Coates International Ltd. has completed the first phase of R&D of designing and manufacturing the first Coates water splitting reactor that produces hydrogel or hydroxyl gas on demand that is used to power a Coates CSRV 14 HP internal combustion engine. Management comments, company is developing innovative solutions addressing environmental problems eliminating the cost of fuel and electric power generation with hydrogen reactor project. Water is the only source of fuel used in the reactor.

The Coates reactor splits the water and produces hydroxyl hydrogen that is used as fuel to operate the CSRV engine. The next phase will be to adapt the Coates reactor to a home CSRV generator. Management is anticipating great future potential for this new Coates hydrogen reactor product.

Mr. Coates comments, many companies and individuals are experimenting with hydrogen. For instance, BMW has a car operating on compressed liquid hydrogen. The only problem is the liquid hydrogen costs more than gasoline to produce, so that puts a stop on that.

Other companies have busses operating on hydrogen sells that work but take up one third of the buses capacity and cost substantial amounts to produce. On the other hand, the Coates hydrogen reactor splits the hydrogen gas from water on demand. For instance, a 35 KW CSRV home generator would power the hydrogen reactor with a fraction of its output power to produce the hydrogen that the generator operates on.

This would mean that electric power required for a home generator would be produced from water and the Coates reactor design is inexpensive to produce. If the company can get the next phase on this hydrogen reactor project completed successfully the impact for the United States would be tremendous. Regarding the economy: this could create a new industry, absolutely no harmful emissions produced, a much cleaner environment, manufacturing of new products, the creation of many new quality jobs, exporting new products instead of importing them and new products bring in new money.

This product could have a very positive effect on company and the country. The Company will press on with the next phase of the Coates hydrogen project, which will involve home generators and industrial generators.