April 13, 2001
Recent developments have been amazing. The company has completed its turbine engine. Although refinement and circumstantial testing will always continue, IAS is ready to move forward with potential partnerships. While we believe this project merits a great deal of excitement, the reaction generated from large utility companies and key legislators and decision makers has been everything we could have hoped for and offers promising opportunities for our company in the near future.
The company will work with entities and partners that will operate on a residual pay out or royalty (by kilowatt hour) to IAS for the use of its
turbine. IAS has been contacted by companies throughout the world interested in creating partnerships to build new geothermal plants that
will produce both electricity and hydrogen.
The world consumes approximately 13 trillion kilowatt hours of electricity each year. Experts predict, based upon the consumption growth rate of between 2%-3% per annum, that it will cost over $3 trillion of todayís dollars to build the number and size of power plants necessary to meet this growth during the next 10-20 years. This dollar amount does not include the cost of delivery and distribution networks.
Hydrogen production is an equally impressive opportunity. Currently, 128 billion cubic feet of hydrogen is consumed each year in the processing of many consumer products. Because of its incredibly low emissions (it turns into water when burned) many are pushing to use hydrogen for automobiles, however, it is too expensive. In comparison to gasoline, hydrogen costs between $4-$6 per gallon.
Not only does IASís new turbine have the potential to generate electricity at a remarkably low rate, it can, at the same cost, produce hydrogen cheaper than the price of todayís gasoline. Using hydrogen as a petroleum substitute has fantastic potential both economically and environmentally. The world consumes nearly 75 million barrels of petroleum per day.
Geothermal is only one of many great applications. IASís turbine can offer vast economic, maintenance, and operational improvements to
traditional power plants. It also has enormous potential with other types of power generation methods that have been impeded because of issues that IASís new turbine could potentially resolve. These applications will be further addressed in the near future.
When IAS spotlights a particular technology, some believe that other technologies are being neglected. While we understand this perception, it is not the case. Although some projects progress differently than others, we believe that nearly every technology will move into the market this year.
Thank you for your support.
Neldon Johnson, President
Chief Executive Officer
NOTE: Statements contained in this letter that are not strictly historical are forward-looking within the meaning of the safe harbor clause of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that such forward-looking statements invoke risk and uncertainties that may cause the company's actual results to differ materially from such forward-looking statements. These risks and
uncertainties include, but are not limited to, demand for the company's product both domestically and abroad, the company's ability to continue to develop its market, general economic conditions and other factors that may be more fully described in the company's literature and periodic filings with the Securities and Exchange Commission. This is not a solicitation to buy or sell securities and this does not purport to be an analysis of the companyís financial position.