The last 5 years have brought much more attention on the energy issues that the global economy faces. Certainly “alternatives” like solar, wind, and even ion power are options to take advantage of, in addition to their sustainability factor. But what if there was a way to have on-demand energy that’s self-sustained and off the grid so that anyone could turn on a light switch despite what the rest of a city, or even what the rest of a country encounters as far as power supply; or lack there of?
With this next company, that can actually become a reality. Powerdyne International Inc. (OTCMKTS: $PWDY ) has a proprietary technology offering an independent electric utility to provide primary electric power, off the grid to mid sized and large commercial consumers. Powerdyne’s product is a self-contained generator that utilizes a modified radial air-cooled aircraft engine to drive a 1-megawatt (MW) generator. This generator works off of almost any gaseous fuel source including propane, methane, ethane and even hydrogen.
Domestically, many cities have come accustomed to those summer months where the increased demand for power creates brownouts or even blackouts. In fact, a new report from the Wall Street Journal sites that the entire US power grid could be shut down for more than a month if just 9 of the over 55,000 electric substations placed throughout the nation were sabotaged by terrorists or other criminals. This report comes on the heals of several events that have occurred over the last year, most notably the sniper attack last April on the substation in San Jose, California knocked out 17 transformers. Many feared it could have been a sophisticated “dress rehearsal” for a more large-scale attack.
The government has stated that it still needs stronger authority to regulate the power grid on a national level but regardless of regulation, the threat is real and The Journal’s report is only the first time that these results of the study have been made public. More significantly, these substations are not required to be protected. In a CNN article, Jon Wellinghoff, former chairman to the Federal Energy Regulatory Commission had reportedly urged Congress “to fill a void in federal law that he says doesn't empower any federal agency to demand better security around electrical substations”. According to Wellinghoff, these stations only have chain-link fences and cameras for “protection”; what’s more is that these cameras don’t capture details outside of the fence.
"We need to have a national coordinated plan, and we have to have a federal agency that is in charge," Wellinghoff said.
As Washington fights for more regulation, the threat still remains and for Powerdyne’s product, this becomes a huge offset to combat grid vulnerability. The company states, that its basic PDI unit produces 1MW of power 24/7 and has an expected operational life of 20,000 hours before rebuild or replacement of the prime mover; that’s more than 2 years of power at a constant rate of usage. As far as ease of installation and transport, one unit (which measures 6 feet in diameter and 12 feet long) can be fitted comfortably inside a standard 8' x 8' x 40' shipping container box. This houses the unit on site for easy handling, as well as transport and delivery anywhere in the world.
There are several other competitors in this space including, Cummins (NYSE:CMI), Kohler, Detroit Diesel, and Caterpillar (NYSE:CAT) all of which manufacture generator sets. In an interview in April of last year, the Management of Powerdyne, expressed that though there is competition in the generator space, Powerdyne holds several advantages over its much more bulky competition. Not only do these competitors’ typical units weigh more than 6 times that of Powerdyne’s PDIGenset (90,000 pounds vs 14,000 pounds), these generators are much larger, measuring 18-24 ft long, 8ft high, and 8ft wide (nearly the same size as PWDY’s enclosure for it’s generator).
Moreover, the Company stated that a special performance characteristic of the PDIGenset is that it can perform very efficiently in extreme cold temperatures and at high altitudes where-as other technologies, especially diesel, find a deterioration in capability starting at altitudes over 4,000 feet. Most mining applications in South America for example, are above 5,000 feet and require multiple engines to drive one generator. Powerdyne is able to generate power at an inexpensive rate and at reduced costs to the client because the client does not have to buy any equipment; they just pay for the electricity.
In conjunction with this, Powerdyne has identified its client base as commercial users, mines, manufacturers and medical centers that have a minimum electrical base of 1MW or more. According to the company, the electricity produced by the PDIGenset is consumed in parallel with the main electrical source, usually the grid, and is used to augment total consumption, thus resulting in a savings of 20%-50% annually compared to traditional means of power consumption.
We see the potential for military applications as a big niche for the company as well. Not only has this product been shown to be more compact and much lighter compared to its competition, but its versatility within various terrains also allows military clients to send this product on a multitude of missions including those in remote destinations.
In a Bloomberg article, the editor cites that defense spending or military expenditure will increase this year for the first time since 2009 mainly in Russia, Asia, and the Middle East. Over the full fiscal year of 2013, however, the United States remained the top spender with an estimated $582.4 billion spent. Major US defense contractors including Lockheed Martin Corp, and Boeing, lead this pack but what about the support systems and infrastructure needed to maintain military camps and bases? More importantly, these funds are not directed solely to wartime efforts either; from disaster relief, to humanitarian efforts, and self-sustaining power for the developing world, the PDIGenset can provide a source of continuous, inexpensive energy which puts Powerdyne at the forefront of a brand new solution to an age old issue.
With such a vast array of uses, certainly PWDY has the product and the technology to provide opportunities for inexpensive, off-grid energy. For many companies, that is half the battle. The second half is the leadership to push this to market and for Powerdyne, the team championing these efforts has a wealth of experience and industry foresight.
In conclusion, Powerdyne has a disruptive technology that allows for a compact, inexpensive, efficient solution not only to a problem and but even to an impending threat that the US faces. Moreover, the company has also identified that it can reach far beyond its domestic capabilities and aid developing areas in supplying a viable source of power that was once unattainable by any other means because the PDIGenset is easily accessible in many diverse locations. The company’s leadership has an incredible wealth of industry expertise that should grant it to successfully push this product to market and continue to implement future enhancement allowing for the PDIGenset to remain at the forefront of off-grid power generation advancements.
