Prevailing Energy Investor Presentation 3 6909
- 1. Investor Presentation 6/30/2009 By Larry Frew Confidential
- 2. Table of Contents Business & Industry Overview Current Challenges & PEI Solution PEI Advantage & Market Opportunity Transaction & Timeline Appendix
- 3. Business Overview Prevailing Energy, Inc. ("PEI") is an innovative renewable energy technology company that is currently developing and commercializing the world's first economically viable and scalable Vertical Axis Wind Turbine Generator ("VAWTG") electricity generation system. Benefits of VAWTG Technology: energy bill reducing low-cost reliable easily scalable non-polluting aesthetically pleasing silent & safe renewable energy
- 4. Industry Overview The rapidly growing small wind generated electrical market is currently served by the traditional prop-driven, Horizontal Axis Wind Turbine Generators (HATGs). As the market grows it has great potential to overtake other energy markets.
- 5. Industry Overview The state residential small wind incentives have grown over the past years
- 6. Noisy Propeller driven turbines City zoning height requirements ROI is very long, 8 to 15 years or more Priced at $12,000 to $30,000 per HATG High wind speeds of 12 MPH required Turbines kill a number of birds & bats each year High maintenance costs due to system’s complexity: components to control blade pitch brushes, belts, gears cut-in and cut-out speed control mechanisms special machinery to stay pointed into the wind. Not scalable: New systems needed to meet future growth demands Current Challenges The traditional prop-driven, Horizontal Axis Wind Turbine Generator (HATG) suffers from numerous growth barriers. Problems with this technology: Turbines can only operate at 50-100 ft.
- 7. Runs silent – ideal for any urban setting Zoning requirements: operates at 30 ft high or lower Short ROI: 0-5 yrs. depending on wind speeds & rebates Price ≤ $5,000 and many state rebates will pay total cost Operates at wind speed ranging from 2 - 150 mph Safer for birds and bats; blades are visible at all times Low maintenance costs due to system’s simplicity PEI systems scale from 1kw to 1Mw cost-effectively PEI Solution The new place-anywhere, Vertical Axis Wind Turbine Generators (VAWTGs) eliminate growth barriers and open up energy & cost saving opportunities. Solutions found in our technology: Turbines can operate at 30 ft.or lower.
- 8. PEI Solution Solar Works great with existing solar systems. When the sun is shining, solar power systems are working; when its cloudy and at night, wind power systems are working.
- 9. Patent Details The VAWTG is based on proprietary air-foil/winged shaped blades made of composite materials and special type of Permanent Magnet Generators designed and invented by Mr. Larry Frew. A Patent Application has been filed by PEI, Application No. US-2007/0126406 A1, covering all the innovative features incorporated by Mr. Frew into the VAWTG. The VAWTG, with its configuration of omni-directional blades, can easily convert the entropic wind energy into highly stable, grid-quality electrical power. PEI will control the IP for VAWTG technology in 52 countries world wide. Proprietary system designs and embedded firmware are key barriers to entry. Multiple patents are pending and being pursued on specific hardware and overall system components. PEI Advantage – First Mover
- 10. Market Opportunity VAWTG target markets: 1.3 billion home owners world wide (128 million in US) 3,000 wind dealers around the world 7,000 solar dealers around the world
- 11. Market Opportunity Clients California test market Residential property Commercial facilities Dealer network Revenue After commencing production, management estimates first year revenue at $6,250,000.00 million (1,000 units at an average price of $6,250.00) Year two revenues estimated at $31,250,000.00 million Profitability At a volume of 5,000 units, per unit price is estimated at $6,250 With an increase to 10,000 units, the piece price falls to $5,000 Schools - CA state rebates & PPA Government facilities Complements solar systems
- 12. Proposed Transaction PEI is seeking $43 million in total financing Secure patents worldwide (24-36 months): $400,000 Complete prototype testing (6-9 months): $600,000 Complete first article (6-12 months): $2,500,000 Establish production facilities (6-12 months) and Manufacturing capability: $36,500,000 Set up sales and marketing (6-9 months): $3,000,000 R & D, first round, We will have a small support staff to facilitate management and the various required groups: Mechanical and electrical Engineering, Drafting and PCB design and preliminary manufacturing staff Manufacturing ,The second round of funding will establish the Manufacturing. It will include the tooling and Automatic Testing development, the Quality Group and Shipping and receiving.
- 15. Vertical Detail