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waveslave

06/14/14 1:55 AM

#9041 RE: zerospec #9040

Your post lacks reasoning.

Why would you complain that STWA are charging too much for the AOT.

I am sure they have priced it to be cost effective for the first purchaser allowing the potential cost benefit to be greater than the initial cost. This could have been worked out by an increased flow of 1 or 2% or a reduction of 5 or 10% in pump fuel costs. The purchaser's ability to recoup the cost quickly would have been justified.

To be renegotiated when the benefit to the purchaser is known.

Other companies interested risk the same re costing of the product based on the out come of the test.

This could see a number of companies take up their option to purchase sooner rather than later...!
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alkalinesolution1

06/14/14 10:21 AM

#9044 RE: zerospec #9040

I recommend looking up As I See It's previous posts that broke out the costings and the profit margins. Think about it: TC had a long time to work through this. They put a team on it. The way these things usually go, they would have spent a few hundred k to commission an independent report on the technology. That's how these things work. And they had the stronger hand in the negotiations. And they arrived at an initial MINIMAL valuation of 4.3m for a skid of 4 AOTs. So we can see that as far as they have been able to establish, it is a tremendously valuable technology. It seems rather odd to second guess all that. The TC people are much smarter than us and they have all the data. They came up with 4.3m as a minimum valuation.

However, it's important to note that this is the first commercial pilot. It is also the first time that it has been used commercially. So in that sense, it is not yet proven to be a viable commercial product. That is what the point of a pilot is. We'll know soon enough. (I'm extremely confident.)
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mr_sano

06/14/14 10:55 AM

#9045 RE: zerospec #9040

It's value will obviously be determined by its efficacy. At minimum the Mwatt saving must be in the 5% area to justify the 4.2million price point. If it doesn't then Tcp will pass. Additionally as you suggest the device could be used as a flow straightener and deal with problem areas. This would greatly reduce its potential.