One of our valued clients is Omni Sulphur, located in Nipomo, California. Omni Sulphur was formed to take advantage of the exciting opportunities in the global sulphur industry. We at CENAK Consulting actively assist Omni Sulphur in developing its business plan and realizing its growth potential. We prepared the company's budget model and are currently working with the company to develop and refine its long term business plan. It is anticipated that a first round of equity capital will be raised in the first half of 2008. CENAK Consulting is preparing the financial models and information memorandum as well as actively advising Omni Sulphur in its project development efforts around the globe.
Sulphur is a commodity product produced mostly during the refining of crude oil and natural gas. It is stripped out of oil and gas as a by-product. Given that most new oil and gas production is from fields that are of lower quality with a high sulphur content, it is widely expected that there will be a glut of sulphur inventory starting in late 2008, when a number of new refineries are expected to come online. The price for sulphur is therefore expected to decline and even be negative in certain areas of the globe.
On the demand side, sulphur is used mostly to ultimately produce phosphate fertilizers. Other applications are in the mining industry and some other industries to a small extend. One niche product is to use sulphur in conjunction with clay and micronutrients as a fertilizer.
Omni Sulphur is best positioned to take advantage of the expected overproduction of sulphur by offering solutions to refiners as well as users of sulphur.
Sulphur produced at refineries is typically in a molton form. Unless there are applications for the sulphur nearby these plants, the molton sulphur needs to be formed into a product that can easily be shipped. This process is called forming of sulphur. There are several different technology providers who manufacture machines that can be used for this purpose. Omni Sulphur has significant experience with building and operating these plants, and continues to develop opportunities globally for the forming of sulphur, as refiners are looking for ways to manage the ever increasing amount of sulphur.
Another core competency of Omni Sulphur is the production of sulphur fertilizers using beforementioned forming equipment. Omni Sulphur has developed a proprietary technology that allows the company to mix elemental sulphur with clay to form a 90% sulphur/10 clay product called GreenSun 90. This product is widely used and accepted in North America, however the largest growth markets for this product are in Asia and Brazil, where soils are significantly sulphur deficient. Omni Sulphur is currently constructing its first sulphur fertilizer plant in India and expected to commence development of a second facility in Dubai before the end of this year. Omni Sulphur is one of few companies that can make the forming technology work for the production of sulphur-based fertilizers and expects significant growth in this arena. Further, the sulphur fertilizer can be mixed with micronutrients for additional fertilizer applications.
CENAK Consulting is actively involved in the development of several of Omni Sulphur's global forming and fertilizer projects. Omni Sulphur and ultimately its clients profit from our international experience and our project development experience. Further, we continuously help Omni Sulphur refine its business plan and financial model. At present, CENAK Consulting is developing an information memorandum and strategy to raise capital for the company's rapid expansion. We are very excited to be a part of the company's growth and about the future of the sulphur market.
