Electric Motors Go “Green”
“the cheapest and most available source of new energy is the energy we waste”. U.S. Department of Energy Secretary Samuel Bodman
Visionary Innovations specializes is finding microcap companies with disruptive technology, that have the ability to change, disrupt and or create multi-billion dollar industries. We have uncovered technology that is set to revolutionize the energy industry.
The internal combustion engine powers our cars, but electric motors power almost everything else – our commercial buildings, industrial facilities, and even our home appliances. While Detroit and Silicon Valley invest billions in new technologies for the combustion engine (and fuel for it), a tiny company with disruptive technology is set to save billions and revolutionize electric motor technology.
Each year billions of dollars and electricity are wasted from electric motors electricity that can only run at 2 speeds, ON or OFF. Their inability to adjust power to varying loads, makes them one of the biggest “wasters” of electricity.
Billions of dollars are wasted on electricity that is being provided, but not required.
Improving motor efficiency is a huge and the easiest to implement untapped “green resource” and represents a multi-billion dollar opportunity.
Almost half of the electric motors in U.S. Manufacturing are operating at 40% or less of full load—millions of motors are lightly loaded, waste electricity and produce unnecessary CO2 emissions. Consumer appliances with electric motors waste even more.
We discovered disruptive technology that can determine and deliver the appropriate amount of power (dynamically) to the millions of electric motors in industrial and consumer appliances. This represents a multi-billion dollar investment opportunity.
Power Efficiency Inc. , a sole licensee of a NASA patent, reengineered NASA technology and has patented (with additional patents pending) this revolutionary technology platform. ESave’s digital technology is able to determine and deliver the proper amount of power necessary, making electric motors smart and efficient.This can eliminate billions of dollars of wasted electricity, excessive CO2 emissions, and brings the electric motor into the digital age.
State-of-the-art electronic circuits constantly monitor the workload of the motor. Using patented technological processes, these circuits examine and adjust the voltage and amperage waveforms in order to supply the exact amount of energy required to maintain a motor at full speed (RPM). This breakthrough technology reduces inefficient energy usage.
“Portion control” for motors—use only what is needed.
eSave makes sure the motor only uses the energy it needs to perform its work-task.
What separates eSave from the competition, is their ability to adjust the power needed while motor is running.
Various utilities, independent motor test companies, and independent energy firms have certified and quantified the energy savings for eSave technology.
Benefits of eSave Technology:
-Energy conservation savings up to 40% are common
-Reduction in motor operating temp (lowering temp by 8 degrees C doubles motor’s life)
-Reduction in CO2 emissions
-(New digital product will be able to alert engine operating issues early AND record/report actual energy savings)
-eSave reduces heat which provides energy cost savings and greater return on investment of motor life
-Typical payback time on investment is between 2-3 years depending on kilowatt costs in the area and number of hours of use
After an extensive legal search, the company saw little intellectual property (IP) out there for a digitally based controller. Because no IP had been laid down in this area, Power Efficiency’s first approved patent could be called a “blocker” patent.
To date they have filed five provisional patents on substantial and proprietary inventions to their E-Save Technology™ platform.
Their digital motor efficiency controller has passed all tests for Canadian Standards Association (CSA) and Underwriter Laboratories (UL) certification.
Two products:
- Digital Industrial Pdt (3 Phase)—motors in large commercial &industrial equipment
- Commercial-escalator, elevator
- Industrial- conveyors, compressors, crushers, grinders, injection molders, mixers, shredders, granulators---FACTORY AUTOMATION
The 3 phase product includes a starter, slow start and the ability to regulate the motor.
Industrial applications:
Elevator, escalator, recycling, conveyors, mining, plastics, mining equipment, stamping press, granulators, crushing machines, saws, mixing machines, shredders, manuf, distribution
- (THE BIGGIE) Digital Appliance Pdt (single phase)- targeted at extremely large mkt (refrigerators, clothes dryer, heat pump, vending machines, pool pump, AC.
Currently they are testing the consumer prototype which is expected to sell for $25-50. This is lower cost item but if embedded in millions of consumer appliances, offers an enormous recurring revenue opportunity. Appliances include refrigerators, freezers, clothes washer and dryer, AC, pool and spa pumps, heat pumps, vending machines etc. All of these appliances become efficient when they have eSave Technology “inside”.
The company anticipates revenues from selling the device to an appliance manufacturer (GE , Whirlpool etc), and licensing the technology to a motor or motor controller companies.
Government mandates and utility rebates are forcing adoption of eSave technology. In addition, Power Efficiency is Already an “Energy Star Partner”.
Nevada Power and Sierra Pacific offer rebates of $20 per horsepower of the motor (20hp motor=$400). Southern California Edison ordered analog units from PEFF to be given away for free (installation is only cost).
They have original equipment manufacturer (OEM) agreements with the 2 largest elevator/escalator companies in the world, OTIS and KONE.
Many states have introduced laws that require utilities to buy power from renewable resources. Energy efficiency is considered a renewable resource.
Competition and Comparisons……
The only competition PEFF has been able to identify is Somar.
A company based in England with a completely different business model. Somar has a retail/distributor business model that incorporates energy efficient motor controllers. They don’t publicly claim to have any IP around this technology.
Publicly Traded Companies Involved in Electric Efficiency….
ENOC Enernoc and COMV Comverge
Enernoc and Comverge are taking a different approach to solving this problem. Rather than developing new fuel sources, they are focusing on increasing energy supply by reducing demand during peak usage periods.
COMV mkt cap $700m 34m revs
ENOC mkt cap $854m $38m revs
Raser Technologies RZ
Provides electromagnetic machine and power electronic drive technology, which is applied to industrial AC induction motors.
RZ mkt cap $660m <$1m revs
Investment timing is critical:
- Announced an agreement with large global contract manufacturer, Sanmina
- Announced their first large volume order for digital products with eSave
- Consumer appliance product is in beta test
- Numerous OEMs are testing the consumer prototype product
- No meaningful competition
- Have begun working with one major motor manufacturer
- Company is an “Energy Star” Partner—product approval as a component (component inside is Energy Star certified)
- Co is working on “co-development” deals with motor manuf, and OEMS
- Digital eSave products expected for sale in the 4th quarter
In addition, heavy insider buying might be telling us our timing is good too.
In August, PEFF insiders bought stock in the open market. In October, the Chairman & CEO and three members invested an additional $1.1million. This microcap company has approximately $4.5 million in cash and no outstanding debt securities. It is extremely rare to find a microcap company with disruptive technology, that can impact multi-billion dollar industries, with management investing at the same prices we are.
While we can’t change the “fuel” for electric motors, we can finally make them run more efficiently.
We believe Power Efficiency’s eSave Technology offers an extremely attractive and timely investment opportunity for high risk oriented microcap investors.
Power Efficiency Corp OTC BB:PEFF
3960 Howard Hughes Parkway Shares Outstanding 38m
Suite 460 YH .75 YL .18
Las Vegas, NV 89169 11/01/2007 Market Cap (.45) approx $17m
702-697-0377
www.powerefficiency.com
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