Spark xyz

One Liner: We monetize stranded and flared methane via an industry-first patented technology at a small-scale, benefiting both the oil & gas industry and the environment.

Problem: Environment
Problem
142 billion cubic meters of Natural Gas are flared globally creating significant CO2 emissions…the equivalent discharge of 60 million vehicles. Oil and gas companies cause 50% of GHG emissions, with gas flaring and methane leaks producing 30% of oil and gas emissions (Scope 1 and 2 emissions).

Our Solution
- 8 MT CO2e are abated for every 5 MT of methanol produced by Stranded's process.
- Currently, if Stranded produced 1% of methanol’s world supply its 54 plants would abate 1.5MM MT CO2e from flares annually.

Commercial
From our customer research, together we identified a dozen applications for our technology:
1) Stranded Gas – no gas pipelines are available or too costly
2) Flare Abatement – eliminates flare caps on oil production
3) Pipeline Pressure Relief – making methanol reduces gas volumes
4) Pipeline Gas – make methanol when more profitable than gas
5) Produce Oil w/out Pipelines – oil and methanol storage tanks
6) Oil Reserve Recovery – high Gas to Oil ratio (GOR) wells with slow flows are economical
7) Reactivate Wells – relieves associated gas for low production oil wells
8) Injection Gas (EOR) – strip off BTUs and make methanol prior to injection
9) Reduce High BTU Gas – easily strip BTUs for methanol production
10) Off-Spec Gas – little or no pre-processing needed
11) Well Testing and Plant Maintenance – stage modular units
12) Pre-treat Fuel Gas - field compressors, central processing and CO2 plants

About Us: Stranded Solutions’ patented technology is a combination of two well-known technologies. One is the process of direct partial oxidation which combines Natural Gas with oxygen at elevated temperature and pressure to produce Methanol. The other technology is a fluidized bed reactor which is a chamber in which the reaction occurs and that manages temperature and pressure to increase efficiency.

Comments from a Natural Gas producer’s CEO and prospective customer:
“Stranded Solutions uses the earlier simpler direction reaction process of “partial oxidization” (burning). This is less efficient but less capital intensive (~48% methane to Methanol efficiency with ~ 7% conversion per “pass”). However, this may be ideal for Natural Gas producers or oil producers with flared gas. They can capture and sell flared or low-priced methane by low capital cost. The potential low capital cost of Stranded Solutions’ process may become a “game changer” in upgrading Natural Gas in-field to higher value products.”

Small-scale Methanol plants can be attractive due to several conceptual advantages:
- Oil-correlated prices for Methanol provide a significant arbitrage to exploit if gas is cheap
- Lower capital costs in comparison to traditional large plants
- Production of a liquid chemical product that can be transported easily, obviating pipelines.

Highlights: October 2022 graduate of the Cleantech Open 2022 cohort.

November 2022, Dale Winger, director of Halliburton Labs, was the expert judge at the Texas Oil & Gas Association’s Energy Elevated Showcase in Houston. Dale gave Stranded Solutions an honorable mention (2nd place) in the pitch competition mentioning that our technology has great potential in the industry. We also finished 2nd in the audience favorite competition. Worth mentioning that all other presenters had customers and were post-revenue...we are pre-revenue in startup mode.

In 2021, Halliburton initiated an outreach to us as a solution for their existing customer base for oil producers that flare. Once we are ready for commercialization, we have been invited to join Halliburton's accelerator program for assistance with financing, manufacturing and operations.

Business Model: There are multiple ways to monetize this technology and at least a dozen applications that have been identified by our future customers. In fact, we receive phone calls from oil and gas producers seeking solutions to their problems and they are disappointed to learn we are not ready to serve them.

We can sell our proprietary equipment and license our technology to others. And we can develop our own projects where we purchase, or are paid to take, methane for processing into methanol.

Our Product / Service

The North American market is most addressable at scale and will be our starting point. Internationally, we have patent coverage in Bahrain, Canada, China, Europe, India, Malaysia, Mexico and Qatar, and plan to enlist cooperation from a firm such as Halliburton, which has reached out to us and is monitoring our progress.

Two main categories of Product / Service offerings:

1) Flare Abatement
a. Description - Proprietary reactor skids deployed at oil wells to convert gas that would otherwise be flared into Methanol soup for distillation at central plant.
b. Current Market - US Market: 1,000 flaring oil wells w/ gas volume to support 65 Methanol plants. Saves CO2 equivalent to over ½ million vehicle emissions per year.

2) Natural Gas Processing
a. Standard Plant
i. Processes 2MM scfd of methane / generates 18,000 gallons of Methanol (10 gals. Methanol per 1mscf of methane)
ii. Current Market - US Market: 500 gas processing plants processing 91B scfd of methane.
b. BTU Stripping
i. Processes 987M scfd of methane / generates 12,000 gallons of Methanol (14 gals. Methanol per 1mscf of methane)
ii. Current Market - Some processing plants have gas at high BTU values that can be reduced by conversion to Methanol.
c. CO2 Plant
i. Processes 11MM scfd of methane / generates 30,000 gallons of Methanol (16 gals. Methanol per 1mscf of methane)
ii. Current Market - Larger gas processing plants producing CO2 used to enhance oil recovery and manufacture of fuels and materials

Carbon Reduction from Flare Abatement

8 MT CO2e are abated for every 5 MT of methanol produced by Strandeds' process.

Typical plant's annual production is 18,500 MT of methanol, yielding 28,100 MT CO2e savings from flare abatement.

Currently, if SS produced 1% of methanol’s world supply its 54 plants would abate 1.5MM MT CO2e from flares annually.

Using wasted natural gas reduces demand for newly extracted natural gas for methanol production.

Quote: Until we reach the inflection point of our transition to alternative energy, we can expect an increase in Oil & Gas production to meet world demand.

As our Oil & Gas producers increase output, they face growing resistance from regulators. Examples include years’ long pipeline permitting and flare caps on oil production.

-- Lack of pipelines means less Oil & Gas and more flaring. --

Flaring caps limit the amount of oil that can be produced based upon the amount of associated Natural Gas permitted to be burned and Natural Gas needs pipelines for transport.

Instead of limiting Oil & Gas production and flaring Natural Gas that puts more CO2 in our atmosphere why not convert that gas at the wellhead into petrochemicals so industry can make durable goods?

Natural Gas can be converted into basic liquid chemicals such as Methanol. For example, Methanol is used to generate chemicals needed to make products for the construction and automotive industries.

We are commercializing a proprietary technology to access stranded Natural Gas and abate flares in the Oil & Gas industry while producing a valuable commodity, reducing emissions, and capturing CO2.

Revenue To Date

N/A

MRR

N/A

Revenue YTD

N/A

Burn Rate

$5K

CAC

$250K

LTV

$100M

Churn

N/A

Margins

40%

Business Strategy: Our path to commercialization...

We start with the fluidized bed reactor build and testing (the reactor takes 3-4 months to build and 3-5 months to test.)

Then, next step toward commercialization is the construction and operation of a $6MM pilot plant to demonstrate the plant for future customers.

Jose Bravo, a former Chief Scientist for Shell that specializes in bringing new technology to market, will oversee the design and fabrication of the plant and Riverside’s expertise and resources will complement Jose’s efforts.

We seem to already have industry acceptance having received accolades from both the industry audience and expert judge at Nov. 2022's Texas O&G Association's Lone Star Energy Forum in Houston. In September 2022, the pipeline authority in North Dakota encouraged us to provide solutions to address its congested natural gas pipelines...if a producer doesn't have a pipeline for its associated natural gas that shuts in oil production.

Both Halliburton and Baker Hughes have expressed interest in helping us expand into international markets with assistance for financing, manufacturing and field staff for operations.

Competitive Analysys: Stranded Solutions’ patented technology is a combination of two well-known technologies. One is the process of direct partial oxidation which combines Natural Gas with oxygen at elevated temperature and pressure to produce Methanol. The other technology is a fluidized bed reactor which is a chamber in which the reaction occurs and that manages temperature and pressure to increase efficiency.

Comments from a Natural Gas producer’s CEO and prospective customer:

“Stranded Solutions uses the earlier simpler direction reaction process of “partial oxidization” (burning). This is less efficient but less capital intensive (~48% methane to Methanol efficiency with ~ 7% conversion per “pass”). However, this may be ideal for Natural Gas producers or oil producers with flared gas. They can capture and sell flared or low-priced methane by low capital cost. The potential low capital cost of Stranded Solutions’ process may become a “game changer” in upgrading Natural Gas in-field to higher value products.”

Per an interview with Baker Hughes methane emissions specialist August 2022, both Proman and Primus Green's solutions can only scale down to process 6 million standard cubic feet per day (scfd) of methane, whereas Stranded Solutions can scale down to process 2 million scfd for a typical plant along with its minimal viable product, a reactor skid, that can process 200,000 scfd of methane. Baker Hughes said that we would "own the market for methane emissions less than 5 million standard cubic feet per day." This is significant as there are currently no commercial small scale plants in operation and there are many small and medium sized producers that could use this technology to make money and abate flares.

GasTechno, is the company where Harley Luplow, Stranded's CEO/CFO, and Nate Pawlak, Stranded's founder and inventor, worked in the past. Presently, GasTechno has no commercial projects in operation. Here's a quote from Riverside Energy's 2019 due diligence report on GasTechno:

"GasTechno LLC, the Michigan competitor to Stranded Solutions, appears to have a commercial scale partial oxidation unit in service and is seeking to sell or lease units. Riverside initially engaged with this company but abandoned discussions due to high valuation expectations. Nate Pawlak, the founder of Stranded solutions was a co-developer and co-inventor for GasTechno for 7 years from 2004 to 2011."

Competitor	Website
GasTechno	gastechno.com
Primus Green Energy	www.primusge.com
Proman	www.proman.org

Networking: We are open to meeting up to grab a coffee, or just to chat. We would really enjoy your feedback and insight into our venture and would be happy to discuss anything that you are currently working on to see if we can be of service!

Name	Amount
Amount Left	$1,350,000.00
Amount Raised (This Round)	$0.00
Amount Raise To Date	$500K
Investment Type	N/A
Type of Raise	Convertible Note

Stranded Solutions

One Liner

What Problem We are Solving

About Us

Venture Highlights

Business Model

Competitive Advantage

Revenue

Customer Costs

Go-To Market Strategy

Team

Competitive Analysis

Networking

Share

Capital

TAM SAM SOM

Business Stage