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Tegtora Systems
1
Tegtora Systems uses Thermoelectric
Generators (TEGs) to generate clean
energy that can be installed in heavy
industrial plants that are looking for
cost savings.
Each year, 300 GWh of electricity is consumed by a single cement manufacturing plant.
300 GWh is enough to power 25,000 Canadian households for a whole year!
Each year, 5% of global CO2 emissions is produced by the cement industry.
5% of the industry’s emissions come from electricity consumption.
Value Proposition: Tegtora Systems hopes to help heavy industrial plants by providing:
Alternative Clean Energy Cost Savings
Customer Validation from
LafargeOur Target Market: Heavy
Industrial Factories
● Heavy heating and cooling
processes
● Needs to be reduce
carbon emissions, and
save energy.
is the largest cement manufacturer, globally.
Key Insights from Site Tour with Lafarge
Lafarge is always looking for new methods to
reduce their carbon footprint.
Have heavy pressure from legislation to report
& track environmental footprint.
Looking for an ROI within at least 3 years.
Lead Customer: Cement Industry
● Technavio predicts that the global cement
industry will grow by 9% by 2020.
● Globally, cement industry is concentrated
within a couple key players.
Tegtora Systems Objective
● Create a product that generates clean electricity
● Use freely available inputs that is already generated by heavy industry plants
Cement Kiln
Tegtora Systems Product
Tegtora Prime: leverages high temperatures produced by cement kiln
to generate electricity using Thermoelectric Generators (TEG)
Cement kilns reach temperatures of 1450℃ internally and 300℃ externally. Tegtora Prime
consists of a system of TEGs that can be installed on the outer shell of the cement kiln so
that it can use kiln’s external temperature as a heat source.
How do TEGs work?
TEGs generate electricity
using:
● Temperature difference
between hot side and
cold side
● Seebeck Effect that
converts temperature
difference into electricity
Hot side
Cold side
Seebeck Effect
Heat from cement kiln
Cooling from liquid coolant
Key Milestones for First 3 Years
Product
Acquire
Customers
Delivery
Proof of
Concept
Alpha
Prototype
Beta
Prototype
Testing
Marketable
Concept
Testing & Modification
File Patent
Lock down
Vendors
Customized
Business Case
Sign
Contract
Manufacture
Product
Installation
Demand
Generation
Sales Meetings
Demos
Customer
Testimonials
Y3Y2Y1
Raise Capital
Our Operating Model
Revenue Streams:
Upfront installation & consulting fee
which will cover COGS.
Subscription model that bundles:
energy & cost savings produced &
maintenance fee.
Options for product upgrades.
Why Subscription model?
● Less risk for customer.
● Continuous touch points with
customer and cash flow.
What are our customers paying for?
Energy savings & if our product is able
to store and use it during peak demands,
that will increase ROI significantly.
Tap into Government Incentives for
energy projects & Cost Savings from
environmental regulations. Eg. Carbon
tax is expected to increase to $50/tonne.
Cooling effect: currently Lafarge uses
fans to cool cement kiln. Our product can
help reduce their usage or phase out
these fans entirely.
Product Brief: Tegtora Prime
What is it?
Technology installed in cement plants used to generate electricity through
a thermoelectric generator (TEG)
What does it do?
Generates renewable energy using waste heat to help offset electricity
costs and potentially, reduce carbon emissions
How does it work?
Uses waste heat from cement plant equipment to create thermal gradient.
From this thermal gradient, TEG generates electricity
Who is it for?
Cement plants who are looking to reduce costs and implement
sustainable practices
Why would people want it?
Instead of paying for renewable energy from BC Hydro, cement producers
can generate their own renewable energy using wasted and underutilized
resources such as waste/radiant heat.
If not using renewable energy as main source of electricity, the use of
alternative energy to reduce costs and carbon emissions is a big incentive
Product Brief: Tegtora Prime
Requirements
1. System can produce at least 319,000 kWh per year
2. Can be installed within the time frame of normal plant downtime
maintenance (< 36 hours)
3. Minimum design life: 10 years
4. ROI is 3 years or less
Key Features
1. Generates electricity from renewable energy
2. Electricity can be stored and used during peak demand
3. Can be installed on existing equipment
4. Helps cool down equipment without use of cooling devices
Technical Development Prototyping
Analytical Model Update
Analytical Models
1. ANSYS Icepack
- Used for simulating heat transfer in electronic
cooling devices
- Replaced Solidworks to determine
temperatures
2. ANSYS Fluent
- Powerful computational fluid dynamics (CFD)
- Replaced Matlab for calculations; can be
integrated with Icepack
Determining Best TEG
- Received 4 TEGs from vendors
- Testing will begin this week
Physical Model 1 Update
Status
- Looking for a lab to perform experiment (safely)
Questions to be Answered
- Testing equipment has small diameter; difficult to
achieve perfect contact area with TEGs
- Rotating equipment may cause wiring issues
- How to attach TEG? Adhesive material may affect the
heat transfer
TEGs Installed around Rotating Equipment
Intellectual Property Update
Patentable Features
1. How TEG will be attached to a rotating kiln
2. How the TEGs are connected (series/parallel) to output maximum power
Non-Patetable Features
1. TEG technology
2. How output power is connected to plant’s grid (out-of-scope)
Freedom to Operate
Yes. No patents found that use TEG in cement kilns (yet)
Financial Projections
COGS: 2 M per unit
Subscription: 1.3 M per unit;
based on 3 year ROI (2M COGS
+ 2 M Mandatory ROI for
company / 3 years)
Canada Market: Lafarge owns 6
cement plants, Lehigh owns 2
Cement Plants, for a total of 8
Plants.
Starting Year 4: Will be looking
into alternative markets, either
global cement plants, or another
heavy industrial player.
By Year 5: Will be looking at
implementing upgrades that
provide higher ROI. Increasing
subscription to ~1.5 M. per unit.
Income
statement Y1 Y2 Y3 Y4 Y5
Total Revenue 0 2,666,667 11,333,332 18,666,664 14,000,000
Subscription
Revenue 0 666,667 5,333,332 10,666,664 12,000,000
COGS 0 2,000,000 6,000,000 8,000,000 2,000,000
Gross Margin 0 -1,333,334 -666,668 2,666,664 10,000,000
Gross Margin % - -0.50 -0.06 0.14 0.71
Operating
Expenses 315,600 4,715,827 6,848,509 11,250,934 8,453,482
Sales &
Marketing 68,640 1,066,667 4,533,333 7,466,666 5,600,000
R&D 202,960 3,602,960 2,266,666 3,733,333 2,800,000
General & Admin 44,000 46,200 48,510 50,936 53,482
EBITDA -315,600 -6,049,160 -7,515,177 -8,584,270 1,546,518
TEG: Competitive
Landscape
Features: Energy
Efficiency
Low
Space
Requirement
Minimal
Environmental
Impact
Minimal
Maintenance
Our Product 5%*
Solar 21%
Wind 26%
Hydro 90%
Geothermal 16%
Nuclear 92%
*Thermoelectric Generator technology is growing in funding
and research. Current research is focused on increasing the
efficiency, and likely to increase in the next couple of years.
Key Competitor: Alphabet
Alphabet Energy uses TEG
technology in mining
industries capturing heat
waste gases.
Why Tegtora is better!
We use conduction (higher
efficiency) versus heat gas
capture.
Lafarge already captures heat
gas waste to preheat their
materials.
Faces Behind Tegtora Systems
Charlie Liu
B.Com,
Business Technology Management
Winston Liang
B.Com,
Real Estate & Marketing
Natasha Zheng
B.Com,
Finance & Marketing
Jasmit Kalra
B.A Sc,
Mechanical
Veronica Velayo
B.A Sc,
Civil

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Lab 6

  • 1. Tegtora Systems 1 Tegtora Systems uses Thermoelectric Generators (TEGs) to generate clean energy that can be installed in heavy industrial plants that are looking for cost savings.
  • 2. Each year, 300 GWh of electricity is consumed by a single cement manufacturing plant. 300 GWh is enough to power 25,000 Canadian households for a whole year! Each year, 5% of global CO2 emissions is produced by the cement industry. 5% of the industry’s emissions come from electricity consumption. Value Proposition: Tegtora Systems hopes to help heavy industrial plants by providing: Alternative Clean Energy Cost Savings
  • 3. Customer Validation from LafargeOur Target Market: Heavy Industrial Factories ● Heavy heating and cooling processes ● Needs to be reduce carbon emissions, and save energy. is the largest cement manufacturer, globally. Key Insights from Site Tour with Lafarge Lafarge is always looking for new methods to reduce their carbon footprint. Have heavy pressure from legislation to report & track environmental footprint. Looking for an ROI within at least 3 years. Lead Customer: Cement Industry ● Technavio predicts that the global cement industry will grow by 9% by 2020. ● Globally, cement industry is concentrated within a couple key players.
  • 4. Tegtora Systems Objective ● Create a product that generates clean electricity ● Use freely available inputs that is already generated by heavy industry plants Cement Kiln Tegtora Systems Product Tegtora Prime: leverages high temperatures produced by cement kiln to generate electricity using Thermoelectric Generators (TEG)
  • 5. Cement kilns reach temperatures of 1450℃ internally and 300℃ externally. Tegtora Prime consists of a system of TEGs that can be installed on the outer shell of the cement kiln so that it can use kiln’s external temperature as a heat source. How do TEGs work? TEGs generate electricity using: ● Temperature difference between hot side and cold side ● Seebeck Effect that converts temperature difference into electricity Hot side Cold side Seebeck Effect Heat from cement kiln Cooling from liquid coolant
  • 6. Key Milestones for First 3 Years Product Acquire Customers Delivery Proof of Concept Alpha Prototype Beta Prototype Testing Marketable Concept Testing & Modification File Patent Lock down Vendors Customized Business Case Sign Contract Manufacture Product Installation Demand Generation Sales Meetings Demos Customer Testimonials Y3Y2Y1 Raise Capital
  • 7. Our Operating Model Revenue Streams: Upfront installation & consulting fee which will cover COGS. Subscription model that bundles: energy & cost savings produced & maintenance fee. Options for product upgrades. Why Subscription model? ● Less risk for customer. ● Continuous touch points with customer and cash flow. What are our customers paying for? Energy savings & if our product is able to store and use it during peak demands, that will increase ROI significantly. Tap into Government Incentives for energy projects & Cost Savings from environmental regulations. Eg. Carbon tax is expected to increase to $50/tonne. Cooling effect: currently Lafarge uses fans to cool cement kiln. Our product can help reduce their usage or phase out these fans entirely.
  • 8. Product Brief: Tegtora Prime What is it? Technology installed in cement plants used to generate electricity through a thermoelectric generator (TEG) What does it do? Generates renewable energy using waste heat to help offset electricity costs and potentially, reduce carbon emissions How does it work? Uses waste heat from cement plant equipment to create thermal gradient. From this thermal gradient, TEG generates electricity Who is it for? Cement plants who are looking to reduce costs and implement sustainable practices Why would people want it? Instead of paying for renewable energy from BC Hydro, cement producers can generate their own renewable energy using wasted and underutilized resources such as waste/radiant heat. If not using renewable energy as main source of electricity, the use of alternative energy to reduce costs and carbon emissions is a big incentive
  • 9. Product Brief: Tegtora Prime Requirements 1. System can produce at least 319,000 kWh per year 2. Can be installed within the time frame of normal plant downtime maintenance (< 36 hours) 3. Minimum design life: 10 years 4. ROI is 3 years or less Key Features 1. Generates electricity from renewable energy 2. Electricity can be stored and used during peak demand 3. Can be installed on existing equipment 4. Helps cool down equipment without use of cooling devices
  • 11. Analytical Model Update Analytical Models 1. ANSYS Icepack - Used for simulating heat transfer in electronic cooling devices - Replaced Solidworks to determine temperatures 2. ANSYS Fluent - Powerful computational fluid dynamics (CFD) - Replaced Matlab for calculations; can be integrated with Icepack Determining Best TEG - Received 4 TEGs from vendors - Testing will begin this week
  • 12. Physical Model 1 Update Status - Looking for a lab to perform experiment (safely) Questions to be Answered - Testing equipment has small diameter; difficult to achieve perfect contact area with TEGs - Rotating equipment may cause wiring issues - How to attach TEG? Adhesive material may affect the heat transfer TEGs Installed around Rotating Equipment
  • 13. Intellectual Property Update Patentable Features 1. How TEG will be attached to a rotating kiln 2. How the TEGs are connected (series/parallel) to output maximum power Non-Patetable Features 1. TEG technology 2. How output power is connected to plant’s grid (out-of-scope) Freedom to Operate Yes. No patents found that use TEG in cement kilns (yet)
  • 14. Financial Projections COGS: 2 M per unit Subscription: 1.3 M per unit; based on 3 year ROI (2M COGS + 2 M Mandatory ROI for company / 3 years) Canada Market: Lafarge owns 6 cement plants, Lehigh owns 2 Cement Plants, for a total of 8 Plants. Starting Year 4: Will be looking into alternative markets, either global cement plants, or another heavy industrial player. By Year 5: Will be looking at implementing upgrades that provide higher ROI. Increasing subscription to ~1.5 M. per unit. Income statement Y1 Y2 Y3 Y4 Y5 Total Revenue 0 2,666,667 11,333,332 18,666,664 14,000,000 Subscription Revenue 0 666,667 5,333,332 10,666,664 12,000,000 COGS 0 2,000,000 6,000,000 8,000,000 2,000,000 Gross Margin 0 -1,333,334 -666,668 2,666,664 10,000,000 Gross Margin % - -0.50 -0.06 0.14 0.71 Operating Expenses 315,600 4,715,827 6,848,509 11,250,934 8,453,482 Sales & Marketing 68,640 1,066,667 4,533,333 7,466,666 5,600,000 R&D 202,960 3,602,960 2,266,666 3,733,333 2,800,000 General & Admin 44,000 46,200 48,510 50,936 53,482 EBITDA -315,600 -6,049,160 -7,515,177 -8,584,270 1,546,518
  • 15. TEG: Competitive Landscape Features: Energy Efficiency Low Space Requirement Minimal Environmental Impact Minimal Maintenance Our Product 5%* Solar 21% Wind 26% Hydro 90% Geothermal 16% Nuclear 92% *Thermoelectric Generator technology is growing in funding and research. Current research is focused on increasing the efficiency, and likely to increase in the next couple of years. Key Competitor: Alphabet Alphabet Energy uses TEG technology in mining industries capturing heat waste gases. Why Tegtora is better! We use conduction (higher efficiency) versus heat gas capture. Lafarge already captures heat gas waste to preheat their materials.
  • 16. Faces Behind Tegtora Systems Charlie Liu B.Com, Business Technology Management Winston Liang B.Com, Real Estate & Marketing Natasha Zheng B.Com, Finance & Marketing Jasmit Kalra B.A Sc, Mechanical Veronica Velayo B.A Sc, Civil

Editor's Notes

  1. Team name, team members. Positioning statement.
  2. Use underutilized resources to generate clean energy
  3. TAM: All manufacturing companies that uses kilns in their manufacturing (Glass: $1.3 billion, Cement: $1.9 billion, Ceramics: $30.8 million, Clay bricks: $505.8 million, Smelting ore: iron ($2.7 billion) silver/gold ($6.5 billion)) =$12.9 billion SAM: Specifically rotary kilns: Cement Industry in Canada (21 enterprises including 45 establishments in total) (uses specific kiln rotary machinery) $1.9 billion because we wanted a starting point and we have industry connections SOM: Energy costs: $147.6 (more than 20% of production costs) ($737.8 million according to statscan) or Cost of Capital (wages: 175.3 million x0.85= $149 million) Notes: Cement Industry – Canada (NAICS 32731) Revenue: 1.9 billion Profit: 224.3 million Annual growth (16-21): 0.6% Businesses: 21 enterprises with 45 establishments in total Largest Market Share: LafargeHolcim (50.2%) have connections in Lafarge Largest product: Nonwhite Portland Cement (70.0%) Other types of cement (30.0%) Life cycle stage: Mature Key external drivers: 1. Value of residential construction (measures total spending on new residential dwellings and renovation work) - Estimated value in 2017: $124.2 billion - Forecasted value for 2022: $130 billion - Canada benefits from a very strong real estate and construction in general - Single family residential housing market doing especially well with rising home prices and in turn construction - In 2017, residential contruction is expected to grow by 0.7% based on increased investments in apartment/condominium construction 2. Value of nonresidential construction - Estimated value in 2017: $89.2 biilion - Forcasted value for 2022: $99.0 billion 3. Canadian dollar effective exchange rate index (CERI compares CAD with the currencies of Canada’s primary trading partners: USD, Euro, Yen, Yuan and Peso) - Canadian dollar has seen a rapid decline in the last 5 years due to the appreciation of USD and its weighting in the CERI calculation (roughly 3 quarters) - Another factor being the declining oil prices - Canada’s economy relies heavily on natural resources so naturally, the dollar is very sensitive to changes in commodity prices 4. Government expenditure and investment - Infrastructure spending is expected to receive an increased rate in spending Industry structure: Capital Intensity: high - On average $0.85 is spent on machinery per dollar spent on labour ($175.3 million spent on wages) - Which means that they are used to spending large part of their revenues on upgrading/maintaining their equipment Regulation and policy: heavy AND increasing - Cement manufacturers in Canada are subject to a wide array of laws and regulations regarding the environment specifically the release of emissions and other pollutants into the air & water Technology & systems: level of technology change is high - Principally associated with the production process of cement - Entails of rotary kiln that can heat up to 1600 degrees celcius which requires a large amount of energy (more than 20% of production costs is energy) - Environmental concerns and the need to reduce energy cost is motivating technology change Sources: https://www.ic.gc.ca/app/scr/sbms/sbb/cis/manufacturingCosts.html?code=32731&lang=eng http://clients1.ibisworld.com/reports/ca/industry/ataglance.aspx?entid=551
  4. TAM: All manufacturing companies that uses kilns in their manufacturing (Glass: $1.3 billion, Cement: $1.9 billion, Ceramics: $30.8 million, Clay bricks: $505.8 million, Smelting ore: iron ($2.7 billion) silver/gold ($6.5 billion)) =$12.9 billion SAM: Specifically rotary kilns: Cement Industry in Canada (21 enterprises including 45 establishments in total) (uses specific kiln rotary machinery) $1.9 billion because we wanted a starting point and we have industry connections SOM: Energy costs: $147.6 (more than 20% of production costs) ($737.8 million according to statscan) or Cost of Capital (wages: 175.3 million x0.85= $149 million) Notes: Cement Industry – Canada (NAICS 32731) Revenue: 1.9 billion Profit: 224.3 million Annual growth (16-21): 0.6% Businesses: 21 enterprises with 45 establishments in total Largest Market Share: LafargeHolcim (50.2%) have connections in Lafarge Largest product: Nonwhite Portland Cement (70.0%) Other types of cement (30.0%) Life cycle stage: Mature Key external drivers: 1. Value of residential construction (measures total spending on new residential dwellings and renovation work) - Estimated value in 2017: $124.2 billion - Forecasted value for 2022: $130 billion - Canada benefits from a very strong real estate and construction in general - Single family residential housing market doing especially well with rising home prices and in turn construction - In 2017, residential contruction is expected to grow by 0.7% based on increased investments in apartment/condominium construction 2. Value of nonresidential construction - Estimated value in 2017: $89.2 biilion - Forcasted value for 2022: $99.0 billion 3. Canadian dollar effective exchange rate index (CERI compares CAD with the currencies of Canada’s primary trading partners: USD, Euro, Yen, Yuan and Peso) - Canadian dollar has seen a rapid decline in the last 5 years due to the appreciation of USD and its weighting in the CERI calculation (roughly 3 quarters) - Another factor being the declining oil prices - Canada’s economy relies heavily on natural resources so naturally, the dollar is very sensitive to changes in commodity prices 4. Government expenditure and investment - Infrastructure spending is expected to receive an increased rate in spending Industry structure: Capital Intensity: high - On average $0.85 is spent on machinery per dollar spent on labour ($175.3 million spent on wages) - Which means that they are used to spending large part of their revenues on upgrading/maintaining their equipment Regulation and policy: heavy AND increasing - Cement manufacturers in Canada are subject to a wide array of laws and regulations regarding the environment specifically the release of emissions and other pollutants into the air & water Technology & systems: level of technology change is high - Principally associated with the production process of cement - Entails of rotary kiln that can heat up to 1600 degrees celcius which requires a large amount of energy (more than 20% of production costs is energy) - Environmental concerns and the need to reduce energy cost is motivating technology change Sources: https://www.ic.gc.ca/app/scr/sbms/sbb/cis/manufacturingCosts.html?code=32731&lang=eng http://clients1.ibisworld.com/reports/ca/industry/ataglance.aspx?entid=551
  5. Solution: create product that produces clean energy from cement manufacturing process’ waste Insert sketch