Pure Energy Systems News
On May 14, I had a Skype call (recording below) with Roger Green, CEO of E-Cat Australia PTY LTD, catching up with the latest developments, and chit chatting about things. We met in person last October at the E-Cat conference in Zurich (thanks to Himansh Verma for sponsoring that flight).
I was fortunate to catch Roger between trips, as he's been away for two weeks in Europe, and was heading back to Sidney.
Roger said he has been spending essentially full-time for fourteen months now, out of his own pocket, helping Andrea Rossi line up distributorship licenses for much of the world. This has nothing to do with the manufacturing licenses. His travel expenses in meeting with various interested parties, likewise, is coming out of his own pocket. Because he is giving his all to this endeavor, his other businesses have been lagging, and his cash flow has dwindled. But he is confident that his investment will pay off.
Given the present risk level of the technology, the territorial distributorship licenses have been selling very cheaply, relative to what they could be worth. "Most people are putting in around $10,000."
"I have put in more than anyone by far: $400,000," he said, which apparently has secured him a good chunk of Asia, along with Australia. "I've put my life savings in and mortgaged houses."
He pointed out that: "If it wasn't emerging, and we sold one, then you could add a few more zeroes to these license [prices]."
Roger's cut from bringing other licensees to the table comes in the form of equity, not cash. So the only way he makes money is when the units start selling.
All the license fee money goes to Rossi, which has been the primary source of revenue that has been keeping the E-Cat endeavor going. And given how productive Roger has been, Rossi has given him wide berth to handle the licensing of most of the territories on the planet.
Roger is very clear in explaining to them the risk factors along with the potential benefits.
He said: "I've attracted very good people: patient, philosophers, dreamers, and poets, with a sprinkling of a few engineers." But he also describes them as talented, and capable. "I do have very serious, mature scientists on board."
How It's Done
Roger said that the way these license deals work is as follows:
"We procure the license, we form a company, we issue share certificates and the equity, and then basically its an organic movement, slowly making contacts in all of these countries."
A Few Territories Still Available
According to Roger, the following is a breakdown of territory slots taken and available:
In all, Roger and his family and friends own about 1/4 of the world's
territorial distribution rights for the E-Cat.
Regarding Africa, he said his pitch has been:
"Just imagine, shipping in some E-cats, bolting on some generators, and we have remote electricity to bring a whole continent out of poverty."
How much a person invests in a license is proportional to the equity they get
in that license relative to the sum price of the license.
Just as a heads up, a point was raised by a reviewer of this article in its draft form that spurs me to do a follow-up article after I've had a chance to do more research. Apparently, EU and other laws are very strict about not establishing artificial monopolies through licenses, to assure that people can 1) get a good price from where the price is best, and 2) get product from where it is available. From what I've been told, as long as the licenses give the holder the right to sell both in the country and elsewhere, there is no problem.
No Sales Yet, but Likely to Commence Soon
The 1 MW E-Cat goes through it's final 24-hour test before shipping to America around April 30, 2013.
Notwithstanding the 1 MW E-Cat has been available for sale since the October
28, 2011 demo I attended in Bologna, no commercial sales have come in yet.
Everyone seems to be in a "wait and see" mode. "Haven't found anyone brave
enough to do
The second unit that is presently making its way to the United States (could be a month before it begins operating) is going to a licensee agent, not technically a "customer." It is going into an end user application that produces heat, but the agent who bought it is the partner Ross has, who is handling all of the distributorship licensing in the Americas ("We don't know who it is"). That partner is also receiving a Hot-cat module as well as a natural-gas-powered module for demonstrating those capabilities.
Once that unit is installed and running, even though it is not a public demo unit (remember Rossi's comment to me in our recent interview: "This is not a circus"), there are likely to be opportunities for distributor and manufacturing licensees, who are under NDA, to come in and see, and to bring potential customers as well.
After composing this story draft, asking for Rossi's review, I specifically asked him about the previous paragraph, and he responded: "Yes, it is true." Then he added: "I also said that qualified JOURNALISTS will be allowed to visit the plant, provided they have legs (he,he,he...) ...and you have legs...snakes don't!" (If you've been following this saga for the past 2.5 years, you will catch that joke.)
Each 1 MW E-Cat (produces heat in the range of 103 - 130 C) sells for $1.5 million USD.
Rossi said that the lead time for an order, after purchase, is about 4 months.
Up until now, there hasn't been a unit that prospective licensees, partners, and customers could go see in operation. The first unit that was sold went to a confidential military customer who doesn't allow any visits.
But once the U.S. unit is operational, providing heat in a real application, with data viewable in real time by qualified parties, the skittishness of potential buyers is likely to begin to give way to money changing hands and purchases being made.
Also, soon there will be another operational unit in Northern Italy, outside of Bologna, where qualified parties will be able to observe an operational 1 MW plant.
Once the sales commence, Roger estimates that it will take 2-3 years to get things established and well organized in rolling out the product in all the territories.
The primary website for incoming order inquiries is https://E-Cat.com which then makes referrals based on the licensee's territories.
Interview Recording, with Images
At first, I thought I'd take an hour or two to use Windows Movie Maker to insert a few photos to go along with the audio recording I made of my interview with Roger. It morphed into a three full-day project for me. I ended up making around 350 insertions, a good majority of them being photos I've taken, both at the Oct. 28, 2011 demo in Bologna, and at the September 8-9, 2012 E-Cat conference in Zurich.
It was actually a lot of fun for me to do this. I was able to sneak some humor in as well. I hope you like it. Unfortunately, this project took the place of my doing the LENR-to-Market-Weekly, so that will be postponed a week.
I hope you "like" the video.
Moving Up in Top 5
Given this news, I'm moved the E-Cat up to position #2 in the Top 5 Exotic Free Energy Technologies listing. The Self-Looped Motor-Generator class of technologies (aka Q-mo-gen [since the shape of the letter Q conveys the idea of "self-looped with energy left over", a term I coined]) is still in #1 since it appears to be closer to making a large difference in the market.
I should mention that I am not an impartial reporter here. In response to my solicitation, Roger told me that once they make their first sale, he will start out by contributing $10,000 to PESN, becoming a major sponsor of the work we are doing, which he appreciates, as do many others in the industry.
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Last updated June 27, 2013