Dense Environmental Energy
|GSE Investors FAQ|
Please provide an introduction to your organization and its activities in renewable energy, clean tech and sustainability?
Everyday engineers build bigger dams, dig deeper holes, and debate schemes to alter our ecosystem to overcome the problems created by bigger dams and deeper holes. Solar, wind and hydro have proven that fuel, the philosopher's stone, is just a beautiful dragon. For millennia man has harnessed the benevolent sun and robust blowing winds as energy. But nature has given us much more. The embrace of gravity or the smothering airs of a hot day are the source of the winds.
GSE is an applied research and development lab, whose mission is to engineer energy harvesting solutions. The primary basis of our work is the practical implementation of Einstein's theory E=MC2 which describes energy as the product of mass and acceleration. While this seem esoteric, it is a practical view of energy as a stage of all matter as opposed to being a specific form of matter such as petroleum, coal, wood or other combustibles. We follow the same environmental energy lines as hydro or wind, in that we develop methods of harvesting and concentrating gravity. We have determined that due to the ubiquity and proximity of gravity, as opposed to solar energy, gravity provides energy densities which are synchronous with high value applications such as HVAC and environmental remediation.
The fruit of our perspective so far, is three lines of products. V-series devices which harvest the waste sensible energy, vibration, of traffic flows and the operation of industrial equipment. R-series devices, which harvest energy from masses as they conflict with gravitational fields, [with our traffic powered pumps, compressors, speed sponges] . S-series devices, which use the environmental stasis such as the negative energy of gravity to resist forces such as acceleration or evaporation, [with our robotic flood control systems and atmospheric heat driven pumps].
It is important for a potential investor to understand, that we are operating on the model of Edison's lab in Menlo Park, which developed numerous fundamental applications, such as light bulbs and sound recording. In short we seek long term investors who share our mission to develop, perfect, and elevate environmental energy harvesting to both compete with both fossil & solar, and to sponsor or at least seed major new and previously un-addressed applications such as environmental remediation (drought & pollution mitigation, local desalination & aquifer rehabilitation, atmospheric water generation, etc.), much like the Wright brothers introduced heavier than air flight.
We are a leading edge in the realization of Lewis Strauss's dream of providing energy sources that are too cheap to meter. Direct power such as compressed air, fluid pressure or electricity derived from nature, and the neo-nature environment, which includes man as a source.
However, our short term prospects are amazing as well. With our retail ready products , V, R and S series devices, we will build GSE to $600 million in annual sales in from 4-10 years, depending on the investors that join our team.
For more information on GSE research please visit our protected research perspectives page.
What are the key innovative approaches, solutions or products that your organization has developed for the renewable energy, clean tech and sustainability sectors? What needs do these innovations address and what benefits do they deliver?
Firstly, we have developed a variety of methods for using static gravity, or concentrating dynamic gravity as useful energy sources. These products are our currently available traffic taps, speed sponges, and robotic flood barriers. Secondarily we have also developed simple practical devices which convert atmospheric heat into cyclic kinetic energy. These products, which are still in beta testing, are pumps and compressors which operate at atmospheric temperatures above 22 C. Yet the most important innovation that GSE brings to the world is in presenting practical methods to solve growing regional problems. The problems of historic deserts, desertification, air pollution, and aquifer regeneration are equally addressed by the application of the dense, inexpensive power that GSE devices can provide.
Vibration to Electric Generators:
Vibration is the new solar! As with solar and wind energy it took many years for society to realize that vibration could be harvested as a power source. These discoveries have been prompted by the realization that energy had a wide variety of uses, ranging from industrial processes to transportation.
GSE's V-series devices are the first practical macro level vibration harvesting devices. These devices provide the type of dense, reliable, low cost energy that many of today's applications require, while this power source, along with other environmental sources, will prove even more essential as large applications come on line.
Dynamic Gravity Based Devices:
We have developed systems which convert momentum/inertia into useful energy streams of compressed air, or fluid motivation. Our systems convert the negative energy (stasis energy) of gravity into dense solutions to a wide range of solutions ranging from taking factories off the grid to long range regional drought reduction programs. Our motto is "if it is heavy and it moving...power is being diffused into the environment, and that power can be harvested". We have developed, tested, vetted, and are marketing systems which tap into these energy streams, of heavy moving objects, that have engineered to do amazing things. Adiabatic versions of our products can be used to generate energy from heavy traffic flows, or the movement of livestock, transparently with no increase the energy requirements of the targeted vehicle or animal. Diabatic versions of our products, which remove energy from a targeted process, provide the first practical method of automatic roadway speed control. GSE speed sponges are a practical response to the rapid increases in vehicle traffic around the world. In the developing countries each day people are killed and commerce is disrupted by vehicle crashes which could be easily and inexpensively mitigated with our devices.
Static Gravity Devices:
GSE has developed and is currently marketing an entirely new class of device for commercial and military flood control. These are simple reliable devices that can automatically protect-lives and property. Also in beta testing are our atmospheric heat driven pumps and compressors (please see our investorís page).
But most importantly we have a vision for a green future. We are constantly working to overturn conventional logic as applied to energy as a thing as opposed to nature itself.
How unique are these innovations? What comparable solutions or initiatives exist in the sector?
There is actually nothing new under the sun, in that in order for a concept to be realizable the language and underlying concepts must first be discovered or created. That being said, GSE is the original designer of our devices, which we filed patents for in 2000. Some people have called the inventor of this technology, the Archimedes of our age. Yet, in the ensuing years many people all around the world have tried to implement our basic designs, but none has achieved the either the performance levels that we have, nor has anyone been able to visualize the concept sufficiently to generate the string of related devices that have been developed at GSE. Some other companies are coming into this market. The company Innowattech was involved in the Israel piezoelectric project.
What we realize, from all the doors that have been slammed in our faces by venture capitalists is that we cannot just start a company, we must start an industry. Through this process we have grown to understand that the truly innovative features of momentum/inertial power are energy density and a unique demand driven availability profile. No other known source of energy can more directly match usage peaks, without storage, than momentum/inertia. While no other renewable source can match the energy density of momentum/inertia.
GSE PEC technology is based upon many proprietary internal design features which provide us with a multi-year performance advantage over competitors. The proprietary design features will also provide paths for rapid future developments. note: Access to proprietary information is restricted to board members, or at the board's discretion. If you would like access to this information please contact the director of R&D.
Are your innovations designed to be defensible from competition, and how? Please explain?
The market for momentum/inertia power is estimated in the petawatts. 20% of all energy usage is for fluid-movement. While another 30% of all energy usage is to change the temperature of fluids.
These markets alone would support as many as 100 multi-billion dollar companies. Yet when the nascent markets for environmental-mitigation are estimated, due to the bulk-energy requirements of regionally therapeutic applications, these markets effectively triple all existing energy use. This is to say that unlike most innovations, which are significant but essentially marginal changes to an existing product, momentum/inertia is as important an innovation as was the discovery of fossil fuels.
Consequently, our strategy is based upon our stated desire to save the planet for future generation. We want to see the deserts converted to lush gardens filled with ripe fruit, singing birds, and fat children. We want to end destructive weather such as tornadoes, and hurricanes.
To this end we are developing and marketing green energy devices which will allow us to both dominate and create archetypes that many other firms will license, and many more will steal. Yet, if we can be free to continue these developments without financial worry, success will be our legacy.
What is your vision for the future energy landscape and how will your organization help shape it? What obstacles will you need to overcome to help you realize this vision? Please include details of significant planned developments and future achievements?
The self-winding watch embodies our hopeful vision of the future of energy. A high quality self-winding watch is an often perfect synchrony between available environmental energy and a particular application.
Other examples of excellent energy synchrony are solar powered LED Street-lights, traditional oasis AWG and our livestock driven water pump which was featured in Popular Mechanics Magazine back in 2001. In short synchrony between demands and natural supplies is the balance point that all devices should, and will inevitably tend toward.
We are developing and marketing synchronous energy solutions to factory peak loading, geothermal HVAC, environmental mitigation, and safe roads without police or speed cameras. We see a hopeful energy future where rational, sustainable energy based solutions will replace the excessive, the destructive, and the unsustainable.
We face several challenging, yet not insurmountable obstacles. We must do more than start a company, or sell a series of products we must start a revolution, an industry, a paradigm shift. Our approach has and will continue to educate potential users, and to ferret out objections and address them. To this end we have generated many original white papers, encyclopedia entries, conference papers, etc. Each paper accepted for peer review, each link back to our site is yet another step towards the general acceptance of our perspective, and to our greater understanding of its potential.
As we find new investors, or sell additional units all of our efforts are the raise the efficiency of our current designs and foster new innovations based upon our vision. As students of scientific history, we understand these challenges, and we will continue to meet them with resolve.
What is your business model / financial model and how sustainable is it? Please explain in terms of routes to market, as well as future revenue/profit expectations and/or fundraising?
GSE is structured as a selective distribution OEM. Due to the technical nature of our products, we provide selective specialized wholesalers with generic stock that will primarily be used during the product evaluation phase. Most customers will need to be support by either direct sale of custom engineered solutions, or as consulting engineers wherein the devices will be produced locally. GSE has extensive experience with working through subcontracting with local fabricators, through our experience in the equipment rigging field.
Our initial push strategy is aimed at industrial users, through utility company demand side reduction programs, and through complementary OEMs as an alternative power source for large engineered industrial systems such as cooling towers, or assembly solutions.
To better understand these important markets, problems, methods, best practices, and key persons, we are presenting technical application papers, to industry associations (IDA, CTI, IDEX, etc.]. Including; industrial cooling, grid & fuel independence in retailing, regional drought mitigation, desalination via rainfall management.
The sustainability of this model will be based upon the constant improvement of our lines, leading to greater performance and features, and the need for replacement units. However, our primary or fundamental business model is to lead-with-why in the development of momentum/inertia and gravity based solutions.
GSE products will initially compete on value and performance with photovoltaic installations for demand oriented applications, such as stationary & emergency roadway and parking lot lighting, toll booth power, and municipal & agricultural water movement.
Medium term our business model will move to competing directly for new building construction RFQís for large buildings HVAC and bridge temperature management (winter de-icing, & summer cooling).
Our long term strategy will be to lobby legislatorsí with strategic regional environmental solutions as visionary green initiatives, such as drought or air pollution mitigation.
Please explain the potential addressable market for your solutions, initiatives, products or services, and the size of the opportunity. Include target customers/segments where appropriate.
Our primary markets for our line of traffic powered pumps and compressors will be factories, parking lots, toll-plazas, and bridges. Due to the nature of our products to impact on traffic flows each market is unique for its barriers-to-entry. Generally, for use on public roads each product must be certified as safe by various private and national laboratories or traffic safety associations.
In the US devices, such as barricades must be certified by the FHWA (Federal-Highway-Administration), the actual testing can be performed by a variety of certified labs. Many states also run their own certification programs for devices designed for placement in the roadways. For privately owned parking lots and non-public roadways these certifications are not required but are helpful to ensure that the facilities remain insurable.
The levels of roadway construction, both new construction and major maintenance and upgrading define the marketplace for this new class of roadway devices. According to International Road Federation statistics numerous European and less developed economies are characterized by low overall roadway density (roadways per citizen), increasing number of vehicles, and increasing accident rates. These statistics are a roadmap for GSE products.
Our products, once accepted, are most effective in economies with growing roadway networks, increasing populations of drivers, and high levels of fuel price inelasticity. In countries like China, India, and Brazil statistics indicate that at least one new toll plaza is being opened every week-day. GSE through industry literature, conference white papers, privately funded demonstration-projects, and favorable press coverage will penetrate key markets with products engineered at favorable price points that are designed specifically for the environmental, financial and typical road traffic for that region. We will further ensure long term access to these markets by partnering with local entrepreneurs and suppliers, while designs will remain centered at GSE.
A longer term review of the global challenges of dynamic climate variability truly defines the market for many of our products. Climate change will affect almost all markets pushing weather impacts toward one extreme or another. Increased heat will both effectively shorten the live span, and increase the maintenance costs, of roadways and bridges. Coastal flooding is projected to continue to increase to the extent that many rich cities will be driven to penury trying to meet the energy costs of flooding. GSE traffic based pumps will become the most cost effective methods of long term flood mediation in low lying areas of many developed countries. While our geothermal roadway cooling systems will become a major bidding advantage for all construction companies engaged in competitive bidding processes for new roads and especially bridges.
Another market fostered by climate changes will be commercial agriculture. Today many large agricultural enterprises around the world are being forced by insurance companies to provide adequate irrigation, in even traditionally humid areas.
GSE traffic and atmospheric heat driven pumps and compressors will provide the most cost effective methods of providing both hydrological balance and large scale irrigation from distant or deep sources.
Please give an indication of the scale of impact that your organizationís achievements have had, both within their field and in the broader context of sustainability. Provide tangible, quantitative figures where possible, including details of clients, geographies, deployment, adoption, etc.
Since the initial flurry of news reports about our technology, the Traffic Tap, [over 100 articles in the US, Europe, Asia, and Latin America in the 2000-2001 period], we have had to fight an uphill battle. Early on a few scientists at important institutions, including NREL (US National Renewable Energy Laboratory) and Lawrence Livermore Labs, took it upon themselves without ever speaking to anyone at GSE, to decry the technology as a theft of drivers fuel. These views were widely circulated in the scientific community, and GSE and Gare Henderson, Ph.D.sthe inventor of the PEC were shunned as charlatans. In later years we discovered that at least one of the supposedly leading researchers quoted was a temporary worker who had no credentials, and the other fellow later refused to take any ownership or responsibility for the quote. We can only offer the perspective of history that others who have challenged the existing orthodoxy, such as Copernicus or Galileo, were threatened with death or imprisonment, so perhaps we are lucky. Nevertheless we have persevered and have now, at least grudgingly been accepted by the international scientific community. We are regularly invited to submit papers to international conferences, especially on water related topics such as our revolutionary rain as a desalination method paper presented at the 2011 International Desalination Conference in Italy. We are regularly questioned by students and scholars from India, Brazil, France, and many other countries. We are also now often elevated by the renewable energy scientific community. We were selected to chair the international renewable energy conference in Singapore in 2010, and we will be presenting a keynote presentation at the International Energy Harvesting Association later this summer in Washington DC. Gare Henderson, Ph.D.swas given, an in-depth personal profile on Korean Television as the Archimedes of the modern age.
Through these efforts and our diligence in the face of the initial broad rejection of the scientific and academic communities, we have been able to at least start the conversation about new ways to think of energy. In our broad and well considered examination of the fuel model of energy, GSE has been able to interest many government and academic programs aimed at discovering new sources of environmental energy. Perhaps the most important achievement of GSE to advance the field of energy sustainability research was the inclusion of traffic power in the science textbooks of France.
Please provide relevant details to outline your organization's financials over the last five years. Explain in terms of revenues, income streams and costs. This should include details of profits and growth over the same period. In addition to the written explanation, please complete the table below.
Our parent organization Alacrity Services Inc., and several private investors have invested approximately $1,500,000 in equity in GSE over the 3 years since the company purchased the patent and intellectual property rights of the original company Gravitational Systems Inc. of New York. The company also has $150,000 in outstanding debt, to a convertible debt investor who has fallen on hard times. Alacrity Services, a private specialized engineering corporation with many blue chip customers [IBM, Boeing, Citrix], primary stockholders are the Henderson family.
These funds have primarily been used as working capital, rent, salaries, materials, and equipment. During this period we have diversified our product line to include speed control and flood control systems that now are represented by several vetted models. We have been able to increase awareness of our technology from less than 1% of scientists in related fields to about 10%. Our research budget, although very limited, has allowed us to advance to the beta testing stage, one of the most exciting energy innovations ever conceived in the form of an atmospheric heat driven engine.
We have been selected to present at various venture capital conferences, and we are currently in negotiations with a large established VC, with a decision expected on a $5 million early stage investment within the next few months. We have also processed our first two orders which will be ready for delivery in September of 2012.
Nevertheless we are starved for capital, especially the working capital that we need to finance international awareness through academic and industry conferences. We are also seeking partners to fund several requests for demonstration projects by the US states of Rhode Island and Minnesota. We were forced by budgetary restraints to turn down 11 featured presentations at industry and academic conferences in 2012. We have found traditional venture capital sources to be quite timid, primarily due to the long term nature of the product approval process, and some lingering resistance to the concept of momentum/inertial power.
|Discuss the involvement of the
organization and its management team in major industry associations;
agenda-setting for the industry; policy development and other areas of
Over the last three years we have been asked provide white papers on various aspects of the renewable energy market, especially as they relate to regional hydrology. We were selected to chair an international renewable energy conference in Singapore in 2010, and we will provide a key presentation at this summerís energy harvesting conference in Washington DC. We have also been asked and have delivered white papers on the usage of environmental energy for regional desalination, renewable energy choices for large retailers, and several extensive interviews have been published in key industry magazines and encyclopedias. During the 10 year life of the original and current company we have contributed to NPR (National Public Radio) interviews, articles for NASA, the New Scientist, Popular Mechanics, and many others.
Your product line is deep and diverse, how will you be able to be competitive and profitable, especially during the initial testing phase?
We are designed to follow a lean manufacturing & lean prototyping model. Our retail-ready products are modeled on a tight core of fundamental designs and are optimized for mass production. However, our custom designed products, which will form the bulk of our production are engineered in close coordination with the customer. We will work with customers through the development process with AutoCad 3D renderings and animated simulations.
Once a design is accepted by the customer we will generate a sectional mould using a 3D printer. The output of the 3D printing process will be used to generate a negative mould, which we will employ to build the product with the materials designated in the order. This process will allow us to deliver customize instances of our products within weeks of the initial customer approval of the design. Once the design has been vetted by the customer, depending on the volume, we will work with either a local shop, or have the designs implemented at one of the many injection mould shops in China.
Most of our designs also include various metal products, [some springs, strike-plates, connectors, etc.], for these we will endeavor to use off the shelf parts, but we will build most larger parts in house. Our objective is to provide fast design turnarounds to meet customer needs, and to build a database of best practices that will continually cut our costs over time.
Our core staff includes one of the leading computer engineers, with strong competences in CAD, Numerically controlled machine tools, and systems architecture. We will supplement this core competence with a state of the art 3D CAD department, and experienced injection molding engineers.
Our new 15 acre facilities in Southern Maryland are full zoned for commercial usage, and will allow us to store large quantities of raw materials on site. We also have extensive asphalt and gravel roadways to facilitate product testing during both design, acceptance, and demonstrations.
Our current stage of production is manual prototyping. To fill orders for our surface mounted devices, we purchase pre-formed surface mounted speed control devices, and modify them to accommodate our PEC mechanisms. This involves many man hours per device, 5-20 according to design performance. The tasks include heavy rubber sculpting, some assembly, and the usage of various solvents. Each unit is tested on our private roadway prior to shipment.
Once we have the capability of 3-d printing and injection molding we will perfect the internal designs which will allow us to eliminate most of the assembly and solvent usage. Our internal designs will be based upon various natural processes such as cell wall construction, and incorporate some advanced structural elasticity concepts. These advanced designs will provide highest performance and lowest production costs. These designs will allow our products to be competitive with all alternatives, as well as misery.
|This technology is new and
disruptive, and will face a lot of resistance from many stakeholders, please
explain the risks and rewards of an investment in GSE. In other
words what can go right...and what can go wrong?
What can go right?
1. GSE can tip, in the sense of Gladwell's tipping point, and early adopters in high need foreign markets increase their growing fascination with our technologies This will lead to the type of consistent exposure, at industry conferences and write ups in industry journals, that will force RFQ writers, architects, and engineers to broaden their ideas about energy sources as to include GSE products or designs.
2. GSE can successfully run a dozen key large scale demonstration projects, at toll plazas, small towns, and factories. These projects are covered favorably by the industry press, and as a result test and early implementation orders come in with sufficient volume to allow us to lower our prices to force all stakeholders to consider GSE solutions.
3. GSE can develop specific key partnerships with existing firms with global reach as an alternative power source for existing lines of equipment, such as industrial assembly equipment, livestock management equipment, etc. As a result of these partnerships GSE is purchased as a division, or through a public offering, and is subsumed by a big energy or equipment company such as Exxon or GE.
What can go wrong?
1. GSE can become involved in some high profile environmental project, such as drought remediation in the middle-east, and factors such as underfunding provides results that are below media expectations, and GSE is marked as a failed solution provider. Alternatively cultural, religious, or even biodiversity resistance builds to GSE environmental remediation solutions and GSE is labeled as an negative force.
2. Strong competitors re-engineer many of GSE's products, and use their marketing and distribution muscle to position their company as the originator of these technologies.
3. Key GSE personnel can fail, either through death or competitive pressure, and the company fails to thrive as it is limited to providing a commodity product against strong competition.
What else can go right?
4. GSE could perfect a simple reliable backyard or parking lot energy source, something that we are working on now, that will be available at retail that can allow any customer to significantly reduce or eliminate their dependence on grid power, while still employing conventional HVAC. This breakthrough, based upon our patent pending T-dam, will have a similar impact on the world as the discovery of manned flight.
5. GSE could perfect a deep water energy generator, based upon our patent pending PRS design, that will successfully unleash the intense pressures of the ocean depths as reliable consistent and inexpensive power. The impact of this development on costal economies, shipping, and military operations could propel GSE and its partners into one of the largest energy facilitators in the world.
What is the certification process
for these devices to be used on public roadways?
I am a supporter of your concept yet I don't have the authority to invest a minimum of $50,000. How can I support at a lower level?
We welcome your support, and realize that while financial support is extremely important at this juncture in our development, non-financial and in-kind support is just as important. Perhaps the most important support will be in helping to spread the word. You can help spread the word on the future of energy management by encouraging the purchase of our products including our publications.
Here are a few things that you can do to support GSE;
1. Urge your local, regional, or national representatives to examine the solutions that GSE can provide to reducing grid vulnerabilities in your region.
2. Invite GSE executives to make presentations to key stakeholder groups.
3. Add links from your relevant site to GSE.
4. Reference GSE publications in your writings and publications.
5. Nominate GSE for various public recognitions, such as energy prizes.
6. Go on the record with your questions and concerns about GSE products, or grid and fuel independence.
7. Apply to sit on GSE advisory boards.
8. List or carry GSE solutions in your existing product lines.
9. Purchase GSE publications for your office or libraries.
10. Investigate potential partnerships with GSE.
11. Attend conferences where GSE executives are speaking or presenting papers. You can get a running list of these opportunities in the about section of this website.
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