Business Plan: H FCI - (C) C E I (-)
Business Plan: H FCI - (C) C E I (-)
Business Plan: H FCI - (C) C E I (-)
Business Plan
And
Northern Nevada
Clean Energy Partnership
Introduction:
HydroFc, Inc. will make a significant impact to the Northern Nevada economy by
building a decentralized, renewable energy infrastructure using multiple “off the shelf”
clean technologies integrated into a coherent unit whose first application is what we are
calling a Clean Energy Charging Station. While our long-term goal is to make a
transition to a hydrogen economy, we realize that there are many transition steps in
getting there. Charging stations that integrate solar, plug in power, hydrogen, and bio-
fuels are the first steps.
As petroleum costs continue to rise, these clean charging and refueling stations become
a stepping stone to our long-term vision of off-the-grid, cost saving, and
environmentally friendly solutions to transportation, commercial and residential power
needs.
Our first commercial project is a small scale Clean Energy Charging Station that will
integrate a variety of clean energy products that will serve an emerging clean energy
transportation sector: it will use solar photovoltaic panels to provide electric power for
Plug in Hybrid Electric Vehicles and through electrolysis produce hydrogen for use in
fleet transportation; and also dispense bio-fuels for mixed energy vehicles.
This new world of renewable clean technologies is not a future oriented “pie in the sky”,
but has already arrived. Throughout the world, private industry has entered into many
partnerships with public entities to plan and implement aspects of clean energy
technologies. Over the last 5 years, the State of California, Norway, Japan, and many
others have started to deliver on-the-ground plug in power stations, bio-fuel
dispensers, and hydrogen fuel cell stations for new, renewable energy transportation
infrastructure and also decentralized solutions to the power needs of manufacturing and
residential customers.
In California, a public private partnership begun in 2005 has built 30 hydrogen fuel cell
stations on the I-5 highway corridor as of 2008 with an anticipated use of 10,000
vehicles by 2010. Other companies have delivered plug in power stations for Plug in
Electric Hybrid Vehicles.
The Clean Energy Charging Stations will be a turnkey, commercially viable method of
delivering multiple clean technologies in one location. And, we push the emergence of
co-generating hydrogen production integrating two renewable energies, solar and
hydrogen into a powerful combination.
A Powerful Combination: Solar/Hydrogen Hybrid
HydroFc, Inc. will be rolled out in multiple phases, each with its own milestones,
financial, technical and managerial requirements. Our first project is the construction
of a small commercial scale Clean Energy Charging Station. It would have a
Solar/Hydrogen plant capable of producing hydrogen and also be a charging station for
Plug in Electric Hybrid Vehicles as well as a dispenser of bio-fuels. This plant would
begin to supply the needs of the developing hydrogen-powered Northern Nevada mass
transportation fleet. These include the bus fleet of the Washoe County School District
and the Regional Transportation Commission. Also, we envision the steady conversion
of the passenger fleet of local municipalities, Washoe County governments, and State
and Federal governments to hydrogen power and other clean fuels. This will begin to
generate revenue for the project in its first phase.
While we realize that the overall scope of our long-term objectives is extremely
ambitious, the times we live call for bold initiatives. No one business, public entity, or
organization can solve a problem of such magnitude and that is so fundamental to our
complex society as that of forging a clear path from fossil fuel dependence to clean,
renewable energy security and community economic growth, especially in these
insecure and recessionary times.
We are also initiating the Clean Energy Institute, a non-profit organization whose
purpose is to support the vision of clean energy by being a facilitator of a broad
partnership in Northern Nevada. The Northern Nevada Clean Energy Partnership uses
a proven model of private/public partnership with its multi-stakeholder approach.
On the private investment capital side, we are seeking a broad team of investors to
support a developing team of engineers, project managers, technology experts, and
other skilled trades needed to complete the first phase of the project---the first
hydrogen production facility.
On the public side, we have received endorsement from scientists from Desert Research
Institute and University of Nevada Reno who have agreed in principle to allow us to
build the first Clean Energy Charging Station on land and offered to work with us on the
technical aspects of development and operation.
Back-Up Power
Industrial Applications
Fleet Fueling
Community Fueling
Home Fueling
OUR MISSION:
HydroFc, Inc. and the Clean Energy Institute are committed to promoting the
commercialization of hydrogen fuel cell and other green energy technologies as a
means of moving towards a sustainable energy future, creating green jobs, increasing
energy efficiency and reducing or eliminating air pollution and greenhouse gas
emissions.
SUMMARY GOALS of a Partnership:
Create early commercial markets, starting with the roll out of the Clean Energy
Charging Station, and deploy the new technology to the end user immediately.
Develop a coordinated, integrated hydrogen and green energy delivery
infrastructure by building nodes of new energy clusters. This will include
hydrogen manufacturing plants, distribution capability (tankers), satellite Clean
Energy Charging fuel substations for fleet and private transportation, hydrogen
fuel/Clean Energy Charging stations on the I-80 corridor, and stationary SHH
units for commercial and residential applications.
Identify key stakeholder champions who will continually promote the Northern
Nevada hydrogen fuel cell industry, the Clean Energy Charging Station model
and all other clean energy alternatives.
Educate government, public, media, and potential end-users about the long-
term benefits of hydrogen fuel cells, solar, wind, geothermal, and biofuels.
Encourage investment in demonstration projects and purchases of hydrogen
fuel cell and clean energy products
Ensure that a widespread market is developed
For private drivers and also fleet automobiles and buses, it means living free from oil
and pollution while enjoying considerable cost savings over petroleum.
Powering low and zero-emission fleet buses and cars with affordable, clean
renewable energy
For private vehicles, cutting our fuel costs by fueling vehicle eventually from the
home SHH unit
For home, commercial and industrial uses, stationary SHH units will be scalable to the
energy requirements of a particular application.
For The Nevada Region and Rural areas
For the planet itself, it means breaking an addiction to oil and accelerating climate
recovery:
Michael Finazzi, President and Board Member- Mr. Finazzi’s responsibilities include
the day-to-day operations of the company, strategic planning, business development,
and investor relationship. Mr. Finazzi has more than 15 years of mechanical
engineering experience including supervising teams of engineers in companies such as
Global Turbocharger and Hamilton. His recent experience in the petroleum industry at
Clean Fuels Technology/Sulphco led him to oversee the construction of large industrial
plants and his ideas generated tens of millions of dollars in revenue. He is uniquely
positioned to apply these skills to the new energy applications of solar, hydrogen, and
other clean fuels. Mr. Finazzi also has numerous years of design and fabrication for
the automotive industry and the aerospace industry.
John Miller, Consultant- Mr. Miller is responsible for the sales marketing and strategic
planning. Mr. Miller has an extensive background in business and corporate
development. Mr. Miller has expertise in brand growth strategies, customer
segmentation modeling, brand equity analysis, future scenario planning, new product
development and integrated market planning development. Mr. Miller has been
engaged by multiple fortune 500 companies including GTE and General Dynamics.
The company’s first step is to use the first round of financing to build a small
commercial Clean Energy Charging Station that has a Solar/Hydrogen plant producing
24kg/day Hydrogen a day that can serve regional transportation needs for the small but
growing fleet bus transportation needs. We will work with our scientific partner Desert
Research Institute who will do testing and explore ways of increasing efficiencies. This
station will also provide charging for Plug in Electric Hybrid Vehicles and bio-fuel
vehicles.
The second step is to raise additional money to build a hydrogen plant capable of
producing 1,000 kg/day and to build several “satellite” Clean Energy Charging Stations.
These would be refueling substations providing plug in power, hydrogen, and bio-fuels.
This will serve the fleet transportation needs of our regional governmental partners who
choose to move with us toward hydrogen conversion of their fleet. We will expand to
the construction of an additional 2 plants in the Northern Nevada region.
The third step is to work with our auto industry partners and the NNCEP to build two
hydrogen refueling service stations along the I-80 corridor.
The fourth step is to scale the model across a larger group of customers and
geographies selling the commercial scale model, as a product and providing small
commercial, industrial, and residential power units. Due to the competitive advantages
with neighboring states, HydroFc, Inc. is focused on the Northern Nevada Market and
will begin to move in the direction of the rural northwestern United States.
Growth Strategy
To develop a self sustaining community free of using foreign oil that can
generate its own photovoltaic electric power and hydrogen powered fuel cell
technology (Cogeneration) mixed with other clean energy technologies.
Business Model
HydroFc, Inc. business model is centered on its Clean Energy Charging Stations. The
first will be a Solar/Hydrogen charging operation generating revenue in its first phase.
Revenue will also be generated by selling plug in power and dispensing bio-fuels. The
Clean Energy billing engine has several inherent benefits including 1) Recurring revenue
thru the production of hydrogen, plug in power, and bio-fuels providing a fuel for
transportation. 2) Monthly rental and/or purchase of the charging station and monthly
production of residential/commercial power for large scale plant production using
photovoltaic cells. 3) Gross revenue for individual charging stations and the selling and
trading of Carbon Credits.
SECTION III FUNDING THRU INVESTMENT AND ORGANIC STRATEGY
Funding Requirements
HydroFc, Inc. projects that it will need $3 million of additional capital to further build
the operation and growth infrastructure and to fund acquisitions until the company is
cash flow positive in 2012. HydroFc, Inc will pay for the majority of the operating
infrastructure by contributing start-up capital of approximately $1.4 million during the
course of 2009 and 2010 via grants and guaranteed government Loans.
Should the company not be able to execute an Investment Strategy, management will
grow the company organically. While the cash flow break even point will occur
approximately two quarters later, the amount of funding needed is reduced by over $1
million. The major use of funds is operating the business while the company scales to
profitability as shown in the table below.
CONCLUSION
We are in the middle of one of the greatest transitions in history. The world economy
has imploded. In every sector of society, organizations look for alternatives to the
unstable dependence on non-renewable resources and foreign oil. With budget
cutbacks, each community and local economy is now trying to figure out how we are
going to survive and make it through this period. In a time like this, it all gets down to
basics and what is important---finding ways for people to work together. And, as in the
past, the engine of creativity, innovation, and entrepreneurship gets stimulated and
great things can be accomplished.
To build the new economy, we need to deploy clean, decentralized, renewable energy
infrastructure in Northern Nevada. Before we can bring together the existing new
technologies into a coherent foundation, we need to build our social infrastructure.
Stated simply, it’s time for a new Clean Energy Partnership of those already working to
make a new energy future to come together and loosely coordinate and implement a
common vision that we all create together.
HydroFc, Inc. has made a modest business proposal to get the ball rolling---Clean
Energy Charging Stations. By bringing together multiple existing technologies as well
as pushing the envelope on emerging technologies, we start the process of
commercialization that will take us step by step together on a road toward community
and energy independence.
SECTION IV APPENDIX----TECHNICAL BRIEFING
A small production model will use bisource renewable energy (Solar Power and a PEM
Fuel Cell).
Solar panels:
Schott is a US manufacturer of industrial grade solar panels, panels built for reliability
and long life. Their solar manufacturing company has developed high quality semi-
crystalline solar panels that provide high power in a moderate sized panel. Each of
these panels is rated at 290 watts of very reliable solar power. The Solar panels are
covered by a 20 year, 80% power output warranty and a 5 year manufacturer's
material and defects warranty. For this application you would wire these panels in
groups of 8 panels with the 8 panels wired in series using the built-in Multi-Contact
solar connectors. The two sets would then be connected together using 2 multi-contact
2-1 combiners. These combiners would then be connected to the Xantrex Grid Tie
inverter using the 2 cut pieces of the 100' multi-contact male/female ended wire I
supply as part of this package. These panels are well suited for industrial building roof
mount or ground mount so you have lots of options. Please note that any of the high
wattage panels are in short supply and delivery will be on a first come first served
basis.
Inverter:
This package is designed to deliver up to 5.0 KW of power back to the utility in a grid-
tie system. The package of panels included in this auction is designed to meet that full
output with full sun days. This Xantrex GT 5.0 KW inverter takes the series wired DC
power from each set 8 solar panels and converts it to 208 or 240 VAC and delivers that
electricity to the utility net meter. The inverter has a built-in charge controller and will
handle up to 600 volts of input DC power. This package is very easy to install and wire.
Just 3 wires from the solar panels (DC +, DC -, and ground) into the inverter and 3
wires out to standard breaker box (per NEC 2008, 240 VAC (2 wires without common)
and ground). The inverter itself can be installed inside or outside and additional
inverters can be added for future expansions.
GT 5.0 KW Specifications:
The cost of these panels is estimated at $30,000.00 per set of 18. The installation cost
per set of each panels is around $5,000.00 to $10,000.00. The total cost of
($40,000.00 * 6 sets) is $240,000.00. Total amount product is 30 KW.
Solar panels will be connected directly to a deep cell battery having 12 volts. These
deep cell batteries will provide enough power to each PEM Fuel cell (Hydrogen
Refueler). The hydrogen generators use electric current to convert deionized water into
pure hydrogen.
Reinforced
Tanks
Figure #1
As depicted in Figure #1 Solar Panels produce enough power to run the generator
system. The water and power feed the generator/compressor. The system uses two
small compressors that provide hydrogen at 700 bar (10,000 psi) hydrogen
compression system is integrated into the reactor package. There are two compressors
that are four stage air-cooled, oil-lubricated piston type reciprocating compressors. The
compressor motors are 7.5 kW (10 hp), 480 V, 3 phases, 60 Hz, 1800 rpm motors.
(Note the cost to product this small scaled reactor/compressor will be outsourced to
Hydrogenics)
The compressed hydrogen is stored in 700 bar (10,000 psi) lightweight, aluminum-
lined, carbon-fiber-reinforced cylinders (174 liters water volume each) shown in Figure
#1, which are manufactured by Dynetek Industries Ltd. The hydrogen is dispensed
through a 700 bar (10,000 psi) dual hose hydrogen / compressed Hydrogen dispenser
supplied by Hydrogenics.
Mechanical piping for the hydrogen station was designed using CSA B51-03, Part 1
(Boiler, Pressure & Piping Code). Calculations will be made to ensure proper flow
capacities to the dispenser. Since there are no existing codes available for hydrogen
stations, HydroFc, Inc will be working with the State of Nevada to review the station
design. The code requirements of the for natural gas vehicle stations will be used as a
basis for the design and construction of the station. The electrical and computer
controls will be done to Class I Division I Nema 4X (intrinsically safe). These designs
will be outsourced to ensure state and local code requirements.
Contact Information: