOWER1 Project
Big Foot Field – Frio County, Texas
- Location – Big Foot Field Property in Frio County, Texas (30 miles Southwest of San Antonio)
- discovered January 1949 by Shell Oil Company
- Leasehold – about 80% WI in 7,400 acres of mineral rights and 400 drilled wells (50% slated for GPOWER1)
- Most prolific play in the Upper Cretaceous Olmos Formation
- Operator – TBD; Drilling contractor – LOI in-place
- Offtake (oil) contract – LOI in-place
GTherm OGP – Proprietary EOR Technologies
- Step 1 – Development & testing of GTherm proprietary use of waste heat for EOR in oil wells
- waste heat is captured from the exhaust of power generation for EOR in nearby oil wells
- Step 2 – Use of available commercial EOR technologies
- brine fluids are heated and re-injected back into the oil wells – eliminates need for costly disposal wells
- one injection well and four production wells (“5 Spot”)
- reduces the viscosity of the oil, thereby increasing the flow of oil to the surface
- Step 3 – Testing & use of GTherm proprietary wave oscillation for EOR in oil wells
- oscillating waves enhances the volumetric extraction of oil & gas from mature reservoirs
- commercially proven in other non-oil applications
- Step 4 – Testing & use of carbon capture and sequestration (CCS)
- CO2 is captured from the gas-fired power generation exhaust by carbonating brine fluids
- CO2 content by facility – gas-fired (3%-5% CO2); oil-fired (5%-12%); coal-fired (12-15%)
- Step 5 – Testing & use of GTherm’s proprietary EOR technologies
- CO2 flooding – currently available commercial EOR
- CO2 flooding with hot carbonated brine – GTherm’s proprietary EOR technology further enhances oil production
MANAGEMENT
Michael Joseph Parrella – Founder, Chairman & Chief Executive Officer, GTherm, Inc
Entrepreneur with extensive executive management, systems and programming experience. Since founding GTherm, Inc in 2008, Chairman & CEO of GTherm, Inc; GTherm Energy, Inc; GTherm Oscillator and Controls, LLC; Exotherm, Inc; and Exotex, Inc. Previously served as Chairman of Discount Power, Inc, an alternative energy company founded and later sold; President & COO of NCT Group, Inc (aka Noise Cancellation Technologies, Inc), a global leader in the development and engineering of noise and vibration control for industrial companies; and CEO at Decision Strategy, Inc, founded and later sold, which monetized an online transaction processor/relationship database invented by Parrella. Prior Chairman and CEO at Philon, Inc; Vice President of Software Development at Dyna Data, Inc; and Systems & Programming Manager at Bessemer Securities. Author of over 100 U.S. patents. Game Changer Award from the Connected Plant (2020); and Conference and the Acoustic Inventor of the Year Award from Discover Magazine. City College of New York (CCNY) – B.S. in Mathematics.
John Michael Vandy – President, GTherm, Inc
Over 30 years with over 22 years of executive management and marketing experience in the capital goods and renewable energy industries. Since 2013, President of GTherm, Inc and Member of Board; and since 2016, President of various GTherm subsidiaries (such as GTherm Energy, Inc, Exotherm, Inc, Exotex, Inc, and Aurillon, Inc). Prior President and COO of Doosan Infracore America Corp, the North American arm of the Korean-based conglomerate; Vice President – Product Support and Strategic Supply at Manitowoc Crane Company; and General Manager at HYPAC – Division of Terex Corp. Advisor and consultant to various firms, such as TAS Energy, Inc, and Parts International Network, LLC. Previously appointed to the U.S. Commercial Services District Export Council. Prior President, Member and Mentor at CEO Netweavers. Prior Co-Chairman-Parts & Services Committee for the Equipment Manufacturers Institute (EMI), and Chairman – Technical Skills Committee for the Associated Equipment Dealers (AED) Foundation. Westen Michigan University, B.A. in Business and Economics.
Ken Christie – President, GTherm OGP LLC
Over 43 years of project management experience for upstream, midstream and downstream energy projects worldwide. Since 2015, President of GTherm OGP LLC. Advisor and consultant for international upstream midstream and downstream energy projects. Previously served as Project Development Manager at Storm Ventures International (Tunisia); Project, Construction and Installation Manager at Pioneer Natural Resources (Tunisia); Installation Manager at Australian Worldwide Exploration; Installation Manager at ENI Petroleum; Installation Manager at Dominion Exploration & Production; Company Representative for PetroSA (South Africa) and Pioneer Natural Resources; Company Representative and Installation Manager for Mariner Energy; Company Representative for Compania De Servicios De Campeche SA De CV; Project Management Team for Pogo Producing Company; Technical Specialist for INTEC Engineering; Project Management Team for Pertamina. L-2 Certification in RT, AUT, MPI and UT Non-Destructive Testing. SAIT Southern Alberta Institute of Technology, 4 Year Technical Program in Communications Electronics, 2 Year Technical Program in Non-Destructive Testing, Welding Processes and Basic Metallurgy. Mohawk College, 1 Year Program in Non-Destructive and Welding Processes.
FOOTNOTES:
NetZeroNow – Competitive Advantages
(1) Global CCS Institute – US Preserves and Increases 45Q Credit in One Big Beautiful Bill Act – 250708
(2) Congress.gov – H.R.1 – One Big Beautiful Bill Act – Passed 119th Congress – 250704
(3) Norton Rose Fulbright – Effects of the Final House Tax Bill on Projects – 250522
Opportunity – Upstream Oil & Gas Benefits
(4) CIM Regina Technical Meeting – Laboratory Experiments on Pressure Pulse Flow Enhancement – v1 991001
(5) Elsevier – ScienceDirect – Seismic vibration for improved oil recovery – 200328
Opportunity – Demand for U.S. Power Generation Climbs on New Datacenters
(6) Realtor.com – AI Boom Could Spark a Land Rush in Texas – 2024
(7) The Texas Tribune – Data centers are booming in Texas – 250124
(8) FOX Television – ERCOTs latest projections show potential problems for Texas power grid by 2027 – 250213
(9) EIA – Today in Energy – Data centers and crypto currency mining in Texas drive strong power demand growth – 241003
Opportunity – New WTP Technologies Capture Waste Heat and GHG
(10) Modern Power Systems – Waste heat recovery market warms to ORC – August 2018
(11) IEA – Electricity Market Report – Jan 2022
(12) IREA/WSJ – Oct 29,2021https://www.wsj.com/video/series/wsj-explains/how-much-would-it-cost-to-reduce-global-warming-131-trillion-is-one-answer/7CDC8900-9FF0-4DF6-BD69-25A5FF5B02B5
SPECIFIC RISKS
Financial models and other supporting information regarding historical data, hypothetical target returns, contextual analysis, and other pertinent matters will be made available to prospective investors upon request. There is no guarantee of success, and there is a potential for loss of your investment.
Risks related to early-stage company
- Limited financial operating history, limited assets, and cash flows
Risks related to liquidity
- Insufficient capital to acquire/develop projects
Risks related to operations
- Higher-than-expected operating costs, unexpected equipment / supply chain bottlenecks
Risks related to the market
- Slower-than-expected acceptance and adoption of GTherm’s technology; decline in economic demand could negatively impact prices and demand, and reduce expected returns on investment
Risks related to technology
- Infringement on patents; existing and/or new entrants, some with deep pockets and global operations, could develop alternative technologies and expand to compete in GTherm’s markets
Risks related to key persons
- Expertise is concentrated in a few key executives; expansion will require finding experienced executives, engineers and operators to fill open new positions
Risks related to the regulation and politics
- Local, state and/or federal government permits must be in-place for facilities and production; new and/or change in legislation could change in regulation could negatively impact operations and/or costs
Risks related to capital markets and private securities
- Private securities are speculative, illiquid, and carry a high degree of risk – including loss of the entire investment
