1. Wireless Ceramic Sensors For Gas Turbines
University of Central Florida
U.S. Patent 8,558,705
Team 5 Members
Christine Palmer
Emilien Davis
Timothy Phillips
Jose Garzon
Ramon Rondon
Natalie Burgis
Adrianna Cupples
Mentor: Brian Fernalld
2. Velocity
i
Table of Contents
Executive Summary .................................................................................................................... 1
Who We Are......................................................................................................................... 1
What We Sell ....................................................................................................................... 1
Who We Sell To................................................................................................................... 2
Financial Summary............................................................................................................. 3
Company....................................................................................................................................... 4
Company Overview ........................................................................................................... 4
Keys to Success.................................................................................................................... 4
Management Team............................................................................................................. 4
Products and Services................................................................................................................. 7
Competitors.......................................................................................................................... 7
Target Market .............................................................................................................................. 9
Market Overview................................................................................................................ 9
Market Needs .................................................................................................................... 11
Strategy and Implementation................................................................................................. 12
Marketing & Sales Plan................................................................................................... 12
3. Velocity
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Milestones.......................................................................................................................... 15
Financial Plan ............................................................................................................................ 16
Personnel Plan................................................................................................................... 17
Profit and Loss Statement ............................................................................................... 18
Appendix .................................................................................................................................... 19
Revenue Forecast .............................................................................................................. 19
References .......................................................................................................................... 20
4. Velocity
1
Executive Summary
Who We Are
Velocity, LLC is a dedicated Research and Technology Company committed to
providing energy efficient solutions to the power generation and aircraft industries. As
the next generation of paradigm shifting solutions, we are the new standard in sensor
technology.
Our ThermoMax 1300 ceramic sensor uses patented technology installed directly on
turbine blades and close to the combustion chamber, allowing the next generation of
turbine engines to run at higher efficiency and reduced emissions, saving billions of
dollars in fuel costs.
What We Sell
The hotter a gas turbine engine runs the more efficient it performs. At these higher
temperatures, fuel efficiency increases and emissions decreases. However, current
sensors in today's market have limited capabilities at temperatures of 1,000°C or higher.
These temperature restrictions limit the power and efficiency potential of a gas turbine
engine because the sensors cannot be placed on the turbine blades or close to the
combustion chamber, which leads to inaccurate readings.
Velocity’s ThermoMax 1300 Sensor, with its increased temperature resistance, its small
size, and its wireless capabilities will allow the sensors to be installed on each blade of
the turbine, thus, increasing the accuracy of the temperature readings. This allows the
engine to run at higher temperatures, therefore, increasing efficiency and reducing
emissions. What does this mean to our industry and customers? Billions of dollars saved
in fuel costs through increased efficiency while reducing emissions.
5. Velocity
2
Who We Sell To
Velocity sells ceramic-wireless-temperature sensors for gas turbine engines to leading
manufacturers in the power generation and aircraft industries worldwide.
6. Velocity
3
Financial Summary
Each partner has personally invested $20,000 into Velocity, totaling $140,000.
The Ask
Velocity is asking for a $1 million investment, broken into quarterly installments of
$250k in the first year. Resulting in a return on investment of 50% in year 3, totaling
$1.5 million.
Financial Highlights by Year
Exit Strategy
Velocity’s exit strategy is to sell the company in year five. An agreement to sell will be
decided on by the partners and buying entity. The focus will be to maintain the best
interests of the employees, partners and buying entity.
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
Year 1 Year 2 Year 3 Year 4 Year 5
5 Years Financial Planning
Sales Revenue
Gross Margin
Net Profit
7. Velocity
4
Company
Company Overview
Velocity is a start-up company that provides state-of-the art designed and
manufactured wireless ceramic sensors for gas turbine engines. The company was
formed in August 2015 in response to the industry’s need for low cost – wireless, high
accuracy, flexible, and innovative sensor design.
Velocity is a privately-held corporation located in Ft. Lauderdale, FL consisting of seven
partners, collectively involved in management decisions.
Keys to Success
The keys to success for Velocity are:
1. Investment capital from both founders and investors will allow us to initiate the
manufacturing efforts while having sufficient positive cash flow to successfully
maintain operations.
2. Aggressive marketing and sales efforts to attract customers and introduce them
to the significant cost/benefit advantages of our ThermoMax 1300 sensors.
3. Quality and reliability of our sensors.
4. Price competitiveness.
Management Team
Velocity’s management philosophy of responsibility and mutual respect is the guiding
principle for the company’s growth and success. Key members, who are highly
motivated, have the experience and knowledge to manage and grow the business.
Our management team consists of Christine Palmer, Chief Executive Officer; Emilien
Davis, Chief Financial Officer; Timothy Phillips, Chief Information Officer; Ramon
Rondon, Project Manager; Natalie Burgis, Marketing Director; Adrianna Cupples,
Market Research; Jose Garzon, Research and Development Director.
8. Velocity
5
Christine Palmer: Chief Executive Officer. Ms. Palmer is an experienced leader with
over 11 years of leadership, training and sales experience with the ability to build
results driven productive teams and lasting relationships with staff and key decision
makers. As an experienced leader with a Master of Science in Management and Masters
of Arts in Adult Education & Training, Ms. Palmer has proven results for her role in
training sales forces and directing operations for organizations from the ground up. She
has met and exceeded performance standards in mid-size organizations.
Emilien Davis: Chief Financial Officer. Mr. Davis is a six year veteran of the United
States Navy and graduate of Florida International University – Miami FL. He holds a
B.B.A. in International Business, along with 9 years professional experience in retail,
professional services, and e-commerce marketing. He also possesses experience in stock
valuations, foreign capital markets and arbitrage in a consultative and educational
capacity. His current professional focus is centered on cost effective operations.
Timothy Phillips: Chief Information Officer. Mr. Phillips is an operations professional
with more than twenty years in a fast-paced, deadline-driven Newspaper production
environment. Skilled at overseeing multiple products and giving work direction to
employees. Comes from the Miami Herald Media Company with a track record of
achieving 100% customer satisfaction for product quality and deadline performance. In
addition, a high level of hands-on operational skills.
Ramon Rondon: Project Manager. Ramon Rondon is a Professional Engineer with a
Bachelors of Sciences in Electrical Engineering, a Master Degree in Electrical
Engineering, and a Master Degree in Business Administration. He has managed
operations, projects, and construction departments for over thirty years. Mr. Rondon
worked for twenty-five years managing operations, projects, maintenance, and
construction departments for distribution, industrial, and commercial facilities. He has
developed and controlled an operating budget and capital budgets of $2M for six years
at Publix Super Markets, Inc. Implemented an inventory process that led to a reduction
of more than $30,000 in yearly Fleet maintenance.
9. Velocity
6
Natalie Burgis: Marketing Director. Ms. Burgis is from Philadelphia, Pa. Where she was
an Assistant to the Project Manager for fourteen years before moving to South Florida.
She holds a Bachelor of Applied Science in Supervision and Management, an Associate
of Arts in Public Administration, both from Broward College. Some of her central
competencies include operations management and data analysis.
Adrianna Cupples: Market Research. Ms. Cupples has spent ten years working as a
Graphic Designer and Marketing Assistant. Strong on business know-how due to
working directly with the Vice President at Global Marketing Company. Creating
prototypes and marketing material for the company’s line of makeup products and
implementing operational procedure for building trade shows and taking graphics to
market.
Jose Garzon: Research and Development Director. Mr. Garzon has an extensive
background in Mechanical Engineering. Master of Science in Engineering Management
from Florida International University of Miami. Responsible for product design and
prototyping for preliminary testing and design validation at A.G. Finding &
Manufacturing Company. Specialize in creating and maintaining design guidelines and
specifications for different product lines.
10. Velocity
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Products and Services
The hotter a gas turbine engine runs, the more efficient the engine, resulting in reduced
emissions and lower fuel costs. However, current sensor temperature restrictions limit
the power and efficiency potential of gas turbine engines. Resulting in overheating and
thermal damage reducing engine lifespan and requiring more frequent replacement of
blades at substantial monetary costs to end users.
Next generation turbine engines require blades to withstand temperatures of 1300° C or
higher, but current sensors reach unacceptable inaccuracy levels at temperatures above
1000° C. Because of this, sensors are placed away from the hottest part of the engine
and the maximum temperatures extrapolated from that point. The inaccuracy resulting
from this form of measurement means that the engine temperature, and therefore
efficiency, has to be set below maximum in order to leave a safety margin for the
survival of engine components.
Velocity wireless sensors significantly reduce installation costs by eliminating the need
for wiring harnesses. The ThermoMax 1300 elevated thermal threshold, compact
wireless capabilities allow it to be placed directly on the blade, next to the combustion
chamber, allowing the engine to operate at an optimal level.
Competitors
The U.S. Department of Energy has predicted, that by 2020, gas turbines will account
for 40% of the power generation industry in the U.S. The need for power generation is
great, and there are many manufacturers and suppliers that are both direct and indirect
competitors in the global sensor market. Only a few, offer sensors that measure higher
than 1300°C temperature tolerance, and 300-700 psi, with real-time RF operational
monitoring, but a few are considered worthy competitors in terms of quality and
reliability, as shown in the following comparison table.
11. Velocity
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1
Similar in like ranges, but limited in comparison due to lower temperature thresholds
Why Does this Matter?
Velocity
ThermoMax 1300
Environetix Harco SimX
Transmission
Medium
Transmission Medium has the
ability to determine installation
limitations.
Radio Frequency Radio Frequency Wired
Temperature
Threshold
Higher Temperature
capabilities allow for high
turbine operating
temperatures, higher operating
temps allow for higher
operating efficiency.
Up to 1800° C before
without crystallization
Up to 1000° C 0 – 1700° C
Accuracy
Some sensors use theoretical
readings based on deriving
results from reading that are
affected by the statistical
“noise” caused by being
incapable of direct readings.
+/- 3° C +/- 25° C
(Theoretical)
+/- 25° C
(Theoretical)
Installation
The closer to the heat source,
the higher the accuracy of the
temperature readings.
Small Sensor Chip
directly on Turbine
Blade
Casing Thermocouple
Form Factor
Size also determines
installation locale, form factor
can either increase of limit
installation possibilities.
8mm x 16mm, >20µm
thick
0.5mm Thick,
few mm2
in size
Material used
within confines of
thermocouple
device
Fuel
Consumption
Effects
Greater efficiency leads to both
lower emissions and lower fuel
consumption for the same
amount of work.
Higher degree of
temperature accuracy
at higher temp allows
for longer operation at
optimum temperature
for high fuel and
emissions efficiency.
Unstated1
Maintenance
Effects
Greater durability under higher
heat ranges reduces the need
for maintenance for the sensor
itself. Leading to fewer stops
for maintenance. Higher
accuracy results in a possible
reduction in plant stoppages
for the entire engine.
Longer run time due to
higher heat resistance
leads to less stoppage
for maintenance
checks.
Unstated1
12. Velocity
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Target Market
Market Overview
The power generation industry is expected to grow to $6.05 billion by 2020, growing at
an annual growth rate of 6% between 2014 and 2034. Velocity enters the market
focusing on two of the primary market segments: Aviation and Power Generation.
Our customers in the aviation industry include jet engine manufacturers such as GE
and Rolls Royce. Our customers in power plant generation include heavy duty gas
turbine manufacturers such as GE and Siemens. The current market distribution
between these two segments is shown in the chart below.
Each of Velocity’s ThermoMax 1300 sensors has a price of $40 per sensor. On average
280 sensors would be installed per unit. Over the course of 5 years we expect to sell in
excess of 350,000 sensors. This represents over 60% of the total number of new gas
turbine engines produced by GE in this category alone.
43.2%
(25,900 Units)56.8%
(34,000 Units)
Total Gas Turbine Market
(59,900 Units)
Power Generation Gas Turbines Jet Engines Gas Turbines
13. Velocity
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Velocity Sensors patented technology delivers: versatility of placement, threshold for
harsh temperatures, wireless data reporting system, and ultra-accurate temperature
readings.
Velocity is a custom manufacturer of Wireless Ceramic Sensors for gas turbine
engines. Velocity’s sensors are developed to meet the need for enhanced sensor
sensitivity and can measure and tolerate temperatures greater than 1300°C and
pressures of 300-700 psi in temperature systems such as turbine engines and turbine
generators.
Velocity’s sensors are wireless devices coupled with RF antennas that provide a reliable
signal for condition monitoring and performance information inside a turbine engine.
The use of Velocity sensors gives corporate stakeholders GE, Pratt-Whitney and Rolls-
Royce, a leading edge in the sensor technology race by gaining better fuel efficiency,
lower fuel costs and reduced carbon emissions through the installation of Velocity’s
ThermoMax 1300 Wireless Ceramic Sensor.
29%
(7,511 Units)
29%
16%
4%
22%
Power Generation Gas Turbine Market
(25,900 Units)
GE Siemens Mitsubishi Alstom Other
14. Velocity
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The ThermoMax 1300 Sensor is designed for companies and industry leaders seeking
advanced sensor technology capabilities to achieve high quality custom wireless sensor
solutions, to meet the challenges of measuring high temperature, pressure, and extreme
environments, including the comprehensive reliability, resolution, and sensor accuracy
strategies associated with sensor antenna attachment and adhesion to turbine blade
materials that are currently unavailable in the market.
Velocity’s products are sold through direct and inside sales. Prospective clients have
access to our website portal and inquiries can be made online and direct contact with
our sales department.
Market Needs
The need for accuracy of thermal readings in gas turbine has never been higher in
order to increase efficiency and reduce emissions. Prospective customers in the aviation
industry include jet engine manufacturers such as GE and Rolls Royce. Prospective
customers in power plant generation include heavy duty gas turbine manufacturers
such as GE and Siemens.
Velocity Sensors patented technology delivers: versatility of placement, threshold for
harsh temperatures, wireless data reporting system, and ultra-accurate temperature
readings that will increase efficiency by 1% and reduce CO2 emissions to less than 1,000
Ton per Hr. as requested by the EPA by 2022.
15. Velocity
12
Strategy and Implementation
Marketing & Sales Plan
Overview
Velocity’s marketing and sales plan strategy is comprised of trade show exhibitions,
direct marketing, indirect sales, social media, and membership associations.
Trade Shows - We will attend the following trade shows in 2016:
10th Annual Gas Turbines May 2016 Singapore, Singapore
PowerGen Europe Trade Show: Renewable Energy World Conference & Expo
June 2016 Milan, Italy
TPS trade show event 45th Turbomachinery & 32nd Pump Symposia Sept 2016
Houston, TX
Indirect Sales – Sales force will contact potential clients through phone calls to
Purchasing Managers, Supply Management Directors and Procurement Managers. We
will set up direct lines of contact to our R&D team to field questions on application
training and technical support.
Social Media – Facebook, Twitter and Website for client support, FAQ Tips and Best
practices for client engagement. Environmental campaign to engage and attract clients.
Membership Associations – In addition, we are members of the GTA (Gas Turbine
Association) www.gasturbine.org, which allows us networking opportunities and
resources in the gas turbine industry.
16. Velocity
13
Positioning
The wireless ceramic sensors will serve industry leaders in the Power generation and
aircraft industries that want to increase turbine efficiency by 1% in order to decrease
fuel combustion costs and meet EPA’s Clean Power Plan to cut harmful pollution by
32% below by 2022.
Using the ThermoMax 1300 sensors will save 200$/hr. in fuel consumption per gas
turbine while reducing emissions by 2,100 Ton/hr. per gas turbine.
6,000.00
6,050.00
6,100.00
6,150.00
6,200.00
6,250.00
6,300.00
6,350.00
Before Thermomax After Thermomax
Fuel Consumption $/hr
47,500.00
48,000.00
48,500.00
49,000.00
49,500.00
50,000.00
50,500.00
51,000.00
Before Thermomax After Thermomax
Emissions Tons/hr
17. Velocity
14
Pricing
Velocity will be priced at the same range of that of the sensor industry, competing with
major current manufacturers of temperature sensor devices.
Distribution
A US company will manufacture the sensor exclusively for Velocity. Then, we will sell
the temperature sensors directly to the Gas turbines OEM. The OEMs will install the
sensors on the gas turbine blades and then sell the gas turbine to power plants and
aircraft manufacturers.
23. Velocity
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References
Boeing (2015). CURRENT MARKET OUTLOOK 2015–2034.
http://www.boeing.com/resources/boeingdotcom/commercial/about-our-
market/assets/downloads/Boeing_Current_Market_Outlook_2015.pdf
Center for Climate and Energy Solutions (2015). EPA Regulation of Green House Gas
emissions From New Power Plants.
http://www.c2es.org/federal/executive/epa/ghg-
GE Power Generation (2015): Heavy-Duty Gas Turbine Overview
https://powergen.gepower.com/plan-build/products/gas-turbines/index.html
Global Energy Observatory (ND). CURRENT LIST OF GAS POWER PLANTS
http://globalenergyobservatory.org/list.php?db=PowerPlants&type=Gas
Statista (2015): Projected globally installed power generation capacity of natural gas
from 2005 to 2035.
http://www.statista.com/statistics/217252/global-installed-power-
NASA (2012). Passive Wireless Sensor Technology (PWST) 2012 Workshop Plan
http://ntrs.nasa.gov/archive/nasa/casi.ntrs.nasa.gov/20120010665.pdf
U.S. Energy Information Administration (2015). U.S. Energy Information Administration
| Annual Energy Outlook 2015.
http://www.eia.gov/forecasts/aeo/pdf/0383(2015).pdf
University of Central Florida (ND). Wireless Ceramic Sensors for Gas Turbines.
https://tt.research.ucf.edu/files/Gong-31879.pdf
