Executive Summary (Update October 2009)
Clean Power Technologies Inc. (CPTI) is a technology company established to respond to the business opportunities that exist with diesel and gas engines to reduce overall emissions and improve fuel efficiency.
Clean Power Technologies have secured a new concept that recovers the waste heat energy in an internal combustion engine exhaust (some 36% of the fuel energy supplied to the engine) to generate steam which is used to power a modern steam engine which in turn produces electrical power.
Our first products to market are:
LANDFILL APPLICATION and TRANSPORT REFERIGERATION UNIT (REEFER) APPLICATION
LANDFILL APPLICATION
The CPTI CESAR will produce electricity from a methane powered landfill generator exhaust. Electricity generated will augment the power already created from the main landfill generator and be fed back to the grid. One CESAR unit applied to a landfill methane generator is expected to produce 40kW of power. Field trials are expected to commence in early 2010 and will:
- Prove the effectiveness of a technology that provides electrical power without any emissions and makes more efficient use of existing fuel sources
- Demonstrate verifiable results, providing a working model of a product ready for mass production and commercialization.
This product has no carbon or emissions footprint, and creates electricity from a waste heat source. Testing of the product will bring this clean, fuel-saving and cost-effective technology to a stage where it is ready to be distributed to and employed by end users.
In the UK a Collaboration agreement has been made with Renewable Power Systems & NewEnCo; major players in sustainable energy delivery from Land-Fill sites. These sister companies see a very attractive incremental profit opportunity with the application of the CESAR system on their installations. There are some 800MW of spark ignition reciprocating gas engines running on land-fill gas in the UK alone and CPTI expect to commercialise the Land-Fill application by mid-2010.
Potential CPTI Sales Profit
- Manufacturing costs for the CESAR unit would be $15,000 per each; sales price is $25,000 per each. A 1MW methane gas generator can power 3 CESAR units.
- In the US alone there are currently 450 operational landfill projects generating 1500 MW of power
- There are a further 520 candidate sites with the potential to generate a further 1180 MW
- The potential market for CESAR in the US alone is 8040 units giving a sales profit of $80 M
Potential Product Revenue
- At a typical 'feed-in-tariff' rate of $0.1 KWh a 1MW generator will earn $876,000 per year
- The CESAR system recovers 12% additional electrical energy from this unit
- Additional annual revenue for our customers with a 1MW unit is:
$876,000 x 12% = $105,120
3 CESAR units for a 1MW generation set would cost the customer $75,000 and produce $105,120 revenue annually, giving a pay back in 9 months for our customer.
Potential Economic Benefits
- Productivity: Achieves 12% more power generation without additional fuel consumption
- Product yield: 100% return on investment in one year.
- Product quality: The engineering teams at work on this product are both qualified and experienced. $5M has already been invested into this technology to bring it to its current state.
- Increase/Decrease in capital: the economic efficiencies of the CESAR provide owners additional revenue to enable them to purchase further units and reap the benefits thereof.
- Ongoing costs: The CESAR uses proven, simple technology with a low level of maintenance and operating costs, and no additional energy expended. It uses no harmful substances, produces no emissions and is unlikely to face any kind of environmental regulation.
Environmental Benefits
By producing electricity with zero emissions the CESAR application will offer substantial environmental and health benefits in reducing respiratory disease, acid rain, and climate change. To put this in perspective, with 1200 units operational the annual emissions savings will be equal to the carbon footprint of approximately 300,000 Americans. The greenhouse gas savings are particularly high because the CESAR will be displacing electricity generated by coal.
Unique Performance Characteristics
- The CESAR system generates electricity without the need of fuel or resource. The only system input is exhaust heat energy that would otherwise be wasted.
- The system is designed to operate automatically, whenever the generator engine is running, and can operate continuously.
- No precious metals or limited commodities are used in the manufacture or operation of the system.
- The system requires no special maintenance operations, only routine maintenance which can be performed at the same time as maintenance on the generator engine.
- A failure occurring within the CESAR system would not affect the operation or productivity the generator engine.
Conclusion
The CESAR Landfill system is financially more attractive than existing energy sources such as coal, nuclear, or natural gas, because it requires no fuel of its own. The economic benefits in the health realm are also significant.
TRANSPORT REFERIGERATION UNIT (REEFER) APPLICATION
The CPTI CESAR will produce electricity from a heavy-duty diesel truck exhaust. The electricity generated will be used to power Transport Refrigeration Units (TRUs) which keep refrigerated trailers cold. The objective is for the CESAR heat recovery system to provide all of the energy required by the TRU power system, thus eliminating the currently used separate diesel engine, the fuel consumed, and the emissions created by it.
Potential CPTI Sales Profit
- Market potential of 1 million TRUs operating in the US alone
- Potential for mass production rate of 10,000 units per year by 2015
- Anticipated sale price of $32,000 with a profit of $14,000 per unit, giving a potential annual sales profit of $140 M
The first commercialisation for refrigerated trailers (“Reefers”) is targeted for the summer of 2011 owing to the need to obtain the necessary regulatory approvals and to allow for the appropriate on vehicle system validation.
Environmental Benefits
The CESAR technology has the potential to save 85 million gallons of diesel fuel per year by 2020. That is equivalent to 0.19% of all the diesel fuel consumed for transportation by the United States in 2007.
The level of fuel savings will create a drastic reduction in emissions. Diesel particulate matter (PM) is the deadliest outdoor air pollutant in the United States, causing over 21,000 premature deaths each year. Diesel fuel is also a major source of greenhouse gas emissions. The CESAR technology applied to TRUs will be saving nearly 1 million tons of carbon dioxide emissions (and 1 ton of PM) per year by 2020, equivalent to the carbon footprint of 47,000 Americans (at 20 tons CO2/yr each person)
Unique Performance Characteristics
- The CESAR system is the only product anticipated to be on the market that will eliminate fuel consumption and emissions of TRU diesel engines by up to 85%.
- The system does provide an economic payback, unlike most other emission reducing technologies. An operator could typically save $8000 annually on fuel costs, paying back the cost of the CESAR within 4 years whilst complying with the strictest environmental regulations and taxation incentives.
- The system can be fitted to new or currently operational trucks.
- The system will simply plug into TRUs which have a standby electrical power option. Other TRUs can be modified by replacing the diesel TRU engine with an electric motor.
- The system can be adapted to provide electrical power to other consumers on the truck (e.g. air conditioning). Future developments could allow these consumers to be powered entirely by the CESAR, reducing the parasitic load on the main truck engine thus increasing the efficiencies even further.
Conclusion
The CESAR Reefer application is unique in providing a highly effective environmental solution with economic payback for the vehicle operator.
CPTI - SUMMARY FINANCIAL PROJECTIONS ($M)
| 2009 | 2010 | 2011 | 2012 | 2013 | |
| TURNOVER | |||||
| Truck Refidgeration Units | 0 | 0 | 28.8 | 83.2 | 163.2 |
| Number of units sold | 0 | 0 | 900 | 2600 | 5100 |
| Consultancy | 0.0 | 0.2 | 0.8 | 0.9 | 1.1 |
| Landfill | 0.0 | 1.3 | 60.8 | 184.2 | 253.3 |
| Number of units sold | 0 | 30 | 1389 | 4210 | 5790 |
| Licensing fees (to be negotiated) | 0 | 0 | 0 | 0 | 0 |
| TOTAL TURNOVER | 0.0 | 1.5 | 90.4 | 268.3 | 417.6 |
| COST OF SALES | 1.5 | 2.7 | 55.1 | 160.5 | 247.3 |
| GROSS PROFIT | -1.5 | -1.2 | 35.3 | 107.7 | 170.3 |
| ADMIN EXPENSES | 0.8 | 0.9 | 2.5 | 2.6 | 2.9 |
| NET PROFIT / (LOSS) | -2.3 | -2.1 | 32.8 | 105.1 | 167.4 |
| CASH (BURN) / INCOME BEFORE CAPEX | -2.0 | -1.5 | 37.6 | 106.7 | 137.6 |
| CASH (BURN) / INCOME AFTER CAPEX | -2.8 | -1.9 | 37.3 | 106.4 | 137.3 |
MANAGEMENT AND KEY PERSONNEL
Abdul Mitha-President & CEO, Clean Power Technologies Inc.
Abdul Mitha is the founder and CEO of Clean Power Technologies Inc. Abdul brings more than three decades of domestic and international experience in the management of ongoing and start-up public and private companies and business development.
Mike Burns-Director/ Chief Technical Officer, Clean Power Technologies Inc.
Mike Burns is a highly motivated Automotive Engineer, with proven analytical / practical skills and 32 years of experience within automotive industry. Creative and entrepreneurial, he has the ability to reduce development costs by effectively combining digital and physical analysis having been at the forefront of these technologies for the past 15 years.
Marco Cuccinota-Control Systems Management, Clean Power Technologies Inc.
Marco Cuccinota is a graduate engineer with over 15 years experience including the design and manufacture of performance car engine management systems, control units, water injection system controllers and all types of hydraulic system control units.
Michael Roberts-Product Acceptability Engineer, Clean Power Technologies Inc.
Michael Roberts is a Chartered Mechanical engineer with over 18 years experience of working in vehicle engineering design, development, manufacturing, and in service quality concerns.
His role in CPTI is to ensure that the product is suitable and acceptable to the end user / customer. He will also be responsible for the work required to validate the system for the market sectors that the product can enter.
CONSULTANTS
Cascade Sierra Solutions
Cascade Sierra Solutions (CSS) is a U.S. based non-profit environmental organization. CSS will act as consultants and advisors on matters of regulatory requirements, certification and validation of the CESAR system. CSS is well connected with legislative bodies, truck and equipment manufacturers and vehicle fleet operators
www.cascadesierrasolutions.org
DLM
DLM are Swiss based company with extensive steam experience now specialising applying new technologies to steam locomotives and ships. They are acting as technical auditors of the steam CPT systems.
www.dlm-ag.ch
George McLaine
CPT has appointed George McLaine, who had previously worked for Safeway Corporation, he brings extensive knowledge about the distribution industry and reefer fleet operation.
COLLABORATIVE PARTNERS
Voith Turbo GmbH
With nearly 43,000 employees and sales of over € 4.9 billion, Voith is one of the world's leading companies in the markets of energy and mobility and has been for more than 140 years. The Voith Turbo division manufactures drive systems that efficiently drive and move machinery and vehicles, on land and at sea, safely, reliably, with targets to save energy and reduce emissions.
CPT is working with Voith to develop their compact steam expander for commercial applications.
www.voith.com
NewEnCo/ Renewable Power Systems
NewEnCo was established in October 2001. The objectives for the company were to seek strategic supply agreements with the manufacturers of the latest 'energy efficient' power technology which the company would then seek to market and sell. Renewable Power Systems was established in 1992 since when it has designed, built and operated over 50 landfill gas generation projects in the UK making it one of the industry leaders in this field. CPT will install the first operational landfill system at the Renewable Power Systems site in Abingdon, UK in early 2010.
www.newenco.co.uk
www.renewablepower.co.uk
Safeway North America
In the early part of 2008 an agreement was signed with Safeway North America to allow collection of running data from their fleet in Calgary, Canada and to assist in the deployment of a prototype rig utilising the CPTI technology. A major exercise to collect operating data off trucks in day-to-day service was carried out in Calgary in the first three weeks of July 2008. Safeway will be the first fleet operators to trail the CPT reefer system.
PROJECT DEVELOPMENT AND CURRENT STATUS
Starting in 2007 the concept of heat recovery from a vehicle exhaust to generate super-heated steam was first established and engineering and development of a practical system that could be applied to the very wide range of uses of the Internal Combustion Engine has been taking place over the last twenty four months.
In order to ensure the very highest levels of product acceptability to the end-user, the strategy has been to engage in collaborative ventures with highly respected international businesses to contribute significantly to the overall development process. In the early part of the development the Industrial Plant steam specialists Doosan-Babcock were involved and their expertise was quickly supplemented by Swiss Steam Train specialist consultants DLM. The large German engineering concern Voith GmbH were engaged to develop their proposed modern compact Steam Expander to the requirements of CPTI and to supply prototype units. In the area of vehicle transport applications, the North American grocery giant Safeway was engaged to assist with practical technical data acquisition from their operating missions. Other more diverse North American transport groups such as East West and Farm Fresh Marketing were also brought into the process. More recently the independent US transport efficiency consultants Cascade Sierra Solutions has been engaged to assist with the acceptance of the system in respect of US transportation norms.
Recent testing in the fully instrumented and controlled Laboratory at CPTI's Newhaven, UK R&D Centre has demonstrated the significant potential from the patented 'Clean Energy Separation And Recovery' (CESAR) heat energy recovery system:
From the waste exhaust heat of a 450HP Caterpillar C15 truck diesel engine running at 70% of its fully rated power, sufficient super heated steam was generated from CPTI's patented Heat Exchanger to drive a compact Steam Expander to deliver 23HP from the Expander's output shaft.
This supplementary power amounts to a 7.3% gain in the effective use of the fuel being supplied to the diesel engine allowing less fuel usage, with attendant reduction in emissions.
As the CESAR system can be applied to any internal combustion engine, whether in-vehicle or stationary as in Generator Sets, the same supplementary power and emissions benefits apply.
FURTHER DEVELOPMENTS
Further development of the CESAR system continues with a high level of confidence that output from the Expander will comfortably reach 30-35 HP. This level of power will enhance yet further the benefits in the effective use of fuel and the related reduction in emissions in all applications.
Longer term, the CESAR technology represents the next logical step in the quest for reduced emissions and reduced fuel usage for Internal Combustion Engines. The major world powers have introduced vehicle emission reduction legislation progressively over a number of years and the vehicle manufacturers have responded by introducing ever more sophisticated electronic engine and vehicle control systems. The cost/benefit ratio for this type of approach has now reached the point where the cost implications of further system improvements are prohibitive and recovery of currently wasted exhaust heat is an attractive area to pursue.
The primary business model is that of licensing the technology and initial contacts have been made with likely collaborators to this end. However plans for outsourced production of the system to satisfy the earliest possible commercialisation of the project are in hand.
The development of the 'CESAR' system has consumed some £5.0mto date and the current monthly 'burn-rate' is some £100 thousandset to rise progressively to £150 thousand by 2011. As the programme proceeds, expenditure on resources, facilities and equipment will evidently increase, however with sales revenue kicking- in during 2010, expenditure is offset by predicted profits of £1.5 million per month from the middle of 2012 Financial Year.