Regenerative
                      Power    and 
            Motion

Business Plan Abstract


Summary of  Business Plan for Regenerative Power & Motion (RPM)
By the Startup Team
Updated June 27, 2007

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 RPM 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 $100,000/system.  Ultra reliable and efficient UPS plus inertial CMG (Control Moment Gyro) pitch/roll/yaw control from the same systems, without gyros, gimbals, mechanical bearings, and (especially) without jet thrusters, that RPM can provide for space missions and low earth orbit satellites (for global phone/data links, TV, radio , weather data, mapping, reconnaissance, GPS, etc.) is clearly another near-term market that RPM can dominate, at over $1M/system.

RPM's 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.

Most existing UPS options have lead-acid batteries and diesel generators. They are not viable, for most building owners and tenants, because:  Site, maintenance, noise, fumes, and fuel supply 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. Existing flywheel batteries can't provide long-term power. Most of those developed globally,  by 50 or so promoters, provide only short-term power (10-60 seconds) to start diesel generators.  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, maintenance and safety are problematic.

RPM's Flywheel Battery Prototype Development

A prototype version affords a practical way to demonstrate key performance features of planned RPM flywheel battery production versions. It is a minimum system without a vacuum enclosure, with its design based upon parts like Neodymium-Iron-Boron magnets and spiral-strand Litz wire, that were purchased even before CAD/CAE work could be finalized; and drawings for custom machined parts completed. Nevertheless, it affords tangible proof of key performance features, without the substantial expenses for molds and manufacturing equipment needed for production versions.

The image below shows basic prototype flywheel assembly physical features. System electronics is constructed and tested, but not yet integrated with this assembly.  Not shown here are circuit boards for its magnetic bearings, screwed to the top and bottom decks; nor their signal input connections to axial and radial position and velocity sensors; nor leads to axial and radial servo coils; nor its stator windings; nor the power interface electronics in its EMI-shield box, its system status display monitors, and its cable to this assembly.

Production versions of the flywheel battery will be fabricated using some different processes and materials; and will have a flywheel assembly resembling this prototype, with minor basic differences, within a vacuum enclosure.
 
A space satellite version, to provide both power storage and spacecraft attitude control, would require a minimum of 2 systems resembling this image. No vacuum enclosure would be needed. However, its magnetic bearing axial magnets would need to be larger, to facilitate larger pole gaps, because the rotor needs to settle at a slightly higher axial position relative to the stator for ground tests, compared to its weightless relative axial position during space operation. And precision radial force transducers would be needed, for accurate precession torque control, in addition to their rotor centering function. Radial pole gaps also need to be larger than their terrestrial counterpart, to allow for slight axis tilt during precession maneuvers. More comprehensive explanations of space version RPM flywheels can be found in Fradella's US Patent 6794777 and his UPS+CMG webpage. It offers extraordinary advantages over existing and very troublesome chemical battery UPS, plus jet thrusters and/or momentum wheels for attitude control.  
 Market research, based mainly on potential customer inquiries, indicates that most future applications will be as better alternatives to existing power storage for distributed building-integral solar and wind power. 

Safe flywheel installations will be a very important component of RPM's business. Underground flywheel  placement is shown here, with the flywheel in its vacuum enclosure hanging from 2-axis gimbals (for long term self-leveling), within a permeable housing cylinder surrounded by sand, shredded tires or carpets, or soil. An electric signal and power cable, between the flywheel assembly and a floor level electronics enclosure, is not shown here. 

Note that underground placement would not be practical without the zero maintenance expected for  the RPM flywheel. Zero maintenance is a critical requirement for remote locations, such as off-grid solar/wind powered cell phone towers, and is crucial for spacecraft UPS+CMG.

 

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 more dependable, more reliable, convenient, competitive-cost, long-term, stationary, on-site power storage, with self-monitor capability and no hazardous waste.  It includes:

RPM's Brushless Regenerative Motor

Although Fradella got purchase orders for this proprietary (covered by his US Patents 4085355 and 4520300) regenerative motion control system, from clients who saw its prototype's unique performance, he was unable to finance manufacturing operations. The demonstration motor prototype is shown in the photos below.

The first photo shows: (left) a 48vdc battery pack; (above) a 115vac wall outlet to a battery charger in the electronics enclosure; (center) the electronics enclosure, mostly housing pulse-width-modulation motor control similar to the RPM flywheel power interface, rear connectors to the motor and battery, and front battery voltage and current meters; (right) the motor, mounted in a frame for demo portability; and (front) the system's  speed, braking, forward/reverse control box.

The second photo shows the motor's disassembled axial-field rotor and stator disks, frame, shaft in ball bearings, and connector cable. Its main advantages over conventional iron-core motors are: No hysteresis and eddy losses, so it has far higher drive and regeneration efficiencies (up to 99%); no cogging torque; no brushes; can be assembled with varying number of disks, to get flexible power rating with same parts (for lower  manufacturing cost); provides inherent position and speed signals for servo use; does not need air vents for cooling; etc.  

Main products to be developed and manufactured by RPM

Both offer significant life-cycle cost, environmental, performance, reliability, remote monitoring, and safety advantages over existing chemical battery UPS equipment. Advantages over product descriptions and patents, of potential flywheel battery competitors, are also substantial.

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 can reverse-engineer our flywheel battery, and get a start producing and marketing the technology and applications we create.  RPM’s existing patents will help discourage product copiers. However, RPM needs to continue product improvement and cost reduction engineering, plus timely new product patents. Manufacturing and marketing ramp-up will pace our ability to be a dominant leader in this vital emerging sustainable power market.

RPM’s startup team

Hiring and retention of key people having extraordinary talent, technical expertise, self-motivation, team spirit, and company loyalty will be crucial to RPM's success and growth. Therefore, shared RPM ownership will be a hallmark of our personnel policies (which have been proven by legendary and very successful companies).  Generous RPM stock options will be offered as a sign-on incentive, and especially as a merit bonus for outstanding individual and team achievements.   Moreover, we will foster work performance excellence, by mentoring new employees and by encouraging open and objective technical discussions and critiques.

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, gimbals, 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