Revetec's Domestic Offsets and Free Permits Trading Strategy

At the present moment Australia is in a unique position and has the opportunity to adopt the Revetec engine as a standard operating Combustion engine for production in Australia and distribution world wide. It is reported that world wide emissions from combustion engines represent over 30% of all emissions. If the Revetec engine is adopted worldwide then over time it will make a considerable impact on fuel consumption and emissions. This will allow Australia as a nation to claim international offsets.

Revetec believes that the most desirable approach to commercialize this technology is for the Australian Government and heavy polluters to take a leading role by using this engine as Australia’s key technology in the governments “Australian Green Car” and other green projects. The Government should use the Green car carbon fund to speed up the development and production of this engine in Australia. Additionally the government should also use its influence to bring together car and engine manufacturers and other Industries to collaborate on this project.

In order to encourage Industry participation’ Revetec will also adopt a scheme whereby domestic offsets and free permits will attach to Revetec shares thus enabling Industries especially the heavy polluters or those companies which have little means in reducing their emissions to invest in Revetec as shareholders entitling them to receive domestic offsets or free permits to give them a cheap way to comply with ETS. Industries which invest in Revetec will therefore receive 2 prong benefits namely, rewards in the company profits and access to domestic offsets or free permits.

Professor Garnaut made it abundantly clear that the community will suffer tremendous pain in the implementation of the ETS. By adopting Revetec technology the Australian Government will have a significant weapon to ensure Australia receives the full benefit in emission reduction and lessens the expected community and business pain whilst allowing Australia to become a significant player in the world scene. Additionally, by manufacturing this unique engine in Australia there will be job increases in the manufacturing sector as Australia will gain a sustainable and profitable business model.

To date the Australian Government’s support of Revetec has been encouraging in that it has provided Revetec with a $1 million Commercial Ready start grant to develop and test the engine however following successful testing of the engine the Australian Government has failed to move to the next crucial step to capitalize on this technical achievement. If the Australian government fails to act quickly then this engine will be commercialized overseas and Australia will once again lose one of its most important technological advances.