presented to central mn developers – 11-15-2010 a minnesota, usa, based limited liability...
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Presented to Central MN Developers – 11-15-2010
A Minnesota, USA, Based Limited Liability Corporation
Principals /Owners
• Mark Bauerly • David Winkelman• Dan Marrin• Tom Braegelmann• Doug Joseph
• Babe Winkelman• Doug Wogstad• John Kaliszewski• Dan Whalen
Small Wind Turbines
Water Foundation Eco-WERC
Small Wind Turbines, LLC
Develop Model for Sales / Installation of small wind turbines and solar electric
(Founding Company)
Education for green energy solutions
Small wind turbines generator rights worldwide: 5-99 kw
Manufacturing and sales in MN
Manufacturing, Sales and Installations of small wind turbines
Sale of generators to balance of world
US manufactured turbines with GMI generator
Develop sales network outside USA through contacts with partnerships, etc.
Eco-WERC develops media / marketing programs
Small Wind Turbines will sell and distribute turbines in USA
The Eco-Dome Conservation Campus is located near South Long Lake, SE of Brainerd, MN (5 miles East on
Hwy 18 then 5 miles South on CR 23).
Open for Tours M – F, 9am to 5pm.
Minnesota Office of Environmental Assistance Minnesota Governors Green Building Award Minnesota Waste Wise
Awards
1973 Winkelman Farm turbine
Small Wind 101:An Overview of Small-Scale Wind Electric
Systems (less than 100kw)
Distributed, Clean,
Affordable Energy
for Homes, Farms &
Businesses
(www.ecowerc.com)
Difference is like buying a Train versus a Truck
Definitions and TermsKilowatt = 1 lb of Coal• Kilowatt Hour: KWH• KWH / Month / Year
Tax Credit = $ Reduction
Tax Deduction = Based on Income Tax Bracket
Green Credit = Carbon
Grant = Free Money
• Distributed Wind = Plug into existing power lines anywhere.
• Finders Fees = One percent paid to you for referrals on sales
• Interconnection= Hook up to power company.
Small Wind Turbines are less than 100kw and most qualify for Net Metering
Our 3000 watt Whisper was installed in 1997 and is producing enough power for a cabin or a small home (200 KWH/Month)
Our 20 kwJacobs sitson a 120’tower andproducesabout10,000 kwhsper year here.The same systemplaced in westernMN producesabout30,000 kwhsper year.
Big Wind Turbines (over 100kw) are in a different business class. Net Metering rules allow only up to
40kw per site in MN. All states vary, 0 to 5mw.
Distributed Wind Power Benefits
• Energy on Site
• Smaller Initial Cost
• Save/Make Money
• Easier Permits
• Use Existing Power lines
• Thousands of Locations
• Help Spread the Wealth
IINCOME & BENEFITSfor Small Wind Turbines
• Federal ITC = 30%• USDA REAP = 25%• MN Grant = 35%• MACRS Depreciation• Net Metering• Free Electricity
• Antenna Leasing• Green Credits (REC)• Feed In Tariff (FIT)• Power Co. Rebates• Other Grants• Educational Sponsors
In Minnesota alone,there are over100,000 rural hookups possible forsmall wind turbines in areas of good wind.There are only about150 small turbines now installed in MN.
SMALL WIND TURBINE, LLC
GMI GENERATOR
COMMERCIALIZATIONPLAN
End 2008 New 2009 Total end 2009 World 120,550 37,466 +31% 157,899 U.S. 25,237 9,922 +39% 35,159 Europe 65,741 10,526 +16% 76,152 Asia 24,272 14,639 +60% 38,909
Global Installed Wind Power Capacity (MW)(reference: Global Wind Energy Council (GWEC))
1.1
Global electricity consumption is growing at 2.5% annually from 4.2 TW in 1997 to a projected 7 TW by 2030 (Pike Research, 2010).
Conventional power plants operate at only 30%-35% efficiency and are responsible for 10B tons of CO2 emissions annually. The U.S. is the number #1 emitter of CO2 at 2.8B tons with China second at 2.7B tons (Center for Global Development, 2007).
1.11
Technical Value
• Dual stator design, a generator within a generator (radial flux design).• 48 poles vs conventional design of 70 poles.• 40% fewer active components.• Weighs 40% less than competing generators.• Higher operating efficiency (96%) than competing generators (80%)• Higher output than competing generators: 20kW unit output at 18 mph.• Direct drive design, no gearbox, extra bearings or shafts.
GMI-GEN Value Proposition
5.1
Market Value
• State-of-the-art Intellectual Property, world-wide rights• Late stage product development: commercialization 2Q 2011• $38M net present value thru 2023 (SWT Business Plan)
License and Technology Review
GMI- Radial Flux TechnologyGMI- Radial Flux Technology
License StatusLicense Status
To: Small Wind Turbines, LLC (SWT)
– Permitted Application: 5kw -99kw small wind – Permitted Territory: Worldwide– License Type: Exclusive– Right to manufacture or have manufactured– Right to sell and distribute– Subject to: Product Development & Licensing
Agreement dated January 26, 2009– Paid development in full. Shipping in 2 weeks.
Radial Flux Technology (RFT)Radial Flux Technology (RFT)
• T Flux trials over a decade
• RFT a derived technology from T Flux
• RFT prototype tested by Garrad Hassan
• SWT designs complete to prototype
Key FeaturesKey Features
• Light and Compact due to its innovative design.
• Unique Permanent Magnet Technology
• High Efficiency allows use of smaller drive engine
5 kw Conventional Generator
5 kw Radial Flux
Generator
Single stator
Dual stator
Traditional GeneratorTraditional Generator
Permanent Magnet GeneratorPermanent Magnet Generator
Rotor
Wind Turbine BenefitsWind Turbine Benefits
• A low rpm permanent magnet direct drive replaces gearbox and high rpm generator
• Jacobs (US) used for comparison analysis
• Generator/Gearbox weight reduced
by 43%
• Electrical generation efficiency
increased 30%
Jacobs 20kw vs. RFTJacobs 20kw vs. RFT
Gearbox
Generator
Wind TurbinesWind TurbinesRFT vs Jacobs Gearbox TurbineRFT vs Jacobs Gearbox Turbine
RFT G-20-180-A
Jacobs20kw
Speed (rated RPM) 180 1230
Power (rated Kw) 20 20Weight (Kg) 213 262
Generator Type PMG 3 phase Synchronous Brushless 3 phase
Drive Direct 6-1 Gearbox
Gearbox Weight (Kg) No gearbox 114
Combined Efficiency (%) 96% 67.2%
Productive Operating Wind Speed (m/s)
5-12 8-12
• Conclusions 43% less weight 30% greater power
• Produces usable power from low wind speeds
RFT based TurbineRFT based Turbine(concept only)(concept only)
20kW RFT Completed Design20kW RFT Completed Design
20kw RFT Completed Design20kw RFT Completed Design
Generator Prototype Status
• Three prototypes were made for SWT• 10 kw and 20 kw now complete,• 40 kw almost completed by 11/15/10• All three will be complete by 11-30-10• Testing, modifications and tooling complete for all units here by 12-31-10
SWT 20 kwPrototype onTest rig.
(Watch movie &Take break)
GMI-GEN Value Proposition
Economic Value
• Lower production costs due to lean design.
• Priced 35%-50% less than competing generators.
• Higher projected gross margin than competing generators.
• Lower maintenance costs due to fewer components and direct drive design.
• Reduced shipping costs.
• Reduced installation costs due to lower unit weight.
5.2
Next Steps for Small Wind Turbines, LLC
1. Find a MN factory / partner to build generators2. Sell generators to other wind turbine companies3. Partner with other turbine companies4. Develop better blade technologies5. Develop better controllers / inverters6. Develop better towers7. Partner with Utility Companies8. Partner with Communication Companies9. Roll out to other countries
US MARKET
• Less than 1% of the total installed wind capacity• 2009 Sales ; 9,800 units, 20.3 MW capacity, continued 20% growth (AWEA, 2010).
GLOBAL MARKET
• 2009 Sales; $203M, 49% capacity• 2010 Projected Sales; $412M, 115 MW capacity• 20% annual growth rate (Pike Research 2010)
Small Wind Market Assessment
1.3
Small Wind Market Assessment
• 2009; $4.8B Invested in clean energy in the US, $80M invested in small wind technology. (North American Venture Capital Assoc., 2009)
• Cost per kW capacity reduced from $7,000 to $4,500 since 2000.
TO $4,500
FROM $7,000
1.4
Industry Drivers (John Kaliszewski)
Basic Drivers
• Energy independence e.g. national security, community energy systems• Environmental impacts e.g. global warming• Economic development e.g. jobs creation• Distributed energy requirements e.g. efficient electricity delivery• Increasing demand for electricity e.g. 2.5% annually• Rural development e.g control growth• Conventional power plant planning cycle e.g. 30 to 40 years• Inefficient transmission system e.g. system failures and energy losses• Conventional energy system costs e.g. recalculation of real costs
2-1
4.3
• Market sector primarily individual homes, businesses or farms/ranches or clusters.• Limited transmission infrastructure required.• Supports and helps solve peak demand rates. • Supported by “net metering” state/federal grants, feed-in tariffs.• Utilizes complementary renewable energy technology.• Scenario: 20kW capacity systems could produce 40,000kWh per year. A typical residence (U.S.) utilizes approximately 10,000 kWh per year leaving 30,000 kWh for “net metering.”
Sector sales projections: Installation of 28,000 DES in the period 2011-2015.15,000 10kW units @ $3,000 = $45M10,000 20kW units @ $5,000= $50M500 40kW units @ $13,000 = $32.5M
100 100kW units @ $25,000 = $12.5M Total generator sales = $140M20% market share by GMI-GEN= $28M
Distributed Energy Systems (DES)
Policy / Incentives• National infrastructure development e.g. UHV transmission networks, SMART Grids• Government subsidies e.g. 35% Capital Investment Tax Credit, Production Tax Credit, Grants• State and Federal Renewable Energy Standards e.g. 20%-30% renewable energy of the total energy portfolio within 10-20 years• Environmental mitigation e.g. Cap & Trade regulation• Feed-in-tariffs e.g. flexible front-end project funding• Net metering e.g. required utility purchase of renewable energy
2-2
Small wind energy PV Biomass Hydrogen Electricity storage
Technology Integration
3.1
Integrate complementary renewable energy technology solutions in order to leverage strengths and weaknesses and reduce the risk of intermittency.
Small Wind Market Sector Opportunities
Telecommunications
Global telecommunications industry (Pike Research, 2010)
• $3.85 T in revenues in 2008, 8% annual growth.• Industry leaders: Alcatel-Lucent, British Telecom, China Mobile.• Estimated 100,000+ telecomm transmission sites globally.• Status: Telecom sites utilize 10kWh-1,000kWh per day. Industry regulations require 72 hours of on-site electricity reserve.
Sector sales projections: Installation of systems at 21,000 telecom sites, 2011-2015. 21,000 small wind turbines (10kW- 100kW) Generator sales only: $105M 20% market share by GMI-GEN =$21M
4.1
Community Energy Systems
• Rural communities depend on community-based energy systems for energy independence, revenue and economic development. • Community-based Energy Development (C-BED) models operate in 30 U.S. states.(University of Minnesota, 2010)• Partnerships with utilities for financial and technical assistance.• Funded through feed-in-tariffs.• 2MW of C-BED projects generates $3.3M of local income. (U.S. Government Accounting Office, 2010)• C-BED projects have majority ownership by communities or local investors.
Sector sales projections: Installation of community energy systems in 200 communities, 2011-2015
4000 small wind turbine systems (100kW) Generator sales only: $100M 20% market share by GMI-GEN = $20M
4.2
• Small wind turbines could effectively expand the capacity of wind farms by 1.2%-2.5% as fill-in units. • Estimated 750 commercial wind farms in the U.S.• 35%-40% of wind farm costs are non-turbine costs. (AWEA, 2008)• Scenario: 24 kW 50kW units = 1.2MW to a100MW wind field adds 1.2% capacity.
4.4
Sector sales projections:Installation on 150 wind fields = 3,600 50kW units, 2012-20153,600 @ $13,000 = $46.8M (generators only)20% market share by GMI-GEN = $9.36M
Existing Wind Fields
4.5
• 55M irrigated acres in the U.S. on 210,000 units. (USDA) • Consumed $1.5B of electricity in 2008, avg 72,000kWh/year per unit.• 28,000 irrigation systems consumed in excess of $20,000 in electricity in 2008. (USDA)• Seasonal demand curve.• Excess energy could be “net metered.”
Sector sales projections:
2000 systems installations, 2012-20152000 50kW units @$13,000 = $26M2000 100kW units @ $25,000 = $50M
Total generator sales = $76M20% market share by GMI-GEN = $15.2M
Irrigation Systems
High Wind Environments
• Defined as Class 6-7 wind: 18-20mph.• Energy in a 26mph wind is 8x that of the energy in a 13mph wind.• Scenario: 100kW turbine at 13mph wind = 220,000kWh/year while operating in a 26mph wind the output would be 1,776,000kWh/year.
4.6
Sector sales projections: 40 installations in 2012-2015, 2400 turbines800 50kW units @ $13,000 = $10.4M1600 100kW units @ $25,000 = $40MTotal generator sales = $50.4M20% market share by GMI-GEN = $10.1M
• Includes military installations, mining operations, forestry operations and other natural resources processing facilities.• High value, strategic installations.• Critical operations require complementary energy systems and redundancy.• Scenario: 20 100kW turbines per project = 2MW wind capacity
4.7
Sector sales projections:80 project installations, 2012-20151600 100kW units @ $25,000 = $40M20% market share by GMI-GEN = $10M
Remote Operations
• Utilities must address mandated RES through aggressive renewable energy development.• Utilities must mitigate for the lack of transmission infrastructure and the difficulty in building and operating additional conventional power plants.• Scenario: 100 100kW turbine systems with complementary PF and storage could provide over 10MW capacity producing in excess of 2,000,000 kWh/year.
4.8
Sector sales projections:
30 projects, 2012-2015 3000 100kW generators @ $25,000 = $75M 20% market share by GMI-GEN = $15M
Regional Electric Utilities
• Wind power can be utilized in a DE scenario to produce hydrogen to fuel internal combustion generators or fuel cells providing energy storage. (University of Minnesota)• Wind power can be utilized in a DE scenario to produce anhydrous ammonia to convert into nitrogen–based fertilizer supporting rural agriculture.
4.9
Sector sales projections: 100 projects, 2012-201520 100kW wind turbines systems each2000 100kW generators @ $25,000 = $50M20% market share by GMI-GEN = $10M
Hydrogen/Anhydrous Ammonia Production
HOW MANY JOBS CREATED?
• Factory at $50,000,000/yr
= 300 employees• Site Assessors• Project Planners• Grant Writers• Financiers
• Excavators• Electricians• Tower Installers• Crane Operators• Turbine installers• Service Crews• Clerical
Next Steps for Small Wind Turbines, LLC
1. Find a MN factory / partner to build generators2. Sell generators to other wind turbine companies3. Partner with other turbine companies4. Develop better blade technologies5. Develop better controllers / inverters6. Develop better towers7. Partner with Utility Companies8. Partner with Communication Companies9. Roll out to other countries
1. Sell to World Markets (Mfgs of Generators, etc)
• Sublicense exclusive manufacturing and distribution rights of the GMI Gen to related businesses in various world markets.• Each licensee establishes and implements GMI-GEN manufacturing and marketing plan for successful penetration of their respective market.• SWT establishes implements GMI-GEN marketing and sales plan for entire USA market and respective sales prospects.• Licensees and SWT collaborate on specialized market sectors development (related technologies).• Licensees and SWT collaborate in developing and marketing small wind turbine systems around the world.
Bigger Business Plan
6.1
The SWT / GMI Technology as superior to all other generators in the small wind industry; lighter, more efficient, less moving parts and costs less.
Recognize the experience and expertise that SWT, LLC has in renewable energy technology, the development and sales and marketing of small wind turbines, the capacity to assess and commercialize emerging technology and a strong management team.
Help SWT in the development of a strategic collaborative partnership between MN stakeholders in order to commercialize the GMI-GEN, develop and commercialize a state-of-the-art generator factory, small wind turbine system, develop new markets sectors to facilitate sales, and continue to assess emerging technology that can support renewable energy.
Collaborate with many stakeholders in order to sustain market growth and economic growth creating quality jobs in MN and elsewhere.
Summary
7.1
SMALL WIND TURBINE, LLC
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