Commercialization

Simplified Payback Analysis Cost Model

Revenue

Using very conservative estimates, a simplified financial model, average annual revenue, and an average of 5-Units per site installation…

• Based on estimated annual revenue per generating unit of $236,800 at 350 kW average annual output and $.077 per kWH pricing
• A single 5-Unit site operation would yield annual revenue of approximately $1,180,410.

Cost

Total present value of one-time installation costs and ongoing operating costs

• Site and Unit Installation Costs
• Costs include generating unit field installation, electrical interconnection equipment and construction, permitting, start-up costs, and the present value of ongoing O&M
• Grid interconnection equipment and installation costs are estimated to be $2,000,000 per site plus $1,000,000 per unit, or $7,000,000 for a 5-unit site.

Unit Production Costs

• The cost to produce and deliver each generating unit is estimated at $1,000,000 or $5.0 million for a 5-Unit site
• The total present value cost to install a five-unit site is estimated at $7 million

Simple EBITDA Payback

• Dividing costs by revenue produces a simple payback of 5.9 years
• Payback is highly sensitive to turbine efficiency, site development cost, generating unit cost, and site power production potential
• Research enabling effective design, fabrication, and construction of the generating unit will be a significant factor enabling financial success

Comparison of Competing Technologies

Design Features

• —Electrically, the units will be designed to produce 30kW to 350kW of power at 480 volt Direct Current (DC).  The present design utilizes a commercially available inverter to convert the DC voltage generated to 3-phase Alternating Current (AC).
• The AC current is then stepped-up to the appropriate Distribution Line voltage (typically 12-13kV) using a commonly available transformer
• —All electrical interconnecting components between the device and the Utility’s Distribution system will follow IEEE Standard 1547.
• —This standard was issued in 2003 and is well established and in common use at this time.
• —The interconnection components are identical to those used for wind and solar installations and are commercially available from multiple vendors serving the industry.
• —System protection and control devices, communication protocols, and metering standards are also well-established and in common practice throughout the US.