Professional Documents
Culture Documents
CONTENTS
SECTION PAGE
CONTINUED
3
CONTENTS
SECTION PAGE
8.0 APPENDIX 40
9.0 GLOSSARY OF TERMS 43
4
CONTACT:
Corporate Office:
220 Miracle Mile, Suite #236
Coral Gables, Fl. 33134
With our innovation and unified, corporate vision, timed with the
growing demand for environmentally-friendly and renewable energy
sources, the increase in demand for green solutions makes Wind Power
Incorporated poised to be a key provider of just such a solution: the
urban wind turbine. In light of current energy costs and world-wide
environmental demands, businesses, municipalities, and private citizens
are seeking autonomy from traditional, expensive, fossil fuels, and
looking toward reliable, renewable, clean energy sources. The miles and
1.0 EXECUTIVE SUMMARY 8 .
miles of unused real estate above our heads in every city are ripe and
fertile ground for new and creative energy solutions- and WPI’s Aurora
System looks to provide just that.
Sincerely,
Louie Martinez
THE COMPANY
wind speeds, making it ideal for the urban landscape, and placing us
ahead of the competition in this burgeoning industry. Available wind
turbine systems offer peek output at wind speeds of 30 miles per hour,
whereas, in reality, the average wind speed in a given area is down
much closer to 15 miles per hour. Our Triton wind turbine system (App.
2.2c), developed specifically to function in the urban environment
doubles the wind-swept area through the use of the Zephyr Sail (App.
2.2d), which design is light-weight by virtue of its innovative use of
materials.
2.0 THE COMPANY 11 .
Louie Martinez
President & CEO
Grant P. Riley
Sales Rep.:
Resorts/Corporate
David Vargas Fontanilla
Carl Frederick/ Research, Search and Salvage
Aerospace Engineering Consultant
Electrical Engineering
Mariana Hernández
Sales Rep.:
Puerto Rico
Hector Faraci/
MAC Logistics
Sales Rep.:
Brazil/Argentina
Benjamin Ruffle
Sales Rep.:
Caribbean/Corporate
2.0 THE COMPANY 14 .
him a unique combination of skills and working knowledge, ideal for the
development of wind power-generating technology. Within a few months
of the initial stages, he was responsible for the development of the
cutting-edge, multi-stage Spirotech technology. He is responsible for
overseeing the production of The Aurora System, and all its component
parts, managing quality control and ensuring output reliability.
2.0 THE COMPANY 16 .
THE PRODUCT
individual Zephyr Sail measures 9’5’ by 32”, giving us a total of over 150
sq feet of wind-bearing surface. An additional benefit of the use of this
material is the extreme low cost and ease of interchangeability of a
Zephyr Sail. Because of this, the Zephyr Sails can also be ordered in a
variety of colors and designs, making them unique to the entire wind
power industry. This innovative use of these materials further enhances
the Zephyr Sail’s adaptability to any environment, and also makes them
flexible to the aesthetic preferences of the consumer. This accessory will
be further described in “The Options” segment of the business plan in
section 3.5, on page 16.
3.0 THE PRODUCT 24 .
the pivoting mount goes the Triton Tower, which is composed of high-
strength aluminum tubing, welded together with solid aluminum
gussets, forming a structural truss that can withstand several times the
forces that will be applied to the machine during its everyday use. The
turbines will be mounted upon the tower arms which sit upon the tower
frame. They are mounted to the tower frame by means of a box-shaped
mounting plate. The front of the plate will have small studs to aid in
alignment in the initial mounting of the arms to the frame, and the side
of the mounting box will have larger bolts to withstand the load stresses
of the machine. A four-color LED (Light-Emitting Diode) power indicator
that provides visual feedback of power output will be available as an
additional option to consumers (App. 3.4). This accessory will be further
described in “The Options” segment of the business plan in section 3.5
on page 16.
3.0 THE PRODUCT 26 .
o Production Costs
Cost of parts- Parts are designed to be fabricated out of standard
sizes of available raw materials, namely bar stock, sheet stock,
etc. These parts are designed to require minimal tooling before
the individual parts are combined to create the more complex
elements of the machinery. This tooling can be accomplished by
3.0 THE PRODUCT 29 .
o Installation Costs
Installation- The modular design of the mounting system and the
turbine components allow them to be easily-assembled onto its
final location without the use of any heavy machinery and with the
use of no specialized tools. This makes the cost of the installation
significantly lower than the competition and more contingent on
the surface conditions of the installation locale, such as the side of
3.0 THE PRODUCT 30 .
MARKET DEVELOPMENT
The small urban wind turbine industry lays dormant, ready to
explode onto an eager market. It merely requires a product that
outperforms the competition to enter mass production, combined with
concise, well-focused marketing to effectively become the forerunner in
the green technologies industry. And that is what Wind Power
Incorporated can provide.
Since wide-scale, alternative energy products fall into a relatively
new market, much of the positioning of our product in the market will
rely mostly on prospective buyers’ perception of our individual product,
based on our marketing message. Factors often concerning buyers, such
as past experience with similar products, recalled competitors’
advertising, and brand name perception- often considered sales pitfalls
for new companies- will not come into play. This gives us the unique
ability to market our product based on common sense. Price
comparisons and returns on investment, coupled with immediate
benefits such as incentives, rebates, and tax refunds will drive the main
focus of our marketing. In short, our customers will have a clear
understanding of how our product can save them money instantly. In any
economy, but specifically in this current financial climate, with such a
strong focus on conservation, this is the most important message for
buyers: our product makes you money.
Right now, the wind power industry is seeing an unprecedented
growth in production and sales. The amount of megawatts produced by
wind power technology increased from 2002 to 2006 by 256%, while the
overall consumption of wind generated electricity has increased 1,118 %
since 1990, with newer statistics becoming available in the end of 2009
by the U.S. Department of Energy, expected to show even higher
increases.1 Leading research and publishing firm, Clean Edge, Inc.
reported that after tracking the growth of key clean-tech markets
(Biofuels, Wind Power, and Solar Power) over the last ten years, 2008
represented the first time one sector alone, Wind Power, exceeded
revenues of $50 billion.2 All around the globe, elements of the
government, the business world, and the private sector are investing in
wind power technology to both, lower their immediate and long-term
energy costs, and reduce their carbon footprint, making their
skyscrapers, hospitals, post-offices, and homes environmentally
responsible as well as economically rewarding. In addition to these
incentives, consumers are encouraged to “go green” through tax rebates
contingent on the amount of clean energy they produce or conserve. A
recent Deutsche Bank Group DB Advisors report entitled Global Climate
Change Regulation Policy Developments counted more than 250 climate-
change-related policy developments between July 2008 and February
2009 by governments around the globe. In that same period,
4.0 MARKET DEVELOPMENT 32 .
And this is where our design really stands out: the turbine is not
integral to the structure, and therefore can be upgraded as the
technology progresses with more efficient designs with absolutely no
necessary alterations to the generating components. The generating
components are the most complicated parts of the unit, and have the
least potential need for upgrade. With its low cost component system,
our product has an unlimited lifespan, therefore infinite potential for
generating electricity, as well as financial return.
Previously, the cost of a wind generator was too high for it to be
economically feasible for the consumer to realize a return on their
investment in less than ten years. The development of the extremely
powerful neodymium iron boron magnets in the mid-nineties with their
low-cost and availability today, is the main catalyst which has made
powerful low-cost wind generators a reality for the average consumer.
With this diffusion of high-end technology incorporated into its
generating components, combined with a design which already utilizes
readily-available, low-cost technology into a structure, WPI was able to
develop a unique product which, timed with the current market trends
and demand for wind power products makes this a unique window of
opportunity for a burgeoning enterprise to enter a multi-billion dollar
industry.
Advertising Materials
Literature such as brochures, flyers and complete WPI product
catalogues, for more serious, prospective buyers, will be distributed to
targeted groups to serve as informational packets, advising people not
only on our product, but giving additional information such as available
government incentives and world environmental statistics. Promotional
items such as t-shirts, wind breakers, eco-friendly water bottles, etc will
be manufactured to support our sales force, especially when attending
“green” festivals and environmental events to promote corporate, name-
brand visibility.
Media Promotion
A steady outreach to local and national media will be a large part
of our marketing strategy. A press-release campaign, by use of a press-
release service will help to get the news out about all things Wind
Power Inc.. With the number of news stories related to wind power
growing every day, our company will no-doubt, by virtue of our cutting-
edge technology, as well as our media savvy, find its place among the
world’s go-to alternative energy technology suppliers. Several contacts
have already been made with national cable news channels such as Fox
Business with a high promise of wide-scale exposure for our company
and product in the coming months.
In addition to television marketing, the internet will serve as an
integral part of our advertising campaign. Sponsored links on websites
that are established resources for the distribution of information on
alternative energy products, combined with a well-polished web site
(www.thewindpowercorp.com) with a formative web presence will
establish us as a leading brand in the green technologies field. In
addition- email blasts and well-placed advertising will make WPI’s
presence in the alternative energy technology conversation, a
ubiquitous one.
Corporate Outreach
4.0 MARKET DEVELOPMENT 39 .
Government Outreach
Advertising Campaigns
Our marketing strategy will be divided into tiers, marking the degrees of
focus based on prospective profits.
4.0 MARKET DEVELOPMENT 41 .
1st Tier
Our first tier for marketing focuses on clients more likely to make
multiple-unit purchases. This base includes higher profile clients with
vast real estate holdings such as major corporations, chain franchises,
resorts, and hospitality establishments, as well as government bodies
with significant interest in energy cost reduction such as the
Department of Defense. In addition to this interest, many government
bodies now have swollen budgets with money specifically ear-marked
toward green initiative products and services such as ours’. Our sales
team is divided into specific focus groups which target each of these 1st
tier prospective customers. Many of our team have extensive
backgrounds in development, hospitality and government, and will use
their assets, relationships and extended networks of contacts to drive
our product through each of these respective markets:
2nd Tier
Homeowners’ Associations
Malls
Universities/ School boards
4.0 MARKET DEVELOPMENT 42 .
3rd Tier
Individual Homeowners
Small Businesses
Environmental Organizations
THE INCENTIVES
What is LEED?
industry. For instance, the federal government issued a $4,000 tax credit
at the national level; roughly a thousand dollars per kilowatt, up to four
kilowatts for production of alternative, clean energy. The acquisition and
application of products such as The Aurora System are not merely
exercises in public relations, but necessary alterations for the financial
integrity of real estate-holding corporations. It is our intent to work side
by side with such organizations to maximize our presence in this
growing market as well as to maximize multi-unit sales.
5.0 THE INCENTIVES 47
.
Senate:
House of Representatives:
the tax credit to small wind-energy systems and geothermal heat pumps,
effective January 1, 2008. Other key revisions included an eight-year
extension of the credit to December 31, 2016, the ability to take the
credit against the alternative minimum tax, and the removal of the
$2,000 credit limit for solar-electric systems beginning in 2009. The
credit was further enhanced in February 2009 by The American
Recovery and Reinvestment Act of 2009 (H.R. 1: Div. B, Sec. 1122, p.
46), which removed the maximum credit amount for all eligible
technologies (except fuel cells) placed in service after 2008.15
The following financial incentives, both corporate and personal, are also
offered by the federal government:
o Corporate Deduction
Energy Efficient Commercial Buildings Tax Deduction
o Corporate Depreciation
Modified Accelerated Cost-Recovery System (MACRS) +
Bonus Depreciation (2008-2009)
o Corporate Exemption
Residential Energy Conservation Subsidy Exclusion
(Corporate)
o Corporate Tax Credit
Business Energy Investment Tax Credit (ITC)
Energy Efficient Appliance Tax Credit for Manufacturers
Energy-Efficient New Homes Tax Credit for Home Builders
Renewable Electricity Production Tax Credit (PTC)
o Federal Grant Program
Tribal Energy Program Grant
U.S. Department of Treasury - Renewable Energy Grants
USDA - Rural Energy for America Program (REAP) Grants
o Federal Loan Program
Clean Renewable Energy Bonds (CREBs)
Energy-Efficient Mortgages
Qualified Energy Conservation Bonds (QECBs)
U.S. Department of Energy - Loan Guarantee Program
USDA - Rural Energy for America Program (REAP) Loan
Guarantees
o Industry Recruitment/Support
Qualifying Advanced Energy Project Investment Tax Credit
o Personal Exemption
Residential Energy Conservation Subsidy Exclusion
(Personal)
o Personal Tax Credit
5.0 THE INCENTIVES 51
.
http://www.dsireusa.org/index.cfm?EE=1&RE=1
The following sections show in detail how Wind Power Inc. will be, not
only financially efficient, but profitable upon receiving the necessary capital
to assume production, recoup costs and generate profit. This section
includes numbers for Start-Up Costs, the Projected Balance Sheet, the
Projected Cash-Flow and a Break-Even Analysis. For reasons of
conservation of space within this business plan, not all graphs, charts and
numbers are presented; however, upon request, a full financial package,
detailing all of our projections and budgeting can be made available to
potential investors upon request.
$
Wages Owed 48,333.33
6.0 THE FINANCIAL PLAN 55
.
$
Registration/Permitting/NOA Fees 46,771.00
$
Office Supplies 18,600.00
Warehouse/Manufacturing $
Equipment 5,933.76
Inventory $
Control/Storage/Distribution 3,954.00
$
Prototype 5,620.74
$
Total One Time 129,212.83
1,000,000
900,000
800,000
700,000
Cash on Hand 600,000
500,000
400,000
300,000
200,000
100,000
0
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09
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09
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Beginning Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Total
Cash on hand (beginning of
month) 764,000 764,000 607,294 579,800 582,306 584,813 587,319 619,825 652,332 684,838 717,344 779,851 842,357
CASH RECEIPTS
Cash sales 90,000 90,000 120,000 120,000 120,000 150,000 150,000 150,000 150,000 180,000 180,000 180,000 1,680,000
Returns and allowances 0 0 0 0 0 0 0 0 0 0 0 0 0
Collections on accounts receivable 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest, other income 0 0 0 0 0 0 0 0 0 0 0 0 0
Loan proceeds 0 0 0 0 0 0 0 0 0 0 0 0 0
Owner contributions 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL CASH RECEIPTS 90,000 90,000 120,000 120,000 120,000 150,000 150,000 150,000 150,000 180,000 180,000 180,000 1,680,000
Total cash available 764,000 854,000 697,294 699,800 702,306 704,813 737,319 769,825 802,332 834,838 897,344 959,851 1,022,357
Office expense 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Other interest expense 0 0 0 0 0 0 0 0 0 0 0 0 0
Pension and profit-sharing plan 0 0 0 0 0 0 0 0 0 0 0 0 0
Purchases for resale 0 0 0 0 0 0 0 0 0 0 0 0 0
Rent or lease 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000
Rent or lease: vehicles, equipment 0 0 0 0 0 0 0 0 0 0 0 0 0
Repairs and maintenance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Supplies (not in COGS) 0 0 0 0 0 0 0 0 0 0 0 0 0
Taxes and licenses 0 0 0 0 0 0 0 0 0 0 0 0 0
Travel 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43,200
Utilities 2,281 2,281 2,281 2,281 2,281 2,281 2,281 2,281 2,281 2,281 2,281 2,281 27,375
Wages (less emp. credits) 42,280 42,280 42,280 42,280 42,280 42,280 42,280 42,280 42,280 42,280 42,280 42,280 507,360
Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0 0
Other expenses 0 0 0 0 0 0 0 0 0 0 0 0 0
Other expenses 0 0 0 0 0 0 0 0 0 0 0 0 0
Start Up 129,213 0 0 0 0 0 0 0 0 0 0 0 129,213
SUBTOTAL 246,706 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 1,539,137
Loan principal payment 0 0 0 0 0 0 0 0 0 0 0 0 0
Capital purchases 0 0 0 0 0 0 0 0 0 0 0 0 0
Other startup costs 0 0 0 0 0 0 0 0 0 0 0 0 0
To reserve and/or escrow 0 0 0 0 0 0 0 0 0 0 0 0 0
Owners' withdrawal 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL CASH PAID OUT 246,706 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 117,494 1,539,137
Cash on hand (end of month) 764,000 607,294 579,800 582,306 584,813 587,319 619,825 652,332 684,838 717,344 779,851 842,357 904,863
$600,000.00
$400,000.00
$200,000.00
Dollar Amount
$-
0 14 28 42 56 70 84 88.6 98 112 126 140
$(200,000.00)
$(400,000.00)
$(600,000.00)
$(800,000.00)
$(1,000,000.00)
Units Sold
6.0 THE FINANCIAL PLAN 61
.
THE PARTNERSHIP
Appendix
3.2a Lenz 2
3.2b Triton 2
8.0 THE APPENDIX 67 .
3.2.1 Wing
Foil
4.2
Neodymium
boron
magnets
9.0 GLOSSARY OF TERMS 68
GLOSSARY OF TERMS
Ampere - the base SI unit of electrical current, equivalent to one
coulomb per second, formally defined to be the constant current which if
maintained in two straight parallel conductors of infinite length, of
negligible circular cross section, and placed one meter apart in vacuum,
would produce between these conductors a force equal to 2 × 10−7
newton per meter of length. Abbreviation: A, amp.
Triton 1 - the first variation of the Lenz 2 wind turbine design. It is the
mechanical structure of the machine and is composed of three sets of
arms, Sail Blades and Zephyr Sails designed to catch wind and spin
around on a central axis as a result, thereby providing mechanical
energy for the generator.
Zephyr Sail – the adaptable Triton wind turbine sail component which
catches the wind to spin the turbine structure. It is made from a
variation of sail canvas to be resistant to sun light and strong winds
while still being light weight, flexible and removable, as used on boats.
71
CONTACT:
Corporate Office:
220 Miracle Mile, Suite #236
Coral Gables, Fl. 33134
2 Clean Edge : “Clean Energy Trends 2009”, by Joel Makower, Ron Pernick, and Clint
Wilder, March 2009
3 Clean Edge : “Clean Energy Trends 2009”, by Joel Makower, Ron Pernick, and Clint
Wilder, March 2009
4 Don't call them the Big 3; they're the Detroit 3 — for now”
Monday, February 23, 2009 CBCNews.ca
5 The Auto Industry: Running On Empty?, Jessica Tsai, CIO Today: Business Briefing,
February 23, 2009
7 Clean Edge : “Clean Energy Trends 2009”, by Joel Makower, Ron Pernick, and Clint
Wilder, March 2009
10 Feb 24, 2009, By Elaine Rundle, Stimulus Bill Includes Green Initiatives
http://www.govtech.com/gt/articles/622324
13
American Wind Energy Association: Legislative Affairs
http://www.awea.org/legislative/#PTC