The WARP wind technology system is unique to the market in that it solves a huge,

on-going wind industry problem that costs the industry tens of millions per year
in producing energy with costly, extraordinarily large, risky and complex
component plants and relatively costly equipment deployment and repairs. The WARP
wind technology greatly reduces these problems because it:

1. Less costly to construct.

2. Produces’ greater amounts of electricity with simple manageable component
size and environmentally friendly equipment.
3. Is comprised of a flexible modular unit that can be used in the varied
environments, including large type manufacturing facilities, wind farms, cities,
and large buildings or on water.

I plan to build a 500kW unit to be displayed in the technology park in Michigan.

With an ever increasing demand for electricity, the Grid Systems are becoming
strained to the point of rolling blackouts. Other problems are storm related
outages and equipment failures. Additionally, the State of Michigan is presently
striving to be the leader in alternative energy.

Problems related specifically to the wind industry are inherent in today’s large
blade wind turbine configurations. Due to the risky nature of the latter’s
massive rotating equipment their use is effectively relegated primarily to
isolated locations. The latter also have been cited for adverse environmental
problems. These include hydraulic leakage and communication signal interference
(EMI). Susceptibility to unwanted exposure and damage from lightning strikes is
yet another problem associated with the wind industry’s conventional large bladed
wind turbines.

Relative Cost Determination of WARP Systems

To Conventional Large Bladed Wind Turbines (WTS)

One way to determine the relative cost of wind power systems is to use the
following information:

(ref: charts: Wind Turbine Cost Breakdown-NREL.jpg;

WTS4-WARP weight-cost Comparison.ppt)
Cost per lb vs System Weights-All Types.ppt)

Fact: Gross WTS cost breakdown consist approximately of the following:

High price per lb items: ~80 % (=78%)/ Rotor head (blades, drive train,
controls)
Low price per lb items: ~20% (=18%)/ Tower

Relative cost of High price items to Low price items:

Relative cost of High price items to Low price items on a wind power plant are
about 4-to-1 to 8-to-1;
eg. Rotors and drive trains: $15/lb to $20/lb);
Towers: $2/lb to $3/lb
Assume about 5:1 for conservative analysis purposes;

Let Low price items cost = x

Let High price items = 5x
Relative Weight & Cost of Low & High Price Components of a WTS
[100% (or =1)]:
Low price components weight =y
High price components weight [= (1-y)]

Ratio as follows:

(Wt of High price items)(cost / lb of High price items) / (Wt of Low price items)
(cost/lb of Low price items) =

= (1-y)(5x) / y(x)
= 80%/20% = 0.8 / 0.2
= 4

Next, solve for y (the Low price components weight of a WTS)

Therefore, Low price component items weight make up y = 5/9 or ~56% of system
weight; &
High price component items weight make up (1-y) = 44% of WTS system weight.

[or 0.56 and 0.44 in decimal form, respectively].

WTS-WARP Weight Comparison:

As the chart [WTS4-WARP weight-cost Comparison.ppt] indicates, the total weight of
a comparable capacity WTS and WARP are roughly the same magnitude, assuming
typical 3 bladed rotors and not counting the foundation, which significantly
favors a WARP installation.

Whereas for a WTS the Low price items and High price items weigh 0.56 and 0.44
( in decimal form) respectively, for a WARP the Low priced component items weigh
roughly 80% while the High price items make up only about 20% of total weight
(again, not counting the foundation which is typically much larger for a WTS).

Now the problem becomes like a high school algebra problem [coffee bean price
problem with a mix of high price beans and low price beans, with objective to
determine the combined mix price].

(Price/lb of Low Price Items)(Weight of Low Price Items) + (Price/lb of High Price
Items)(Weight of High Price Items) = ?

For WTS:
(1x)(0.56) + (5x)(0.44)= 2.76x

For WARP:
(1x)(0..8 + (5x)(0.2)= 1.8x

Ratio of WARP cost to WTS Cost:

Ratio of WARP cost to WTS Cost is roughly = .65

Conclusion:
WARP systems project to cost about 65% of WTS in this case.