Leviathan Energy – Confidential and Patents granted and pending and copyrights and trademarks Dr. Daniel Farb, CEO Leviathan Wind Energizer TM LLC An App That Changes the Game In And Uberizes The Wind Industry Turbine with Wind Energizer turning in low wind while control turbine is still
The Business Model Amazon doesn’t own a single bookstore. Airbnb doesn’t own a single apartment. Uber doesn’t own a single taxi. Microsoft doesn’t manufacture computers. Leviathan Wind Energizer will be the largest wind company without owning or manufacturing a single wind turbine.
Pain Points-Wind Farms #1: Climate change. Everyone is mandating increased renewable energy. Restriction of profitable wind farm locations to 6 meters per second means huge areas of the world cannot benefit from wind energy. #2: Profitability of wind farms and cost of energy. Current static yields at “Yieldcos”. #3: Maintenance:Turbine drive train breakdown from unequal wind distribution (normally greater the higher you go)—enormous stress on turbines with 100 meter blade diameters. Worth $500,000 every 5 years.
What the App Does We get information on the customer’s wind turbines and wind, run a computer model, and change the wind (a paradigm shift) before it hits the turbine so it is faster and more uniform by placing a large passive structure. Comparison Uber gets customer information and gives them transport. In both cases, the customer gets a physical output. Our questionnaire is more detailed, but each turbine produces revenue equal to 50,000 cab rides Immediate customer result for Uber; ours takes 3-6 months We are immediately profitable from the markup
Market Existing base of $1 trillion in wind farms on which we can make sales of $150 billion Accelerating yearly sales of $15 billion Our app opens up new markets by decreasing threshold of wind speed for profitable wind farms: additional yearly sales of $15 billion Comparison: Uber has no retrofits. Uber yearly potential market: billions
How Do We Do It? Without even touching the turbine. We make computer models of the wind, the turbine, and an optimal structure. High tech IT/engineering; low tech build out
Pain Point 3: Wind Stress + 120m 80m 40m Wind Without Wind Energizer Computer Modeling showing change in wind velocity, speeding up (red) due to Wind Energizer TM = 120m 80m 40m With Wind Energizer RESULT o More uniform wind speed. o Neutralizes effect of higher speeds from elevation. o Prevents gearbox replacement every 5 years. (1 Gearbox = $500,000)
E VALUATION BY T OP T ECHNOLOGY AND F INANCIAL P EOPLE AT GE “…we all believe the Wind Energizer is potentially a game changing product that could enhance our wind energy portfolio...” John Cole, G.E. Energy Financial Services
Prototype Witness “…the Leviathan Wind Energizer outperformed the same turbine installed with no device by producing 156% more energy over a 24 hour period.” --Mike Green, MG Lightning Electrical Engineering
Graph and Table of Results
P ERCENTAGE E FFECT It reduced the cut- in speed by 1.2 m/s. The Wind Energizer TM changes the world’s wind map, making millions of square miles available for wind farms.
More Than Doubles Area for Wind Farms Wind Energizer is a key to market expansion.
Market and Money Target customer: Wind farms. Large, easily identified, lots of money. 300,000 turbines for retrofit 30,000 more per year Customer: Priced to enable 25% ROI Leviathan Profit First sales: $100,000 per turbine Early phase: $200,000 per turbine Later phase: $300,000 per turbine Once effect on maintenance is monetized, we can charge more.
Validation Proof Prototype--Accomplished Computer simulations at Tel Aviv University and Vorcat (fluid dynamics software firm) 3 rd place, Israel Cleantech Open 2010— reviewed by scientists and VCs First US patent granted 2012 Cover article in WindTech magazine
IP P ROTECTION Filed Patents: o Flow Deflection Devices and Methods for Energy Capture Machines, March 18, 2007, PCT IL2007/ Fundamental and original patent. Granted in US, Israel, Canada, South Africa; pending elsewhere. o FDD Construction, PCT filed February Contains many practical aspects of building the structures. o Manufacture of Wind Turbine Enhancement Systems, PCT filed May Method for balancing wind stress o Other pending material in process. Also copyright and trademark material Singular structure to each turbine based on complex algorithm. Wrong structure may cause opposite effect and/or increase wear & tear. Wind farms are large, conservative companies and not likely to try and copy an un-authorized IP. Certification agencies respect IP. Dr. Farb is a patent specialist and has worked at Mark Friedman’s Patent Law Office – one of the largest in Israel. Dr. Farb is sole owner of the IP.
Uber Comparisons LWE has substantive new patents; Uber does not. Patents mean no direct competition; Uber is already facing competition. LWE has a much more concentrated market: To make car contracts in one city, Uber has to deal with more people than LWE in the whole world. LWE expands its own market; Uber works with an existing market. However, Uber can expand into new markets, such as delivery. LWE prevents turbine breakdown; Uber does nothing for the vehicles.
200 Years of Corporate and Technology Experience CEO – Dr. Daniel Farb CEO – Dr. Daniel Farb – Multidisciplinary high achiever and creative thinker. Wrote over 30 patents, 100 books. Set academic record at Yale University. Executive Management at UCLA. Medical degree at Boston University. Patent consultant for law firm. Expert on renewable energy. Made large corporate sales in previous work. Director Computer Modeling – Prof. Moshe Rosenfeld Director Computer Modeling – Prof. Moshe Rosenfeld – Department of Fluid Mechanics – Tel-Aviv University. Author of hundreds of articles. Consults for NASA. Guest professor at Caltech North American Operations – Arie Brish North American Operations – Arie Brish – Veteran executive with substantial achievements at Motorola Ed Day Ed Day – Grant writer, engineer, and experienced project manager Kevin McCormack Kevin McCormack – CFO & Project Director. Former banker and CFO. Dr. Anurag Purwar Dr. Anurag Purwar – Professor of Engineering, Stony Brook University Vorcat Inc. Vorcat Inc. – CFD company in the US. Headed by Dr. Jacob Krispin, an expert in CFD
Next Steps $1 million (or half with a grant) for large scale demo and certification. In the wind industry, certification = bankability. Letter of support to do the test at NREL; doing it there means added credibility. Sales begin day after first results are in. We can make early sales easier by offering a co- ownership of electricity model in partnership with a PE firm interested in doing this.
Investment Comps for valuation: $ million even before commercialization because of size of potential. Profits of over $1 billion in 6 years: Why? o Compelling customer value (ROI 1-4 years) o No competing product (only competition is competing deployment of capital or other forms of energy) o Small number of buyers to reach o Scalable manufacturing easily outsource d o Mandates for renewable energy o Alliances with PE firms for leverage of this once bankable already discussed. They can help with penetration of early markets.
Investment Comparison LWE can become profitable with a single investment of $1 million Uber received funding of around $10 billion from Plans to raise more in the tens of billions. Uber valuation of $50 billion, no profits. May actually be losing money. LWE: Can make real money after a single investment. If it is making $1 billion after 6 years, its valuation as a real business in a growing market should be over $50 billion, a P/E of 50.
Clear Business Plan 1.Validation (large scale)/Certification 2.Retrofit Market (immediate value to wind farms) with older turbines or less regulated regions first 3.Sales models: outright sale or choice of co-ownership of electricity 4.Partner with manufacturers 5.Partner with wind farm developers 6.Vertical integration
Exit Profitable company Target customer: Wind farms. Large, easily identified, lots of money. A single owner may have 10,000 turbines. 300,000 turbines for retrofit (times $200,000 profit) 30,000 more per year (times $200,000 profit) IPO Others acquire us We acquire others-Unique product in a commodity market To get there: $1 million for large scale demo and certification. In the wind industry, certification = bankability. Another $0.5m lets us start sales sooner.
Your Profit $1 million enables us to sell and become profitable. We turn your $1 million into $1 billion.
S UMMARY The Wind Energizer TM can change the wind industry and, secondarily, the planet. Increases power and profit, decreases maintenance—BY A LARGE AMOUNT Patented, proven technology. High tech product design with a relatively simple brick and mortar execution. (Similar to Uber or Amazon, but much easier to execute.) No similar products on the market. Growing market for next 50 years Next: Large scale demonstration direct to commercial stage. YOU WON’T HAVE A SECOND CHANCE.