European Patent Holder AIKONA Ltd: Innovating in Fuel Production

www.aikona.eu E-mail:info@aikona.eu office:+44(0)7821232927 aikona2016@gmail.com

Our company AIKONA LTD has been founded with the aim to support the business strategy within the last stage of registration and commercial application of the European patent registered underNo. EP2129746. This patent is therefore held by AIKONA LTD as the only entity eligible for further negotiations with potential partners. The European patent represents the product of several years of work conducted by a group of experts, research and development personnel, experts on legislation and the European law, who constitute the background for the existing and future operations.

The activity and experience of the group concerned with this intellectual property date back to the year 1991, marked with the launch of business operations in the field of distribution and subsequent production of motor fuels and lubricants with performance of associated operations - especially production and distribution of fuels from renewableresources. The past achievements include, for example, the following results of researchanddevelopment. Production of fuels and lubricants using our own formulas: - private label motor oils - special additives for motor fuels - special fuel mixtures - 102 octane petrol, diesel -35 degrees C,other custom mixtures of fuels and lubricants - private formula for biodiesel mixture - protected with patent, trademark - biological degradability of 90%/21 days

Construction of own in-house production facilities: - MERO production plant in Slovakofarma Hlohovec - output of 30,000t/year- our own technology - technology for processing of glycerin phase output of 10,000 t/year, together with production of concentrated fertilizer K2HPO4, experiment - isolation of phytosterols - production of MERO from fatty acids - own re-esterification technology

2004 - launch of the basic research in this field, in close cooperation with the University of Chemistry and Technology in Prague, ITCZlin andother partners Objective: processing of natural resources to produce pure hydrocarbons different, better and cheaper than the existing MERO in use 2007 - April 4 - submission of PCT - registration atthe International PatentOffice inGeneva application for patent 2008 - publishing of the PCT text in October together with the outcome from the global search warded the 3 xA grade 2009 - reduction of the global PCT to an European application only following recommendation from theU.S.diplomatic mission

2015 - transfer of the PCT to the UK in October, to the company AIKONA -for strategic reasons andfor sake of future development 2016 - European patent awarded To AIKONA LTD on March 30 - registered atthe European PatentOffice in Munich 2016 - validation of the patent on June 30 - completed in 32 countries to ensure protection of the patent, fees for year 10 of patentvaliditypaid 2016 - from September on - seeking the concept of new development of production technology with respect to the protected principle.

Full history of the patent proceedings from the filing of PCT on 4.4.2007 up until today, can be viewed and verified via the public website of the European Patent Office in Munich using the following link www.epo.org. Enter the patent registration number in the search box to view any documentfrom the dossier from the initial filing upuntil today.

Testing and demonstrations - the period of patent proceedings was paralleled by several tests using pilot facilities with the decomposition rateof1kg/5 s The results were analysed in cooperation with MND a.s. (J.S.C.) and ITC Zl na.s.(J.S.C.) The analyses covered both the gaseous and liquid states. The entire development process, including testing, was run in a highly confidential regime for sake of personal and project safety until the patent was awarded. There was a fairly long period of uncertainty with respect to paten protection - the patent was awarded 9 years later only. Despite the long period, there were no objections in point of fact presented against the patent wording. That was one of the reasons for few verification tests conducted,whilefurther testing wassuspended.

However, the outcome produced by testing has confirmed our belief showing this method can be employed for safe and prompt production of hydrocarbons in a single-step process according to our patent. The analyses completed show the hydrocarbons produced very similar to petroleum hydrocarbons as their technical parameters andphysical characteristics are concerned. Biofuels generation II - the results obtained actually show these hydrocarbons can be considered the 2nd generation of biofuels - producedbythe so called refinery process .

The gas fraction is comparable with propane-butane with respect to its calorific capacity. The petrol and diesel fractions develop with regard to the raw material used. The gas GC/FID analysis shows them as very similar to mineral oils. (see Fig.) (All the graphics, graphs, diagrams, etc. used in this presentation serve for reference only!!!!)

This principle stems from deoxidation of natural raw materials or any mixtures thereofbased onfattyacids,alcohols,saccharidesorfats. The reaction is triggered by powerful electromagnetic and IF radiation acting on the raw material in process. The raw materials constitutes a mixture of the basic rawmaterial and the deoxidising agent, approvedand insertedinto the reactor. Radiation forces the initial chemical structures of substances to break and resultant radical reaction provides for mutual re-combining of individual radicals within the reaction space to form a new chemical structure of the final substance. That leads to production of pure hydrocarbons C1 - C25. There may be also oxygen compounds in forms ofalcohols,aldehydes andketones,some ofthem ending up inthe petrol fraction.

The reaction takes place in a single step, very fast and under normal pressure and temperature. The result of this reaction can be affected by the period of radicals in the reaction space. This is the tool for controlling of the final composition of hydrocarbon at the output from the production plant. Rw materials fit for use - fatty acids, alcohols, saccharides, lipides andtheir intermixtures. Deoxidising agent - heavy petroleum fraction, distillation residue from petroleum), mineral oils, natural oils, melted natural fats andtheir intermixtures.

Output product/s: - The hydrocarbons produced are mainly mixtures of petrol and diesel fractionsandthese require further processing. - They are not chemically pure or identical - their raw material is the same. - Products are primarily defined by the boiling point level, followed by chemicalcompositionservingmerely for reference. Subsequent enrichment of products - these are mostly included in the mixture, with potential further rectification to get the final product.

Preparatory Stage: - 00,0a,0b, 1 -supplyandstorageofraw materials - 2, 3 - approvalofinputrawmaterials ProductionStage: - 4- reactor forthermal decomposition - 5 - end of reaction space, newly produced CH leaving the reactor in form of hot gas. It needs to be slowed and cooled down to liquefy as soon as possible. SubsequentCooling: - 6a, 6b, 6c - cooling system - with the mixture of produced CH exiting rightbehindthisunit,C5-C25 depending ontherawmaterial The production process protected by out patent ends here!

The mixture produced will be transported 8a to a facility for further processing, preferably into a RAF (petroleum refinery) or pumped 8b into another facility tobe processed onsite. The subsequent fuel production line mustcomprise atleast 9 - distillation column and areas 10a or 10b for potential final processing of petrol and diesel in compliance with standards SN EN 228 and590. Finished products are transported 11 as motor fuels for DS mineral oils to be mixed with mineral fuels.

The production process itself is placed in the left half of each diagram and the production plantis the same. It starts with infeed of raw materials, followed by the production process and the final outletof liquidhydrocarbonmixture. (Fig. -0 -7) Major differences bringing an explicit benefit from building the plant right inside a refinery: 1. No need for transport and handling of the deoxidising agent and its permanent warming and keeping it in liquid state. There is an opportunity to blend the deoxidising agentasimmediatelyrequired. 2. No need to worry about the subsequent processing of CH mixture to form individual fuel types. Once cooled down, the mixture is blended with petroleum ready for distillation. 3. No need for transport to the DS and other blending operations. With this production method in place, the hydrocarbons produced by distillation appear in each individual fraction-(see Fig. ) andthat is after distillation ofthelastC25.

Conclusion: - the start of production involves a RAF supplied with the basic raw materialonly,the plantwilladdthe deoxidisingagentas required - the production output comprises the refinery product - petrol, keroseneordiesel containingsomealiquotpartof bioelementalready. The production plant placed inside the RAF will be more cost- effective and less laborious, providing the opportunity for rapid mass development.

MERO - (Methyl Ester of Rapeseed Oil) Production process - oil + methanol + KOH, NaOH MERO is produced without replacement of oxygen - it only changes bonds within the chemical structure of the input raw material. MERO undergoes further drying or even distillation sometimes. The density of MERO is 880 kg/1000 l. It is mostly made from rapeseed oil - MERO made from a different oil would suffer due to its physical properties in cold state.

The rapeseed oil is expensive - and its price is vastly dependent onthe price of extrusions making of the rape seeds price. Production of MERO - creates a fairly large quantity of secondary raw material - raw glycerin - where its subsequent processing cost also affects the price ofMERO. Identification of MERO - it is a fairly pure chemical character, clearly detectable by means of regular laboratory equipment. The production will stagnate - stipulations of EU Directives No. 28 and 30 from the year 2009 also relate to limitations of MERO production and control of the rape fields intended for such purposes.

DNS (Deoxidation Natural Substances) - hydrocarbons produced according to this patent A mixture of hydrocarbons can be made from basically anything listed in the patentdescription. Theproduction process itself is fast, safe and cost effective. Production procedure - This production process removes 100 % of oxygen from the initial material structure and bound to the deoxidising agent to form compounds - alcohols, aldehydes, ketones - which do not have tomake anyinterference in petrol fractions.

The process runs under normal pressure and temperature - temperature inside the reactor 300 - 400 degrees Celsius, the pressure is exerted solely by gas produced from the liquid - during the reaction . The hydrocarbons produced are deoxidised, yet their double bonds are not broken and chain lengths are also preserved. The density of such mixture is 800 kg/1000 l. When mixed into mineral fuel, the product can be still recognised and its volume is still measurable. These products are not so precise and chemically pure but qualify asfuels.

It is cheaper than the products known so far - with respect to both the production cost and mainly thanks to cheaper raw materials with the samefinal effect. Petroleum distillation residue can be used as the deoxidising agent - following production, its strike price will be at the level of petrol and diesel prices. The reactor able to operate at the decomposition rate of approx. 6 kg /s - the most essential feature of the production line - the remaining components of the plant are not that difficult to build.

The only way to satisfy the requirements defined by Directives EU 2009/28 and EU 2009/30 is to deploy our technology to a massive scale, so that the min. 10 % share of biofuel in mineral fuels can be achievedby the year 2020. It is still awaiting its industrial application and further development.

The facts above imply that there are basically 3 technologies for production of biofuels from renewable resources at this stage: - Production of MERO, FAME - represent 100 % of the total production of biofuels-that is4.7%(13.6 milliontonnes).Thiscapacity willremain capped. - Production of HVO - still at its beginning stage - the most recent information refers to the planned annual capacity of approx. 3 million tonnes. - Production of DNS per EP 2129746 - not in progress yet. That is mainly due to the fact that its research was funded from private resources only, with nogovernment subsidy whatsoever. Unlike the HVO - where the applied research and trial operations were funded with EUR 40 million per year over a 4-year period - i.e. the total of EUR160 million guaranteed by theGerman government. (Source: public information resources)

Yet it is still able, being truly simple, cheap and operated safely, to undergo prompt launch in a massive scale - especially in cooperation with oil refineries. Directives (EU) No. 2009/28 and 2009/30 require, for the period until 2020, the share of biofuels in mineral fuel to reach at least 10 %. Judging by the current prospective, there are still 12.4 million tonnes per year missing. This condition is projected in the failure to comply with the individual andstrict annualindicators ofemissions etc.

It is time that the company AIKONA LTD starts with intense negotiations regarding potential cooperation or even direct linkage with the oil industry to enhance mutual cooperation for installation and testing of this technology - preferably rightinsiderefineries. That is the fastest, best cost-effective and the most suitable method by far to begin with practical utilisation of our technology. Establishment of such platform then requires cooperation based on partnership between the provider(AIKONA LTD) andthe businesspartner (refinery) asfollows: a) AIKONA LTD (provider) - grants the business partner rights to its existing know-how obtained through the operating tests, ensures compliance with all the legal standards relevant to the production process and procures the initial quantity of raw materials needed, providing further collaboration in commissioning ofindividualproduction plantsfurther on.

b) Refinery (business partner) - provides the premises and funds required for construction of the plant and ensures sales through its own production output. This production line will bring another benefit to the business partner thanks to sales of heavy petroleum fractions - sold at the price of light motor fuels.

The sole production technology has been described in detail within the wording of our European patent No. EP 2129746 and the whole technology is basically simple, with no special local installation requirements. For sake of production safety and protection of human resources, there arenospecialmeasures required. When installing this production plant as an accessory - to an oil refinery, the operator saves the complicated handling of the deoxidising agent as well as further handling of the biofuel - especially its transfers to bondedwarehouses andits subsequent blendingintomineralfuels. As far as the legal standards focusing on customs and revenue issues is concerned, the whole process of biofuel production will remain under control without any option to commit any offence related to customs ortaxmatters.

WWW: www.aikona.eu E-mail: info@aikona.eu aikona2016@gmail.com Phone: Office: +44(0) 782 1232927 Chief ExecutiveOfficer - Ing.MartinStra k: (+420) 732786636 DirectorGeneral- Richard Hejda:(+420) 778009 808 Adress: AIKONA LTD 20 - 22 Wenlock Road London N1 7GU UNITED KINGDOM Company Number: 9979334