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Transcript
Welcome
and Overview
Brent Cook, CEO
Welcome to this edition of “Up
To Speed” with Raser
Technologies. So much has
happened since our last edition
that we felt the need to release
two editions back-to-back this
time. In this edition we will
bring you up to speed on some
key developments that have been
of particular interest to our
shareholders and customers. We
will follow soon after with
another edition next month with
additional developments.
Raser has made significant
progress in several areas of our
three main business segments…
including a technology
innovation award in
transportation, augmenting and
strengthening of our management
and engineering team for rapid
commercialization, and we have
added a significant new
technology to expand our Power
Generation Business Segment.
First, let me give you an
important update on the recent
acquisition of proprietary geo
thermal and heat recovery
technologies via our final
settlement with Amp Resources.
In the agreement Raser received
a global license (graphic
subtitle: excluding Australia,
New Zealand, South Africa and
Canada) to utilze this
proprietary technology for power
generation applications.
The license allows four major
applications of the technology
for 1) the development of
geothermal power plants, 2)
Direct Fired Power Plants, and
3) in industrial plants
recapturing and utilizing their
waste heat, and 4) in Thermal
Power plants.
In the agreement a promissory
note was executed and made
payable to Raser in the amount
of $5.5 million dollars. The
note will bear a 10% interest
rate and is required to be
repaid by March 1, 2007, or
sooner in the event they sell
any of their geo thermal power
projects or assign or sell any
of their power purchase
agreements. It is also repayable
in the event that construction
financing is obtained or
refinancing with any third
party.
We are confident this note will
be repaid on or before March 1,
2007.
We also terminated the lawsuit
which was filed in the 3rd
district court, and settled any
disputes between the parties as
of September 2nd 2006.
By licensing this proprietary
technology, rather than
purchasing Amp Resources, Raser
benefited significantly by not
having to issue any additional
shares avoiding dillution, nor
did Raser have to expend any
additional cash or assume any
debt. We feel that this
resolution was in the best
interest of Raser and in the
best interest of all parties.
One of our primary objectives
now will be to work quickly to
realize the substantial value
available by applying this
technology for clean renewable
energy and improved power
generation.
Raser’s business plan targets
three main business segments:
Transportation Industry and
Power Generation. This license
for geo thermal and heat
recovery technologies helps
launch the Raser’s Power
Generation business segment. As
the world seeks clean renewable
energy sources and more
efficient ways to harness and
use electric power, Raser
believes it is well positioned
to meet this global demand.
We believe that developing
strategic alliances to essential
to the success of Raser and
particularly in the geothermal
and power generation industries.
We are currently analyzing
strategic allies as well as key
power projects. Our long term
plan is to be a leader in
geothermal as well as power
generation systems which utilize
excess industrial heat.
This power generation technology
will help meet the growing
demand for clean energy from
renewable sources (which
currently provide approximately
1.3% of America's electric
energy Geothermal energy is the
largest source of clean,
non-carbon producing renewable
energy. The U.S. Department of
Energy forecasts that growth in
domestic demand for clean energy
will exceed 15% through 2007.
International demand for
geothermal energy is also
increasing as developing
economies in the Pacific Rim
seek access to reliable,
low-cost energy.
I am delighted now to introduce
our new President Patrick
Schwartz. Patrick joined us in
June just prior to the annual
shareholders meeting. He has
already proven to be an
invaluable addition to our
management team and will play a
key role in commercializing and
licensing our technologies.
Patrick Schwartz, President
Hello, my name is Patrick
Schwartz. It has been a pleasure
to join Raser Technologies at
this time when the world is
desperate for fundamental
solutions to meet our energy and
transportation challenges. Prior
to joining Raser, I had the
opportunity of leading a global
business at Huntsman Corporation
with annual revenues of
approximately one billion
dollars. While at Huntsman, we
expanded revenues in our
European operations almost
ten-fold. This included two
grass roots start-ups. I believe
I have a good understanding of
the complexities and urgencies
of successful commercialization.
I am very excited now to be a
part of the Raser leadership
team at a time when Raser will
transition from the research and
development stage to the
commercialization of it’s
technologies. I believe strongly
in the significance of Raser’s
technology and the important
role it can play, especially as
we face the challenge of
reducing our dependency on
foreign oil and transition to
clean renewable energy sources.
Raser is at the point where some
of the technology it has been
developing, testing and
demonstrating, can now be
brought to market. You may have
been following our work in
transportation for hybrid
vehicles. Our P-50 Integrated
Starter Alternator was awarded
the “Drive System Technology
Innovation of the Year Award” by
Frost & Sullivan. This award
winning technology has been
delivered for testing and
evaluation at a leading
automaker’s facility.
To move this and other
technologies to market, we have
recently augmented our sales,
management and engineering
teams. The recognition and
significance of Raser’s thrust
has attracted some of the
leading experts in their field
to join in this work.
Recently we have added several
new key members to our
engineering team lead by Dr.
Sergei Kolomeitsev. Dr.
Kolomeitsev served previously as
the senior scientist at Valeo,
one of the world’s leading
makers of alternators and
automotive motors and former
senior scientist for Prestolite.
Sergei holds 25 patents with 9
more pending.
Also joining Raser recently is
Dr. Tan Pham, a leading motor
designer and expert in virtual
motor prototyping, modeling and
simulation and former Principle
development engineer for BEI
technologies.
In addition, we’ve added Dr.
Thierry Caussat, an expert in
motor control systems and
software. Prior to joining Raser,
Dr. Caussat served as software
project leader with Valeo Motors
& Actuators where he was
responsible for development and
product launch of several
embedded motor control system.
Also joining Raser is Senior
Motor Controller Engineer Tom
Gallagher former Senior Project
Engineer at Valeo and Dr. O-moon
Kwon, previously a research
engineer at Heo-sung, one of
Koreas leading motor
manufacturers. Dr. Kwon received
his PhD from the prestigious
Rensselaer Polytechnic Institute
in New York where he also served
as a post doctorate research
Fellow. Dr. Kwon specializes in
electric machine analysis and
virtual prototype development
using the latest software design
and prototyping tools.
This world class design and
development team is supported by
a team of electrical and
mechanical engineers and
designers for prototype
development.
This distinguished international
team has been instrumental in
the development of the Award
winning ISA P-50 technology and
in the development of industrial
applications including variable
speed modular control technology
for improving the efficiency of
variable speed induction motor
and drive applications such as
air conditioning motors.
As we have mentioned in the
past, we are involved in
research funded by the
Department of Energy, helping in
their search to find ways to
reduce energy consumption in the
United States.
The DOE effort recognizes the
fact that electric motors are
one of the largest consumers of
electricity and that variable
speed controllers are a very
large portion of this
electricity usage. DOE’s
objective is to find a way to
reduce energy consumption of
electric motors by increasing
system efficiency at least 2%,
and potentially 5% or more.
Raser was asked to participate
and bring to bear its technology
development in the area of
flexible modular controllers. As
a participant in the DOE effort,
the efficiency that could be
obtained by Raser’s
motor/controller technology
needed to be demonstrated at an
independent certified testing
facility; in this instance,
Advanced Engineering. Tests were
performed on a range of motors
from 5 to 50 hp. Depending on
the size of motor and speed of
the load, Raser’s technology
achieved results ranging from 1
to 17% improvement in
efficiency.
The potential benefits of higher
system efficiency demonstrated
by these test results may be
applicable across a broad
spectrum of industrial electric
motors.
The final report of these
results is due to be released in
the coming months and you will
hear more about it in an
upcoming edition of UP TO SPEED.
In addition to technology that
improves how variable speed
motors are controlled, Raser has
recently begun development of an
efficiency optimized technology
for a wide range of low cost
line driven motors that could
have tremendous potential.
Because of the large number of
these motors in use in various
industries, even a modest
improvement in efficiency can
mean tremendous savings in
energy. This is an area of great
interest to governments and
industry worldwide as energy
costs continue to increase.
Our work in Alternators is one
of our near term opportunities
for licensing technology.
Recently we published
independent test results of our
brushless alternator designed
for commercial and heavy duty
vehicles. The output of a
standard heavy duty alternator
was improved by up to 56% in a
high heat environment. We
believe this value can be
realized in greater output and
performance or in a substantial
cost reduction based on a
smaller size alternator with
equivalent performance. Our
alternator also operated at much
higher efficiency at all loads
which offers the potential to
increase the miles-per-gallon of
the vehicle. I have put in place
a specialized marketing team to
immediately take this technology
to market.
When I first joined Raser, I was
immediately impressed with the
caliber and talent of the Raser
team. Like many of you, I
realized early the importance of
this work. This is the time and
the place where I can make a
tremendous difference. I look
forward to reaching our
commercialization goals and to
building value for our
shareholders and customers; with
the technology we offer today
and the new technologies we are
developing for the future.
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