announcing limited fuel-saving technology trial for australian trucking

Contact Philip Bateman via +61 402 017 700

Email: [email protected]

Fitzroy, Victoria, Australia

Greetings!

If you are involved with interstate and intrastate trucking we are going to save you thousands in fuel costs

through a two year trial of a commercially viable fuel saving technology.

“The First 500”

We are initially securing two trucks from each of ten companies, when you choose to be involved this

means fuel savings of between 15-35% for each of your vehicles, as well as recognition nationally for being

part of our First 500 program.

Most importantly for being part of the First 500 you are guaranteed the ability to reorder.

You see we intend to produce 200 units per year, so if you choose to have nine trucks rolled into the First

500, each year you can exercise your right to reorder the same amount of units until you are satisfied. This

aggregates so if you organise two, three and four trucks through the year, you can reorder up to 9 in front

of those that were late to the table.

This gives favouritism to the bold and ultimately significant competitive advantage. If you can save 15-35%

on your operational costs and your competitors have 1% margins, you can drop your rates 5% and still

make more.

Keep in mind a supply issue is going to arise as we are only making 200 a year and have over 2,350

enquiries into the product.

Understandably with all new technologies there is risk involved and we want to mitigate this for you; if the

system does not perform as you expected you can cease participation in the trials at any time and if it

takes us more than 3 months from order to delivery we will give you your money back.

Through our work with engine manufacturers, warranties apply to all parts where there has been no

tampering and you should understand that the trial is exactly that, no warranties are given, but very clever

people have done a lot of work to make our systems reliable, safe and a genuine benefit to you.

Whilst you are a member of the First 500, you will become part of an integrated grass roots community,

enabling fuel saving technologies and defining an emerging industry. This is your chance to lead from the

front.

As we roll out our production and licensee certification systems, you can send your people into HOH and

learn how to manufacture and fit the units yourself. Then simply order from parts.hohcells.com or buy

your own parts from our model listings and covert your whole fleet!

Our day to day goal is breathing cleaner air and reducing our reliance on oil, I am sure you feel the same?

Ask yourself genuinely:

“Is it worth $10,000 upfront and $1,000 per month to save between 15% and 35% on my fuel costs?”

If you want to exit the trial and keep the parts you can buy them for $15,000 and maintain as you see fit.

Using HOH you will be saving more money day to day, but now that the fuel price is lower imagine when it

goes up again! Are you ready yet?

Our intent is to conduct the First 500 trial with reputable, established and visionary trucking companies,

committed to both reducing pollution and lowering operational costs.

After being guided by well known people in the transport industry this trial is ready to help your business.

Have you got a 25% buffer in your margins and do you possibly want one? Are you willing to let your

competitors gain this advantage to the tune of 200 trucks per year?

I imagine it would not be a good thing when our marketing kicks into gear and someone in your company

finds out you turned down this opportunity!

Time is quite limited as we are filling our production schedule for delivery in June, you need to have your

initial vehicle payments in by the 28th of February.

Much more information is available at www.hohcells.com; how much can you save using the chart below?

Combustion

Increase

Distance per

month

Consumption

(km/ltr)

Litres

Used

Fuel

Cost

Fuel Cost

(monthly)

Savings

(monthly)

ROI

(months)

Base Case 15,000 1.60 9375 $1.40 $13,125 -- --

5% 15,000 1.68 8929 $1.40 $12,500 $625 20

10% 15,000 1.76 8523 $1.40 $11,932 $1,193 8.3

15% 15,000 1.84 8152 $1.40 $11,412 $2,088 4.7

20% 15,000 1.92 7813 $1.40 $10,938 $2,562 3.9

25% 15,000 2.00 7500 $1.40 $10,500 $3,000 3.3

30% 15,000 2.08 7212 $1.40 $10,096 $3,404 2.9

35% 15,000 2.16 6944 $1.40 $9,721 $3,779 2.6

40% 15,000 2.24 6696 $1.40 $9,374 $4,126 2.4

45% 15,000 2.32 6466 $1.40 $9,052 $4,448 2.2

50% 15,000 2.40 6250 $1.40 $8,750 $4,750 2.1

Give me a call and let me know quickly if you want to be involved, this is not a hypothetical technology; the

whole world is in on it (check out www.hohcells.com/globalfactsheet.pdf).

Australian Made. Remember that? We are, and proud of it! Hopefully our research and ingenuity can

help your company succeed in difficult times.

Regards,

Philip Bateman

+61 402 017 700

Executive Director - Sales

HOH Enterprises

Fitzroy, Victoria, Australia

Milestone 1: Development of commercially viable gas production cell

Commencement Date Completion Date

August, 2006 May, 2008

Description of Activities

Production of a HOH gas production cell that meets the minimum

performance standard of 200kWh for 60 litres of output (70%

efficiency).

Identify optimum cell spacing;

Identify cell surface area based on applied amperage;

Identify cell maximum size based on applied voltage;

Identification of appropriate electrolytes;

Identify cell fabrication methods.

Technical Challenges

Maintaining fluid levels within the cell to continuous maximum

operation, whilst maintaining production efficiency.

The development of a fully sealed gas production system which is

tolerant of moderate pressures (< 50 PSI) at temperature (<80°C).

Materials selection which are fit for high ph purposes.

Method of Overcoming

technical challenge

Construction and Endurance Testing.

Key Outcome(s)

Development of the recirculation series cell which maintains

optimum fluid levels, without compromising production efficiency.

System construction throughout the practical range of cell spacing

to determine the optimum cell spacing.

Inspection of cell surface materials after endurance testing to

determine optimum surface area based on applied amperage

Static engine testing with two primary electrolytes to determine

variations in gas quality and production efficiency over time.

Identification of cost effective construction methods based on small

quantity and low production methods.

Outstanding Items

There are no known outstanding items for the commencement of

commercial field trials. This remains an area for continuous

improvement and investigation.

Milestone 2: Development of Fluid Header Tanks and HOH Gas Flows


August, 2006 September, 2008


Maximise fluid flow and retention within the system for continuous

operation;

Horizontal and Vertical Mounting Configurations;

Fluid Response to back pressure;

User maintenance and intervention (fluid refill);

Testing of suitable fluid and gas fittings and hose materials.


Maximising fluid flows whilst minimising Header Tank size.

Optimizing design for installation flexibility.


technical challenge

Construction and visual observation of viable alternatives.

Key Outcome(s)

Identification of three (3) header tank configuration and size

options;

Identification of system water storage and operating times prior to

manual refill;

Numerous fluid and gas fittings and hose materials have been

trialled with the price verses quality being the key driving

considerations.

Outstanding Items




Milestone 3: Pressure Management


October, 2007 October, 2008


Identification and Testing of Devices fit for pressure management;

Electronic Pressure rise and fall switch;

Mechanical Over Pressure Safety Venting;

Upper and Lower Flammability Venting Limits.


Sourcing of Electronic Switches that are cost effective;

Sourcing of Mechanical Over Pressure Safety Vents that are cost

effective;

Integration into the system as a whole incorporating;

Continuous operation over a 1000 hours inspection cycle.


technical challenge

Sourcing of numerous alternatives that are suitable for the

environment and can function accurately for the duration of the

equipment operating life.

Key Outcome(s)

Appropriately priced devices have been sourced and ongoing supply

secured. Continuous testing has been conducted and continues.

Outstanding Items




Milestone 4: Temperature and Ph Management


August, 2006 October, 2008


Identification and Testing of Materials suitable for the temperature,

pressure and Ph range on the system;

Identification of low cost materials;

Stress Testing;

The machining and construction abilities of the materials.


Identification of the material alternatives;

Verification of the physical properties of the material within the

application environment over time;

Implications of material uses within the system as a whole.


technical challenge

Construction and testing of a wide variety of materials where the

Technical Data Sheets indicate suitability for purpose.

Key Outcome(s)

Identification of materials that are low cost, easily machined for low

quantity production runs and are suitable for the application over

time.

Outstanding Items




Milestone 5: Gas Drying and Flame Arresting


November, 2006 September, 2008


Development of Gas Drying Systems and Flame Arresting that are

maintenance free, robust and require no user intervention;

Gas drying to within a suitable range for injection into a combustion

engine;

Minimising the likelihood of spontaneous combustion;

Flame Arresting in the event of un expected initiation;

Materials selection for continuous operation.


Removing the need to maintain arresting fluid levels to terminate

flashback;

Construction and Control Methods to remove moisture for the gas

stream, reduction of Gas Ph levels to be within safe and useable

limits, plus automatic draining of the collected moisture from the

gas.


technical challenge

Continuous testing to the flashback event within constructed

devices and verification of system integrity after 100 flash back

events;

Testing of the Ph accumulation over time using a controlled testing

environment, developing automatic draining of moisture collected

through the drying processes;

Testing of arresting mediums to remove the need to maintain a

fluid level with the arresting system.

Key Outcome(s)

Development of integrated low cost, flame arresting and gas drying

system, which requires no manual intervention when used with

automatic draining resources;

Robust system that can withstand continuous flash back events;

and complete removal of fluid requirements within the arresting

system;

Reduction of Ph levels within the gas to below Ph8.

Outstanding Items




Milestone 6: Electronic Control and System Logic


September, 2007 September, 2008


Identification and Development of Electronic Control Devices to

automate system behaviour and respond to engine conditions.

Management of supply voltage and amperage to maintain the

system with its operating and safety limits.

Regulate gas flow based on engine demand, as well as

automatically draining moisture collected in the drying system.

Automatically refill water levels within the header tank to optimize

continuous operation and efficiency.

Provide user feedback in the event of malfunction or maintenance

requirements.


Development of electronics that operate across a range of voltage

and amperage supply environments.

Identify suitable input and control devices for logic feedback.

Validation of duty cycle for continuous operating in a range of

environments.


technical challenge

Developing or Sourcing of Electronic Control Devices that a suitable

for purpose, including testing of these devices within the

operational environment.

Key Outcome(s)

Selection and refinement of electronic control devices;

Testing of the devices in continuous operations to determine mean-

time between failure;

Testing to destruction to appreciate the implications of failure, also

incorporation of redundancy in the event of electronic failure.

Outstanding Items

There are two outstanding items in the electronic development.

The final selection of gas delivery solenoids that are capable of the

continuous duty cycle.

The final selection of the range of current transducers required to

manage the supply voltage across the range of applications.

This remains an area for continuous improvement and

investigation.

Milestone 7: Environment Electrical Supply and Gas Production Rates


August, 2006 October, 2008


Development of a variety of system variations to allow the safe

operation within a variety of electrical supply environments.

Development of 12VDC / <50 AMP System (180 litres per hour);

Development of a 24VDC / <35 AMP System (180 litres per hour);

Development of a 120VDC / <15AMP System (540 litre per hour);

Development of a 240VDC / <15AMP System (1080 litre per hour).


Modification of control devices to meet the following requirements:

- Header Tank Sizing and Construction Methods;

- Arrestor / Drying Sizing and Constructions Methods;

- Current Transducers and Switching;

- Supply Solenoids and Pumping systems relative to supply

voltages, fluid and gas flows.


technical challenge

Construction and Testing of system variations A, B, C and D.

The repeat of Milestones 1 through to 6.

Key Outcome(s)

Finalisation of Commercial ready systems across the various gas

production scopes. Identification of commercial viability based on

customer value and margin.

Outstanding Items

Systems A and B are fully built and tested ready for field trials.

System C is fully constructed with operation testing underway.

System D is un-built and un tested, though reflects a duplication of

system C, with minor variations.

All systems require finalization of equipment mounting, installation,

user and maintenance manuals.

Milestone 8: Commercial Field Trials


May, 2007 October, 2009


Field Trials of:

- 60 litre per hour system (up to 2 litre engines);



- 480 litre per hour system (up to 16 litre engines).


Modification of control devices to meet the following

requirements:

- Header Tank Sizing and Construction Methods

- Arrestor / Drying Sizing and Constructions Methods

- Current Transducers and Switching

- Solenoids and Pumping systems capable to supply

voltages, fluid and gas flows



Construction and Testing of system variations A, B, C and D.

The repeat of Milestones 1 through to 6.

Key Outcome(s)

Finalisation of Commercial ready systems across the various

gas production scopes.

Identification of commercial viability based on customer

value and margin.

Outstanding Items

Systems A and B Field Trial Ready

System C Field Trial Ready

System D Field Trial Ready

Systems require finalization of equipment mounting, installation,

user and maintenance manuals based on their applications.

Let’s make Australia a better place together.

Call +61 402 017 700 or email [email protected] to secure your place.

How does it work?

Using the well known but under utilized science of electrolysis, water is broken in

to its gas form, Hydrogen-Oxygen-Hydrogen (HOH) by applying an electrical

charge to the water. This gas is then safely feed in to the air intake of your engine

to encourage a more complete and thorough combustion, resulting in increased

mileage and reduced emissions.

What maintenance is required?

This system requires only water and produces 2000 litres of gas for every litre of

water supplied. Our system produces from 60 to 480 litres of gas per hour, using

only water. The system may require a flush every 3 months depending on the

quality of water used. The system holds a small amount of water within the

system; automatic water refill facilities maintain optimum water levels. External

water storage facilities are scaled to provide, days, weeks or even months of

continuous operation. The First 500 program includes all system maintenance

expenses, with components replaced periodically or as required.

Will it work for me?

The gas is very energetic and loves carbon, it combusts at a ratio of 95 times its

volume with other oxygen and nitrogen in the air at 1000ft per second. The result

is enhanced combustion efficiency and in turn increased mileage and reduced

emissions.

What results should I expect?

This depends on your engine size, driving type (city, country, interstate) and

engine condition. A typical result is an increase in mileage by 25% where 60 litres

(per hour) of gas is supplied for each 2000cc engine capacity.

Is it safe?

This system is extremely safe. It makes the gas you use on-demand (as it is

needed). This means no gas is stored and it only makes gas as your equipment

operates. The system includes all necessary safety valves and cut off switches to

comply with the Australian Design Rules and International Best Practice.

Will it harm my engine?

No, in fact quite the opposite! The HOH gas is a natural solvent targeting carbon

build up in the engine. This means, once the system has cleaned itself, less oil

filter changes are required.

What about my engine warranty?

As no changes to the fuel delivery or engine timing is usually required and

combustion temperature reduces reducing wear on valves, engine makers are

disallowed from rejecting warranty claims as a result of this gas. Your warranty is

protected under the Trade Practices Act, 1974.

Can I increase the results?

Yes, there are a number of ways to increase your savings. Add a second system

and or alter your timing and fuel supply.

Doing either of these has consequence. Adding an additional system will put

extra load on your alternator and you may need to change it to a high powered

one. Altering your timing and fuel supply can introduce warranty issues.

How long will the system last?

Our systems are well made and robust enough to withstand the harsh conditions

of everyday use. They are rated for up to 4000 operating hours, which equates to

2 years or more, if properly maintained.

How soon will I see results?

You should notice an immediate improvement in torque and reduced throttle

position. Small throttle position changes make big differences to fuel supply. After

the first week of running in, you should be filling up with fuel less frequently. You

may need to change your driving behaviour by using the additional torque to skip

gears and lift your foot off the pedal a little.

How much do the systems cost?

For the next two years systems are provided under the First 500 Program.

Please complete the quote request and return for a firm quote.

What about installation?

Installation is included as part of the First 500 Program. Self

installation can be conducted once training and has been

completed.

How much will I save?

This depends on how much you currently spend and your current

mileage. Look at your last month fuel bill and divide it by 4.

This should indicate your monthly savings. Systems are designed for

commercial users who travel approximately 60,000+km per year.

How do I get one?

These systems are in hot demand and are made to order. To find out how soon

you can have your system delivered, complete the attached Quote Request. A

firm quote based on the options you select and delivery schedule is then

provided.

Quote Request

Date:

Logistic Information

Delivery Contact Operational / Accounts Contact

Company:

Contact:

Phone:

Facsimile:

Email:

Address:

Quote Options �

Installation Auto Refill Finance

Preferred Installation Day(s): Day of Week

Preferred Installation Month: Month / Year

Engine Information

Year, Make, Model:

Engine Size: In cubic centimetres or inches

Fuel System: Type of fuel and fuel management, i.e. Diesel Turbo, EFI

Alternator Details 12V / 24V Rated Amperage

Current Consumption: Litres per hour / km and Operating hours / km per month

Operating Hours: Per month Engine Load: Low/medium/high

Environmental: Operating Conditions, Dust, Vibration, Temperature OH&S

Print as PDF and email [email protected], fax +61 3 9742 6254

or phone +61 402 017 700 with credit card available.

A response to your request will be provided within 5 working days.