"" Hydrogen (DD) Energy Is The Wave Of The Future Players ""
How Hydrogen Energy Works!
Q & A
Hydrogen Energy:
How does AFPW define its space in the industry?
Industry Facts!
• Currently growth is driven by an enthusiasm to reduce dependence on foreign oil (implementing geothermal to green facilities, etc.) and increasing domestic productivity. Tapping into the country’s supply has the potential for a huge market, creating jobs, etc. • There is a whole multitude of variations in the alternative energy sector: biofuels, nuclear power, hydrogen power. It is expected that the US will eventually depend solely on nuclear power, but this conversion will be a slow one. • Natural gas is a $2-3 billion a year industry and the largest growth potential is in the vehicle market; natural gas can be used as a fuel for the entire country at its current consumption rate for a century. • Hydrogen energy is more promising as a renewable resource.
Logistics and Transportation:
• The logistics and transportation (delivering and storing goods) business is directly correlated with the economy, $1.7 billion industry. • Current growth in this sector is fueled by outsourcing; companies are shifting their focus solely to their core business, and outsourcing transportation, inventory management, etc. to other companies to save time and money and become more efficient. This is spurring growth in the transportation industry.
Hydrogen Energy Will Be ""Bigg Players""....It's Not a Matter Of If..,It's a Matter Of WHEN!
When you think about growth, what are the opportunities and challenges for AFPW?
• In the refining process, superheated steam is generated in addition to hydrogen cells. Used this as an opportunity to use as a propeller for turbines. Technology is generating an interest with the Navy, and a current contract is in progress. • Diesel boost, 10-25% increase in efficiency. • European interest in alternative energy, European capital raise- the company was just launched on a stock exchange in Europe. • These technologies will be used with various applications; actively looking at synergistic companies to expand business base and revenue stream. • Philadelphia is a leader in the Hydrogen sector in terms of technology, talent, and equipment. • Legislation- the government will mandate an increased use in NG and eventually hydrogen. It would drive the industry, but it will allow you to get away from overseas fossil fuels. Fueling stations and conversion of vehicles. • Capitalism will support the growth and development of this industry. Logistics: • Many companies are focused on core competencies, and are looking to outsource everything else. Companies are not investing in technology for warehousing and transportation, they are going to other companies to manage these sectors of business. • Offer pricing structures to manage seasonality nature of businesses. Use scorecards to prove that they are improving efficiency. • Due to increasing prices of fuel, they are looking at LNG trucks to improve efficiency.
How much does regulation impact the hydrogen industry today, going forward, and what do you do to shape regulation or influence it?
• Regulation has had little to no influence on this industry, as there is little to no regulation from the government in regards to research, establishment, and implementation of alternative energy resources. • No mandates on the national level, but at some point the US government will get very serious about alternative energy. Natural gas will be used for fuel and distributive power, so it is coming! But how fast, and when, is the question that challenges this industry. The industry is currently on its own. There are a lot of bright spots, but not a lot of financial support from government YET!
Strategies going forward, how does M&A (Merger's & Aquisitions) fit in to AFPW
• M&A is critical to go forward. There are some selected players- actively looking for partners to acquire, focusing primarily on synergistic acquisitions, to talk about fueling vehicles (natural gas and hydrogen) • Energy analysts are putting emphasis on Natural Gas. Particular growth potential in the Eastern US, which makes M&A an essential component to the anticipated rapid growth.
What is appealing and challenging for companies like AFPW located in Philadelphia and Pennsylvania?
• Philadelphia is ideal for US hydrogen, due to natural resources under PA. • Students and involvement with Drexel nanotechnology, as well as involvement at University of Pennsylvania, help further research and development, as well as provide the company with a significant number of employees. • No federal state or local financial support currently, although it is expected in the near future.
•We want to bring the technology into the market place, and now to make it a major player. The next steps are synergistic acquisitions. First concern is shareholder concerns and valuations.
• Underwater platforms with the Navy. Underwater vehicle technologies last for days instead of hours. This improved efficiency will be a significant improvement to current military technology.