Acumentrics

Acumentrics
Acumentrics Corporation
Corporation
Company Overview &
Investment Opportunity
August 2004
“Celebrating 10 years in business”
Certain statements contained herein are forward-looking statements which present the
beliefs of management but are subject to a variety of changing conditions. There can be
no assurance the Company’s future markets, business, and operations will not differ
materially from what is described herein. Potential investors should consider the significant risks which accompany an investment in the Company. All materials presented are
confidential to the Company.
Acumentrics
Acumentrics Corporation
Corporation
Focus: Design & Manufacture of
Innovative Distributed
Power Equipment
Manufacturer since 1994
57 Employees
37,000 UPS manufactured to date
14 Fuel cells in field test
Diverse Capabilities
Electrical Engineering
Chemical Engineering
Mechanical Engineering
Thermal Modeling
Packaging
Ceramics Processing
Material Science
Inertial Mechanics
Multiple Technologies / Solutions
Solid Oxide Fuel Cells
Composite Flywheels
High Discharge Rate Batteries
Copyright 2003 Acumentrics Corporation
Acumentrics
Acumentrics Corporation
Corporation
Our Focus
Design &
Manufacture
Innovative
Distributed Power
Equipment for
Critical Customer
Needs
Our Strategy
Identify niche markets where customers have
need for innovative new solution (reliability,
power quality, microgeneration)
Build pool of talented engineers
Focus on commercially viable products that
can be sold at an immediate profit
Pre-sell products with advance orders
Outsource components to low-cost providers,
assemble units in-house
Mature and advance products to address
larger related markets
Develop consumer products with world-class
partners, using company’s core technology
Acumentrics
Acumentrics Product
Product Families
Families
A
A foundation
foundation of
of innovation
innovation and
and
excellence
excellence in
in power
power electronics
electronics
addressing
addressing critical
critical customer
customer
needs…
needs…
Acumentrics
Battery-based UPS
500Watts - 20kWatts
Uninterruptible Power
Supplies for Harsh
Environments
Industrial-UPS®
Commercial
d
Rugged-UPS®
Military
Features:
• Sealed electronics
• Able to withstand vibration
• Unity power factor input
• Wide input 80VAC - 265VAC
• Isolated 120 / 240VAC output
• Hot swap battery case
• Parallelable to 20 kWatts
Rugged
Rugged UPS
UPS Sales
Sales &
& Market
Market
Average revenue = $5.5 million per year for last decade (peak of
$11 million in 1999)
Primary sales to US Army, Marine Corps, Navy, Air Force—
37,000 units sold to date
Recent push to move into related markets, diversify customer
base—NYC subway system, offshore oil rigs, homeland security
Pace of new orders has increased due to Iraq conflict—expect
$7 million in sales in 2005
Order backlog of >$2 million
Rapid production cycle—30 days to ship order
Labor content ~5% of list price; outsource components and
assemble in-house
30-40% gross margins on product; potential 40-50% margins
Capacity to meet $30 million per year in orders
Acumentrics
Acumentrics Product
Product Families
Families
New
New Evolving
Evolving Technologies
Technologies
addressing
addressing future
future Customer
Customer
needs…...
needs…...
Acumentrics
Acumentrics Solid
Solid Oxide
Oxide Fuel
Fuel Cells
Cells
GO TUBULAR
With Acumentrics
Solid Oxide Fuel Cells
Small Tubular - The path less chosen
How
How Acumentrics
Acumentrics Fuel
Fuel Cells
Cells Work
Work
Acumentrics
Acumentrics Fuel
Fuel Cell
Cell Evolution
Evolution
2002 – 2003
Stackable Manifold design
Anode supported
5 Watt
Tubes
Q2 2002
Tubular SOFC Systems
Stack Design Attributes
• Stackable design
• Welded electric connections
• Low thermal mass
• Withstands heat expansion
• Excellent start-up
• Excellent cycle capability
• Excellent load following
• No fuel pumps
• Direct reformation
High Power Anode Tubes
25 Watt
Tubes
Q3 2003
Acumentrics
Acumentrics Tubular
Tubular SOFC
SOFC Generator
Generator
POX
POX Overview
Overview
Acumentrics
Acumentrics Tubular
Tubular SOFC
SOFC Generator
Generator
Steam
Steam Reforming
Reforming Overview
Overview
Acumentrics
Acumentrics Generator
Generator Design
Design
Acumentrics’
Acumentrics’ Fuel
Fuel Cells
Cells Today
Today
ALPHA UNIT
Acumentrics 2,000 Watt Solid Oxide Fuel Cell
natural gas based backup system shipped to
Sumitomo
ALPHA UNIT
Acumentrics 5,000 Watt Hydrogen
Automotive Power Unit “APU” shipped to
Sun Line Transit and for mobile use
BETA UNIT
Acumentrics 5,000 Watt Propane
based generation unit shipped to
Alaska Park Service
2002
2002
2003
15 Total Alpha and Beta units shipped to date
Acumentrics
Acumentrics SOFC
SOFC Benefits
Benefits
1.
Fuel Versatile-- Proven on natural gas, propane, and hydrogen;
pending on LPG and ethanol.
2.
Ultra-High Efficiency-- Peak in excess of 40% on natural gas, with a
path to near 50%.
3.
Low Maintenance -- No pumps, compressors; inspect air filter and
replace sulfur filter every 9000 hours
4.
Simple Fuel Delivery-- 0.50 psig, standard 3/4-inch gas line for 5
and 10 kW units.
5.
Simple Installation-- NEMA 3R enclosure on ground pad.
6.
Easy start-up & Unattended operation– remote communication
7.
through internet and phone line, satellite connection under dev.
Load following – Able to run from 0 to 100% vs. single set point
8.
Silent– less than 62 dBA at 3 feet.
9.
Waste heat recovery-- built in heat exchanger captures 4 kW heat
Tubular
Tubular SOFC
SOFC Plant
Plant Efficiency
Efficiency
Plant Size
Electrical
Efficiency
Heat Recovery
For CHP
Total Fuel
Effectiveness
(on Natural Gas)
2.5 kW
> 35 %
5 kW
> 40 %
10 kW
> 42%
> 32 %
> 70 %
100 kW
> 45 %
> 35 %
> 80 %
The
The Competition
Competition
MOLTEN
CARBONATE
SOLID OXIDE
PROTON EXCHANGE
MEMBRANE
Acumentrics
Siemens
Westinghouse
Delphi
Fuel Cell
Energy
Plug
Power
United
Technologies
Proprietary
Fuel Cell
Technology
SOFC
Tubular
(fuel inside tube)
SOFC
Tubular (fuel
contained in large
vessel around tube
bundle)
SOFC
Planar
1-50 kW
MC
Molten Carbonate
Announced Solid
Oxide program in
2003
PEM
Proton
Exchange
Membrane
PEM
(announced in 2003)
prior was Phosphoric
Acid
Investors and
Significant
Partners
Sumitomo
General Dynamics
ChevronTexaco
Northeast Utilities
NiSource Energy
U.S. DOE
Siemens
U.S. DOE
U.S. DOE
Marubeni
Caterpillar
ChevronTexaco
PPL Energy Plus
General Dynamics
U.S. DOE
GE
DTE
In-house
Expected Electrical
Efficiency from natural
gas
45 - 50%
45-50%
35-45%
45 - 55%
30-32%
30-32%
Maximum Elec. And
Heat Efficiency from
natural gas
>80%
>80%
>75%
>75%
38%
38%
Minimum Power
Rating at Rated
Efficiency
5-10kW
100kW
?
250kW
5kW
200kW
Start-Up Time
10-45 min
16-20 hrs
No units built to
date
24-48 hrs
5min
Hydrogen
1 hour N Gas
5min Hydrogen
1 hour N Gas
Highlights
Highlights
Present
15 Units to Investors in 2, 5
and 10 kWatt size
$110,000,000 Revenue
backlog comprised of
Orders, Letters of Intent
and Grants
Natural Gas, Hydrogen and
Propane capability
In Process
100 kWatt Size
Wood Gasifier
Ethanol Fuel
Diesel reformer
Development
Development Goals
Goals
Acumentrics Has Been Selected To Participate In
The DOE SECA Program
R&D:
9 Year Shared Budget of $74 Million
GOALS:
Improve Power Density
Advance Materials Technology
Automate Manufacturing
Develop Market Appropriate Designs
SECA Cost Target < $400 / kWatt
Acumentrics’
Acumentrics’ $74m
$74m Research
Research Grant
Grant
$74,000,000
U.S. DEPARTMENT OF ENERGY 9-YEAR
SOLID STATE ENERGY CONVERSION
‘SECA’ ALLIANCE 2003 COST-SHARE
AWARD RECIPIENT
BUDGET
PERIOD 1
PHASE I
BUDGET
PERIOD 2
PHASE I*
TOTAL
PHASE I
BUDGET
PERIOD 3
PHASE II*
BUDGET
PERIOD 4
PHASE III*
TOTAL
DOE
Funding
$1,700,000
80%
$10,000,000
80%
$11,700,000
78.80%
$18,400,000
50%
11,700,000
50%
$41,800,000
55.88%
ACUMENTRICS
Contribution
$425,000
20%
$2,500,000
20%
$2,925,000
20%
$18,400,000
50%
$11,700,000
50%
$33,006,375
44.12%
TOTAL
$2,106,375
$12,500,000
$13,706,375
$36,800,000
$23,400,000
$74,806,375
Period of
Performance
12 months**
24 months
36 months
36 months
36 months
Project Title: Development of a low cost 10kW Tubular SOFC Power System
Contract Signing date: July 27, 2003
Deployment
Deployment Opportunities
Opportunities
Industrial
Critical Manufacturing
Mobile Military
Remote Data Logging
Wastewater Pumping
Oil/Gas Pipelines
Airstrip Lighting
Shipboard Power
Commercial
Office Buildings
Healthcare Facilities
Data Centers
Recreational Facilities
Remote Research
Sites
Schools/Classrooms
Well Pumping
Deployment
Deployment Opportunities
Opportunities
Communications
Residential
Remote Residential
Island Communities
Recreational Lodges
Ranches
Cell Towers
ISP Base Stations
Navigation Aids
Tracking Stations
Broadband Backup
Remote Monitoring
Revenues
Revenues
Acumentrics
Acumentrics Order
Order Pipeline
Pipeline
as
as of
of August
August 1,
1, 2004
2004
SECA
$42 million cost share grant (Value 72 million)
Current Product Orders
$1.7 million in Fuel Cells (hard orders)
$3 million in rugged-UPS (hard orders)
Near Term anticipated Orders
$4 million in Fuel Cells (pending paperwork)
Developing prospects
$10 million in Fuel Cells (qualified leads)
Long term Product Orders
$13 million purchase long-term purchase orders
$36 million letters of intent
TOTAL > $110 million
Acumentrics
Acumentrics Revenue
Revenue Forecasts
Forecasts
$25,000,000
$20,000,000
R&D
Fuel Cells
RUPS
$15,000,000
$10,000,000
$5,000,000
Year
UPS
2004*
5850
Fuel
Cells
800
R & D Total
Grants
3626
10276
2005** 7000
3750
6000
16750
2006** 8000
7500
6000
22500
06
20
05
20
04
20
03
20
02
20
01
20
00
20
99
19
98
19
97
19
96
19
19
95
$0
* Actual (7mo) +Projected (5mo) $000
**Projections $000
Potential
Potential Markets
Markets for
for Acumentrics’
Acumentrics’
Products
Products
TSOFC
Demos
Battlefield
Gross
Margin
%
Transportable
Clean Power
Unit
Truck
Military
Remote
Rugged
Power
UPS
Industrial
Rugged
UPS
Industrial
Scale
UPS/PQ
Utility-Based
DG/UPS/Peak
Shaving/PQ
Residential &
Commercial
CCHP
Fuel Cell
Back-up
Generator
Size of Market
UPS
UPS Sales
Sales and
and Market
Market
Military requirements for UPS tolerant to heat,
impact, EMI, sand—operable on any voltage found in
the world
Similar requirements for industry—offshore rigs,
vaults, remote locations
Line of four products—500 w to 2000 w
Limited competition
Customers indicate “best product of its kind on the
market”
Award-winning design
Potential upgrade to higher performing, higher margin
unit
Fuel
Fuel Cell
Cell Sales
Sales And
And Market
Market
Performance expected to be superior to PEM fuel
cells
Joint development agreements with NiSource,
Sumitomo and others
Early units got rave reviews
Current sales price includes a substantial gross
margin
Lower prices will greatly increase sales
Prices will be lowered in response to decreasing
demand and lower production costs
Plan identified to get to $1.50 per watt
Uses power electronics from in-house UPS line
Future
Future Product
Product Directions
Directions
Design high-efficiency inverter (source of significant
losses in all distributed power supplies that make DC)
Perfect compact TSOFC fuel cell (reduce footprint)
Develop ability to use diesel
Design higher power TSOFC maybe with
microturbine
Design high-power, load following inverter (huge
market with utilities and large industries)
Move to higher power UPS—200 kilowatts to 1 MW
Incorporate flywheel to eliminate batteries
Significant
Significant Upsides
Upsides
Expansion
of UPS sales
Rights to consumer products developed
with partners
Sale of distribution rights to new
territories, new products
New products
Key
Key Management
Management Team
Team
Gary Simon (CEO)—30 year veteran of energy industry, senior executive
of large energy utilities (El Paso Energy, Northeast Utilities), ten years as
strategic management consultant to major energy firms worldwide
(Cambridge Energy Research Associates), served on numerous national
energy policy task forces, advisor/investor in 8 energy technology
companies
John Cerulli (CFO)—10 years as financial executive for series of
businesses, advisor to venture capital firms and consultant to a number of
start-ups
Tom Philbin (SVP Corp. Aff. & Bus. Dev.)—senior executive with 30
years’ experience in a number of energy and engineering companies
Norm Bessette (SVP Engineering & Ops)—10 year veteran in product
development and engineering, well-known in fuel cell industry, previously
with Siemens Westinghouse
Investment
Investment Opportunity
Opportunity
Potentially achieve 10X value in five years
Obtain preferred shares with liquidation
preference, dividend, redeemable with
premium
Participate in built-in growth
Raise $5 million in round
Secure participation of strategic product
development partners
Have IPO or acquisition as exit
Use
Use Of
Of Funds
Funds
Finance
purchase of components to
meet back orders
Fund growth
– Expand production
– Expand sales effort
Match
funds for added research
contracts and product development
Acumentrics’
Acumentrics’ Future
Future
When we achieve…
•
•
•
A sale price of under $1,000 per
kilowatt
50% efficiency
A product lifetime of 10 years
Our products will be more cost effective
than virtually any other fuel cell or fossil-fueled
small-scale electricity generation device in the world.