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Strategies & Market Trends : Value Investing

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From: E_K_S2/22/2010 2:45:38 PM
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Disruptive technology: "The Bloom Box"

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A disruptive technology is one that, when introduced, either radically transforms markets, creates wholly new markets or destroys existing markets for other technologies. For an investor, disruptive technologies represent both opportunities and threats. A disruptive technology will be an opportunity for at least those who bring it to market. It may also boost related markets. On the other hand change is usually bad for some - especially the dominant suppliers to the market being disrupted.

The Bloom Box: a power plant for the home (video)
engadget.com
From the article:"...There are already several corporate customers using refrigerator-sized Bloom Boxes. The corporate-sized cells cost $700,000 to $800,000 and are installed at 20 customers you've already heard of including FedEx and Wal-mart -- Google was first to this green energy party, using its Bloom Boxes to power a data center for the last 18 months. Ebay has installed its boxes on the front lawn of its San Jose location. It estimates to receive almost 15% of its energy needs from Bloom, saving about $100,000 since installing its five boxes 9 months ago -- an estimate we assume doesn't factor in the millions Ebay paid for the boxes themselves. Bloom makes about one box a day at the moment and believes that within 5 to 10 years it can drive down the cost to about $3,000 to make it suitable for home use...."

Bloom Energy Unveils Its Ultra-Secretive Bloom Box Fuel Cell
BY Ariel SchwartzSun Feb 21, 2010

fastcompany.com

From the article:"...The box consists of a stack of ceramic disks coated with green and black "inks." The disks are separated by cheap metal alloy plates. Methane (or other hydrocarbons) and oxygen are fed in, the whole thing is heated up to 1,000 degrees Celsius, and electricity comes out. Bloom estimates that a box filled with 64 ceramic disks can produce enough juice to power a Starbucks...."

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One of the test sites is Google which uses NG as the input fuel to produce electricity 30% more efficient than that on the grid. This type of distributed power technology may replace (or supplement) what is now produced on the "Grid". NG should be the fuel of choice to power the "Bloom Box". Most of the utilities have the infrastructure in place to deliver NG to businesses and the home allowing for immediate distributed electrical power.
EKS
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