| Regenerative
Power and Motion |
Background & Perspective
US sales of stationary on-site Uninterruptible Power Supply (UPS), for utility power backup, is now $10 billion yearly and is growing fast. But many hospitals, medical and dental offices, computing centers, datacom, telecom, internet servers and routers, critical manufacturing plants, etc. do not have UPS, mainly because existing UPS is not a viable option for them. They sustain down-time loss and possibly much worse when utility power fails. EPRI (the Electric Power Research Institute) estimates cost incurred from US grid power outages is $100 Billion yearly.
A viable, far superior UPS option, that we can provide, could expand UPS markets in the US to $20 billion yearly. We can dominate this market, with our lower cost UPS, that will have far higher reliability and virtually unlimited service life with no maintenance. This market's telecom sector offers an opportunity for profitable sales and fast growth in RPM's first few years. Currently available UPS for cell phone towers costs typically $30,000 for the equipment plus $7,000 yearly for its (lead-acid battery) maintenance. For this market, RPM's UPS, with a 20-year warranty, will readily sell for $150,000/system. Ultra reliable and efficient UPS plus inertial pitch/roll/yaw control from the same systems, without gyros, gimbals, mechanical bearings, and (especially) without jet thrustors, that RPM can provide for space missions and low earth orbit satellites (for global phone/data links, TV, radio , weather data, mapping, reconaissance, GPS, etc.) is clearly another near-term market that RPM can dominate, at over $10M/system.
Ultimately, our flywheel batteries can be a very important growth-enabling component of building-integral solar and wind power systems, where superior power storage capability (near-zero-loss, high reliability, safe, no maintenance) could help to create a $200 billion yearly global renewable-power/UPS market. Our flywheel batteries can also enable solar/wind powered electric highways for safe, low-cost, high-performance electric vehicles.
RPM plans to produce and market power storage systems, to meet dependable and environmentally responsible building power demands of a US construction industry that exceeds $750 billion yearly and global construction that could amount to far more. We especially want to serve pioneers at the forefront of emerging high-growth distributed on-site renewable power systems, who share our vision.
Existing UPS options are not viable, for most building owners and tenants, because: Maintenance and siting needs of fuel-burning engines, that drive power generators, is a costly nuisance. Troublesome lead-acid batteries, a charger, switchgear, and 60-Hz inverter are also usually needed. Flywheel batteries are being developed for other purposes. Those developed globally, by 50 or so promoters, can provide only short-term power (most only 10-60 seconds). They sustain unacceptably high internal idling losses (up to 3-kw); with self-discharge (30 minutes for most, possibly 60 hours for only one) far worse than lead-acid batteries. Their reliability and safety are problematic. Lead-acid batteries remain the only practical existing UPS power storage option.
RPM’s Flywheel Battery: A far more attractive new UPS option & much more
Our revolutionary flywheel battery technology is focused on meeting a vast and growing need for dependable, convenient, low-cost, long-term, stationary, on-site power storage. It includes:
Planned markets and sales strategies
Current ideal markets for small UPS, that can be served by our 2-kwh flywheel battery, are mainly zero-maintenance ultra-reliable remote-monitor UPS for wireless telecom BTS (Base Transceiver Stations), intranet and internet servers and routers. This UPS market segment is not price sensitive, like the larger markets we will pursue after production ramp-up. As soon as we implement high-volume manufacturing cost reductions, our 2-kwh flywheel battery will be offered as an alternative to lead-acid batteries, for small-building UPS, mostly in remote US locations using 1-kw or less. Higher power and reliability will be offered by parallel UPS. Examples are small medical/dental offices, scientific field stations, ranger stations, mountain cabins, etc. We’ll advertise in construction and outdoor magazines. Also, we'll transmit timely press releases to relevant internet sites and publications like Home Power magazine.
It will also be marketed globally, to “green power” systems integrators, working with institutions who want to lend, for purposes like this, to the 2 billion people in developing nations who are now without electricity. We can realistically expect 2-kwh flywheel battery sales of $9 million in our 3rd year, with global potential to $1 billion yearly, paced first by RPM’s manufacturing and marketing ramp-up ability, and second by buyer loans.
Early in RPM’s 3rd year, our 50-kwh flywheel battery will be introduced by our architectural design proposal for a high-visibility hospital, auditorium, etc. – or RPM’s headquarters and manufacturing facility. It would probably be widely featured in architects’ and builders’ trade journals. This could be done before 50-kwh manufacturing is in place, and we don’t need to divulge trade secrets to potential competitors, to get orders.
We think progressive architects and builders will be a core market for our 50-kwh flywheel batteries. We will make presentations to AIA meetings and major construction firms. We will also partner with progressive power systems integrators and distributors. But most existing UPS distributors will need to evolve significantly, to be effective partners.
Cash flow projections (simplified chart at right) show our planned
expenses, sales (mainly as an attractive alternative to existing UPS in
our 3rd year) and cash balance through our 5th-year. Development
cost estimates are based on employee salaries plus cost of equipment and
components at standard rates. Most of RPM's startup team has
elected to work for stock in lieu of pay; and critical component suppliers
have indicated they will not charge for experimental parts developed and
supplied under a partnering agreement to be concluded after startup.
So our 2-kwh system development budget can be as low as $600,000 under
this accommodation.
In combination with on-site solar and wind power systems, potential US sales could be $100 billion yearly. We expect comparable export markets. So when we have a solid backlog of orders, it’s important that we establish a dominant market presence before potential competitors get a start producing and marketing the technology and applications we create. RPM’s existing and pending patents, plus planned timely patents will help discourage product copiers, but are no guarantee. Manufacturing and marketing ramp-up will pace our ability to seize this market.
RPM’s startup team
Markets we won't pursue
Onboard flywheel batteries for electric vehicles: Explosion hazard of flywheels involved in EV collisions is unacceptable, with any practical flywheel enclosures, gimbaling, shock mounts, etc. Moreover, frequent onboard vehicle shaking would cause unacceptably high losses in the flywheel battery's magnetic bearings.
However, we would be especially well positioned to manufacture and market ultra-efficient, regenerative propulsion systems, for hybrid EVs, or (far better) EVs that are provided in-transit power on electric highways. Technical obstacles to providing such an infrastructure are minimal; with all EV costs substantially lower than fuel-engine vehicles, and profitable infrastructure operation. Environmental benefits would be profound. But such projects are capital-intensive, and susceptible to bureaucratic road-blocks. At some future date, we may consider a joint use proposal to a toll-highway operator or public transit authority operating an ultra light electric rail system.
Vacuum pumps, disk drives, or any other applications that would divert our early capital resources: However, our m/g and magnetic bearing technologies could be very successful for such applications. At this point, marketing our m/g and magnetic bearing is a fall-back strategy we don't intend to pursue, except in the event of unlikely circumstances. Customers in those fields may want to explore license agreements, or may want RPM to develop products for them, based upon our proprietary technology.
Current RPM assets & resources
If you have questions, comments or suggestions, email me: fradella@earthlink.net
RPM Overview
RPM Resources
Comparisons of RPM's Technology
vs. Other Flywheels
Flywheel Tutorial
Dual-mode Electric Vehicles
On-site Solar & Wind Power
Flywheel Facts and Fallacies
Urban EV with Onboard Batteries,
Charger, PV, Regenerative Motor, Pedals
Future options for clean and
sustainable electric power
Technology: Public/business policy
Solar and Wind Power Benefit/Cost
Estimates
Satellite UPS+CMG and UPS for
space missions: Launch/orbit dynamics and RPM's advantages