SOLAR AND RENEWABLE ENERGY BUSINESS INCUBATOR - A PROPOSAL

Prepared by Martin 'Solar' Nix
PO Box 95173. Seattle, Wa. 98145-2173
solarshack@tmail.com

EXECUTIVE SUMMARY.
This business plan proposes a center to develop solar energy and renewable energy inventions. The goal is to take these devices and take them from concept to market place. The goal is to capitalize inventors and to help solve serious energy and environmental issues. The goal is to do job creation, and to create new export related business to mass produce energy devices based upon renewable energy. Martin Nix is an inventor who has numerous inventions in solar technologies. Not only does Martin Nix desire to mass produce his devices, but also to assist other inventors for getting their devices into production.

PROPOSAL: THE SOLAR AND RENEWABLE ENERGY BUSINESS INCUBATOR. Proposed is a method by which inventors receive support for getting their patented/patentable inventions into mass production. This new center would contain office supplies, computers, and a small machine shop, with support facilities. These small companies would reserve time for the production facility on a weekly 24 hour basis. This center would attempt to match investor partners with inventors. Eventually as these businesses grow, they would relocate to their own expansion business.
What is needed is 'seed capital' for materials and labor, to develop preliminary production plans, and to develop manufacturing processes.
For example, Monday production would be reserved for the Solar Cooking Co., Tuesday for Solar Hot Water Co., Wednesday for converting used bicycles to windmills, etc. The facility would produce prototypes for market Beta-Testing, and for product development and improvement/marketing. Martin Nix desires to be able to put his patented inventions (U.S. Patent 5308187, 5113845) into production, along with other intellectual property. This new incubator could be a combination of private and public investment jointly.

MARKET POTENTIAL.
It is common knowledge the USA is heavily dependent upon foreign oil, and there are environmental impacts from fossil fuel extraction. By developing renewable energy, and having people make their own energy, it will help electric utilities stabilize their electric loans and utility rates. It will help on stabilizing and load managing natural gas supplies. It will also help provide conservation for natural gas and electricity for other uses as electric vehicles or natural gas vehicles.
It will also provide jobs, and also provide new export related products for trade.

DiSTINCTIVE COMPETENCE.
Martin Nix has been one of the founders of the Solar Washington not-for-profit organization, dedicated to renewable technologies. Many inventors are 'mom-and-pops' garage shops. Not only does Martin Nix desire to get his inventions into production, but also others. Martin Nix has two distinctive patents that can be produced in a machine shop with common tools.

U.S. Patent 5113845 is a solar picnic table, which has been known to cook turkeys. A derivative of it has been licensed to the International Solar Cooking Association, which now makes it for third world nations, including refugee operations. Solar Cooking can also be used to sterilize medical instruments, pasteurize water, dry food and fish, or be used to make hot water for washing, or even to make Biodiesel fuels in a coffee pot. Potentially, a solar cooking project for this summer could for example, conserve 1% to 2% of Seattle City Light electrical load. The utility is primarily a hydroelectric based utility, and in droughts, there can be water shortages. Solar Cooking reduces electrical loads, and conserves water for fisheries. Solar Cookers, if used daily, can have a R.O.I . of one year. Proposed is an all aluminum solar cooker, with a high quality reflective surface.

U.S. Patent 5308187. Most significant is that nearly 97% of all of mankind's energy comes from combustion of a fossil fuel, like wood, oil, or gas. Each one of these fuels require oxygen. Oxygen on planet earth comes from plants that use solar energy to convert CO2 to Oxygen. The patent discuses use of solar energy to manufacture preheated combustion air. Solar powered fans compress air into a solar collector with thermal mass, while a grid-tied fan sucks air from the solar collector with thermal mass. The thermal mass stores heat from the day for night use.
Then the hot air from the solar collector is blown into any firebox.
The air is hot, compressed and high velocity, and piped around in insulated pipes. The net result is less fuel is burned. For example, a solar collector can blow air into a wood stove. If the air is already hot, then not as much wood is chopped. With the addition of high temperature solar collectors, and wind energy collectors, the air can be made hot enough to blow into an oil refinery or coal burning power plant. It is possible to place these solar collectors on top of a coal strip mine, as part of the land reclamation process. It is proposed that the first area of market penetration that this patented invention target hot water heaters. Seattle City Light for example has extensive amount of electricity used for hot water. If the hot water is already hot from solar energy, the electric hot water heater does not work as hard. Hot water can also be used for space heat. The R.O.I. is estimated at about 5 years, or less. Right now, part of the reason for the high cost of solar hot water heating is due to the fact that most equipment is imported from overseas. We need local manufacturing.

OTHER INVENTIONS. Martin Nix is working on other devices, which could eventually be developed. Lightning can be tapped to convert underground coal to oil, gas and alcohol, thus eliminating coal strip mining.
Invented is a method of converting used refrigerators to garden greenhouse, perhaps a great project for youth garden clubs. Presently, work is being done on an Ocean Energy Collector that takes Ocean wave, current, wind and solar and converts it to fuels. Other inventors exist.
One inventor has a foldable parabolic dish in a box, that when unfolded makes steam. One inventor has a method of using recycled plastic lumber to mount solar collectors to a roof. One inventor has a 33% solar photovoltaic cell, that converts 33% of the sunlight to electricity. One inventor converts used bicycles to windmills. One inventor has a solar collector and window with a vacuum between the glass, making for a very energy efficient solar collector. The list is endless. The purpose is to recruit inventors with valid patented and patentable devices, and produce them.

MARKETING PLAN
These devices from the incubator would be Beta-Tested. Limited production would mass produce a limited number of these devices, then would be distributed at-cost to test customers. For example, an RV Trailer could have Solar Combustion Air retrofitted to propane devices, thus all the appliances (stove, oven, hot water, furnace, absorption cycle refrigerated) would be powered by hot air. Fuel would only be added as needed. Solar Cookers could be produced and Beta-Tested with school lunch programs. The experience gained would help the manufactured product mature. In manufacturing there are major concerns for liability, safety, maintainability, ship-ability, quality control, longevity, etc.
This Beta-Testing will allow inventors to test and improve upon their designs.

Worldwide, with 97% of the world's energy from combustion, there is nearly a trillion dollars a year spent on fossil fuel extraction. By preheating air for fireboxes (i.e.. Hot water heaters, Coal Plants, Refineries, Biodiesel production), it would help existing plants and appliances. This really is in the interest of the oil/coal/gas industry to develop solar energy in that this will extend existing geologic supply, reduce air pollution and greenhouse emissions, and extend the economic life of energy facilities. Computer simulations can be developed and then applied to existing refineries, or coal plants. These simulations could be a new product, defining clearly the retrofit of solar energy systems to power plants, or buildings. These computer simulations would be incubated and later mass produced for resale. Each project would develop it's own marketing plan. Of special interest is HelioHydroElectric technology where deep underground salt water is pumped to the surface, and then these evaporation ponds would add local area moisture and rain. The net result is more water to grow crops for Biodiesel fuels, for example.

MANAGEMENT PLAN
There are numerous ways such an business incubator could be structure.
Let me propose such a plan. Sponsors such as PSE, Microsoft, Boeing,
City Light, Port Authority, or so on would contribute a small portion of
the initial investment. Many resources can in-kind, such as computers,
facilities, and tooling. Interested inventors, and inventors to-be,
could then do confidential presentations. There would be a two step
process: first a technical review, and second a business case review. If
approved, and technically sound, then the project would be given a 'Give
It A Go' grant of $100,000 (maximum). The project then would be given
office, computer time, communications, and other expenses. Once the
project has reached mature level, the new business would relocate from
the incubator. In return, the sponsoring organizations would be allowed
to own at least 1% non-controlling interest in the new company. This
creates a revolving fund, reinvesting back into the incubator. Each
project can be a variety of formats: sole proprietary, chapter S or C,
cooperative, partnership, or whatever seems appropriate. Each project
shall report to the business incubator board on a monthly basis, and
will be given a one year maximum development time. Each project would
have it's own office and equipment, but would be able to rent the
manufacturing facility for a 24 hour (midnight to midnight). Each
project would have it's own financial plan and staff. Each project will
be expected to develop milestones, financial projections, income
statements, break-even analysis, cash flow, capitalization and facility
plans, organizational charts and hiring plans, and policy and by-laws.
Each project shall establish working capital, customer serve and
warranty plans, and market analysis.

FINANCIAL PLAN
Each selected project would draw up a financial plan. A spread sheet, on
a weekly basis would report the progress. Each project would allocate
their funds. Financial controls can be implemented, with approval by the
business incubator board. For example, no more than 30% may be spent on
labor. The inventor/proprietor would not earn more than minimum wage,
and minimum benefits (i.e.. Health, Safety). 10% would be for labor for a
business/operation manager, 10% for specialized labor like machinist,
computer programmer, 10% for material working cost like sheet metal, 10%
for communications and computer time, 10% for manufacturing shop rental,
10% for utilities and facilities rental, 10% for transportation, and 10%
marketing and Beta-Testing, and 10% for miscellaneous cost like legal
expenses, insurance, and so on. The rest could be discretionary. Any
profits gotten from sales of Beta-Testing marketing could be plowed back
into the business incubator, and profits used for further R&D&M. All
sales would be done under contract, until the technology becomes
mature. Debt financing should be avoided in the incubator stage.

Martin Nix proposes that two grants be awarded for $100,000 each for the
two patents 5113845, 5308187. The solar cooker could on Sunday be mass
produced, making several models. A machinist would be hired, with the
inventor's oversight and help. These solar cookers would then be
distributed for Beta-Testing, like school lunch programs. For patent
5308187, on Saturday a production run of 100 solar collectors would be
manufactured, then these would be retrofitted to perhaps 10 Beta-Test
customers for retrofit to existing electric or gas hot water heaters as
pre-heaters. Hot air made from solar energy could be blown into a
converted natural gas hot water heater and then preheat water to the
existing electric hot water heater. As part of the project computer
simulations will be developed for thermal analysis of solar hot water
heaters, and also analysis of conversion of large scale industrial
plants to be solar assisted. Other inventors can develop similar plans.
Martin Nix has other potential projects, such as Ocean Energy
Collectors, conversion of used refrigerators to be greenhouses, floating
solar photovoltaics behind hydro dams, conversion of underground coal to
oil via lightning, use of rainwater for air conditioning heat sink,
method of making Biodiesel on a solar cooker, high temperature solar
collectors, and others pending. The first priority is the solar cooking
project, and solar combustion air project. Other inventors would rent
the manufacturing facility like on Monday or Tuesday or Friday.

About the Inventor. Martin Nix is a graduate of NSCC in Construction
Engineering/Architectural Graphics, and SCCC in Information technology.
He attended architecture and mechanical engineering school at Univ. Of
New Mexico and New Mexico State. He has a Bachelor's. He is a member of
Construction Specification Institute, and founding secretary for
Solar Washington. He is one of the developers of the Boeing 777
electrical system, and has had an outstanding 15 year career as a
consultant for Boeing. He is presently actively working to raise capital
for solar energy and other renewable energy inventors.
--solarshack