Electro Energy Solutions

Irvine, California, United States United States
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Company description

By adding Electro’s technology to heat pumps manufacturers, distributers and installers will be able to realize higher IRRs and shorter payback periods for their customers.

 While PCM technology can be combined with either air source or ground source heat pump systems, Electro Energy Solutions is focused on the ground source heat pump market because of higher growth potential, additional government incentives and an overall weaker competitive landscape.

PCMs are capable of improving efficiencies GSHP systems by up to 20% over traditional GSHP systems, further reducing energy demand and greenhouse gas emissions. PCMs are materials that undergo solid to liquid transitions, soaking up huge energy per unit quantity of PCM. The PCMs are placed around a finned heat exchanger and then housed in a porous drainage pipe. The unit is then installed in a GSHP system which expedites the heating and cooling process, further improving the efficiency of the system.

 Electro has chosen to manufacture PCM technology because we believe GSHP systems provide tremendous value to the consumer and the market is poised for significant growth in the next five to ten years. By focusing on a specific component rather than entire GSHP systems Electro will be able to gain entry to the market without directly competing with current GSHP system manufacturers. Existing companies in the market will actually be partners rather than competition because our product will help to make their current systems more efficient. This technology is also attractive because it is currently patented by the Department of Energy (DOE) but licensing fees would be drastically reduced through the current “America’s Next Top Energy Innovator” program, in conjunction with the “Startup America Initiative”. More on these programs in the IP and Defensibility section. Finally, the PCM manufacturing process primarily uses off the shelf components and manufacturing can begin on a small scale before more wide spread commercialization is undertaken. This means Electro can be operational at a small scale based exclusively on a combination of Small Business Loans, principal contributions and business plan competition winnings.

Business model

Electro Energy Solutions manufactures GSHP components that use phase change material to increase system efficiency by up to 20%. The company will be responsible for the manufacturing, marketing and distribution of these products. The target market is GSHP wholesale and retail distributors, installers and other system component manufactures. The GSHP market is small, with approximately 25 companies operating in this target market as of 2009.




Competitive advantage

The value proposition to the end user is increased system efficiency and increased energy savings. This means that the GSHP system will save more money over the life of the system and will decrease the payback period. For the manufacturers, distributes and installers the value proposition is also an improvement in the overall efficiency of GSHP systems which makes them more competitive compared to alternatives like solar and other efficiency measures. Also, adding DOE patented technology to their system will increase the value in the eye of the consumer and give them a competitive advantage over other GSHP systems.