| Solaris Cybernetics LLC: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| the aRRAKIS eNERGY project | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Solaris Cybernetics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 610-454-0647 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| [email protected] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Confidential Business Plan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summer 2008 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TABLE OF CONTENTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Page | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Executive Summary 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Plan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Green Energy Market 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| History 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Technology 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Opportunity 9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| See the video: http://video.yahoo.com/watch/1053787/3916273 |
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| Intellectual Property 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Regulatory Considerations 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Projections 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Executive Summary | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A Common Sense Approach to Green Energy | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One of the major issues of our time is energy. The customary forms of energy production, based on fossil fuels, present problems that are steadily eroding our way of life. These problems are well known. The use of petroleum-based (carbon-based) fuels is damaging the environment, leading to potential long-term climate consequences. More importantly, supplies from politically volatile parts of the world are becoming more costly and more uncertain. There is a pressing need for an alternative fuel that is renewable, does not pollute, is economical to produce, affordable to consume, is available now, and can be produced domestically. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Solaris Cybernetics (“the Company”) has developed the The Arrakis Energy Project, a business to convert intermittent renewable energy and store it thermally. It then delivers the stored energy to shore connections instead of consuming fuel of any kind, and there are no gaseous emissions whatsoever to add to air pollution, acid rain or global warming. The thermal batteries can hold the heat for over 3 weeks so it can be used as needed, rather than as available. You have all the desirable characteristics of nuclear power but without any radioactive materials, and it can be connected directly to users or the power grid, eliminating the expense and time of new construction. With this technology you can generate completely clean power for $0.03 per Kilowatt-hour. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| We mean that we can make a very generous profit selling electricity for as little as $0.03 per kilowatt-hour. Now, imagine what power for that price would mean for our economy. Energy represents over 40% of the cost of living. Imagine what a 75% reduction in that cost can do. American goods become cheaper by half, food is cheaper and cleaner, the air and water can be made pristine. The cost of heating and cooling homes falls to one-quarter what it is now. Everybody wins. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The process begins with the SF-1 robots, the Dragons. The Company has developed a proprietary robot design and artificial intelligence that allows large numbers of robots to operate at sea, gather energy and return to the shore stations, without any supervision. The Prospero Artificial Intelligence is the latest version of our software that has been monitoring and analyzing fluid flows in nuclear power plants since 1984. Leveraging core strengths and experience in power systems and automation, Solaris Cybernetics has designed a completely autonomous, mobile system, powered by solar and wind energy only, that can function unattended for weeks or months. Unlike biofuel crops such as soybean, corn and palm, the company's ZENOC-NN engine does not disrupt or affect costs of food production, and it does not consume dwindling supplies of arable land or potable water. By robotizing and automating the process, Solaris Cybernetics can operate the Dragons where there is abundant renewable energy 24 hours a day, every day. Production at sea is safe, abundant and continuous - all at a low operating cost because the system requires only a minimal staff. Thus, the transition from fossil fuel to green energy becomes gradual, seamless, and inexpensive. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| With funding, the Company will enter into Phase Two of the core project, where a production facility will be constructed. The Company owns a 4-acre site near Port Norris, NJ, in which the The Arrakis Energy Project can begin producing green energy for nearby commercial users. There have been preliminary third party tests and discussions surrounding this compelling economic opportunity between the Company and the local municipality. The The Arrakis Energy Project also has the option to provide 100% of the power for a new industrial park on the adjoining property. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| II. Business Plan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| In energy projects, while efficiency is a key indicator of the success of a design, it is cost per kilowatt-hour that ultimately determines its financial success. The company's approach is to focus on cost per kilowatt-hour. To this end it was determined that using relatively inexpensive systems to collect ubiquitous sources of renewable energy gave the best cost per kilowatt-hour. The form of energy that is easiest to collect and uses the least expensive equipment is heat. Ironically, it is also the most efficient since our measure of inefficiency is what portion of the energy turns to heat. Thus a thermal system is inherently 100% efficient. Additionally, the largest use of energy from fuels is to convert it to heat. By saving the intermediate step of combustion we save the costs and pollution associated with that conversion and deliver energy in the form it which it is instantly usable. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Those forces that have always driven the energy market are now amplified by orders of magnitude because of new realities of the 21st Century. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rising global energy demand and consumption | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Decreased availability and increased cost of fossil fuels | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Significant degradation of the environment from carbon dioxide build-up beyond the capability of small-scale or incremental projects to correct. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| More than three decades of 'research' have not made renewable energy a significant part of our energy mix. The reason is it fails a primary requirement of commercial energy, and that is dispatchability. That means being available whenever, and in whatever quantity is needed. Solar and wind are available at unpredictable times and durations, and are not easily stored. Therefore they are not considered dispatchable. For green energy to become our primary source it must become dispatchable, and available in sufficient quantity, and at a low enough cost to displace base load plants such as coal and nuclear power. Until it can do that, renewable energy remains an interesting fringe technology. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Solaris Cybernetics, LLC believes it has solved the issue of large-scale, dispatchable, zero emission, base load, non-nuclear power production. The ZENOC-NN Engine and the Dragon robots make power production cheaper than all other sources, including coal and nuclear. The combination of these two technologies differentiates Solaris Cybernetics from the rest of the renewable energy industry. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Green Energy Market: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| In reality, all biofuel projects are already obsolete because there is not enough land, water or labor to provide for more than 5 or 6% of the world's energy needs under the best of circumstances. Restrict the problem further to that of providing for America's needs, within America's borders, and it becomes a cruel joke. We would have to cultivate every acre of arable land to produce 10% of our fuel needs, and we would then need to import all our food. We could have made excellent use of such technologies in the 1970's but we have wasted a generation. The conventional and traditional, even yesterday's 'new' technology, does not work anymore. They are all 'too little, too late'. It is time to embrace the technologies of the 21st Century, use them for more than war and live the life we have always dreamed of. The system is silent and does not produce any waste products and does not harm any ecosystems. It can produce not only enough for survival, but for comfort, economic growth, and healing the planet. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| With sufficient political will, wind and solar could provide 100% of our energy needs, but traditional forms of wind and solar are not dispatchable. Efficient storage is the key to it being successful. The ZENOC-NN system solves the storage issue and is designed to integrate into a larger network of wind turbines, solar arrays, capacitor storage stations and geo-thermal power plants for a completely clean, zero-emission, non-nuclear power system that has enough power for everyone beyond current levels and at half the cost in real dollars. Energy is what defines all modern economies so the cost of energy is a regressive tax that redistributes income. The ZENOC-NN system offers the ultimate tax cut. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| History: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| We have long had a hunter-gatherer paradigm for our energy supplies. We were content to find easily consumed supplies of fossil fuel to power our increasingly technological society. As a first step that was acceptable, but we never progressed beyond that. Now our consumption of energy is reaching the limits of what is available, and more to the point, what is the limits of what the Earth can tolerate. For our own economic, and literal, survival we must change our mindset about energy from that of hunter-gatherer, to that of farmer. We must cultivate and replenish our energy as a farmer does his fields. Wind and solar energy represents our energy income. If we live within our means we will be all right. The Sun, through the mechanisms of direct sunlight, wind, hydro, and biomass, provides all the energy we need, if we know how to use it. And this is abundant energy. There is no need to restrict the use of cars, or how we heat and cool our homes if we use that energy we receive free every day. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| But energy is not our only need. We all need food and water, too, and a clean place to live. Taking precious land and water resources away from the vital use of life support and devoting them to make fuel for wasteful vehicles is irresponsible. We need energy, but we can't sacrifice food and water to get it. We can't be satisfied with marginal, incremental solutions that are 'less polluting' than fossil fuels while providing a tiny fraction of our needs. That is no longer an adequate answer. The Earth can no longer take up the slack of that which we don't want to pay for. ALL of our energy must be 100% clean and renewable, and it must cost much less than it does now. If we wish to not only survive, but prosper, in the 21st Century we must take more responsibility, and hold more sacred, our relationship with the Earth. We share it with more than 6 Billion other people, all of whom have a right to life, liberty and the pursuit of happiness. Even biofuels must be seen as an interim step. What we need is a power source that is cheap, perfectly clean, and does not consume precious land or potable water. The answer is closer than you think. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Technologies: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ZENOC-NN: Zero Emissions, NO Carbon | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| clean, dispatchable power without emissions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The ZENOC-NN system renders all biofuel and green energy projects obsolete. Lower in cost than any other form of energy, including coal, hydro and nuclear; lower construction costs, lower operating costs, perfectly dispatchable, and ZERO carbon emissions makes the ZENOC-NN system the power system of choice. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fervilithic is from the Latin meaning fervid= very hot, and lithos= stone. Very hot stone. In concept it is a very simple way to store energy. In practice it is nearly as simple. Advances in materials such as high temperature insulating materials, and machine intelligence, make a commercially practical solution for green energy production. We use solar collectors, wind or hydro turbines. These send heat to a mass of thermal storage media. This container is surrounded by insulation. The media is heated to around 1400 degrees F. Once the entire thermal 'battery' is charged the heat goes to a poly-phasic engine. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| This engine is a Rankine-cycle engine in which multiple chambers are connected in series via one-way, pressure relief valves. It is filled with a non-combustible fluid. When heat is applied to the exterior of the chambers a small portion of the fluid changes state to a gas, increasing in volume to many times that of the chamber. Driven by this expansion, the fluid exits the chamber at high pressure and velocity in both a liquid and gaseous state. This liquid/gas is directed into a turbine with blades configured to convert the liquid portion of the flow into kinetic energy via an impulse exchange, while simultaneously converting the velocity of the gaseous portion into pressure energy via a reaction exchange. As the turbine absorbs the kinetic energy of the fluid as work, the fluid cools and the gaseous portion returns to a liquid within the flow. Downstream of the engine the fluid enters the chambers where the phase change of the gaseous portion causes a reduction in volume. The one way valves prevent a flow reversal therefore the resulting change in volume causes a pressure drop and cooling. Residual pressure inside the engine returns the liquid to the chambers where the cycle starts again. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Once charged the system can generate power for days without further input of energy due to new super-insulating materials. It allows the best of both worlds. It efficiently stores renewable energy when it is available, for use when it is needed in whatever quantity that is needed. The heat storage medium is chemically inert, non-pressurized and non-combustible. It is the safest energy storage system available. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dragon: harvester of green energy | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| While the ZENOC-NN power system is the centerpiece of the system, it is the Dragon robot that makes the system profitable on a large scale. Until now, renewable power systems such as wind and solar, were passive. They have to wait for the sun or wind to be available, limited to certain times of day, or year, when conditions are favorable and still limited by the vagaries of weather. The Dragon robot does not have this problem. A true, mobile marine vessel, it is able to seek out powerful currents wherever they may be, as needed. Once it locates an area of strong currents, it maneuvers itself into the current where the water drives a special bi-modal turbine which generates power and stores it in the thermal batteries. With a full 'charge' of thermal energy, it returns on its own to a shore station where the heat is directed to the ZENOC-NN polyphasic engine, producing electricity. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Each Dragon can generate 1,080,000 kilowatt-hours per month. These can be stored and used as needed over a period of weeks, or released in a 2000 kilowatt burst. The choice is yours. Once fully discharged the Dragon can return to a full charge in 2 or 3 hours. This means the Dragon can cycle anywhere from 3 to 6 times per day. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Dragons are completely autonomous, which means they can perform their function day or night without direct human control. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| When you amortize the power generated over the life of the machine, plus labor, the cost of generation is less than $0.02 per kilowatt hour. This is cheaper than coal or nuclear and it produces NO products of combustion or harmful discharges of any kind. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Primary Systems: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 'Sf1' AUV- free roaming, autonomous robot. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S.Rotor- bi-modal impulse turbine, air or water | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ZENOC-NN Engine, Zero Emission NO Carbon- polyphasic reaction turbine | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prometheus A.I.- navigates in 3 dimensions, operates process | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Opportunity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| the The Arrakis Energy Project: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| a Green Energy Project | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Overview | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Solaris Cybernetics, The Arrakis Energy Project, is a company formed to construct and deploy a fleet of small Dragons from its base in Port Norris, NJ. The company will standardize on a 200 kilowatt model because it will be maneuverable and unobtrusive in the waters of Delaware Bay. The Dragon robots will travel to Cape May Shoals during the slack tide and anchor themselves to the bottom. During the tidal surges the turbines will generate energy and store it in the thermal batteries. During the next slack tide they will return to base and other Dragons will take their place. The fully charged Dragons couple to the shore connection and deliver energy until they are depleted. After that they return to The Arrakis Energy Project to recharge. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The initial customers, already contracted, will be industrial users on the shore near Port Norris. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Phased Implementation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The project will be developed in two Phases. Our funding request will be for Phase Two, which is approximately $500,000. A breakdown of the stages are outlined as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Phase One: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The company is developing a 1 Megawatt operation using its own resources. It is standardizing on a small, 1000 kilowatt, Dragon it can construct with its own people and transport using ordinary boat trailers and launching ramps. The company has the resources to construct the first 3 Dragons that are needed. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| These Dragons will be constructed in a facility in Millville, NJ. The site is in a fenced industrial park and is owned by the company, unencumbered. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The output of the first 3 Dragons is already sold to 3 users located on the shore of Delaware Bay and will be used directly in their facilities. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues will be re-invested in new Dragons until a fleet of 16 is built, and permanent operations personnel are hired. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Phase Two: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| This will be constructed in the Philadelphia Naval Shipyard, by Rhoads Industries, with whom the company has a long working relationship. It will be a larger version of the Dragon design, capable of 8 Megawatts of generation and able to operate in the Atlantic Ocean for extended periods. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| This will require funding of $500,000.00 to build the first two. These will be used to provide large amounts of power to a local electric utility. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| With the demonstrable profitability of the Phase One Dragons, the company expects it will be able to construct the larger Dragons, and transition into an Independent Power Producer using traditional or non-traditional funding sources. As an I.P.P. The company will be able to sell to the growing renewable energy market, especially in the Southeast where other forms of renewable energy are not price competitive. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Intellectual Property: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The company owns all the patents for the Dragons and ZENOC-NN. They were issued in late 2007. No additional technology is required. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Regulatory Considerations: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Since the Dragons are vessels operating in United States waters the US Coast Guard is the sole regulatory agency. They are classified as robots by the USCG and require a certificate of seaworthiness. The design has been reviewed by the USCG Office of Marine Safety and the design has been approved. A certificate of seaworthiness will be issued to each completed vessel, following a USCG inspection, so long as they are built to the design and specifications on file. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The interconnect is already licensed by the Federal Energy Regulatory Commission. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Projections: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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