Funding

SECTION I: ESTIMATION OF COSTS

 

1

Taking into account the rest of the cost evaluation please provide an overall estimation of the total costs for full deployment/production of the R & D result.
… in terms of IPR protection

About performance of the absorber that will work on medium and high temperatures, should be protected, because it is geometry, for measurable quantities that can be copied. So in the absorber assembly (Stainless steel tube with selective coating) inserted in a glass vacuum tube and sealed with special closures that can be extended in length required to produce the predicted temperatures to be protected.

This patent protection should be in the EU, and possibly China and America.

…in terms of product development
This product should be run in two phases:
1. Upgrading the existing two-chamber pulsing magnetron and new targets for the application of an additional layer in an amount of about EUR 100,000.The performance of R & D, and to implement pilot projects and pilot product will need another 50,000 euros.

From this budget to be paid at least two experts for PVD layers and one expert assembling of the absorber in the glass tube under vacuum.

This will create conditions for production of metallic absorber (Stainless steel tube with a selective coating that can be stable at higher temperatures than standard. So to be stable at temperatures higher than 250 Celsius.

These absorbers will be installed later in glass tubes with a wall under vacuum and special closures due to different thermal dilatation of the metal absorber tube inside and outside.

To implement the second stage, serial production of the absorber with length of 3 to 4 meters, which will be further extended until 6 or 10m, it is the purchase of PVD chamber with a height of 3.5 to 4 meters. This amount would be the minimum height for the purpose of long metal absorbers.
It`s not possible to find example of this kind of chamber, that is the reason this camber should be prepared specifically for this project.

If the chamber is purchase from current producers, its value will certainly be more than 1,5 million, depending on the degree of automation, design and equipment.

With a budget of 700.000 EUR this chamber can be produce, and with budget of EUR 100,000 to cover necessary expenses of the team of experts.

Realization of this project requires highly specialized staff (at least two graduate’s engineers and several technicians.

Monthly cost for remuration package for these employees should be around 5,000 euros gross.
Other costs, rent for business premises, electricity, etc.. Would cost about EUR 3,000 / month
supporting equipment would cost around 20,000 Euro.

So with an investment of 800,000 Euro plus monthly fees of about EUR 10,000, Plasma could produce at the moment one of the most attractive solar thermal collector for medium temperatures higher than 100 Celsius to 150 Celsius.

In the initial period, if company produces about 500 – 1,000 absorbers per month with a price not less than 200 EUR per absorber, the minimum monthly income will be more than 100,000 to 200,000 EUR or around 2 million for production period of one year.

Material cost is about 40%, which means difference between the high material costs and selling price because of the level of innovation.  If bruto profit of 200.000 Eur is decrease for the monthly costs of EUR 10,000, the fixed costs of 10,000 euros, the final net profit will be around 50,000 to 100,000 EUR per month.

Other monthly expenses for advertising, commerce, finance, would cost about 10,000 euro/month, so profits could be achieved in amount of (meaning from 500 to 1,000 absorbers) from 30,000 to 50,000 euro or about three to five years to be a worthwhile investment.

About the need for this type of short panels:

From total energy consumed in the EU, around 50% is spent on heating and cooling.
This type of collector with these absorbers will be used for solar collectors that are used in solar heating systems of technological and industrial use where the fluid temperature is higher than 100 Celsius. But even greater application will have for cooling with solar energy. To cool with solar collectors, usually are used chillers for absorption where temperature of the fluid is necessary to be above 120 Celsius, and with these collectors will surely achieve it.

 

…in terms of mass production

- Equipment Cost 700.000 EUR
- Cost for materials 40% of the selling price or 1000 x 200 = 200,000 x 40% around 80.000 EUR/ month for production of 1000 absorbers.

- Other costs, 10.000 EUR/month + 10.000/month. Total 20.000 EUR /month

 

… in terms of marketing
Around 10.000 euro per month for marketing, advertising, trade shows (especially the largest Intersolar in Germany), presentations, marketing agencies, etc.In the future this expenditure is expected to decline gradually.

 

2

Based on the above assessment as well as the marketing information please provide the correct estimation of the price for R&D product in correlation with costs

Year 1

Year 2

Year 3

Year 4

Year 5

Fixed costs

100 000

Personnel

100 000

Other running costs

50 000

Marketing costs

50 000 to 100 000

TOTAL EXPECTED COSTS

400 000

Price per Unit

200

Type of Unit

Absorber for CPC and concentrating collector

Number of Units

10 000

TOTAL Expected Revenues

1 to 2 mil.Eur

CASH FLOW REQUIRED (REVENUES-COSTS)

1 mil Eur – 700 000

(after establish production)

1,5 mil.Eur- 1,2 mil.Eur

2 mil.Eur- 1,6 mil.Eur

2 mil.Eur -1,5 mil.Eur

2,5  to 3 mil.Eur – 1,8 to 2,3 mil.Eur

TOTAL CAPITAL required for five years

Equipment 700,000 EUR (possibility of a credit line)
Raw materials 200.000 EUR (-=-)
Working capital 200.000 Euros (-=-)

 

 

SECTION 2: QUALITATIVE FACTORS

 

3

Dimension of identified target groups
All the major companies dealing with the installation of large systems for space heating and industrial needs (technical water, dairies, breweries, food industry). There is a great possibility for all these companies in the following period, when the price would be more commercial for the absorption chillers, to install also cooling in the same solar system.Industrial application. Producing hot water for house heating, sanitary water, pools, spa centers and each application of water heated to 100 degrees. Currently there is no competitive product according to the characteristics and long term efficiency of systems.

 

4

Evaluation of financial Risks for R&D result
In the period after several years of establishing the production after getting all the performance of the absorber, all necessary certificates, a number of training presentations and marketing activities, the risk is lower because there is great certainty this type of panels to be used in larger quantities.
But the risk is probably greatest in the first two years, where after the first serial production of products follows a period of proof: ISO 9001, quality certificates, network of dealers and direct customers, large projects … It is not meaning of failure of the quality of the absorber which almost is not possible, but the procedure and period of adoption of this type from existing companies that used classical flat plate and vacuum collectors.The same equipment can be used for the absorber of vacuum collectors, CPC collectors, vacuum tubes with metal absorber, which are already present on the market, which decreases the risk of not using the equipment.

The biggest risk is the success of the marketing and sales of the product. The interest and the education of the customers for the improvements of the traditional product that they are already using.

 

SECTION 3: IDENTIFICATION OF FINANCING SOURCES

After evaluating all the above mentioned criteria, please tick the best financing source for the achievement of R&D result (i.e. own capitals, banking credits, venture capital, business angels, etc)

 

1. European Funding

Define relevance of the product with the following potential funding sources and comment

  1.  Seventh Framework Programme (FP7) under the “ideas” pillar and by the use of the European Research Council (ERC) which is consisting of an independent Scientific Council and a dedicated implementation structure. The ERC operates according to the principles of scientific excellence, autonomy, efficiency, transparency and accountability, and supports investigator-driven projects in ‘frontier research’, carried out by individual teams competing at the European level, within and across all fields of research.
  2. South East Europe Transnational Cooperation Programme, under the Priority axis 2: “Protection and Improvement of the Environment” in Area of Intervention 2.4: “Promote energy and resource efficiency”
  3. Competitiveness and Innovation Framework Programme (CIP) supports innovation activities (including eco-innovation), under the Intelligent Energy Europe Programme (IEE)

So far Plasma has used sources of EU funding, including: FP7, one current and two in the process of signing on consortium agreement. They are included in two Eureka projects, National R&D.  tional R&D.luded in In addition to these funds or ways of funding it can be used credit lines from the World Bank, EBRD. Joint venture capital, because there are companies that have invested in the project, and it will continue in the future.

 

2. National Funding

1. MON (Ministry of Education and Science) every year organizes a contest for national R&D projects, innovative projects, but these funds are relatively small, around 60,000 EUR for three years, so it would be modest grants.
2. It may need to discuss with projects such as IPA, IPARD, intended for agriculture, but these absorbers and collectors could also be used in agriculture

 

 

3. Private funding

N/A

 

4. Other

 N/A

 

 SECTION 3: FINAL EVALUATION

It is requested a final evaluation considering the funding opportunities you believe most suitable for the exploitation of the R&D result, considering the possibility of the creation of a spin-off, further research, in particular, a cost/benefit analysis and a financial projection for the R&D result, type of collaboration identified (i.e. Licensing Agreement, Technical Cooperation, Joint Venture, Manufacturing Agreement, Commercial Agreement with Technical Assistance, Creation of a spin-off, Joint further development)…

From past experience with presentations, congresses, projects, contacts with top experts in the field of solar energy, it is clear that the need for heat and cooling in the forthcoming period will be at the first place. A huge amount of electricity used today for heating and cooling, it is mostly produced from fossil fuels that are the biggest polluters of the atmosphere with green house gasses. If this section gets the most ecological source of energy and life-solar energy, environmental pollution with green house gasses, which are the biggest threat to global warming, with disastrous consequences (now already present) will be brought within the limits envisaged by the EU and UN.

From all these documents it is clear that the greatest comparative advantage in this part of energy is solar energy.

So no doubt with great confidence in the future these types of collectors will have great use.

 

 

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