Drive The Light Ltd. Generating Green Energy from Road Bumps PROJECT PLAN SUMMARY 2014 For more information please contact: Tel: +972 52 5673388 CONFIDENTIAL. This material is proprietary, strictly confidential, and provided with the understanding that it will be held confidential. No part of this material may be disclosed to any third party, copied, reproduced, distributed or stored on any type of media or otherwise used in any way without the express, prior written consent of the Company. This document does not constitute an offer to sell or a solicitation of an offer to purchase. Drive the Light Ltd – Project Plan Summary Table of Contents 1. EXECUTIVE SUMMARY .................................................................................................... 3 OVERVIEW ....................................................................................................................... 3 2. OUR OFFERING ................................................................................................................ 4 Bumper-On© ..................................................................................................................... 4 ENERGY PRODUCED ...................................................................................................... 5 POTENTIAL ROAD LOCATIONS ...................................................................................... 5 RAILROADS ....................................................................... Error! Bookmark not defined. VALUE PROPOSITION ..................................................................................................... 6 INTELLECTUAL PROPERTY ............................................................................................ 6 3. MARKET OPPORTUNITY ................................................................................................. 7 4. BUSINESS ......................................................................................................................... 8 STRATEGY FOR GROWTH .............................................................................................. 8 COMPETITIVE LANDSCAPE .............................................. Error! Bookmark not defined. DEVELOPMENT PLAN TO COMMERCIALIZATION .......... Error! Bookmark not defined. 5. MANAGEMENT TEAM ...................................................................................................... 9 OUR TEAM ........................................................................................................................ 9 CONFIDENTIAL Page 2 Drive the Light Ltd – Project Plan Summary 1. EXECUTIVE SUMMARY OVERVIEW Commercializing clean energy technologies can be a profitable enterprise and is moving steadily into mainstream business to become the next engine of economic growth. As a vehicle slow or come to a stop at toll plazas, traffic calming areas, and countless other roadway points, the motion energy, derived from the burning of fossil fuels, is dissipated in brakes and lost as heat to the environment. We have developed a proprietary, innovative solution, Bumper-On©, to capture this kinetic energy to generate electricity. The key benefit of the system is that it harnesses energy that would otherwise be lost, and does this without interfering with the thousands of cars and trucks that will pass over every day. Drive the Light Ltd, is a privately owned company, founded December 2007. We have developed a proprietary, innovative solution, Bumper-On©, for generating electricity by converting kinetic energy (the energy of motion) from a vehicle as it passes over a road bump. Bumper-On© is designed to be used in driving environments where small bumps on the road do not interfere with normal traffic flow, for example replacing existing speed bumps or at entrances to large car parks or shopping centres. Bumper-On© is relatively unobtrusive, smoother than current speed bumps, and safe for all road users. The system is designed around standard materials and components to reduce costs, and will require minimum ongoing maintenance. We have already filed for patent protection under PCT application. Our system offers a clear value proposition to all the key stakeholders - investors, city authorities and road operators, with strong economic and environmental benefits: o Generates local “green” electricity at a very competitive price o Road users generate the electricity used to power road lightening and traffic signals as well as supply other local and global electricity needs o The system is installed where it does not interfere with normal traffic flow. Our company provides an excellent solution for renewable energy production, to be used at requestor's facility. CONFIDENTIAL Page 3 Drive the Light Ltd – Project Plan Summary 2. OUR OFFERING We have developed an innovative and patented solution for generating clean electricity by converting the kinetic energy (the energy of motion) from a vehicle as it passes over road bumps. Our system, Bumper-On©, helps a vehicle slow down, capturing and converting part of the vehicle’s wasted kinetic energy into useful electricity rather than wasted brake heat. Bumper-On© All vehicles in motion possess kinetic energy. The amount of this kinetic energy is based upon the vehicle’s speed and weight. The First Law of Thermodynamics states that the amount of energy in the universe is constant. Energy cannot be added or taken away, created or destroyed. It can only change from one form to another, like heat to light, chemical energy to electrical energy, or chemical energy to mechanical motion. When a moving vehicle slows down, it wastes some of its kinetic energy in the process of braking. Bumper-On©, helps a vehicle slow down and so captures and converts part of the vehicle’s wasted kinetic energy into useful electricity rather than wasted brake heat. Bumper-On©, consists of a number of consecutive flaps placed in the road. The flaps will be covered in a flexible, non-metal sheet to avoid any problems with vehicles skidding and to protect against dirt or moisture that may harm the mechanism, as illustrated in Figure 1. The flaps are pushed down when a vehicle passes over it. A specially designed mechanism rotates a flywheel connected to an alternator to produce AC or DC current. The electricity generated can be used for any nearby consumption, like to power users' lighting, traffic lights etc. This electricity can also be sold to the electric company’s power Figure 1: grid or replace the need for power generators. By connecting the voltage output to power meter and a synchronization device, the operator can measure the exact output produced by the apparatus. Each flap, shown in Figure 2, returns to its upright position by a spring until the next vehicle passes over it. Two versions will be available, one for traffic travelling in a single direction, and another version for traffic going in either direction. The energy generated by this device actually comes from the fossil fuels burned inside the CONFIDENTIAL Page 4 Drive the Light Ltd – Project Plan Summary engine of the passing vehicle. The benefits of the system is that it harnesses energy that would otherwise be lost, without interfering with the thousands of cars and trucks that will pass over it every day. Bumper-On© is silent in operation, causes no discomfort to the vehicles occupants, and is entirely safe for all road users. Figure 2: Single Flap Bumper-On© is designed for low installation and maintenance costs. The system will be in a selfcontained box ready to be inserted into a pre-dug hole in the road for installation. It can also be easily removed for ongoing maintenance and repairs. ENERGY PRODUCED The amount of kinetic energy a vehicle possesses is based on the vehicle’s speed and weight. The faster the vehicle is moving and the heavier it is, the more kinetic energy it possesses. The actual electricity generated by Bumper-On© will depend on the frequency and weight of traffic. Example 1 Estimated 1000 trucks weigh 10T-20T will pass through 3 inbound and outbound gates every day. Thus, 80 trucks will pass the system every hour, generating 2.1kWh per single system of 10 flaps. This traffic volume would result a non relevant ROI for this system. Example 2 Estimated 9000 cars weigh 0.8T-1.5T will pass through 2 inbound and outbound gates during 9 hours every day. Thus, 2000 cars will pass the system every hour, generating 6.6kWh per single system of 10 flaps. In average, 50 systems would produce estimated 3.3MW per hour, if installed in such facility. This traffic volume would result an attractive ROI. POTENTIAL ROAD LOCATIONS Bumper-On© is designed to be used in low to medium speed environments, where it does not interfere with the normal flow of traffic. There will also be markings to alert drivers to its presence. Bumper-On© can also be installed on highways which are crowded during rush-hours. The system will protrude above the surface when traffic is slow, and will be flush with the road surface when traffic is fast moving. Examples of suitable locations include: Replacing existing speed bumps, Entrances to large car parking areas, Approach entrance to toll-booth on highway, CONFIDENTIAL Page 5 Drive the Light Ltd – Project Plan Summary Traffic roundabouts, Large truck and warehouse depots, City streets with reduced speed limit, VALUE PROPOSITION Our system offers a clear value proposition to all the key stakeholders - investors, city authorities and road operators with strong economic and environmental benefits: Generates local “green” electricity at a very attractive price. We estimate the cost per Khw will in line with grid-generated electricity and far more competitive than other green sources of energy. Bumper-On© also needs a relatively low up-front investment compared to other green technologies such as solar panels, wind farms etc. The system is installed where it does not interfere with normal traffic flow, for example replacing existing speed bumps or at entrances to large car parks or shopping centres. Road users generate the electricity used to power road lightening and traffic signals as well as supply other local electricity needs. Our technology functions as an energy harvester and converts the vehicle’s wasted kinetic energy into useful electricity rather than allowing that energy be wasted as brake heat. INTELLECTUAL PROPERTY Our success is dependent upon our proprietary technologies. We rely on a combination of patents, trade secrets and know-how including the skills, knowledge and experience of personnel for competitive advantage. To protect our proprietary technologies, we have been granted patent protection worldwide, including PCT, USA, Europe, Canada, Mexico, South Africa and Israel. CONFIDENTIAL Page 6 Drive the Light Ltd – Project Plan Summary 3. MARKET OPPORTUNITY “The world faces many challenges, but none more important than taking immediate and decisive action to develop new, inexpensive clean-energy sources that avoid the negative effects of climate change.” Bill Gates, Chairman, Microsoft. Corp.1 Green energy is the term used to describe environmentally friendly sources of power and energy. In particular, green energy must have these two characteristics: be renewable, and non-polluting. The market for clean, renewable alternative energy sources is driven by global population growth, rising demand for electricity, soaring prices for fossil fuels, and concerns about carbon dioxide emissions contributing to global warming. Global demand for electric power is expected to increase from 14.8 trillion kilowatt hours in 2003 to 30.1 trillion kilowatt hours by 2030, according to the Energy Information Administration, (EIA). To meet this demand, the IEA estimates that investments in new generating capacity will exceed $4 trillion in the period from 2003 to 2030, of which $1.6 trillion will be for new renewable energy. Sustainable energy worldwide continues to attract strong capital investment at all stages of the financing lifecycle. Total global investments in renewable energies were $100 billion in 2006, and reached an estimated $120 billion in 20082. Recent investment trends: Renewable energy markets are growing more global and enjoying easier access to capital markets; Capital is coming from the venture investment community, the stock markets and internal financings, showing the sector's a shift to a more mainstream status; Many investors are looking to reduce risk and uncertainty through diversification across technologies and geography. Many countries have introduced incentives to encourage production of green energy, including subsidizing each KWh generated. In 2009, policy targets existed in at least 73 countries, including 45 countries with feed-in tariffs. In the United States, for example, 18 states have issued rules known as “Renewable Portfolio Standards” as incentives for renewable energy. These require as much as 20% - 25% of the power used in the state in the future to come from clean energy sources. The UK introduced Renewables Obligation (RO) in 2002. The RO places an obligation on licensed electricity suppliers to source an increasing proportion of electricity from renewable sources. In 2007, RO reached 6.7% of all electricity generated and is expected to rise to 10.4% by the period 2011-12, and then by 1% annually for the next five years. 1,American 2 Energy Innovation Council, A Business Plan for America’s Energy Future. June 2010 http://www.ren21.net/pdf/RE_GSR_2009_update.pdf CONFIDENTIAL Page 7 Drive the Light Ltd – Project Plan Summary Another interesting example is Google, the Internet search engine giant. Google announced in November 2007 a new strategic initiative known as RE<C, (renewable energy cheaper than coal) where the company will invest hundreds of millions of dollars in breakthrough renewable energy projects that generate positive returns. There are very strong market opportunities for green energy from road traffic. There are estimated to be over 250 million registered vehicles in the United States alone. According to the Environmental Protection Agency, these vehicles drive more than 6 billion miles every day. 4. Location and Specific Design Estimated 9000 cars weigh 0.8T-1.5T will pass through 2 inbound and outbound gates during 9 hours every day. Thus, 2000 cars will pass the system every hour, generating 6.6kWh per single system of 10 flaps. In average, 50 systems would produce estimated 3.3MW per hour, if installed in such facility. To install 50 systems, road length of approximately 150m is needed. It can be divided to 3-5 sections, probably both at inbound and outbound lanes. Detailed design of system installation would require sound understanding of site location, foundations (concrete/asphalt, power grid connections etc). Installation plan would include minimizing civil works time and interference, labor, in and out lanes available for diverted traffic. Bumper-On© is designed to minimize maintenance effort and time. Each system is installed in a pre-dug hole, so the whole system can be taken off for maintenance, while a temporary system is installed in the meantime. We estimate such replacement to be made during night hours, and to take 1-2 hours (including testing and commissioning). System is built of metallic welded frame, moving and rotating parts, electrical wiring and storage device and power production monitoring. Local manufacturing facilities can be used for units' production, installation and maintenance. System is designed for high reliability, including surface plate, moving and rotating parts. System is designed and will be tested for environmental conditions (temperatures, shock and vibration, splash etc). CONFIDENTIAL Page 8 Drive the Light Ltd – Project Plan Summary 5. MANAGEMENT TEAM OUR TEAM Our management team has the proven entrepreneurial, managerial, and technical skills and experience to succeed in expanding this innovative company. We combine business savvy as well as industry experience and expertise in the field of engineering. As our business grows, we plan to recruit additional experienced professionals to complement our management team. Ron Chen –Founder, President Mr. Chen is the inventor of Bumper-On and founder of the company. He is experienced senior manager. His positions include CEO of Netanya Science Center, and CEO of Innovative Patents Ltd. Mr. Chen has a LL.M in Law. Ben-Tsur Joseph – CEO Mr. Joseph brings valuable experience in management and international business development. His positions include General Manager of D.I.G. Ltd, Director of Marlaz Ltd (both are public companies developing high-tech products), and Chairman of Elad Hotels. CONFIDENTIAL Page 9