Posted by: Maximus Comms
In reply to: zardiw who wrote msg# 19062 Date:1/11/2007 8:43:37 PM
Post #of 19071
Hi Sailing,
Might be able to help on this and put the reactor objectives for 2007 into perspective.
Management goal for Vidalia centered on meeting their baseline power requirements through a 50MW power plant, which requires just over 15 reactor tubes to fuel at full power, and more likely 9 tubes to fluctuate between the 18mw to 26mw of power commonly utilized. The full vision of the company was to have assembled within 9 to 14 months 200 tubes in total, providing the biofuel, biogas, and fertilizer compounds that would be ultimately needed to start addressing fuel requirements for the 1000MW station. Ultimately, USSEC feels that there will be some flexibility in even where this station will be located, as long as it rests geographically in an area whereby it can reduce regional power costs, and still have access to higher than wholesale values for surplus.
This is slightly skewed from a planning perspective though, because the reality of the USSEC situation is that literally every day, contract opportunities for 1 to 3 year startup projects are coming in, ranging anywhere from 2MW modular projects, to large 2000MW contracts where power equipment prices alone are $700m to $800m (50MW x 40 Swiftpac x $18.5m each as an example). This is coming from energy groups, foreign countries, developers, investment groups, environmental concerns, and facility engineers. It is a mighty and impressive thing to see, and an extremely reassuring part of USSEC that empowers us to do what we do.
Very soon USSEC will be placed into a situation whereby they will be cementing the options and routes that are ahead. A key part of this is the refinements that new SPC President Kelmer Smith, IC Thomasson and other engineering parties have made to maximize the energy rate and minimize feedstock waste. The new tubes reflect lessons learned, optimization of efficiency, and further enhancement of the catalyst process - combined with all of the realizations that John Rivera has logged and recorded for exploration for many years past.
A large part of the diligence on USSEC's side focuses on the creation of clear itemized equipment and component charts, to allow for contingency suppliers and to ensure that there are never any surprises on the ordering and delivery part. For the power generators, turn around schedules are published and well known for top turbine manufactures. In USSEC's world, their innovation cannot be stifled by unexpected component shortages, a lack of secondary supply chains, missed upgrade requirements, or missed changes to improve baseline efficiencies. This is a large part of the assembly and planning process that is been ongoing since November 15th.
You can imagine how upset they would be if a new refinement process further improved the energy rate by 6% - three weeks after they committed $85m to a basic tube structure for a client plant.
The upside of this: post planning completion, component identification, and finalization of their supply chain management, and USSEC will be able to maximize the value of their cost analysis, turnkey quotations, and a near modular capability to provide matched biofuel/power systems in any increment of 50MW up to 2000MW. My biggest fear (as witnessed by the sheer volume of people I speak with in foreign investment divisions), is that the US may be a late bloomer for utilizing USSEC energy packs, as foreign territories and underdeveloped countries have much more incentive to lower their energy costs, and they are much more aggressive when capitalized to make these decisions and build partnerships. There is also no shortage of them personally reaching me on a daily basis, and they may quickly pull every bit of manufacturing capability that USSEC can offer through year five. A good thing for investors, but I know John prioritizes and cares about the American farmer, and wants to see it stay home as much as possible.
Maybe not a clear answer to your question Sailing on the number of tubes in 2007, but certainly the information that is important to hear and assess. This also does not take into consideration the tremendous market for ethanol - a committed pathway by USSEC although one still being number crunched for direction. However the initial biofuel supplies are utilized - they must be matched with the most effective, long term driven, efficient, and profit generating applications available to the USSEC team.
On a side note, thanks again for the questions, support, calls and emails to our office. Every post we receive helps, and lets us redefine and articulate our communication strategies to improve USSEC's distributions and outgoings. It is a very important part of the the success coming, and one that you can proudly take credit for.
Please remember that any redundancy in news we may share is largely to ensure that USSEC's visibility and market base grows exponentially every week.
And there is no better news than the basic principals they were founded on.
Have a great evening,
Robert Davis
On Behalf of U.S. Sustainable Energy Corp.
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