Descriptive Documents

Executive Summary

This invention has been created in response to a niche market opportunity, titled the Electrical Generator which is presented as a hybrid engine and a power station – a revolutionary new invention. This environmentally friendly and sustainable hybrid engine, with an electrical, mechanical, and fluid power transmission system that is self-charging and requires no fuel.

Frank has spent the last few years working on the Electrical Generator, which has been awarded 11 claims for the unique patent invention and design, and awaits a vast global market.

Simplicity and careful planning has been used in the basic design with consideration to manufacturing techniques, and with minimal further R&D the product offers unique possibilities. This product deserves serious consideration from all investors, as well as commercial and industrial industry and government departments.

For environmental and health reasons, scientists agree that emissions of pollutants and greenhouse gases from fossil fuel-based engines and power stations account for a significant portion of world greenhouse gas emissions. Looking to reduce the impact on the environment – the electrical generator was invented as a self-charging power source with zero emissions.

Today, there are many electrical generators and engines and electric motors in existence – but all have limitations that the new-patent titled the Electrical Generator can overcome. The titled Electrical Generator easily incorporates into existing technology at an affordable price and vastly increases efficiency whilst enjoying zero emissions.

The Electrical Generator presented as a Hybrid Engine utilizing a combination of electrical, mechanical, and fluid power systems to achieve high efficiencies for many applications. The Electrical Generator can be manufactured to fit many different industrial and commercial applications. The design easily uses existing technology in a way that enables it to be produced at an affordable price – demonstrating great potential in for untapped market opportunities.

The benefits of the Electrical Generator when applied to fixed or mobile applications are many. But in general, the assembly allows the application to operate for extended periods of time – more so than current conventional systems without the need for regular refuelling and maintenance. The Electrical Generator allows greater profitability for the user with added benefits as follows:

To effectively market the Electrical Generator, the required further development of the prototype to become production ready and to achieve this, Frank is seeking to sell or license the product which requires commercialization expertise that can drive the implementation of the commercialization strategy.

After initial start-up, the path to market will be established as part of more in depth business planning. One of the initial ideas is operate from a fully functioning manufacturing plant which would create employment opportunities locally, and millions (and eventually billions) of dollars in terms of revenue through local sales channels and through export. Alternatively, the product manufacturing and distributed may be under license through investors or existing manufacturers.

With further years of trading as anticipated to see the business move into the international arena such as America, Russia, China, and Europe. This business plan represents initial consideration and business planning to commence the commercialization process.

Further business planning is required to consolidate the path to market through a focus on operational requirements, commercialization strategy and business launch that will result in lucrative financial returns for the owner.

To further develop the prototype, ready for production you may need to find a private investor or Government investors who can provide the equity to be eligible for the new program. The interested investor or investors to the new business will exclusively be focus on the manufacturing and commercialization of the Electrical Generator.

Outlined in this document will be the business, market, and financial opportunity at hand for sole owners with projected returns. This business plan will be used by a marketing company to prepare and implement the commercialization strategy requirements and will accompany government and other investor applications. Financial forecasts for the first year of trading have been prepared with all manufacturing and operational costs.

Business Ownership

Inventor and ownerFrank Seghezzi
Contact
Postal Address Only
144 Shepperton Road,
Victoria Park. 6100. Perth. W. Australia.
In writing only to postal address for purchase or license and inquiries
Business Type
(Patent)
Transport Equipment Manufacturing Machinery and
Energy Manufacturing
New Product
Innovations for Sale or License
A Hybrid Engine to Power Stations (The Patent titled an electrical generator)

For environmental and health reasons, worldwide efforts are underway to expand electrical production from hydro, nuclear, and renewable sources and reduce fossil fuel consumption. Scientists agree that emissions of pollutants and greenhouse gases from fossil fuel-based electricity generation account for a significant portion of world greenhouse gas emissions. In the US alone, electricity generation accounts for nearly 40% of emissions, the largest of any source.

Looking to reduce the impact on the environment – electrical generators were invented as a power source with low emissions.

An electrical generator is a device that generates electricity from mechanical energy, usually via electromagnetic induction. Electromagnetic induction works by forcibly moving a loop of wire (a rotor) around a stationary bar (a stator) that provides an electric field, either through a permanent magnet or an electromagnet. This induces a current in the rotor, which can be used to power machinery or charge batteries.

The first electrical generator was invented by a Hungarian inventor and engineer sometime prior to 1830. Though the electrical generator was invented around 1830, it wouldn’t be until Nikola Tesla’s pioneering work on rotating magnetic fields around 1882 that generators would become suitable for commercial and industrial use.

Prototype Design

Simplicity and careful planning has been used in the basic design of the Electrical Generator, which is a durable system with high efficiencies that can be refined for engineering production manufacturing procedures, to suit special energy applications. This design has been given consideration to manufacturing techniques, and with minimal R&D will be a product that offers unique possibilities.

The design is a user and environmentally friendly product with exceptionally high efficiencies and excellent duration. The Electrical Generator can be manufactured to fit any required application – the design easily uses existing technology in a way that enables it to be produced at a very affordable price.

The Electrical Generator presented as a Hybrid Engine utilizing a combination of electrical, mechanical, and fluid power systems to achieve high efficiencies for many applications. the concept is basically a three-jack system.

System One

Module one is used to initialize the system with battery power (comprising two electric starter motors, two alternators, and mechanical drive assembly).  The primary battery power source included the electrical circuit.

To begin rotational motion the two electric starter motors work in tandem.

One electric motor draws on the input battery power for initial start and is used to excite the two alternators. Energy from the alternators is used to supply full electric motor power.

System Two

The second electric motor is used to drive a hydraulic pump. This pump supplies power to the hydraulic motor to facilitate rotational motion.

Module Two uses the hydraulic principals in the first module to continue to supply power to Module One at full recharge, and is the mechanical final driver.

Module Two comprises of a hydraulic motor, hydraulic pump, valve, and a mechanical arrangement with two alternators. Initially the fluid motion is produced by the hydraulic pump, which rotates the hydraulic motor and is regulated with a valve. This hydraulic motor is used to excite Module Two alternators, which then allows the Module One electric motors to operate at full charge without the use of battery power.

As an innovative feature – excess charge is directed back to the stage one assembly to charge the primary input battery and other additional accessories.

System Three – Engine in Motion

System 1 and 2 work together, to power the hydraulic motion as the output drive power source which may then be coupled to each application. The combination of these modules uses a unique axial mechanical gear load dispersion system to achieve high efficiencies and performance through the electrical drive motors. This creates a semi-closed system, which may be modified to differing battery inputs (12v, 24v, 48v, etc.) allowing mobile use. Once in operation, the engine requires minimal external power input and can achieve significantly greater periods of operation without the need for recharging 

Uses of the Electrical Generator – A Hybrid Engine

There are two main uses of the Electrical Generator, which can then be coupled with a range of hardware that can make the Electrical Generator useable in many industry sectors and for many industry applications – either as:

Firstly, the Electrical Generator can be used as a Hybrid Engine to power fixed plant equipment and machinery. When the Electrical Generator is coupled to a specific application (fixed plant equipment such as pumps, generators, conveyor systems and other various types of machinery there is an approximate 50% increase in efficiency – to the extent of power stations, which may supply up to 3 megawatts of free power with a single unit design, and further continuous power when engineered to suit the application, until the machines service life.

When in series you may achieve the required power supply with zero emissions and without advanced engineering.The Electrical Generator can also be applied to mobile applications (as cars, boats, etc.) without elaborate engineering techniques. In this instance the efficiency rating exceeds most conventional engines available on the market. For example, the Hybrid Engine will allow a moving vehicle to operate at great efficiencies

Secondly, the Electrical Generator can be used as a transportable power source. Connecting the system with batteries, allows the Electrical Generator to be used as a mobile pump or mobile power generators, vehicles etc. This can be used for any application that requires a mobile power generator.This can also be used for light isolated applications or residential applications with additional power returned to the grid. When using a 12-volt battery power source. This may be improved by increasing power supply to 24, 36, 48, 60 volts etc. associated with the system reliability.

Benefits of the Electrical Generator

The benefits of the Electrical Generator (hybrid engine) when applied to fixed or mobile applications are many. But in general, the assembly allows the application to operate for extended periods of time – more so than current conventional systems without the need for regular refuelling and maintenance. The Electrical Generator allows greater profitability for the user with added benefits as follows:

Typical Energy Efficiencies

Electrical – resistance heater100%
Electrical generator (500 MW)98%
Hydraulic turbine94%
Hydro electric90% (conditions)
Electric motor (1 KW)78%
Storage battery74%
Fuel cell60%
Coal Fired Plant45%
Diesel engine (50 MW)40 to 45%
Steam power station35 to 40%
Gas Turbine40%
Nuclear Fusion Reactor40%
Petrol engine20 to 35%
Wind turbineUp to 35% (conditions)
Power TowerUp to 33% (conditions)
Solar cell10 to 25% (conditions)
Steam engine5 to 10%
Photosynthesis0.4 to 3 %

Hybrid Engines application Sample

The hybrid engine with a 2 Kw initial drive electric motor will produce the hydraulic power of the approximate 26.5 Kw at an idle inclusive with motor slip and at the full acceleration speed, the approximate hydraulic power output is 75 Kw at the approximate 80% efficiency with these particular alternators used and operating at optimum performance, compare with the typical energy chart. This system may be improved in accordance with the drive motor used e.g. 4Kw, 6Kw, 12v, 24v, 48volt etc. with the system reliability.  

When used for a mobile application such as a vehicle take into account the reduction of the inertia load when coupled to a gear box, ratio e.g. 1st gear being at the approximate 4:1 ratio etc. and the reduction of inertia load once in motion. An overall exceptional performance.

Power Station application Sample

When using a 1,000kilowatt generator the typical efficiency is said to be at 94% which equals 940 kilowatts. The required driver for this system is at the approximate 26.58 Kilowatts but increased to the approximate 180 kilowatts for greater reliability. The use of a hybrid engine as the initial drive uses a 9kw driver motor, which has a hydraulic power output of the approximate 200kw, the hybrid engine requires to be engineered to suit the application and for reliability, with calculations etc.to be revised and certified by – NASA – CSIRO scientists etc. only.

The fully recharging battery or battery pack starter, using the 9kw initial drive starter motor may be increased to 18kw for greater efficiency. the approximate 940 kw – 18 kw = 922 kilowatts of power supply is achieved with an exceptionally high efficiency. The power in is the energy source required, which may use batteries (battery pack) for this system to power out.

The power out for a conventional 180 kw electric motor drive is the approximate 5 times greater per unit as a standalone system or thereafter in series

The single unit design or when used in series with a conventional 180 kilowatt electric motor drive the system may produce the power of 760 kilowatts. With further engineering the power out may be increased to the approximate 2,226 kilowatts per unit. When in series for a power station to achieve the required power output for 100 units in series, the approximate 76,000 kilowatts of power supplied. Across 10 locations the extent is 760,000 kilowatts

Another great profit and beneficial business for the company or government and consumers – The cost is virtually free over a time     in fuel savings alone and with zero emissions for a continuous power supply, in comparison to other power supply systems.

Cost Benefits

The following Table One – Hybrid Engine and Table Two – Transportable Generator compare the cost savings that can be enjoyed by using the Electrical Generator, rather than conventional systems.

 Table One – Hybrid Engine

Retail prices are based on a combustion motor in comparison to a basic Electrical Generator engine for motor vehicle use.

Use as an Engine (for 12 V system)

Combustion EngineHybrid Engine – Electrical Generator
Price of motor = $2,500.00Total price of Electrical Generator engine = $12,056.00
Fuel/biofuel/gas based on $1.49/litre = $20.86 per dayEnergy supply (no fuel/biofuel/gas required)
Operation at 7 days per week = $149 per week (100 litres)Energy supply = $500 per 18 months
Operation at 52 weeks per year = $7,748 per yearOver 5 years = $500 x 3.3 Less 1st set = $1,150.00
Operation for 5 years = $38,740 for termNot including servicing
Not including servicingTotal cost for 5 year period = $13,206.00
Total cost for 5 year period = $38,740.00

Table Two – Transportable Generator

Retail prices are based on a combustion motor in comparison to a basic Electrical Generator engine for motor vehicle use.

Use as a Continuous Operating Generator (for 12 V system)

Combustion EngineHybrid Engine – Electrical Generator
Price of motor = $2,500.00Total price of Electrical Generator engine = $12,056.00
Fuel/biofuel/gas based on $1.49/litre for 3 litres per hour =
$4.47 per hour.
Energy supply (no fuel/biofuel/gas required)
Operation for 1 day = $107.28 per day (24 Hours)Energy supply = $500 per 18 months
Operation for 1 week = $750.96 per weekOver 5 years = $500 x 3.3 Less 1st set = $1,150.00
Operation for 1 year = $39,049.92 per yearNot including servicing
Operation for 5 years = $195,249.60 for termTotal consumer cost for 5 year period = $13,206.00
Not including servicing
Total cost for 5 year period = $195,249.60

Business Finances

Initial Investment Required

In order to commercialize the existing prototype, a second prototype ready for industry testing and certification is required. This unit will undergo extensive testing to certify it ready for trade prior to entering full production.

Frank has made considerable investment in time and money in the development of prototype one and required funding to develop the production ready prototype which is for sale or license as follows.

Expense$
Materials.$21,010.80
Office/Factory and equipment$800,758.07
Salaries and expenses machines/complex with provisions for production etc.$1,750,497.48
Total Funding required for production ready prototype$2,572,266.35

Frank will partner or only be involved at the point of completion of a production ready prototype, Frank seeks an investor or investors who will help to support the financial aspects of the commercialization and production strategy. Funds will be secured through the investor, through additional government grants if required and from other sources such as and initial unit orders or cash sales.

Future Investment Required

It is envisaged that the commercialization strategy outlined in this business plan will require future financial investment determined by in depth business planning by an experience executive and cross checked by a qualified accountant. This would be finalized during the completion of the market ready prototype, ready to progress quickly when required.

Investor Proposal

An investor is yet to be sourced – however Frank has indicated the following:

ProposalDetails
Investment requiredStage1 Start up AUD $2,572,266.35 initial investment (prototype and business complex with equipment)


Stage2. AUD $15,139,595.41.00 (test market set up and production
Equity offeredTo be negotiated
InclusionsProduct line remains with Frank Seghezzi and collects 5% of sales price for each Item sold. With a down payment.

Will sell for 7.4 million Dollars.

All offers will be considered and kept confidential.
Note: Only Proposals translated in the English language and in writing will be accepted.

Financial Forecasts

Financial forecasts have been created for the first year of trading, with the following assumptions:

A complete view of the indicative business operating costs and forecasted profit can be seen in the Budget Forecast.
This forecast is based on initial costs and pricing research to be formalized and validated as part of the business planning process in the prototype phase.

First Year Start-Up for a Single Product Production Development Sample

Staff

Operational Expenses

1 x Receptionist $ 53,352.00 Complex and Site $ 750,000.00
1 x Trade assistant $ 51,378.82 CSIRO Certification $ 11,644.00
1 x Tool maker $ 80,000.00 Electrical costs $ 29,425.69
1 x Machinist $ 75,000.00 Rates duty $ 29,704.50
1 x Electrical engineer $ 85,000.00 Land tax rates/MRIT $ 1,125.00
1 x Mechanical engineer $ 90,000.00 Compensation insurance fees $ 14,628.57
1 x Manager $ 120,000.00 Product Insurance/complex $ 22,000.00
1 x Project manager $ 125,000.00 Vehicle duty $ 1,394.00
1 x Designer $ 125,000.00 Phone / Internet $ 3,360.00
Salaries $ 804,730.82 Operational Expenses $ 863,281.76
Superannuation 10.25% $ 82,484.90

Salaries & expenses

Office/factory and machinery equipment Total  

Materials cost for proto model

Total cost 

=

$ 1,750,497.48

$ 800,758.07

$ 21,010.80

$ 2,572,266.35

Second Year forecast Sample for 2,500 x 12 Volt Unit Sample

Staff

Operational expenses

Manager $120,000. Complete complex site $1,700,000.00 not inclusive
2 x Supervisors $150,000.00 Complex site expansion $950,000.00
1 x Engineer electrical $85,000.00 Compensation insurance fees $64,000.00
1 x Engineer mechanical $90,000.00 Product Insurance/complex $42,000.00
2 x Receptionist $106,704.00 Travel expenses $20,000.00
1 x Accountant (2 days PW) $31,616.00 Advertising/marketing $82,000.00
2 x Sales total retainer $62,400.00 + commission Electricity costs $274,913.28
22 x Trades People $1,429,967.97 Land tax rates/MRIT $6,790.00
1 x Store person $53,352.00 Rates duty $38,753.00
2 x Trades assistants $102,752.00 Vehicle duty $1,394.00
Salaries $2,231,781.97 Phone / internet $3,360.00
Superannuation 10.25% $228,757.65 Operational expenses $3,183,210.23

Annual Employee salaries not including production bonus

Operational expenses

Office and machinery equipment Total

Material cost first year production Total

Packaging

2nd    year total operational cost

=

$ 2,460,539.62

$ 3,183,210.23

$ 2,359,365.47

$ 6,761,480.0

$ 375,000.00

$15,139,595.

2nd year cost per unit price
=

$ 5,392.63

For a sale price of $12,056 x 2,500 units Revenue

Less 2nd   year total expenses

Profit                           

=
=
=

$ 30,140,000.00

$ 15,139,595.41

$ 15,000,404.59

Government sales tax at 17%

Total profit

=

$ 2,550,068.78

$ 12,450,335.81

Assuming the production of 50,000 units the   

Total Profit                   =          $  249,006,716.20

For a sale price of $12,056 x 2,500 units  (Revenue)
Less 2nd   year total expenses   –
Profit 
Government sales tax at 17% 
Total profit
Assuming the production of 50,000 units the  Total Profit  
=
=
=
=
=
=
$ 30,140,000.00
$ 15,139,595.41
$ 15,000,404.59
$ 2,550,068.78
$ 12,450,335.81
$ 249,006,716.20

And fuel priced at $1.49 per litre for 50,000 units, the approximate $ 387,400,000.00 in fuel consumption per year will be saved assuming the consumption level for a mobile application which is also 260,000,000 litres of less pollution

Third Year forecast Sample for 2,500 x 12 volt unit sample

Staff

Operational expenses

Manager $ 120,000. Compensation insurance fees $ 64,000.00
2 x Supervisors $ 150,000.00 Product Insurance/complex $ 42,000.00
1 x Engineer electrical $ 85,000.00 Travel expenses $ 20,000.00
1 x Engineer mechanical $ 90,000.00 Advertising/marketing $ 82,000.00
2 x Receptionist $ 106,704.00 Electricity costs $ 274,913.28
1 x Accountant (2 days PW) $ 31,616.00 Land tax rates/MRIT $ 6,790.00
2 x Sales total retainer $ 62,400.00 + commission Rates duty $ 38,753.00
22 x Trades People $ 1,429,967.97 Vehicle duty $ 1,394.00
1 x Store person $ 53,352.00 Phone / internet $ 3,360.00
2 x Trades assistants $ 102,752.00 Operational expenses $ 533,210.28
 Salaries $ 2,231,781.97
Superannuation 10.25% $ 228,757.65
3rd   Year forecast Sample for 2,500 units
Second year 20% scrap for remelt $ 1,350,326.00
Less shipping $ 26,800.00
$ 1,323,526.00
Scrap Sold at 30%                  Total $ 397,057.80

Operational Expenses

Material expenses 

Annual salaries and expenses 

Packaging

3rd year total operational cost 

=

$ 533,210.28

$ 6,364,422.29

$ 2,460,539.62

$ 375,000.00

$ 9,733,172.19

3rd   year cost per unit price
=
$ 3,893.26

For a sale price of $12.056 x 2,500 units

Less 3rd year operational expenses 

Profit                            

=
=
=

$ 30,140,000.00

$ 9,733,172.19

$ 20,406,827.81

Government Sales tax at 17%

Total Profit                                  

=
=

$ 3,469,160.72

$ 16,937,667.09

Assuming the production of 50,000 units the
Total Profit 
=
$ 338,753,341.8

Summary

Fuel priced at $1.49 per litre for 50,000 units, the approximate fuel resource saving as for the 12 volt mobile use only

Consumption per year saved  

Government tax at approximately 50%

With fuel cost saving

=

+

$ 387,400,000.00

$ 193,700,000.00
$ 193,700,000.00
Consumption per year saved
$ 387,400,000.00
Government tax at approximately 50%
$ 193,700,000.00
With fuel cost saving
$ 193,700,000.00

With fuel cost saving                                                        +                                             $ 193,700,000.00

With the possible production of 4,000,000 produced per year and the fuel priced at $1.49 cents with the estimate consumption equals a total fuel saving of $30,992,000,000.00 less tax and additional expenses to cover existing infrastructure at 50% = $15,496,000,000.00

 

For the consumer after a 5 year period the item is virtually free

 

  • For a production of 4,000,000 with 4 different model types the total fuel saving at 50% is at $15,496,000,000.00 thereafter per year For the Government or concerned

          The business profits for the production of 4,000,000 engines is estimated at $22,493,221,896.00

  • Government product tax at 17% is at the estimate of $4,607,045,448.00
  • Direct employment for the engine manufacturing is the approximate 56,000 manual reduced by automation.
  • The assumed fuel consumption saving is at 20.8 billion litres P.A. of less pollution

With all the other benefits.

Notice:

All Financial inclusions have been developed by Frank Seghezzi with the bill of materials pricing available for request inclusive with other documents, to the interested investor. It is recommended that these figures be cross examined by an independent accounting firm as part of a due diligence process.

Further generated employment and revenue sample


For 50,000 units at the End of year 3 the introduction of workshop and on road maintenance franchise x 10 at 370,000.00 ea. with a total of 30 employers/employees

Franchise
$3,700,000.00
Government unemployment savings if applicable
$390,000.00
Franchise
Government unemployment savings if applicable
=
=

$3,700,000.00

$390,000.00

Government and other local additional revenue housing sales and rentals Pending location and available local residential skills total for 700 employees

Government and other local additional revenue housing sales and rentals Pending location and available local residential skills total for 700 employees

When applied to a car valued at $28,800.00 less the engine cost of $13,206.00 = $15,594.00 x 50,000 cars the revenue = $779,700,000.00

350 houses& land at $450,000.00 ea.

Rentals at $300 per week

Utilities/entertainment and other living expenses at $350 per week

Rates

Education

Salary for 700 at $65,000 per year

Total

=
=
=
=
=
=
=

$157,500,000.00

$5,460,000.00

$12,740,000.00

$1,050,000.00

$350,000.00

$45,500,000.00

$216,741,000.00

When applied to a car valued at $28,800.00 less the engine cost of $13,206.00 = $15,594.00 x 50,000 cars the revenue                                                                                        =           $779,700,000.00

The midsize car curb weight is the approximate 1,590 kilograms
Approx. steel of 1.2 – 2.4 tonnes per car 50,000 x 1.2tonnes
Other materials glass/plastics/tin 300 – 600kg     50,000 x 300 kg
(recycled cans tin etc. /new material) is the approx. 1,442.3 tonnes per week)
1,442.3 tonnes x 85 cents per kilo Total 

=
=
=

60,000 tonnes

15,000 tonnes

$63,750,000.00

Profit

 

 

=

$779,700,000.00

$216,741, 000.00

$63,750,000.00

$ 499,209,000.00

Less factory complex, equipment, tax and the additional $63,750,000.00 for materials where applicable.

Industry Overview

The Electrical Generator – A Hybrid Engine has the potential to completely replace the need to use coal, oil, and gas as an energy source. Global reporting from IBIS World Pty Ltd indicates the market size and the opportunity that the Electrical Generator can benefit from.

Global Coal Mining

The major user of coal worldwide is the electricity generating industry – and therefore an important industry for the Electrical Generator to replace.

Industry Segmentation

The Global Coal Mining industry produces two types of coal: black coal and brown coal (also known as lignite). Black coal can be further broken down into thermal coal and coking coal. Coal is categorized based on its contents of carbon (i.e. energy) and moisture, which in turn determine its value.

Thermal coal (also known as steaming coal) is used to convert to electricity as a source of energy. Thermal coal generally contains less carbon than coking coal, making it unsuitable for steel making; instead, it has relatively high energy content, thus suiting it for electricity generation. Currently, over 73.8% of global coal production (by volume) consists of thermal coal. This large share has expanded over the past five years on the back of growing global consumption. According to the World Coal Association, coal was the fastest growing form of energy outside renewables in 2011 (latest data available).

Global Oil & Gas Exploration & Production

Power generation absorbs about 9.2% of all global oil and gas output – not as large as coal, but vital to the electricity generating industry.

Industry Segmentation

Companies in this industry explore for, develop, and operate oil and gas fields. This industry includes the production of crude petroleum, the mining and extraction of oil from oil shale and oil sands, the production of natural gas, sulphur recovery from natural gas and the recovery of hydrocarbon liquids.  Industry segmentation is as follows:

Crude oil

Crude oil is estimated to account for 76.2% of global output by value in 2013, which is higher than in 2008 (74.3%), reflecting relatively strong growth in oil prices compared with gas prices. Different grades or streams of crude oil require different refinery configurations, produce different proportions of the most sought-after refined petroleum products (e.g. gasoline and automotive distillate) and attract different prices.

Natural gas

Natural gas is estimated to account for the remaining 23.8%. In terms of volume, the share of natural gas in industry production has been increasing for many years. This shift in volume toward gas reflects the greater availability of gas, increased gas use in stationary applications such as power generation, and greater investment in gas infrastructure such as pipelines and LNG facilities.

Electricity Generators

Electricity generators are also major users of natural gas, absorbing about 31.0% of global gas production and a small proportion of crude oil production. Overall, power generation absorbs about 9.2% of industry output. Gas has become an increasingly important fuel in global power generation as concern over pollution has grown and trading opportunities have expanded. The construction of gas supply infrastructure, such as pipelines and LNG plants, has played an important role in this process.

Global Trade

Global trade in oil and gas is high due to the uneven distribution of resources. About 57.0% of the volume of oil produced worldwide is traded internationally, while the share of gas output traded internationally is considerably lower at nearly 32.0%.
The United States is the most significant oil importer, with China, Japan and Korea rounding out the top four, according to data from the International Trade Centre. Meanwhile, Saudi Arabia leads the world in oil exports and Russia small margin.

Gas

Most international trade in natural gas occurs via pipeline, although seaborne liquefied natural gas (LNG) trade is rapidly growing in importance. Reliance on pipelines limits the distances over which gas can be transported and traded economically.  As a result, gas is less extensively traded than oil. Unlike traditional natural gas, LNG has the potential to be traded at the global level through storage facilities and ships that are specially designed to tolerate low temperatures.
The main gas-exporting region is Europe (41.0%), followed by Africa and the Middle East (25.0%) and North America (12.5%). Europe includes two of the world’s major gas exporters: Russia and Norway. Canada is the major gas exporter in North America, while Algeria dominates gas exports from Africa and the Middle East.

The major gas-importing region is Europe (53.5% of the total volume of imports) followed by North Asia (18.0%) and North America (13.5%). In Europe, Germany, Italy, Ukraine, France, and Russia all import substantial volumes of gas. The United States accounts for the great bulk of imports in North America (mainly from Canada and Mexico). In North Asia, the major importer of gas is Japan, followed by the Republic of Korea. China’s imports of natural gas are growing rapidly, but from a small base.
Source: IBISWorld Pty Ltd, Global Oil & Gas Exploration & Production report, November 2013

Market Positioning

Geographic Target Market

The geographic target market is global. However, the go-to-market strategy (outlined further in this document) will involve a phased launch plan.

Phase one will involve establishing a full manufacturing and production plant. This is market entry.
Phase Two will involve creating an export network and systematically launching in offshore markets. This is market penetration and growth. The ultimate goal is to become the preferred Electrical Generator in all key demographics globally.

Demographic Target Market

The target demographic for the Electrical Generator can be considered from a primary and secondary level.

Primary

The primary target markets are the direct ‘end users’ of the Electrical Generator – those that will use the Electrical Generator as a part of their operations. For example, a production plant that uses the Electrical Generator as a power supply for fixed plant and equipment.

Secondary

The secondary target market broadens the demographic to include manufacturing companies in target sectors. For example, a motor vehicle manufacturer would source the Hybrid Engine and place it in the vehicle prior to re-sale.

Applications

Applications for the Electrical Generator are vast, coupling the system with many of (but not limited to) the following:

Competition

In the market today there are many types of engines and all sizes.  But the limitation is that their efficiency is dependent on putting ‘energy in’ rather than drawing ‘power out.
The Electrical Generator easily incorporates into existing technology at an affordable price and vastly increases efficiency whilst enjoying 0% emissions.
The Electrical Generator has little competition, as there are no like-for-like products on in the global marketplace.
There are a few inventions in this product area; however, they are not competitive and have little similarity with the
Electrical Generator invention.
If there were any engines in current use that perform the same, they would need to achieve:

The Electrical Generator was invented by Frank to reduce current market limitations and to be superior to anything currently in the marketplace with limitations. The Electrical Generator fills a real need for unlimited commercial and private applications. It is an exciting invention that opens a new and highly profitable product line with unlimited national and international market opportunities.

Business Management

Inventor

Frank Seghezzi is the inventor of the titled “Electrical Generator” as a complete assembly Hybrid Engine. The simple basic design is a durable system with high efficiencies that can be refined for engineering production manufacturing procedures, to suit special energy applications.

Innovation. The industry, its trends, its technologies, and its ever-changing customer requirements – it is this focus and depleting resources that has resulted in the development of the Electrical Generator.
Partnerships. The superior outcomes are a direct result of a smoothly operated team, internally and externally and the skilled professionals in particular engineering, production, selling, marketing, and quality assurance

Business Structure

Taking the Electrical Generator to market both locally and globally, to achieve this, the initial funding to develop a production- ready prototype model, which will be reliable. At this point a Private Investor or various Governments will become the operational driver of the business.

Further business planning needs to be undertaken in order to complete a full feasibility study behind the development of a manufacturing and production plant which will be driven by the Investor. Who will also become a full equity partner or owner of the Electrical Generator business? Acting as Managing Director, the Investor Partner will implement a business model that ensures that the Electrical Generator has the broadest reach into local and global markets.

Key Networks

These key relationships will support the Electrical Generator commercialization strategy

Relationship

Nature of Relationship

Product EngineerFrank wishes to engage the services of a Scientist and/or industry testing companies to support the product in its certification stage for power generation
Manufacturing and production

The initial preference is for full manufacturing and production of the Electrical Generator however basing the business may require a large investment, but a superior product will provide numerous benefits such as:

  • Supporting manufacturing industry.
  • Ensuring quality control.
  • Managing stock levels to support demand will be streamlined if managed in house. Minimizing lead times for supply.
  • Generating employment opportunities in the factory, office, and warehouse etc.
  • Educating new industry entrants and creating apprenticeships work  placement training and work experience opportunities.
  • Increasing local trade in many industry sectors.
  • Creating a new export commodity in many industry sectors.
Sales channels

The Electrical Generator used as power generation and utility systems – in fact any componentry that requires power

The Electrical Generator is initially thought to be sold through the following two channels and these will be confirmed during the formal planning cycle.

  • End Users. To large national, multi-national and global ‘end users’ that require it as a power source (production plants, machinery etc.).
  • Resellers. Direct to manufacturers that will put the Electrical Generator into their finished product ready for re-sale (vehicle manufacturers, equipment, and machinery manufacturers etc.).
Target Industries

Target customers are any organizations that require an electrical generator to power operations. The Electrical Generator will be viable for use in many industry sectors – wherever fixed or mobile power is required:

  •  Vehicle manufacturing
  •  Appliance manufacturing (air conditioning, fridges etc.)
  •  Equipment and machinery manufacturing
  •  Breweries
  •  Production plants
  •  Mining operations to supply on-site power
  •  Building and construction
  •  Industrial
  •  Civil engineering
  •  Utilities
  •  Oil refineries
  •  Clean technology applications
  •  Entertainment (live events, performances of on-site power)
  •  Electricity generation plans
Agents

After sales support will be important, with the Electrical Generators expected to have a shelf life of approximately 5-10 years. Each year, to ensure warranty stays current; the Electrical Generator will need to be serviced.

The business will appoint Agents in each city (locally and globally) listed as Authorized Service Agents for the Electrical Generator product. Agents will be mechanical dealerships and/or reputable equipment and machinery servicing companies.

BusinessAfter a prototype that is ready for full production is available, further capital raising is likely to be required to successfully commercialize the product. The appropriate Managing Director responsible for taking the Electrical Generator to the global marketplace.

Management Systems

Industry Regulation

The main regulations applicable to the industry relate to Occupational Health & Safety (OH&S) requirements. This includes safety requirements for workers when dealing with electricity, energy efficiency and environmental impacts related to manufacturing electrical products and parts. Safety equipment and other requirements are also applicable to staff, hazardous areas, and related equipment when manufacturing industry goods. There are also regulations surrounding rotating machines specific to the industry due to the prevalence of electric motors, motor control systems and other equipment. Other regulations are applicable to the minimum energy performance standards of electrical products from the industry.

Quality Assurance

The Electrical Generator directly targets industry regulation and change towards environmental sustainability – the system will only be released for sale once all certification and operational accreditation is secured.

Product manufacturing will be managed in Australia, from a fully functioning manufacturing and production plant. Quality control will be a vital part of ensuring industry regulation, adhering to warranty terms, and minimizing warranty claims. The manager will oversee the Quality Control and the production of all Electrical Generators, with quality control assured through the following procedures:

Business Licenses and Accreditation

The business will hold appropriate documentation with respect to:

Launch Strategy

Go-to-Market Strategy

With the commercialization of any new product innovation, the go-to-market strategy must be clear to:

The Electrical Generator will be launched with a dual focus.

Phase One – Market Entry

The market entry strategy will have a dual focus:

Phase one will involve selling nationally, with Phase Two broadening into the export market.

Phase Two – Market Expansion

Phase Two indicates the move from market entry to market expansion – marking a period of larger-scale production and order fulfilment to support a growing customer base. At this point, additional marketing and promotional activities will be implemented to complement the growth in brand awareness and the process will be replicated in other locations such as:

Year Two

Due diligence will be completed as part of the global launch strategy to set revenue targets for each market, to understand the specific demographic opportunity – with the focus on understanding what market saturation is, in each region, in terms of industry operators and expected returns per industry sector. This will then determine the financial opportunity of entering new markets and determining the investment required to support the customer base.

Business Strategy

Brand Strategy

The brand strategy for the Electrical Generator is to become known in industry circles for innovation, efficiency, and precision – as well as for industry foresight in making in-roads in environmental sustainability. The Electrical Generator has been developed to minimize the limitations that traditional applications face and to lead the way in cost efficient, zero emission power source technology.

In all market communications, the attributes of the brand and product will be clear:

By remaining true to its brand values, the Electrical Generator will quickly become a market-leader – the only power source or engine required in commercial and industrial applications.

Mission and Vision Statement

“The team behind the Electrical Generator is dedicated to offering customers and its partners the benefit of its key values of excellence, innovation, industry focus and integrity. The Electrical Generator is a reflection of these key values – our way of using innovation and environmental focus to reflect the requirements of industry in one unique product.

As a business, we are dedicated to operating as a ‘best practice’ product commercialization company that provides value to the industry in a meaningful way. Giving back in all aspects is our promise, through the generation of employment opportunities, the generation of revenue, the generation of resources and the support of industry infrastructure – as well as the provision of innovative products and lucrative returns for investors.

Marketing Strategy

There are two parts to the Electrical Generator marketing strategy:

Marketing and Promotion

A comprehensive Marketing Plan will be developed at brand level – engaging professionals to develop a strategy that touches all mediums (PR, media, trade, outdoor, online, social media etc.) The key focus of the strategic Marketing Plan will be to create and maximize brand awareness for the Electrical Generator throughout each region and as a consolidated effort globally.
The Electrical Generator Marketing Plan will be created in response to the business objectives, strategies and tactics outlined in this document and will consider activities such as:

Brand Awareness

Public Relations

CRM Database Management

Direct Marketing

Website

The Electrical Generator website will be the face of the business must uphold the brand and its services in high regard. The website will have functionality that will include:

Online Marketing

Social Media

A social media strategy will be considered by using the acronym POST: P = People.  Who are you trying to engage?

O = Objectives.  What are you trying to achieve?

S = Strategies. What will it look like when you are done? T = Technologies.  What are the tools you plan to use?

The following is an overview of possible social media tactics.

The Marketing Plan will focus on actions for 12 months of operation. The first six months will focus on building the correct platform for Marketing Plan execution – including database management, online presences, brand co-ordination, goal setting and budget assignment. The second six months will focus on program execution, testing and measurements. Each year, the Marketing Plan should be reviewed, assessed, and refined to ensure continued efficient use of limited marketing budgets, and to ensure that marketing efforts are supporting business objectives. The retail price of the Electrical Generator will be further refined by production and manufacturing costs.