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Anzoic Energy Inc. Disruptive GeoExchange GeoExchange has never been considered an “alternative energy” due to the inability to generate market scale in any meaningful way, until now!
Anzoic Energy Inc. Disruptive GeoExchange
GeoExchange has never been considered an “alternative energy” due to the inability to generate market scale in any meaningful way, until now!
Energy Inc. Disruptive GeoExchange
I. Introduction • Building heating, cooling & hot water use consumes $200B/yr of energy in North
America. GeoExchange systems could provide much of this…
• But, sector held back by lack of design and installation experience, high costs of distributor education and inefficient subterranean heat exchangers!
• Anzoic solves that – use a patent-pending disruptive technology that delivers at least 40% more energy with one third the effort.
• Proven platform and patent pending in 20 countries.
• We need $4m to commercialize the technology, and then $4m to dominate our initial market niche.
• Anzoic Team:
• Kevin Lundie, President – 25yrs of O&G mgmt, drilling & tech development
• Margo Fosti, Vice-President – 25yrs of strategy, problem-solving and education
• Gordon Blomgren, Operations – 30yrs of O&G drilling & technical services
• Owen Hoffman, Marketing – 30yrs of business vision, strategy and marketing
Energy Inc. Disruptive GeoExchange
GeoExchange Systems
~ 60% of existing structures are not suitable for GeoExchange, due to surface area constraints.
Energy Inc. Disruptive GeoExchange
II. The Problem
HVAC & GSHP manufactures understand geoexchange has potential to be a disruptive force in their industry, but it has not taken off.
• Every major in the HVAC industry has bought a GSHP manufacturer, developed their own, or private label a line. Top three capture 80% of market, but only reach 1% of the market.
• One million plus channel distributors for HVAC majors are not selling – channel distributor survey confirms significant consumer demand, but lack of resources to satisfy. Residential consumer poll of 627 households state “new” technology and installation “cost” are primary concerns.
• Conventional subterranean heat exchangers require large areas and are not generating sufficient energy for cost.
• Problems with design, installation and inefficient subterranean heat exchangers cited as the problem by all parties.
Energy Inc. Disruptive GeoExchange
III. The Solution
BIG BOX STORE
Energy Inc. Disruptive GeoExchange
III. The Solution
• Anzoic’s patent-pending borehole technology:
• At least 40% more efficient performance, one third the install time
• No thermal bridging or short-circuiting
• Adapts directional drilling technology from Oil & Gas industry
• Smaller footprint…and can be installed under existing buildings
• Protected: Patents + Trade Secrets
• Our business model:
• We will provide reliable turn-key energy supply to the GeoExchange heat pump suppliers and their downstream channel distributors.
• How: design, install & monitor optimized borehole fields, finance
• Our technology + business model will prove to be disruptive
Energy Inc. Disruptive GeoExchange
IV. The Competition
• Our competitors are OUR CLIENTS! • All the established heat pump suppliers (30+), with more than
1 million channel distributers;
• All the drilling companies (100’s) that they sub-contract.
• By providing warrantable design and installation of superior subterranean heat exchanger: • Established heat pump suppliers become our customer base;
• Drillers become our partner / licensee base.
• Remaining competition are the incumbent heating options • GeoExchange offers clear advantages in op cost & reliability
Energy Inc. Disruptive GeoExchange
…With Anzoic
BIG BOX STORE We provide services the suppliers channel distributors need to be successful… Drilling companies want to license our technology. We are established and specialized… for higher margins.
GSHP Manufacturers & Suppliers
Energy Inc. Disruptive GeoExchange
V. The Market
• Building heating, cooling and hot water in North America uses $200B/yr of energy and sees $70B/yr of capital installs (GeoExchange represents approximately 1%)
• GeoExchange could easily supply upwards of 25% of institutional, commercial, industrial & residential needs. • But sector is held back, due to high costs and lack of design and installation resources
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Installs last 10 Years: Canada 16.21 CAGR, US 12.67 CAGR 11.5% Projected CAGR to 2050
US Canada
Energy Inc. Disruptive GeoExchange
VI. Technology
• Better borehole: 3-components
• Directional drilled (goes beneath existing infrastructure)
• Down hole modifications (improves thermal performance)
• Design, controls & monitoring (gives reliability)
• Based on modified versions of established O&G technology
• Protected: patents (pending) + trade secrets
• Technology that make economic sense without subsidies
Energy Inc. Disruptive GeoExchange
VII. Approach to Market
• Our entry niche: the “difficult” installations • Very little competition
• Assumed high-cost…lots of margin for initial learning curve
MID-RISE HIGH-RISE TOWER
• Objectives: • Stable base revenue
• Prove the technology
• Build our performance database
• Build a licensee base
~ 60% of existing structures are not suitable for conventional GeoExchange due to surface area constraints = our initial market!
Energy Inc. Disruptive GeoExchange
VIII. Business Model
• Our product: we sell a reliable thermal energy supply. • Our customers: suppliers, installers or operators of heat pump
equipment • Similar to a natural gas company supplying boiler operators, etc • Our partners: drilling companies who want to make more $$ • How: design, (install) & operate optimized borehole fields • More efficient boreholes + better design + finance = lower
costs, higher margin and market leader
• Phases: • Initial: we provide the BH fields for “impossible” buildings
(own 1 drill rig; install & prove the technology; build licensee base) • Ultimate: own portfolio of boreholes and become a seller of
thermal energy (our monitoring & controls will give us the deepest knowledge on design and operation of underground thermal supplies)
Energy Inc. Disruptive GeoExchange
IX. Forecast
(6,000,000)
(4,000,000)
(2,000,000)
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
-1 0 1 2 3 4 5
Year
Revenue & Expense Projections
Revenue
Expenses
Energy Inc. Disruptive GeoExchange
X. Team
• Anzoic Team: • Kevin Lundie, President – 25yrs of O&G mgmt, drilling &
tech development; Manages $50m/yr in O&G projects. • Margo Fosti, Vice-President – 25yrs of strategy, problem-
solving and education; Licensee, distributor training. • Gordon Blomgren, Operations – 30yrs of O&G drilling;
Pioneer in oil tubing drilling techniques, rig design & build. • Owen Hoffman, Marketing – 30yrs of business vision, strategy
and marketing; Certified GeoExchange designer & installer.
• Partners & Advisors: • Advanced Coil Tubing (drilling company) • CETAC-West • WADE Canada
Energy Inc. Disruptive GeoExchange
XI. Milestones
2008 2009 2010 2011 2012 2013 2014
Market Analysis
Technology Assessment
Patent Review and Provisional Filing
Patent Filed
IP National Stage
Test Drilling Program
Directional System Testing
Best Practices Programs
Five Installation Test Program
Drilling Rig Operational
Introductary Advertising
Contract Drilling Pgm Design
Contract Drilling Pgm Launch
Licensee Advertising Pgm
Licensee Program Launch
Sign First Licensee
Milestones
Energy Inc. Disruptive GeoExchange
XII. The Deal
• Founders have invested over $300K.
• Now need $4m (drawn against milestones) to commercialize the technology. • 14-well test program, independent engineering reviewed.
• Plain vanilla corporate structure.
• Add to operating team only as needed (stay lean & focused).
• Board needs augmenting.
• Then ~$4m to dominate our initial market niche…
• Exit options: • Establish the model, then sell to major energy company.
• Establish technologies & IPO as a thermal energy company
Anzoic Energy Inc.
Disruptive GeoExchange
PO Box 127
104-1240 Kensington Road N.W. Calgary, Alberta T2N 4X7
T: 403-283-7010
