The Mark 3 engine's history is an example of how Harry Schoell and Frankie Fruge operate. And an example of how they can't even get something as simple as the name of the engine right.
Exactly one (1) Mark 3 engine was ever sold. That went to a startup in Denmark called 3R. Here's one of the PRs:
Cyclone Power Technologies Inc. Announces the Delivery and Acceptance of the Mark 3 Engine to 3R for Production
POMPANO BEACH, FL--(Marketwired - May 25, 2016) - Cyclone Power Technologies Inc. (OTC PINK: CYPW), developer of the all-fuel clean-tech Cyclone Engine, announced today that 3R Denmark ("3R") has accepted and approved their Mark 3, 25HP Cyclone Engine and is ready for integration with their Boiler Systems for combined heat and power (CHP).
The Mark 3 Engine will be shipped to Denmark 3R to begin the integration process. The Mark 3 has successfully finished the testing as required by the 3R development agreement. The testing process can be seen on this link: https://youtu.be/M5wBJZerwrg after being fully integrated into 3R's system, the Mark 3 engine will be ready for sale and distribution worldwide. 3R DENMARK has a distribution agreement to use the Cyclone Power Engines for the specific uses of fuel to power in their unique boiler system being manufactured in China.
"This is the second step in our agreement," states Frankie Fruge, President of Cyclone Power Technologies. 3R DENMARK will purchase the Mark 3 from Cyclone, which will be manufactured for us by Plunkett Energy of Alabama. The production of the boiler system and the transition to the combined heat and power systems including the engine is on target for August 2016 on the Mark 3 - 30KW units, and December 2016 for the 300KW system. The next phase of the previously announced agreement with 3R is the development of the Mark 7 Cyclone Engine.
"This is again consistent with Cyclone's business model of generating revenue from development contracts, royalties, and partnerships. There will be manufacturing related to this agreement and development of new products in our R&D center and future royalties. We are extremely focused on completing projects bringing revenue and profits to our bottom line."
Thor Arendal of 3R stated, "We already have signed customer contracts, a manufacturing facility in China ready for production, and distributors in place. 3R is ready to be one of Cyclone's first major Licensee and a major contributor to their business model. Our management has over 20 years of experience in the production of boilers for heating with many smaller installations and several large installations in the US and Europe. Now we want to take this technology and expand to the combined heat and power industry. This is the fastest growing energy markets in China and the rest of the world. The heat and electrical 'CHP' market is expected to experience exponential growth over the next five years."
3R turned out to be a small-time promoter in Denmark who's "Chinese investor" had no factory and no money. Nothing was ever manufactured in China.
There is no "Plunkett Energy of Alabama" manufacturing Cyclone engines, or anything else. Cyclone had been tied up for years with a guy in Alabama who was promoting oil from algae. He rented a little space in an old warehouse under the name Republic Energy LLC. of Foley, Alabama. Cyclone and this guy used each other's names in their promotions, Cyclone would issue PRs about things they and this partner would do, but nothing would ever come of it.
There is a Plunkett Energy of Texas, which is a substantial company, and it appears the algae oil guy was trying to sell them an algae oil system at one point, but Plunkett never had anything to do with Cyclone.
Needless to say, no 300 kW system was built by December 2016, or since. Nothing about the Mark 7 has been mentioned since that PR, either.
Whatever the "testing process" for that Mark 3 engine was, the only thing made public was that video of an engine idling with no load for 80 seconds. Since both 3R and Cyclone were trying to hook investors, they probably weren't too concerned about details of engine performance.
Cyclone Power Technologies Receives Purchase Order From I.B.E.S. a UAE Corporation & Update on Cyclone
POMPANO BEACH, FL--(Marketwired - Sep 29, 2016) - Cyclone Power Technologies (OTC PINK: CYPW), developer of the all-fuel, clean-tech Cyclone Engine, announced today that it has signed an agreement with IBES FZ-LLC, based in Dubai Science Park Free Zone in United Arab Emirates, to manufacture and integrate Cyclone's Heat Regenerative External Combustion engines with their wood furnaces to produce electrical power.
IBES has merged with 3R group and has become the surviving entity, and IBES has taken over all the rights and responsibilities. IBES has accepted the engine that was delivered to Denmark this year under the 3R agreement. They have agreed to pay the remaining balance on the contract after successfully integrating it into the 3R furnace system and two months of testing. In addition IBES FZ-LLC has issued the first purchase order for 5 production engines for immediate delivery to Dubai where final assembly takes place.
Frank Cawkwell, CEO of IBES, commented "The 2015 Paris Climate Conference made global leaders committed to a cleaner, greener, and more energy efficient world. The need is to bring electrical power, warmth, clean water, and refrigeration to the more than 2B people still remaining without; this poses a tremendous challenge for the world. Combining Cyclone's revolutionary Rankin cycle engine and 3R's unique wood fueled furnace, IBES has a product that will be a critical component in meeting that challenge. IBES offers a low cost, highly efficient solution that generates electricity to power, for example, lighting and mobile device chargers. It also provides heat energy to operate water purification and refrigeration systems, thus offering access to 21st century standards of living to those who have missed out. We are both passionate about our products and the impact they can affect globally. The creation of IBES and its partnership with Cyclone has brought together two innovative leaders in their industries and a combined 35 years of experience with clean and renewable energy solutions."
"This agreement with IBES FZ-LLC provides us with entry into one of the fastest growing energy markets in the World. The heat and electrical 'CHP' market is expected to experience exponential growth over the next five years," stated Frankie Fruge, President of Cyclone. "We think that partnering with this team of distinguished leaders in their unique equipment operating fields and the new partners with experience in Third World Markets presents a great commercial opportunity for Cyclone. We look forward to the beginning of what we expect to be strong and mutually beneficial relationship with IBES."
Update on Cyclone
FSDS Contract: Cyclone is proud to announce that we will be delivering the S2 engine generator system to FSDS the first week of October. The system will be exhibited as their new Auxiliary Power Unit (APU) for military use at their booth at the AUSA show in Washington DC. They will also be exhibiting the "Cyclone Genie APU System" The Genie is a .5 kW lightweight unit for troops to carry in the field to recharge batteries. Cyclone is excited to show support of their new licensee FSDS, and Frankie Fruge, Cyclone's President will be in attendance. FSDS is a worldwide supplier for military products. The AUSA show is the largest vendor show for Army products visit: http://ausameetings.org/2016annualmeeting/ng/
Audited Financials: Cyclone is still working diligently on getting the financials brought up to date, audited and filed; there have been some unforeseen delays due to reporting requirements associated with derivatives accounting and inventory aging. We anticipate filing within the next few weeks as these issues have now been resolved. Bruce Schames, CFO, said, "As we are all disappointed in the delays, we are working with the attorneys and auditors to get this done as quickly as possible. Everyone is fully aware and working at full speed as we all know time is of the essence."
Plunkett Power Systems: Gary Champaign of Plunkett Power Systems and Republic Energy has now renewed his long-term relationship with Lewis Precision & CNC, Inc. and has moved the Cyclone Mark 3 engine to their enhanced production facility. Please visit their website at http://lpcnc.com/. Gary Champaign states, "We feel this is a strategic move with all the space available to produce 500 engines per quarter and room to expand."
Combilift Forklift engine: Robert Moffett and his partner visited Cyclone's facility a couple of months ago to see the final beta engines that were finishing testing for delivery. They also viewed the updated pre-production versions of the Mark 1 and Mark 3 engines and want to incorporate the upgrades to the Mark 5 engine. This upgrade has a lower parts count and is easier to maintain, which is important in this type of work vehicle.
IBES were some real people who spent until the end of 2017 reworking the 3R/Cyclone system trying to make it produce a useful amount of electricity. In the end they gave up. Cyclone left this customer twisting in the wind with a system that didn't work as promised and couldn't be made to work.
Most likely their failure was due to believing the BS from Frankie Fruge and Harry Schoell. They could never get anywhere near the 25 horsepower the Mark 3 engine was rated for, which is no doubt due to the fictional efficiency claims constantly made by Schoell based on anything but measured data. Here's a video from IBES: Notice the furnace is working at full output but the total electrical output from the Cyclone system can only dimly light three small light bulbs.
The maintenance schedule we have got from Cyclone states that the key moving parts has a lifecycle of 30,000 hours (bearings, control valve). The block, cylinders and crank shaft has an indefinite life time. Some ‘consumables’ has a maintenance schedule of 5,000 hours. This applies to piston rings, seals and the seat for the control valve. Belts and water filters a schedule of 2,000 to 3,000 hours.
Bear in mind their contract with FSDS only required an engine run for 10 hours before delivery, and they never even met that low hurdle.
Cyclone has never explained why they claim thousands of hours of run time between maintenance intervals, yet have never been able make an engine run for 10 hours before self-destructing.
Not to mention that they still have never publicly demonstrated an engine powering anything, even for one minute.
The purchase order for 5 more Mark 3 engines for IBES mentioned in the PR title was never filled.
According to Google, "Plunkett Power Systems" doesn't exist outside this PR. Lewis Precision & CNC, Inc., is a real contract machine shop, but there is no evidence they ever built one Mark 3 engine, let alone 500 per quarter.
Audited Financials: Cyclone went through three or four auditors. The inventory mentioned in the PR was previously claimed as hundreds of thousands in assets. The auditors finally signed off on it being written off completely as scrap.
FSDS was a small defense contractor in Denmark whose business was overhauling armored personnel carriers for the Danish military. That contract was ending, they had no other business prospects and they latched onto Cyclone. Cyclone delivered a non-working mock-up of their power unit to FSDS for that trade show, but never delivered a working one. FSDS went bankrupt. Cyclone still hasn't shown a working power unit.
The "Cyclone Genie APU System" mentioned is nothing more than a hockey puck with a Cyclone sticker on it.
The two Mark 5 engines mentioned for Combilift were originally sold to Phoenix Power Systems in 2009 for delivery in six months. Phoenix cancelled the contract in 2012 after receiving $400,000 in late delivery penalties.
Two Mark 5 engines were sold to Combilift in 2011 for delivery in ten months. They are still waiting now almost 10 years later.
Remember, in both these cases Cyclone signed legal contracts promising delivery of working engines.
So what makes you think "The Mach 3 Engine has run continuously for many many months."?
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