Upload
daniella-baldwin
View
216
Download
0
Tags:
Embed Size (px)
Citation preview
1
1
Environmental Industries Capital Markets Day
2nd March 2007
2
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
3
Directors
Energetix Group plc
Non Executive Directors Executive Directors
Alan AubreyChairman
Anton ElsborgNon Executive
Adrian HutchingsChief Executive
Rick SmithFinance Director
Bryan Gray MBENon Executive
Bill FortescueCEO Genlec
Andrew HintonMD Pnu Power
What is mCHP?
Micro CHP is a domestic boiler that also produces electricity for the home
How Genlec mCHP works
Boiler unit + Genlec = mCHP
Genlec module
Scroll expander & generator
Fluid pump
Heat exchangers
Refrigeration cycle in reverse
International Patent Protection
1
2
3
4
Low pressure liquid
High pressure liquid
High pressure vapour
Low pressure vapour
Cycle repeats
Scroll expander
Normal boiler unit
Fluid pump
Normal hot water pump
Heat exchanger
Hot water & heating
Electricity
Cold water feed
ORC module
1
2
4
3
Energetix Genlec
•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
Boiler unit
Energetix Genlec module
mCHP - Comparisons
Genlec Fuel Cells Stirling Engines
HE CondensingBoiler
Wall hung (98% EU market) X
Operates like a boiler X X
Produces Electricity X
Time to Market September 2008 09/10/11/12? Small vol. now Now
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
Benefits - mCHP
Problems: mCHP addresses the issues:
Peak demand creates negative margin Produces electricity at peak times
High (and increasing) cost of gas Reduces demand
Shortage of gas during winter periods Reduces demand
Wasted cost in transmission and distribution No cost
Requirement for clean energy generation CO2 savings – Government support with 5% VAT
10% Generation Losses
35%energy
available to the home
90%energy
available to the homeHighly Efficient Micro CHP Generation
60% Generation LossesNatural Gas
5% T&D Losses
Inefficient Central Power Generation
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)
Benefits - Genlec
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
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
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)
Pnu Power
Provides uninterruptible power to protect against power loss
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
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
Cold air
Air cylinders
Scroll
Exhaust
Electricity
Controller
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
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
Source: Frost & Sullivan
2006 2007 2008
Energy storage for UPS £1.23bn £1.26bn £1.33bn
Addressable market size £1.01bn £1.04bn £1.09bn
Market Issues – Pnu Power
Battery Room Explosion
Problems with incumbent VRLA Batteries: Pnu Power addresses the issues:
Short life span Long year life in automotive and A/C applications
Highly unreliable Highly reliable core technology
Require environmental and temperature control Does not require environmental and temperature control
High life cycle costs Major life cycle savings
Cost of disposal Scrap value on disposal
Economics
Life Cycle Cost Comparison – Pnu Power vs Batteries
CumulativeCost £
Pnu Power can deliver up to 70% life cycle savings
10,000
20,000
30,000
40,000
50,000
60,000
70,000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Years
£
Pnu Power Batteries
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
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
22
Substantial MarketsSubstantial Markets• micro CHP market demand• UPS needs battery alternative• Near term revenue
Smart EngineeringSmart Engineering• Low cost products• Fast to market• Protected IP
Component SupplierComponent Supplier• Fits with existing products• Low capital investment• Rapid ramp-up capability
Summary