Climate bonds: from one factory to billions in verifiable, tradeable paper.

Okay, let's talk about scaling this whole program and how we go about doing that. So, back in the 1990s when we had MicroTool and we were in every department and every chip factory around the world, most everyone, we had to repeat the Intel mantra. So everybody, didn't matter what chip company it was, they wanted to know that Intel endorsed it. So we went after Intel and every time we'd walk into a meeting they'd say, say the mantra. And the mantra is: the human error will come in and find a way to wreck the process. My job as a vendor to Intel is to human-proof everything. So we began thinking that way back in the 1990s and we still use that methodology; all these manufacturing guys that are working at ANEW Energy on this, to human-proof everything.

And so we do a lot of planning to do that. And what we came up with, you'll see, is this electronics package that's in every product that we make. So we monitor the power, and how much we can sell back to the grid. Like in Costa Rica, they've just enacted a new law that anybody that's making excess power can sell it to the grid. They're embracing renewable energy like nobody else's business. And they've got all these electric cars coming in so they've got to make more power. And so there's new laws that are in effect to solve this problem. So what we've created is a circuit board and it monitors high power and then it talks to the Internet and it communicates with trading platforms like the Chicago Mercantile Exchange or Luxembourg, and everybody that's trading power purchase agreements.

And so what we've done is, that's the revenue stream that can fund a bond. So when we go to do a bond, and we want to do a lot of bonds, so we're going to pull down, you know, billions per week in bonds, is that we want to package a whole bunch of them together, but we have to get all of them in compliance. So there's this bond called a climate bond. And the whole mission was that the large banks across the world were putting, and funding institutions were putting capital in to fight the climate crisis. And they kind of pulled it all away from the United Nations. The United Nations couldn't deploy the capital fast enough. And so they have, I believe it's like $15 trillion, parked there dedicated to fighting the climate crisis, but they can't deploy it fast enough.

So we believe we've got the answer here with this electronics package. And when you're making a semiconductor, you know, like your cell phone or the computer that I'm recording this on, there's billions of little circuits in it. And it's all these transistors that are on, off, on, off, creating the magic that we see here today. And it's such small detail that sometimes the circuits don't get created and formed, they get flawed. And so when your computer starts up, it'll say, where are all the flaws? Don't go use them. And so that becomes a crypto account or essentially an unclonable function. So we park this little chip right next to the microprocessor.

And it reads that all out and it says, this is your new fingerprint. So it's just like a human's fingerprint and it's just this unclonable function. So we put a couple of those on, so we've got double anti-cloning, or anti-breaking-into the whole system. And now we can monitor power. We can trade power. We know how much, from when it was born, how much it made and how much it sold. And so we've got a platform that we can do at scale. So every product that's made at ANEW Energy has this technology on board. Here's a little box down here. We're building this right now. And we're rigged up to the Mercantile Exchange, where we can plug in a solar panel on one side.

This has got a little solar panel on top to keep the batteries charged if, you know, there's no sunlight. And anyhow, we can make that transaction happen through this little box. And anyhow, if you move down into this lower section of this web page, we've got: we're on a mission to fight the climate crisis at scale. So we want to build one factory like we do at Intel. We want to document all best known practices. Then we want to replicate that around the world, in the native language, the native currency and taxation rules, and allow the price point to float with the economics in that particular part of the world. So what we can do is, if we have one factory here, and let's say we're just ramping up and we're making a hundred systems, microgrids, so it'd be a solar, wind, battery, water turbine, EV charging station, distribution point.

And we make 100 of them per week. Then we come down here and we look at what's bankable and what we could pull down on the bond. Well, it's only 139 million. So this is every week. So these are low numbers, to get capital moving in. And when we go up to one factory and we go to a thousand per week, a thousand systems that get deployed, we come down and it becomes a 1.9 billion dollar annual bond. And so when we go up and we look at 10,000 per week, which is what we're designing the factory for, is for mass production. So 10,000 wind turbines, 10,000 water turbines, battery packs. So we've really got the factory humming along and we do that. Now we come down and we look at it.

It's a $19 billion bond, climate bond. So it really starts pulling on that 15 trillion there. But we're on a mission to build a lot of these factories. So let's look at five factories. Let's say we can build five factories by the end of the decade. Now that's 96 billion. And if we meet our goal, 10 factories, and we're running full-blown production, we come down here, that's $191 billion. So it becomes this whole new climate bond place to park your money. Climate's here forever. We're not getting rid of this, it's only going to get worse. And so it's a good investment. Everybody's going to need more power: computers, electric vehicles, all that stuff. And so we see kind of a new way to approach the bond markets.

And I know they're a little shaky in my country here in America right now because the government's taken on too much debt. But I think that this is really a viable platform, and you can come down and you can see all kinds of charts and graphs down here. And, you know, doing business in Costa Rica is a little bit different than Kenya, Africa, and how we map all that out. And then we come down into the principal payment and then the installation costs and the insurance costs, and we add it all up, and then the bond manager pays everybody. So when this capital comes in, the bond manager is like, all right, ANEW Energy, you're going to get so much for selling us the capital equipment; the installers are going to get X amount for installing; the bondholders are going to get X amount, and people like that.

So we've got all these stakeholders that are covered here. And so you can come down and kind of play around with it. And we actually have a live feed to the bond markets right now for the climate bonds. And so you can look at a 20-year bond and how that coupon plays out, and a 5-year bond and all that. I think we were able to pay back everything in 12 years, I think it was. So anyhow, when we repay it, and it changes with, like, an electric vehicle, and you know you're not buying gasoline, so there's all kinds of cool stuff that goes into that. So here's a bunch of graphs and charts that are based around that simulator. So the simulator is all the way up at the top, so you can come all the way back up here and you can play around with the values here.

So you can go, you know, we're only going to get five factories up before the end of the decade and we're only going to make 5,000 units per week. And so then that changes things and you can really run these numbers differently. So it's a new strategy. You've got to have hardware, you've got to have software, you've got to have renewable energy equipment, batteries and so forth. So anyhow, we'll leave it at that. And as they say in Costa Rica, pura vida, which means the pure life. Have a great day, thank you for your time.

Okay, let's talk about funding everything at scale. So we are manufacturing professionals. We are on a mission to fight the climate crisis at scale. And we have processes that we can build tens of thousands of our solution and deploy them around the world. Way back in the 1990s when we were big in semiconductors and we were in most departments throughout these fabs, all the different chip companies always asked what Intel was doing, so we focused on Intel. And Intel had a mantra. We'd walk into the room in the meeting and they'd say, say the mantra. And we'd say, the human error is going to come in and find a way to wreck the process. Our job as a vendor to Intel is to human-proof everything.

So we've gotten really good at finding the gaps and human-proofing it. And what we found over the last decade of focus groups is that funding businesses, family homes, hospitals, hotels: there's a lot of work behind it, but there's a method to do that. It's called a climate bond. And so back when everybody started working on climate, the large financial institutions put a lot of money into the United Nations. The United Nations kind of blew it, and they couldn't deploy it fast enough. And I believe today there's something in the realm of $15 trillion parked and reserved for fighting the climate crisis. However, it takes a lot of paperwork and regulatory compliance to satisfy that bar.

So there's a group called the Climate Bonds Initiative, and their job is to make sure that we've been certified. So we've met with, like, PricewaterhouseCoopers, and they explained to us how we have to kind of count carbon calories and all that. So we took that to heart and we developed some electronics that are on every product. So down here you'll see this electronics package. And this is in everything that we make. And it basically talks to the Internet and it tells the Internet how much power we've made. And we can trade it, like on the Chicago Mercantile Exchange or Luxembourg and all these different exchanges. So we can sell the power and the futures of the power.

But how do you get all the capital together to do the installation? That requires cost. You've got to insure all the capital equipment. You've got to do all the capital equipment, the installer cost, and the insurance people are the main people that need to be paid. So we've decided that being able to pull down these bonds in bulk is really where we want to go. So a climate bond, a small one, is $500 million. And we could do that every week, several times a week, with the production capacity that we've got. So if you come down here lower, you'll find this whole section in here. That's the simulator. So the simulator, it's got, let's say we build one factory.

Our mission is to build ten factories by the turn of the decade. And let's say that we're making 500 products, microgrids, so wind, water, solar, storage and distribution for powering your EV. And in Costa Rica, they've enacted a new law that allows everybody to sell excess power back to the grid. It just goes into effect, I think, this month or next month. And anyhow, there's a need to be able to buy and sell that power. So if we package, like, 500 of them together every week, they become fairly large. So here's 500 microgrids out of one factory, and it gets us $957 million in bond that we can pull down. And so if we go up and we say, all right, let's go up to our full potential, because we believe in our factory we're making this very quickly.

These batteries, we injection-mold them with plastics and we do all kinds of cool stuff, is that we could build 10,000 per week. So this gets to be a very interesting proposition to the bond market. And so we can come in and we can look at a $19 billion a year bond event for those types of volumes. And then if we go up to ten factories, let's say we don't get there by the end of the decade, but we get there by 2035, now it becomes a very large proposition. 191 billion down here. So you can play around with this. We actually have live feeds to the climate bonds and what they're trading at right now. So you can come in and see, every 15 minutes we update what the latest bond has traded at.

And anyhow, you can do a lot of simulations. Here's what the customers in Africa would pay, in Kenya, Africa, and here's what they're paying in Costa Rica. And our mission is like, how do we finance a woman weaving baskets in the middle of Africa? And we believe it's through this trade where we're trading power purchase agreements. We have commitments on that. We have tax credits that have value. Maybe the carbon credits will come back; we're counting carbon credits. And we create this new sustainable economy. So there's 10,000 of these systems going out every week. We're going to create lots of renewable energy jobs. And so we create this whole new economy, which is very important to us and important for ownership of the factory and the land that it heads to.

So anyhow, these are all kinds of graphs and charts on different metrics that you can play around with. And you can go from a five-year bond to a ten-year bond, look at the different coupon payments on that. And then obviously the bond manager has a role of distributing the capital to the installers and the Lloyd's of London that have the insurance on the package, and our company that makes the product. So we're not really moving the money, we're just making it all fundable. So when we do it in blocks of, you know, a thousand customers every five days, it becomes quite an exciting opportunity. And then we start copying the factory. We can really move some big capital.

So this is something: climate is here, it's not going anywhere. It's actually a great bond investment because people have to have power, and it's going to be around for a long time. All of our products, we're really working hard to engineer them for a 50-year service life. So this is a nice revenue stream that could get stretched out for many generations. And anyhow, this is the whole thing about how we do it at scale. Here's a little box with a solar panel on board. And it trades solar power to the Chicago Mercantile Exchange and things like that. So it becomes a revenue stream. And that's all being built right now and tested. And here's the electronics package.

It's got a microprocessor on board. And so in semiconductors, there's hundreds of layers that you stack up these little switches that are firing to make your video happen and all your different computer events. And so they're so small these days, there's billions of them, that the printing process makes flaws. And they're always unique, they're never the same flaw. And so when you start up your phone in the morning, or once a month you reboot, it says, don't go use those flaws because they're bad. Go around them and use different sectors. And so we can create this, essentially a crypto account on the circuit board. And we put this little chip on there.

It's, like, two USD, called a PUF chip. And the PUF chip creates a crypto account. So now we have a secure basis that we know how many electrons we sold and how much we're able to sell. And if the device goes down, we have all these scenarios that are built in. So on this $50 circuit board, we can create that trading platform, and it talks to the Internet and it monitors and gets calibrated once a year. It's really, really cool how we've developed this. So anyhow, that's how we trade at scale. It becomes a very, very wonderful bond opportunity. And I'm in America here, so I know our bonds are getting all screwed up, but this might be a nice platform to move your bonds into.

And we can start building these things immediately and really start moving some coupons that get serviced by the commodities market. So anyhow, thank you very much for taking time to learn about this. I'm Pat Conarro. I'm the CEO at ANEW Energy, and as they say in Costa Rica, pura vida, which means the pure life. And anyhow, thank you very much. Have a great day. I appreciate your time learning about this.