There’s an Emerging Market for Pellet Heat

• Fossil Fuel prices are unstable and are seen more and more by consumers as “part of the problem”

– Global Warming

– Taking money out of our local economies

– Reducing our national security

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After removing the peak of the 2008 spike and the 2009 recession, we see a steadily increasing price as world demand grows and supply struggles to

keep up

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Oil Prices by year.

How does the Marketplace Respond?

• Wood Pellets and Natural Gas are the only energy sources ready to replace Oil as a convenient, clean and affordable fuel

– Air source heat pumps can’t meet the demand of the average home

– Geothermal Heat Pumps are too expensive to install

– Propane is as expensive as oil to the end user

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Wood Pellet Heating Systems Suit Mainers

• Consumers are looking for low installed costs, low operating costs, and reliability. They want to feel good about their decisions.

• The kedel is a stand alone central heating system.

• Installations of the Kedel are marginally more expensive than fossil fuel boilers, typically between $1,000 and $4,000.

• Kedels make use of buildings’ existing infrastructure.

• Pellet Fuel prices are low and stable.

• The Kedel is reliable. It’s also easy to use and service.

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Who is the Best Candidate to Convert to Wood Pellets?

• The best potential customer is someone with an aging oil boiler or warm air furnace.

• They know they need to invest in new equipment, but are hesitant to spend a significant amount of money on a new fossil fuel system.

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Maine Makes Pellets

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• Maine is home to four active pellet mills producing premium wood pellets:

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Maine Delivers Pellets

• Maine Based Pellet Delivery Companies Cover Nearly Every Corner of the State

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Meet

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the answer is simple

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Kedel’s Heat Exchanger Cleaner at Work

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Internet connection is needed to view video. It may take a minute to load. If it doesn’t load, you can view it here: http://www.youtube.com/watch?v=CAIIBi-yFe8

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What does it mean to have a web enabled controller?

• A web enabled controller allows you to keep track of your clients’ boilers.

• You will know if the boiler fails or if the pellet supply is running low.

• You can arrange deliveries around known levels of pellets in the hopper.

• You can cement a long term relationship with your client to provide fuel and service.

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View your Kedel from the Web

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What About Maintenance?

The Kedel is a low maintenance system

For the Consumer: •For an entirely automated system, the homeowner’s interactions can be as infrequent as emptying the ash bin about once a month.

•Less automated systems will require a weekly scraping of the burner plate.

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What About Maintenance?

For the Partner:•Twice annual heating exchanger cleaning (takes ten minutes or less).

•Annual service/inspection from a qualified technician.

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For Additional Detail On Warranty, see our Standard Warranty.

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The Cost Of Kedel

• The next few slides show how we estimate the installed cost for a Kedel.

• We’ve used our basic model, the Kedel 54 All in One.

• These slides are based on actual costing workbooks used by reVision heat, our Kedel Partner in Southern Maine.

• Every installation is different, but these figures provide a realistic look at what’s needed to quote and install a Kedel 54 All in One.

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Sample Cost of Boiler Assembly for Kedel 54 All in One

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Built Boiler Costs

• Most installers will choose to pre-build the Kedel before it leaves the shop.

• This includes near boiler piping and pumps.

• We estimate this as a parts cost of about $200.

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Sample Cost/Price of Kedel 54 All in One After Adding “Built Boiler” and

Spare Parts Cost

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Estimated Labor Cost for a Kedel 54 All in One

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Total Estimated Parts and Labor for a Kedel 54 All in One

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Meet

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Interphase Energy, LLCThe Importers of Kedel

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Interphase Energy, LLC was formed in 2012 by a group of Maine entrepreneurs to bring energy systems to market in North America

Our Products are: • common sense• fair priced• and technologically

advanced

Our first product is the Kedel pellet boiler, imported from Denmark.

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Our Mission and Values Drive Our Work

Mission: To provide sustainable energy solutions for everyone.

Vision: Our vision is to become the leader in education and distribution of sustainable heating and cooling appliances that captures 30% of oil conversions in the Northeast by 2025.

Values: •Partnership, Education and Support•Accessibility•Environmental Stewardship•Pro-active approach to technology and global trends

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Meet

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Nordjysk Bioenergi ApS (NBE)The Manufacturers of Kedel

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Kedel Worldwide

• In Europe, the Kedel is sold under the label Black Star.

• In Europe, 35,000 Black Star boilers are currently in operation.

• NBE maintains a market share of 90 percent in Denmark and a 10 percent share across Europe.

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Kedels Online in Denmark

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*Map represents only those systems that are web enabled.

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Our Kedel is built in state of the art manufacturing Facilities in Denmark and in the Czech Republic

(video)

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Internet connection is needed to view video. It may take a minute to load. If it doesn’t load, you can view it here: http://www.youtube.com/watch?v=EXHMk30pQDE

Bringing the Kedel to Market

• Interphase Energy is building a network of Kedel Partners and Dealers with Maine’s leading heating contractors, fuel and service providers.

• Our goal is to meet the demand of the Market through as few Partners/Dealers as possible.

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Our Partners are the Foundation of the Kedel Network

• Partners will serve as the product’s principal sales drivers, installers, service and fuel providers.

• Partners are companies with existing heating sales and service capabilities.

• Preferably, Partners also have the ability to deliver pellets and hold a few boilers and spare parts in inventory.

• Interphase Energy asks the most of Partners and thus Partners will receive the most competitive pricing, and extensive sales and technical support.

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Interphase Energy will Help Ensure Your Success

• Interphase Energy will provide Partners with an exclusive territory inside of which we will not set up other Partners.

• In most cases, territories will be within 20-30 miles of Partners’ physical locations. Partners may sell and service Kedel systems outside of their exclusive territory.

• Interphase Energy will direct all inquiries from within an assigned territory to the Partner.

• Interphase Energy will provide extensive sales and service training and ongoing support.

• Interphase Energy will actively market in Partners’ territory and provide support for local marketing efforts initiated by Partner.

• Interphase Energy will provide Partners with a 25% discount (.75 x MSRP).

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What We Ask of Our Partners

• Partners will actively market and promote Kedel– Partners have in-house sales staff.– Partners maintain one functioning Kedel as a show room model.– Partners will actively pursue leads generated by IE in their assigned territory.– Partners will sell a minimum of 25* units per year.– Partners will service the product and warranty for installations in their

territory– Partners will provide 24-7 service, internet monitoring, and maintenance

agreements to their customers.– Partners will use the online - forum as a first step at solving maintenance

and service issues.

• Partners will not sell to other dealers.

• Partners will make a reasonable effort to hold inventory and parts.

• Partners will attend Kedel training on service and installations.

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*sales goals may be negotiated during the first year of carrying the Kedel line.

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