1 / 22

Environmental Industries Capital Markets Day 2 nd March 2007

Environmental Industries Capital Markets Day 2 nd March 2007. Background. Energetix founded in 1997 and raised private equity funds to create low cost point products for alternative energy markets. Two major opportunities developed with unique characteristics for these markets:

brone
Télécharger la présentation

Environmental Industries Capital Markets Day 2 nd March 2007

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Environmental Industries Capital Markets Day 2nd March 2007

  2. Background • Energetix founded in 1997 and raised private equity funds to create low cost point products for alternative energy markets. Two major opportunities developed with unique characteristics for these markets: • Micro Combined Heat and Power (mCHP) i.e. a domestic boiler that also produces electricity for the home • Uninterruptible Power Supply based on compressed air • Energetix Group listed on AIM August 2006 • £5.4M raised net

  3. Directors

  4. What is mCHP? Micro CHP is a domestic boiler that also produces electricity for the home

  5. How Genlec mCHP works Electricity Normal boiler unit • Boiler unit + Genlec = mCHP • Genlec module • Scroll expander & generator • Fluid pump • Heat exchangers • Refrigeration cycle in reverse • International Patent Protection 3 Scroll expander 4 Heat exchanger 2 ORC module 1 Low pressure liquid Normal hot water pump 2 High pressure liquid 1 3 High pressure vapour Fluid pump 4 Low pressure vapour Cold water feed Hot water & heating Cycle repeats

  6. Energetix Genlec Energetix Genlec module Boiler unit • Wall hung • Looks and performs as a normal boiler • Consumer friendly • Installer friendly • Uses mass manufactured components to reduce costs and support product life – engineered product not “new science” • Simple assembly production – limited investment in manufacturing plant • Very favourable cost & operation compared to fuel cells and Sterling engine mCHP

  7. mCHP - Comparisons • Energetix mCHP Competitive Advantages • Reduced consumer, installer, and boiler manufacturer barriers to entry • Works like a boiler • Installed similar to a boiler • Assembled as a boiler plus one additional module • Lowest cost mCHP

  8. Benefits - mCHP Inefficient Central Power Generation 35% energy available to the home 5% T&D Losses 60% Generation Losses Natural Gas 90% energy available to the home Highly Efficient Micro CHP Generation 10% Generation Losses

  9. Benefits - Genlec • Homeowner Benefits • Annualised Saving £150-200 • Additional Cost £650 • VAT Saving (inc. installation) £200 • Payback c.2 to 3 years (cf. condensing boilers 7 years)

  10. Market • Boiler Market • £8.1bn annual EU boiler market in 2003 • 1.5m units installed per annum – UK boiler market • mCHP Projected Market • mCHP - Predicted £1.5bn (18.5% boiler market share) annual EU market by 2010 Cambridge Consultants May 2004 • mCHP - 540,000 (32% boiler market share) unit sales per annum in UK by 2015 Society of British Gas Installers Mar

  11. Routes to Market • Energetix Genlec - component supplier of ORC modules to boiler partners • Cf. Giannoni HX coil producer c.1M units p/a • Product Launch Target H2 2008

  12. Conclusion • £8.1bn annual EU boiler market in 2003 and predicted £1.5bn annual EU mCHP market 2010 • Potential to secure substantial proportion of the EU mCHP market • Simple and robust technology based on proven components • Patent protected • Low production risk - simple component assembly • Production and Supply Channel planning • Target Genlec sales price: £650 (£1,550 integrated mCHP boiler)

  13. Pnu Power Provides uninterruptible power to protect against power loss

  14. What is UPS & Pnu Power? • Uninterruptible Power Supply (“UPS”) • UPS provides power to enable switch over to backup generator or safe system shutdown • Expected Spend on UPS energy storage forecast at £1.2bn per annum - 2006 source Frost & Sullivan • Incumbent UPS energy storage is lead acid batteries • UPS protects equipment in key markets of telecommunications, data centres, utilities etc. • Pnu Power is a new type of battery for UPS using compressed air • “Power outages estimated to cost US $80bn per annum”Lawrence Berkeley National Laboratory Feb 2005

  15. How Pnu Power works • Compressed air is released to drive a scroll expander • Four main components • Standard compressed air cylinders • Air flow controller • Scroll expander & generator • Exhaust system • International Patent Protection Air cylinders Controller Scroll Electricity Exhaust Cold air

  16. Product - Pnu Power • Current status 20kW - mid range industrial power protection • Full ride through capability • Highly reliable core technology • Low cost additional run time • Uses mass manufactured components to reduce costs and support product life • Sell at equal price to batteries deliver over 50% gross margin to Energetix

  17. Market – Pnu Power • Lead acid battery storage for Uninterruptible Power Supply (UPS) £1.2bn per annum: • Data, Telecommunications, and Broadcasting £913m • Utilities, Oil & Gas Applications £119m • Security & Emergency Lighting £63m • Other Applications £13m • Flywheel and other emergent sources £125m

  18. Market Issues – Pnu Power Battery Room Explosion

  19. Economics Life Cycle Cost Comparison – Pnu Power vs Batteries Cumulative Cost £ Pnu Power can deliver up to 70% life cycle savings

  20. Route to Market • Energetix dual strategy for routes to market, partnering with UPS manufacturers and Mechanical and Electrical Installation contractors • Small Systems up to 50kVA • Energetix to grant limited geographic exclusivity to UPS manufacturers based on “take or pay” contracts to enhance early growth e.g. APC, Powerware, Liebert, MGE, Toshiba, Chloride • Larger Systems above 50kVA • Partner with ME&I contractors as system specifiers and UPS manufacturers • E.g. Bechtel, AMEC, Fleur Daniel, Kellogs Brown & Root, Balfour Beatty • Product Launch Target H2 2007

  21. Conclusion • Current £1.3bn annual world battery for UPS market growing at 5.3% per annum • Pnu Power could take a substantial proportion of the market • If priced the same as batteries • End user life cycle costs saving up to 70% • Energetix a gross margin of over 50% • Simple and robust technology based on proven components • Low technology risk • Low production risk - simple component assembly • International Patent protected

  22. Summary • Smart Engineering • Low cost products • Fast to market • Protected IP • Component Supplier • Fits with existing products • Low capital investment • Rapid ramp-up capability • Substantial Markets • micro CHP market demand • UPS needs battery alternative • Near term revenue

More Related