[SPN-Discussion] Greentech Investors Forum: May 8: Two Energy Storage Companies: Fly Wheels (Technology) and Battery Backup (Business Model)

Gelvin Stevenson gelvin.stevenson at gmail.com
Fri May 1 10:17:43 PDT 2015

*Two Energy Storage Companies: Fly Wheels (Technology) and Battery Backup
(Business Model)*

As we lurch toward increasing reliance on intermittent renewable energy and
increase the resiliency of our electrical supply—grid and
behind-the-meter—we need more and better ways to store energy. This week we
present two—one that emphasizes the technology—a better flywheel—and the
other based more on a business model—utility incentives.

Date: Friday,May 8, 2015

Time: 8:00am – 10:00am

Organizer: Gelvin Stevenson, PhD

Sponsor and Host: Crowell & Moring. LLP

Location: 590 Madison Ave. at 57th Street, southwest corner, 22nd floor

*Energy Storage Solutions, Inc., (ESS)--Flywheels*

Flywheels have been around for a while, but ESS has developed several major
improvements—mainly better bearings and a low loss reluctance motor—that
lead to substantial improvements in performance. It makes more energy
available than competing flywheels, costs less per unit of energy stored,
requires no maintenance and has a long life. ESS has a 50kW-1kWh prototype
system that was developed and tested under a NYSERDA grant, and is
developing a 50kW-10kWh unit for demonstration projects under its third
NYSERDA grant. That brings total NYSERDA grants to $850,000. ESS’s flywheel
system is projected to have an energy density which is competitive to
lithium ion battery packs, which is the current state-of-the-art in
batteries. Primary markets include building elevator regeneration,
micro-grids, off-grid cell towers, and more.

ESS is an IP, marketing and sales company that contracts out the
implementation of new IP into designs and manufacturing. The testing of our
prototype has proved out the current technology. We are now ready to design
and manufacture a commercial product using Flywheel Energy Systems (Ottawa)
for the flywheel design, Mintek Co. (Texas) and Mercury Manufacturing
(Corning NY).

Flywheels store energy by revving up a carbon fiber disk to high rpm in a
vacuum using an electric motor/generator. They extract the energy by
switching the motor into generator mode which is driven by the momentum of
the carbon fiber disk drive.

ESS's flywheel proprietary dry graphite lubricated ceramic bearings are the
reason these flywheels generate more energy, have lower cost and longer
life (10 years +), and require no maintenance. Competitors use
more-expensive mag-lev bearings which theoretically have less loss, but in
practice draw power from the flywheel, load down the CPU, and operate over
limited rpm range—all which reduce the efficiency of the flywheel.

ESS's Reluctance Rotors can operate close to 100% duty cycle, switching
between charging and discharging continuously. The motor operates in a
vacuum with limited cooling of the rotor. Synchronous reluctance rotors
generate very little heat, run cool and are inexpensive to operate. This is
especially useful in regenerative breaking applications. The reluctance
motor technology also allows ESS's systems to operate closer to 100% duty
cycle, switching between charging and discharging continuously. Our
competitors use permanent magnets in UPS, grid stabilization, quick
discharge applications. PM motors use expensive rare earth materials which
could have supply problems.

Presenting for ESS will be Richard Johnston, COO and Paul Albert, CEO and

Register at GIF NYC Eventbrite page for Two Energy Storage Companies

Or contact Gelvin at gelvin.stevenson at gmail.com.

*Efficiency Energy Systems (EES)--Business Model*

The need for energy storage is growing rapidly as the grid is strained and
unbalanced and peak load is rising.  The need for resiliency and backup
power as the amount of electronics rises in buildings also is satisfied
through the adaptation of BSS systems.  This has lead ConEd to incentivize
battery storage and also, with PJM and now NYISO, battery storage systems
are like electron bankers--cash machines.  EES intends to capitalize on
these new economics by deploying lithium ion battery arrays in buildings
throughout NY and Philly metro—wrapped in a three stage business model.

THE BUSINESS MODEL: The Company is not looking to raise capital, so its
only focus is satisfying customers.  To jump start the business, EES is
working on a planned 500KW demo project in White Plains, funded in part by
a grant from NYSERDA.

Once the system is successfully demonstrated and the fire code is changed
to allow lithium battery storage for peak shaving and load shedding
(anticipated for later in 2015), the company will use its extensive
contacts in the NYC Metro real estate industry to attract additional
customers by offering building owners stock in a corporation structured
like a mutual insurance company, where the early adopters who purchase the
systems become members of the parent company. In this way, early adopters
will gain from taking early adapter risks with the possibility for
exceptional reward.

As the company sells units, it can shift its model to financing systems in
buildings to "Build, own and operate", setting up regional Master Limited
Partnerships which contain these cash flowing assets--"New York Mutual
Battery MLP".  In MLP’s, all net income is distributed to shareholders, who
also accrue tax benefits. The customers for these MLP’s product, who will
sign PPA's, may include financially stressed institutional and municipal
users, who will gain significant savings, reduce carbon emissions, and gain
LEED points.

EES has partnered with important regional engineering firms and excellent
equipment consultants to build to suit each site based on its specific
energy usage and billing profile.

GIF thanks Investors Circle for its generous support, Geoff Miles and Chino
Maduagwu for developing and operating GIF’s video, social media and design
capabilities, Tonia Popke for her financial expertise, and Jesse Goldstein,
PhD, for his continued assistance.

MARKETING The company will focus on the NYC Metro area. To find customers,
it will access its stakeholders and partners that have developed
relationships with many large NYC real estate holding companies, Con
Edison, NYSERDA and leading advocates for green building and energy
conservation throughout the tristate area.

TECHNOLOGY The Company chose lithium ion batteries because of the system
performance, price, reliability and safety that have recently been achieved
in lithium ion based battery arrays. Such large battery array’s (>1 MW) are
common around the world for renewable storage, utility storage and UPS
(Uninterrupted Power Supply) systems.  Lithium ion arrays have the highest
storage density of any commercial chemistry, so that more energy is stores
with less size and weight. Moreover, the chemistry allows for three times
the lifespan compared to lead acid batteries.  Plus, prices have dropped to
under 1,000/kw installed.

The company is ambitious: it aims to install 50 MW in five years.

Presenting will be Howard Chalfin, CEO, and Ian Murray, President

Disclaimer: The Greentech Investors Forum (GIF) is not soliciting funds for
the presenting companies, nor is it encouraging parties to invest in them.
We try to find good companies—not necessarily good investments. They have
been advised on what is acceptable in terms of predicted results, but GIF
takes no responsibility for what they actually do, say, or how they perform
in the future.

*Security:*              If there is a problem at the Security Desk, please
contact Ellen Reilly at (212) 223-4000 <%28212%29%20895-4265> (first
choice) or Gelvin Stevenson at 917-599-6089.

*Fees:*                $50, payable ahead of time or at the door. Cash or
checks and credit cards accepted.

$25 for members of Affiliated Organizations

$25 for call-in. Registered call-ins will be emailed the call-in numbers
and, if available, the slides to be presented.

                         $20 for students and faculty.

*Agenda:*           8:00 to 8:30  -     Networking

                        8:30 to 8:40  -     Introductions

8:40 to 9:10  -     Paul Albert, CEO and Director and Richard Johnston, COO

9:10 to 9:40  -     Howard Chalfin, CEO, and Ian Murray, President

9:40 to 10:00  -   Discussion

 To register, visit this Eventbrite site Greentech Investors Forum or send
your contact information to Gelvin Stevenson at gelvin.stevenson at gmail.com or
917-599-6089. And contact Gelvin If you have questions or need more

*ESS Bios*

*Paul Albert* CEO and Director is a financial executive with over 35 years
on Wall Street. Traded on the floor of the NYSE, ASE, as an NASDAQ market
maker. (CRD#2369) Paul also traded for the Shearson arbitrage department.
He worked for Kaufmann Alsberg (as a members and floor broker) Paul was
part of the first pilot program for NASDAQ. and also helped develop the
first ECN’s. He graduated from the University of Maine and did graduate
work at The New School in New York City

*Richard Johnston*, COO and Director, is an Electrical Engineer with a
Masters in Engineering Management. He has over 30 years of experience in
product development and project management. He started a consulting company
and managed projects at Bell Labs, NY Life and hedge funds. Richard joined
US State Department as project head for communication networks and liaison
with foreign governments. He has a BSEE from NYU-Poly and a Master of
Engineering Business Administration (MEA) from George Washington University.


DR. Ib Olsen, CTO is an authority in the field of advanced battery and fuel
cell development.  Dr. Olsen’s groundbreaking work in the battery and fuel
cell technology field has awarded him more than 30 patents. He holds a Ph.
D. in Chemistry from the University of Odense in Denmark and a M.Sc. in
Chemical Engineering from Denmark’s Technical University.

*EES bios*

*Ian Murray* is an experienced senior executive with a diverse background
in corporate banking and in building and managing an entrepreneurial
business.    He has a demonstrated track record of increasing revenue,
improving operating efficiencies and controlling costs by focusing
strategic business plans that are aligned with financial P&L targets.

Since 2002, Ian has been the managing partner of T-1 Lighting, an energy
efficient lighting company.  Under his leadership, he turned around a
distressed company into a profitable operating entity by increasing the
number of product offerings, expanding the distribution channels, and
restructuring the manufacturing process.  He further created additional
value for the business by expanding the company’s patent portfolio.  To
accelerate growth, Ian identified a complimentary acquisition target in the
lighting industry to form a larger merged entity.  He created a strategic
business plan and $10M offering memorandum that he presented to potential
investors in private equity.

Before acquiring T-1 Lighting, Ian had a successful 20-year career in the
financial services industry where he served in several executive
operational roles with ABN AMRO and UBS.  His most recent experience was as
the Chief Operating Officer of the Latin America investment banking
division for UBS and, later, ABN AMRO.  In these roles he had senior
management responsibility for annual business plans and logistics
operations of several international offices, including oversight of the
human resources, legal, and finance teams.

Ian received his undergraduate degree in economics from Cornell University
and his MBA in finance from Pace University.  In addition to his corporate
and entrepreneurial business experience, he has also served in leadership
positions and on the Board of two non-profit organizations that focus on

*Howard Chalfin* has lived and worked in NYC for 25 years. A graduate of
Wesleyan University and the Stern School of Business, he had a 20 year
career on Wall Street as an arbitrageur and later as an energy investment

Three years ago he formed two companies to promote clean
technology--Primafilm, which is bringing to market a revolutionary energy
efficient window film later this year, and EES, to promote underutilized
energy saving technologies which are ready for the mass market--CHP and
Battery Storage Systems.
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