Powering a Clean Tomorrow™
Cool Energy, Inc.
Turning wasted heat into clean
electricity with up to 100% IRR
5541 Central Ave, Suite 172 - Boulder, Colorado 80301
(303) 442-2121 - www.coolenergyinc.com
Cool Energy Overview
Daily, millions of $$ are
wasted up exhaust stacks
• ThermoHeart Engine makes
clean electricity from wasted heat
• Customer payback as short as 1 year
• Current sales of product & licenses
• 7 patents issued, 3 pending
• Sophisticated engine models
2
Market Entry Strategy
Of 15GW of applications CEI
could serve, focused on two
•
•
•
•
1500 trillion BTU wasted by US industry
15 GW US generation, 50GW world
Other companies serve large applications
CEI serves $50B small application
segment of $150B total market
• 1st Markets: pollution control equipment
($500M) & diesel gensets ($2B)
3
Waste Heat Recovery
•
•
•
•
•
4
Niche#1: Thermal Pollution Control Equipment
End-of Pipe air pollution control equipment
$2B annual sales, $500M potential WHR add-ons
EU and Japan best current markets
10-12% market growth in Asia
Targets 24/7 processes: chemical mfg, food
processing, refineries, kilns
Thermal Pollution Control
Heat Recovery Schematic w/heating
320º C
1000 scfm
750º C
1000 scfm
375º C
1350 lpm
Heat
Rejection
Radiator
206kWth
Therminol
HTF Loop
284 kWth
80º C
290º C 250 lpm
1350 lpm
AC or DC
Electrical Load
5
78 kWe from
ThermoHeart
Water/glycol
60º C
Heating loop
250 lpm
130kWth
Space and Water
Heating Load
1000 scfm Direct Fired Thermal Oxidizer
78 kWe total from
ThermoHeart WHR
system
114º C
1000 scfm
4x 25kWe ThermoHeart
Engines (2-stage config)
Waste Heat Recovery
Niche #2: Diesel & NG Genset Exhaust Gas
• 5% to 10% power boost
• 1 Year payback @ 6000
hours/year
• >$2B annual market
• Live demo in 2013
• 7% power boost
• Does not reduce genset
performance
• Simple exhaust hookup
6
WHR from Remote Gensets
•
•
•
•
•
7
Mining, oil & gas, islands dependent on diesel
Stirling WHR improves genset efficiency 5% to 10%
Diesel genset electricity costs >$0.35/kWh
Cool Energy engine modules can be used in arrays
300K units <200kW sold per year, 33K > 500kW
Customer Value – 25kW WHR
Payback (yrs)
@$0.15/kWh
Payback vs. Annual Operating Hours
15.0
10.0
5.0
0.0
1752 2628 3504 4380 5256 6132 7008 7884 8760
Annual Operating Hours
Simple Payback
7000 hours/yr,
7% loan
NO SUBSIDIES
or INCENTIVES!
8
Elec Rate
$0.10/kWh
$0.15/kWh
$0.25/kWh
$0.35/kWh
Payback
IRR
4.0 years (US)
25%
2.5 years (Calif)
40%
1.5 years (Italy)
67%
1.0 years (genset) 100%
Cool Energy ThermoHeart Engine
25kW Stirling Engine
•
•
•
•
•
High efficiency, great customer IRR
3-year service interval (20,000 hours)
Novel thermo-mechanical layout
Clean and very quiet
Modular design for systems 25 – 500 kW
Cool Energy Small ORC
Solid State TE
Cost/Watt
$2.50
$2.50 -$3.50
$5-$10
Efficiency
30%
25%
10%
O&M-$/MWh $13
$15
$5
Temp range
100-400C
100-400C
350-650C
Power
25-500kW
125-500kW
10W-25kW
Ormat, GE
Alphabet
Companies
9
Technology & Deployment
3kW ThermoHeart On 24/7 Test
P0 - 50W
<5% eff.
10
Jan
2007
In demo
3x P3 - 3000W
P2 - 2,000 Watts
P1 - 350W
10% eff. 16.5% efficiency @ 230°C 22% efficiency @ 275°C
Jan
2008
Jan
2009
Jan
2010
Jan
2011
Jan
2012
25kW
In build
25kW First Unit Parts Arriving
11
Marketing and Sales
12
– Building sales pipeline:
20 units - 2015, 200 - 2016, 1500 - 2017
– Sales of $5M in 2016 and $45M in 2018
– Schneider Electric has 3kW engine on test
– Quotation to Schneider for 8 25kW engines
– Sales & licensing agreement with Edisun
– Discussions ongoing with
• Fortune 10 US energy company
• Fortune 100 US defense contractor
• Three US thermal oxidizer suppliers
• Major power company in India
Cool Energy Team
• Dr. Sam C. Weaver – Chairman and Co-founder
– Ph.D., M.S., B.S. Metallurgical Engineering
– Serial entrepreneur >40 years in materials and energy
– Exits: Millen Mtls to Dyson, Nuclear Ceramics to Eagle-Picher
• Bill Gross – Board Member, Founder and CEO of Idealab
– Founder of GNP Development & Knowledge Adventure
– Founded Idealab in 1996: dozens of RE and tech startups
– Trustee of Caltech (summary of BG exit values)
• Samuel P. Weaver – President/CEO and Co-founder
– B.S., Engineering & Applied Science, Caltech
– Engineering Lead: Network Photonics, InPhase Technologies
– Director of Worldwide Sales, dBm Optics
• Brian Nuel – Director of Engineering
– B.S., M.S. Mech. Eng., High Honors, UI, Urbana
– Design of engines, medical devices, telecomm devices
– Cummins, P&G, Medtronic, Zolo Technologies, LASP
• Biz Dev/Sales – Amtegrity, Ted Treanor, Burl Amsbury
• Financial – Novinger, Ball, & Zivi, P.C.
13
Cool Energy Outlook
Licensing model for cash efficiency
• Opportunity & Resources
‒ Initial deliveries of 25kW engines Q1 2015
‒ Experienced team & continuous progress
‒ Customer sales & licensing on-going
‒ Diedrich Manufacturing, Schneider Electric,
Edisun Heliostats
‒ >$2.5B near-term WHR market
‒ >$50B worldwide market for roadmap apps
‒ Proprietary engine design tools are unique
14
Appendix Information
15
Cool Energy Mfg Partners
Pro Forma Financials
Figures in $1,000 unless noted
ThermoHeart 3kW Units Sold (1 ea)
ThermoHeart 3kW Unit Price ($)
ThermoHeart 3kW Unit COGS ($)
ThermoHeart Licensing Fee ($)
ThermoHeart 20kW Units Sold (1 ea)
ThermoHeart 20kW Unit Price ($)
ThermoHeart 20kW Unit COGS ($)
ThermoHeart 20kW Licensing Fee ($)
2015
2016
$
$
$
25
35,000
27,500
7,000
200
70,000
45,000
14,000
ThermoHeart Revenue (CM Partners)
$
14,875
Cost of Goods Sold
Licensing Fees
$
$
$
$
$
$
$
1
200,000
250,000
$
$
20
150,000
135,000
Cool Energy Headcount (FTE)
6
ThermoHeart Revenue (Cool Energy)
$
Cost of Goods Sold
Licensing Fees
$
$
Cool Energy Gross Margin
Cool Energy Up-FrontLicensing Revenues
Cool Energy Licensing Royalties
Grant/Design Income
Cool Energy Expenses
RD&D Expenses
GS&A and Overhead
Total Revenues
EBITDA
Depreciation
EBIT
Taxes
Net Margin
20
3,000
(250)
-25.00%
50
850
(680)
$
$
(2,700)
10.00%
100
750
(2,267)
$
$
$
$
$
$
(524)
1,100
(354)
(20)
(374)
-41.51%
$
$
$
$
$
$
$
(374)
$4,826
$
$
$
$
$
$
$
150
27,500
22,500
5,500
1500
40,000
25,000
8,000
$
64,125
$
$
$
40
$
$
$
$
$
200
2017
(9,688) $
(2,975) $
14.87%
Partner Gross Margin
Profit (Loss)
Cash on Hand (EOY)
16
2014
(1,745)
3,850
(2,862)
(43)
(2,905)
-341.76%
($2,905)
$1,921
2018
$
$
$
500
20,000
15,000
4,000
5000
35,000
20,000
7,000
$
185,000
$
$
$
(40,875) $
(12,825) $
16.26%
60
(107,500)
(37,000)
21.89%
90
$
$
$
$
2,500
2,975
1,500
(4,533)
$
$
$
$
2,500
12,825
2,500
(6,800)
$
$
$
$
5,000
37,000
5,000
(10,200)
$
$
$
$
$
$
(3,491)
6,975
(1,049)
(89)
(1,138)
-16.31%
$
$
$
$
$
$
(5,236)
17,825
5,789
(80)
5,709
534
29.04%
$
$
$
$
$
$
(7,854)
47,000
28,946
(72)
28,874
10,131
39.88%
($1,138)
$784
$5,176
$5,959
$18,743
$24,702
Waste Heat Recovery
Nominal System Costs
Assumptions:
• Volume
Production of
ThermoHeart
Engine (500/year)
• Single engine
application (BOS
cost/W reduces for
multiple-engine
systems)
• Engine and
electrical
interconnection
located near WHR
source
17
20kW Nominal WHR System BOM
ThermoHeart Engine
Hot Pump
Cold Pump
HTF
Hot HX
Cold HX
Fluid piping
Inverter
Control System
Installation
Total
$32,500.00
$2,500.00
$800.00
$200.00
$4,000.00
$1,000.00
$1,000.00
$4,000.00
$1,500.00
$2,500.00
$50,000.00
Waste Heat Recovery
Customer Value
Levelized Cost of Electricity (LCOE)
Engine Peak Power
System Cost/Watt
Installed Cost
Annual O&M $/kWh
Financing Rate
Years of Operation
20kW
$2.50
$50,000
$0.013
7.00%
10
Annual
LCOE
Energy
Analysis Produced
($/kWh) (kWh)
Capacity
Factor
20%
Potential Channel Partners:
30%
Coffee Roasters (Diedrich)
40%
Concentrated Solar (Edisun)
50%
Gensets (Cummins, Caterpillar)
60%
Pollution Control (Epcon, Anguil)
70%
Brick Makers
80%
90%
Cement Kilns
100%
Industrial Kilns (CoorsTek)
35040
52560
70080
87600
105120
122640
140160
157680
175200
Annual O&M
costs
$455.52
$683.28
$911.04
$1,138.80
$1,366.56
$1,594.32
$1,822.08
$2,049.84
$2,277.60
Annual
Energy $
Savings
(@$0.12
per kWh)
Net Annual
$ Savings
$4,204.80
$6,307.20
$8,409.60
$10,512.00
$12,614.40
$14,716.80
$16,819.20
$18,921.60
$21,024.00
$1,630.40
$3,505.04
$5,379.68
$7,254.32
$9,128.96
$11,003.60
$12,878.24
$14,752.88
$16,627.52
Capacity Factor is the ratio of the annual energy produced to the
maximum that the engine could generate if operating at max output
1824/7/365 (100% capacity factor)
$50,000
LCOE
($/kWh)
$ 0.216
$ 0.148
$ 0.115
$ 0.094
$ 0.081
$ 0.071
$ 0.064
$ 0.058
$ 0.054
Competitive with
Grid Electricity
OECD Electricity Prices, Returns
Engine Peak Power
20kW
System Cost/Watt
$2.50
Installed Cost
$50,000
Annual O&M $/kWh
$0.01
Capacity Factor
80%
Years of Operation
10
19
OECD Country
Austria
Belgium
Czech Republic
Cyprus
Denmark
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Japan
Mexico
Netherlands
Poland
Portugal
Spain
Sweden
UK
USA
Residential
Electric
Commercial 20kW Annual
Rate
Electric Rate Commercial
($/kWH)
($/kWh)
Savings
$0.27
$0.26
$0.21
$0.40
$0.41
$0.21
$0.19
$0.35
$0.17
$0.23
$0.26
$0.28
$0.26
$0.10
$0.24
$0.20
$0.25
$0.30
$0.25
$0.20
$0.12
$0.14
$0.14
$0.15
$0.28
$0.12
$0.11
$0.12
$0.16
$0.13
$0.13
$0.15
$0.28
$0.18
$0.12
$0.12
$0.12
$0.14
$0.15
$0.10
$0.13
$0.07
$18,220.80
$18,010.56
$20,225.09
$37,843.20
$14,716.80
$14,520.58
$15,627.84
$20,603.52
$16,188.48
$17,407.87
$19,958.78
$37,745.09
$23,687.04
$15,417.60
$15,501.70
$15,669.89
$18,094.66
$19,454.21
$13,203.07
$16,454.78
$8,353.54
20kW
Commercial
Payback Time
(yrs)
2.7
2.8
2.5
1.3
3.4
3.4
3.2
2.4
3.1
2.9
2.5
1.3
2.1
3.2
3.2
3.2
2.8
2.6
3.8
3.0
6.0
IRR
38%
38%
43%
79%
30%
30%
32%
44%
34%
37%
42%
79%
50%
32%
32%
33%
38%
41%
27%
34%
14%
C&I Waste Heat Recovery Market
• Data from coops
– 26,000 WHR
opportunities
• 7% of electricity
from coops –
370,000 total US
sites
• 50% of sites
suitable for
SolarHeart
(<100kW)
• $25B TAM at
$2500/kW
• $8B SAM –
9.5GW capacity
20
WHR Public Benefit Potential
•
•
•
•
•
21
9.5 GW of capacity from top 30% of sites
50 TWh annually @ 60% capacity factor
$7.5B in annual energy savings @ $0.15/kWh
30 M tons CO2 annual emissions reductions
135,000 tons SOx/NOx reduction
WHR from Remote Gensets
•
•
•
•
•
22
Mining, oil & gas, islands dependent on diesel
Stirling WHR improves genset efficiency 5% to 10%
Diesel genset electricity costs >$0.35/kWh
Cool Energy engine modules can be used in arrays
300K units <200kW sold per year, 33K > 500kW
Waste Heat Recovery
Military Applications
•
•
•
•
•
•
•
23
“Unleash us from the tether of fuel.” – Gen James T Mattis, USMC,
2003 (DSB 2008-02-ESTF)
Gensets are military’s largest wartime fuel consumer (34%)
125,000 gensets fielded; 2.1GW capacity; 10,000 new/yr
Gensets use 360 Mgal/year JP-8 during wartime
$15/gallon burdened fuel cost in theater
2003 – 2007: >3000 casualties in fuel/water supply ops
Shipboard heat recovery also of interest
Core Technology Advances
SolarHeart® Engine
•
•
•
•
•
•
•
Low temperature Stirling engine
Converts heat to electricity
High-surface-area heat exchangers
Non-metallic regenerator
No circulating lubrication
3-year service interval (20,000 hours)
Clean and very quiet
Beta Prototype – 2000W
16.7% measured efficiency @215C
3kW Engine Specification
•
•
•
•
•
•
•
24
3.0 kW design @ 300C
36” diameter x 45” L
>20% efficient at 250C
>22% efficient at 300C
Nitrogen working gas
Reliability testing underway now
Higher-power designs in
progress
Product Design – Cast Parts, Simpler Mechanism
22.3% measured efficiency at 270°C
3100W peak output to date
Thermal Conversion Efficiency
P3 Engine Design Measured
25
Reliability and Manufacturing Planning
– Units running currently on 24/7 reliability testing
– Total engine testing to date: >280 million cycles
(5000 hrs + 2860 hrs)
– Measuring ring wear, piston wear
– Tracking power/efficiency over time/cycles
– Testing alternative (simpler) ring designs
– Projected ring life – 16,000 hours, still improving
– Exploring simpler manufacturing for regenerators,
pistons, rings
– Working with 2 contract manufacturers
26
Technology & Deployment
3kW ThermoHeart
On 24/7 Test
Benchtop Solar
Solar
WHR
WHR
Proto Engine I Engine II Engine I Engine II
50W
350W
2kW 3 x 3kW 2 x 25kW
5% eff 10% eff 16% eff 22% eff 30% eff
2007 2008 2009 2010 2011 2012 2013 2014
27
25kW Design Specifications
20/25kW ThermoHeart® Engine
•
•
•
•
•
•
•
•
•
Converts heat to electricity
High-surface-area heat exchangers
Non-metallic or metallic regenerator
No circulating lubrication
3-year service interval (20,000 hours)
Novel thermo-mechanical layout
Rotary transmission mechanism
Nitrogen working gas
Clean and very quiet
20/25kW Engine Family Specification
28
•
•
•
•
•
•
•
15 kW design @ 200C
20 kW design @ 300C
25 kW design @ 400C
52” diameter x 105” L
> 15% efficient at 200C
> 25% efficient at 300C
> 30% efficient at 400C
Thermal Conversion Efficiency
20/25kW Engine Design Modeled
29
Thermal Pollution Control
Heat Recovery Schematic w/heating
320º C
1000 scfm
750º C
1000 scfm
375º C
1350 lpm
Heat
Rejection
Radiator
206kWth
Therminol
HTF Loop
284 kWth
80º C
290º C 250 lpm
1350 lpm
AC or DC
Electrical Load
30
78 kWe from
ThermoHeart
Water/glycol
60º C
Heating loop
250 lpm
130kWth
Space and Water
Heating Load
1000 scfm Direct Fired Thermal Oxidizer
78 kWe total from
ThermoHeart WHR
system
114º C
1000 scfm
4x 25kWe ThermoHeart
Engines (2-stage config)
WHR Market Channels
Cool Energy
Industrial
WHR
Solutions
.......
Military WHR
Solutions
Channel
Markets
1) End Users for Pilots
Industrial
Customers
2) Energy Service Companies
Distributed
Generation
3)Strategic Partners
Dealers
OEM / Licensing
Remote
Generation
WHR
Power Generator
Integrators
DoD
Customers
• Key steps: pilot demonstrations, channel partners, licensing
31
Advisors
32
•
Bill Gross – Board Member, Founder and CEO of Idealab
– Founded Idealab in 1996, has incubated dozens of startups in
renewable energy and internet
– Founder of GNP Development
– Founder of Knowledge Adventure
– Board member for multiple companies
– On the Board of Trustees for the California Institute of Technology
•
Andy Goldstein – Manufacturing
– Executive positions in engineering, quality, manufacturing,
marketing, and materials- startup companies and Fortune 1000
companies.
– 30 years technology commercialization in data storage, optical
communications, and medical industries.
– VP of Product Generation at Medtronic Navigation & founding
members of Network Photonics, - raised $117M in venture funding
•
Amir H. Massihzadeh– Business Development
– B.S., Civil Engineering, CU – Boulder; Cert of Management –
University of Denver
– President and Founder, Rheinzink America, Inc.
– Vice President of Sales, Puma Steel
Key Intellectual Property
Issued Patents
Patent Number
Competitive Advantage
7,617,680
Power Generation Using LowTemperature Liquids
• LNG re-gasification application
• Japan, Chine EU Markets
7,694,514
Direct Contact Thermal Exchange
Heat Engine or Heat Pump
• Roadmap engine design
• Reduced cost - no internal heat exchangers
• Enables lubricated engine design
Displacer Motion Control Within Air
Engines
• Roadmap engine design
• Very broad patent for ideal Striling engine
operation
• Applies to beta and gamma style engines
7,810,330
Power Generation Using Thermal
Gradients Maintained by Phase
Transitions
• Broad patent on open-loop phase transition
temperature differential for power production
• Roadmap application
• Further protection of LNG re-gasification
application
7,877,999
8,539,771
Power Generation and Space
Conditioning Using a Thermodynamic
Engine Driven Through Environmental
Heating and Cooling
• Application patent for power generation using
solar thermal or geothermal temperature or
evaporative cooling approaches for temperature
differences
• Building-integrated applications
8,224,495
Control of Power Generation System
Having Thermal Energy and
Thermodynamic Engine Components
• Control system for arrangement of heat sources
and uses in a building to maximize customer
value
• Applies to control systems for buildings that
include power generation use of heat
7,805,934
33
What it Protects
Key Intellectual Property
Pending and In-Process Patents
Application
Number
12/577,649
12/790,583
61/444,653
TBD
TBD
TBD
34
What it Protects
Competitive Advantage
Patterned foil regenerator
•
•
Superior regenerator design for performance
Product of trade secret manufacturing method
Configurable plate and fin heat
exchanger
•
•
Protect form of 3kW heat exchanger
Product of trade secret manufacturing method
Piston and ring design for ring-based
self-lubricating piston assembly
•
•
Protect form of 3kW and 20/25kW piston assembly
Product of trade secret assembly method
Thermo-mechanical layout of 20/25
kW engine
•
•
•
•
Unique high-performance layout
Efficiency: minimizes dead volume
Efficiency: fully isolates hot side gases from cold
Cost: single kinematic linkage for two piston sets
Mechanical transmission assembly for
four-cycle Stirling engine
•
Protects mechanical linkage between pistons and
generator in 20/25kW engine
Efficiency: maximizes transmission of engine power
Durability: minimizes wear friction
Durability: true straight-line motion
Low-friction, low-wear cam and
carriage assembly for Stirling engine
transmission system
•
•
•
•
•
Protects cam and follower system in kinematic
transmission
Durability: minimizes wear friction
Key Intellectual Property
Engine Modeling and Branding
IP Type
In-House
Numerical Model
Ability to design thermo-dynamic
configurations in high-dimensional Stirling
engine trade-space by optimizing free
variables for best customer ROI
In-House
Numerical Model
Ability to analyze and optimize kinematic
mechanisms by optimizing free variables for
highest engine durability within
thermodynamic constraints
Trade secret
Trade secret
Trade secret
Trademarks
35
What it Provides
Competitive Advantage
•
•
•
•
•
•
Design and fabrication method for very high
surface area heat exchangers using off-theshelf components in a custom housing
•
Fabrication method of non-metallic
regenerators via a custom dimpling
mechanism
•
Techniques for controlling valves between the
thermal cycles and the crankcase space for
startup and shutdown of Stirling engines.
•
Cool Energy (77631139), ThermoHeart
(pending), SolarHeart (77631126), SolarFlow
(77631112), Powering a Clean Tomorrow
(85423664)
•
•
•
•
•
Cost: thermo-mechanical engine configuration
optimized for lowest cost, best efficiency
Optimizes over thousands of potential engines each
run
In-house tool unavailable to any other company
O&M Cost: engine mechanism configuration
optimized for lowest maintenance, best efficiency
Optimizes over thousands of potential mechanisms
each run
In-house tool unavailable to any other company
Cost: uses high-volume, high-precision, low-cost
components
Assembly is rapid, lends itself to automation
Unique in-house method developed to pattern hightemperature plastic
Efficiency: has demonstrated 10% improvement in
engine output
Provides low-power method for starting kinematic
engine
Uses off-the-shelf components and controllers
Protects cam and follower system in kinematic
transmission
Durability: minimizes wear friction