*** ROUGH DRAFT ON NOTES ***
There are many holes I need to fill in from various interviews and I still haven't entirely dissected all of conference call 2014. And I also need to provide citations for each point made so people can research every single facet of every single comment made.
All comments were literally taken from interviews/conference calls and news snippets and if not copied verbatim are almost 100% paraphrased from Pickett himself. I am just connecting the dots that's all. Also if anyone wants a copy from word doc it is a lot cleaner and easier to read this is cut and pasted.
PARTNERSHIPS
Knoll Cranes:
Holland and Knight: One of the best energy firms in the world and actually advise UAE on energy policies in MID EAST with a large office in Mexico where SWET intends place tower.
Commonwealth Dynamics: Sub contractor to build tower has operating companies in following companies 1) India 2) Brazil 3) United Arab Emirates 4) Saudi Arabia 4) Mexico 5) Chile 6) USA and specialize in building nuclear cooling towers/hyperbolic structures all over the world.
Whiting Turner: Large construction firm very capable of constructing the project and they run numbers on the cost of tower. Case by case basis represents SWET. Uses known proven techniques to construct a tower which until recently was not possible built concrete of aggregate concrete and rebar and time frame/price is fixed. In the computer model the size of openings, tower and all components are calculated into performance of each tower.
- National Standard: Currently a conditional offer but this is standard in the industry for any development and does not correlate to risk. These conditions include but not limited to: 1) Suitable contractor (Whiting Turner) 2) Guaranteed price and timeline of construction (Whiting Turner/Commonwealth Dynamics) 3) Adequate Insurance coverage (Aon Insurance) 3) Power Purchase Agreements 4) Performance warranties (energy calculator, proven techniques, proven devices and all components of tower WORK!!!)
THEY WILL FUND 100% of construction, financing and interest rolled into monthly payment offering both 20 year and 30 year loan periods. Due numbers Pickett has ran 20 year loan is been determined easily obtained. During this 20 years National Standard and SWET be in partnership together during this time. Likely controlled and majority interest in San Luis project projected distinct possibility.
They are the lead syndicate of the San Luis project typically invest 50 to 500 million dollars. Per Pickett there are a host of Euro Banks that invest with National Standard that are likely to get involved with the funding of this venture (investor call 2014). They are very capable of handling not just San Luis but the other ventures in Chile, Mid East and other areas as well. Pickett stated he can be as reasonably assured that this tower (San Luis) will be constructed due COND offer permits, patents etc. And this project is in as good of shape as it can possibly be. He continues to make a statement that based upon Pickett’s previous experiences he has strong confidence in its construction.
Aon Insurance Company: One of the biggest insurance providers internationally strongly provides need meet insurance requirements.
Milwaukie School of Engineering: Consulting Engineers for design systems
Invest Africa INC:
Deals and Site Potentials:
1) San Luis: Customers- DoD, various utilities, San Luis, YUMA Arizona/// cost on San Luis project is charted on unionized labor movement other nations cost build drop. No clearance needed from FAA or from Marine Corps Base Yuma AZ as they are out of the flight zone. Full compliance with lights and other safety devices for aviation safety.
- Multiple bites in Arizona and California for Purchase agreements (Conf Call 2014).
2) Chile (private development): group of mining companies need power, GOVT Approved site. Temporary license granted to Chile and coordinates have been selected. Anticipate final approval from GOVT approve SWET tower. New government in Chile has been established and the site selection finalized and progress of tower moving efficiently.
3) Mexico (private development): Currently working with GOVT to develop site
4) India:
5) MID-EAST (government development): Shortly heading over to the Mid-East with invitations to present.
a) Saudi Arabia:
b)
6) South Africa:
a) Zambia:
c) Botswana:
PATENTS: own/issued patents on tower, drive systems, multiple turbine systems, hydraulic drive systems
X factor notes:
- DOD Weather Data Yuma: Ten years of hourly weather data that facilitates the scientific knowledge of exactly how to predict weather over a period of ten years that directly correlates into energy calculator which bodes into predictability of performance.
- Zero alternative energy solution make utility scale 24/7
- Energy calculator: predicts what a tower can do in specific areas in the world.
- 1200 mile cable being laid between Europe and mid-east to build power plants and to supply power to Europe due severe need power
- World predicts need power will double next 20 to 30 years by 2030 Alternative market will be 5 Trillion internationally
- Trend is utility scale energy the smaller minimal power provided by solar/wind
- Pickett 4 prior successful companies brought public
- Tremendous cost advantages by double slotting building of two towers: a) re-use of 150 million dollars of equipment on site b) infrastructure on 2nd tower drops.
- Research and Development fees = 10 Million Dollars and current Market CAP is 12 million and estimates per Pickett states value is a tenth of what it’s worth 12/2013.
- Water injection system is based off of very calculated measurements of relative humidity to scientifically control water amounts introduced for maximum efficiency.
- Bottom of tower has 25 wind corridors with multiple (patented) staged turbines as wind travels through the corridor max is 58.6% (AVG 50%) staged drafted turbines 1st turbine gets 50%, next gets 50% and captured goals gain 75% of wind processed through wind corridors.
- Hot/dry air in upper atmosphere post 2000 ft enables productivity at night as co
- Land purchase 1 mile by 1 mile purchased in San Luis funded from $$ 1st construction draw from San Luis.
- Scale Model: The reason that a scale model is not going to be conducted due to the fact that this venture is not effective due to the fact it won’t work on that scale. At night time when sunsets when air cools the dry/warm air is at 2000 to 3000 feet which is key to the production of the tower 24 hours a day. The evaporative process and tower height is what provides the energy. The production of the tower at 2000 feet is not good and it is reliant on tapping into this ambient dry air in evenings (conf call 2014)
- Ancillary Markets: Recently DHS SWET is willing to cooperate with DHS for vantage points on our borders due to this tower being a very big asset to various implications. This is also going to be a big tourist attraction.
- Executed protective and Development Agreement: Guarantees whatever permits and authorizations will be granted by San Luis with cooperation with basic inherit codes but city guarantees approval. SWET agreed pay for external consultants to compose inspectors. City has agreed to provide city utilities to include sale of water for 50 years under contract via fixed price (every 5 years COLA adjustment). Extra wells put in for city will be donated to the city after usage.
FUNDING POTENTIALS
License strategy and business model numbers: 1 Time license fee: Development fee= 2 Million a year per year during construction Royalty Fee= 3/8 cent per KW hour for 20 years and buyout potential after 20 years or extend royalty fee with COLA adjustment. Estimate royalty is 12 to 18 million a year.
- EB-5: Company doing research for SWET currently going for 100 million on a 5 year loan.
Tax Credits: investment tax credits expire in end of 2017. Congress extended wind tax credits would make the company eligible for 300 million to 350 million at the end of the project. This would come at the end of construction as operating cash flow.
- Depends on where build government or private funded. Mid-East will for sure be government funded as energy is provided for free there.
COST/INCOME RATIO: Numbers have been run by Pickett borrow 1.5 billion monthly payment of 12.5 million dollars. Revenue expectations are expected to generate 25 million a month a 2 X 1 cash flow result!
