Why and how of the CG4 Article material Initial target will be high volume cast iron boiler appliances that have been approved in our application lab. Market is likely to grow if gas prices stay at current ratios to oil. Political factors will also drive conversion. The CG4 has commonly available components, familiarity of burner, combustion efficiency, easy installation and service, and an advanced burner control. Contractors get fast set up, reliable performance, quick diagnosis, and easy repairs. Distributors stay sold, consolidate vendors, increase BAS rebate, and have components already in stock. Homeowners won’t need to replace the boiler to utilize gas, which can be a third of the cost for switching – $2-3.5K vs $6-10K – and the get the flexibility of using either fuel in future. CG4 utilizes easy access rate discs that are interchangeable to accommodate rate changes. Contractor does not have to drill or modify gas orifices. Gas valve can be mounted to the left or right of burner which allows for flexibility in mounting burner to gas piping. (Easier Install) Removable nozzle assembly enables easy servicing of electrodes and flame rod. Distributors can stock a chassis and welded insertion combination to cover many different boiler brands and sizes. This allows for contactor to get a burner that is set up very close to the application settings. High oil pricing and low cost gas (Shale Gas), political pressure to move away for oil, anti-drilling and anti-foreign oil posture in Washington, economy driving towards retrofit vs. new installation, and expanding natural gas infrastructure will all affect this project. The CG4 has commonly available components such as Beckett PSC motor, blower wheel, and 24 Volt Direct Ignition gas valve. The CG4 will use the “F” style combustion heads (similar to current F3, F4, and F6) and similar air adjustment methodologies. The advantage to the “F” head is the familiarity that the market place has with it, the distributors, the oil dealers and contractors are all comfortable with it. CG4 can operate at a higher efficiency than competitive gas burners because our proven combustion technology enables wide operating window with minimum excess air. Operate the appliance at the specified rate. We can provide a single source vendor to our OEM customers. Burners will be easy to install and service, with a user-friendly installation process. Beckett can provide a high quality product that performs well in many different applications. Beckett’s lead time and customer service is a major value to the conversion burner market place. Our OEM customers are looking for a single source vendor for their burner needs and a better quality burner. The conversion burner market place is looking for a better quality burner with better lead times and customer service. We will create a CG4 gas burner to operate in the range of 70,000 to 250,000 MBH. The scope of the project would include 120V components (also 24V control string), utilizing the existing AFG housing, design of a new, lower cost gas gun assembly using the Beckett “F” combustion head and have the ability to use existing Field fresh air boot and cover as accessories. This burner will use the F3, F4, and F6 combustion heads. Burner will be able to be sold as a chassis and welded insertion or as a complete package if the user knows target appliance. At initial launch we will not offer adjustable flange approach that will allow application to any appliance. Target appliances will be US Boiler 3, 4, 5 Section cast iron boilers, Weil McLain 3, 4, 5 Section cast iron boilers, PB Heat 3, 4, 5 Section cast iron boilers. The gas powered burner operating from 70,000 BTUs to 399,000 BTUs is around 20,000 burners a year. This market covers industries such as temporary construction heaters such as ICE and Campo. It also covers the specialty burners for pressure washers and the oven industry. There is also the conversion burner business which is sold through our distributor market place. The success of our CG10 gas burner gives us a platform as to which we can expand our burner offering. Why and how of the CG4 Background Information OEM target price is $400 - $450, Distributor Target - $500 - $550. Distribution channels are existing distributers, some Buy-Sell Reps, OEMs (Thermopride), New OEMs (Empire ovens). This product will win in the marketplace with great performance in target applications, Customer and Tech service, on time delivery, high quality, training, standard parts, GeniSys control, easy installation, and easy service. The brand will be Beckett CG4 Burner. Burner will carry 18 month warranty. Common oil burner components will fall under standard 60 month warranty. New gas burner components will fall under standard 18 month warranty. Warranty on complete burner will not be validated until card is returned (TBD). Card can be returned via mail in card (To be developed) self-addressed postage included or online registration (Serial number lookup). Our OEM customers purchase Riello or Midco burners. ICE makes their own, which is very expensive. For the conversion burner market place our distributers purchase Carlin, Midco and Riello. Desired Business Impact: Create a burner to fill in a product gap and gain market share from Wayne, Carlin, and Riello. Provide incremental sales through the growing small gas burner market. Primary target applications are gas conversion and construction heaters. Secondary targets will be commercial cooking, agricultural, pressure washer, and process heating applications.