EarthCare Project Overview


PROJECT: Earthcare Energy, LLC – Proposed Evansville Operations

• Earthcare has the license to be the OEM for the Langson Total Flow Letdown Generator.
• Negotiations are underway with the Department of Defense (DOD), an Indonesian electric utility, a Canadian gas utility, and others; 2.5 million gas letdown stations exist worldwide.
• Earthcare must start-up operations by 2Q12 to meet DOD plans and license requirements.
• The business plan is for loans Vs angel investment to avoid ownership dilution; commercial loans are not available for start-up.
• Evansville has been competing with South Carolina, Michigan and other locations for this project.
• This represents a unique, one-time opportunity for revenue sharing with the initial financing entity.
• Vectren has executed an MOU with Earthcare for a 20 year Purchased Power Agreement (PPA).
• Initial direct impact is addition of 120 jobs over the next 3 years; with $38/hr average wages (Management, Skilled and Unskilled Labor) plus benefits.
• Future direct job additions could yield many multiples of initial workforce size with applications for varied pressure drop situations throughout a global market.
• Future indirect job additions are expected with existing businesses becoming component suppliers. Flanders has already made initial contact.
• Evansville will become the world HQ for a new renewable, clean energy production product.
• Evansville will receive $75,000 in loan interest.
• Evansville will receive a revenue stream from power sales over the next 15 years of nearly $2 million per year, not to exceed $32 million.
• 60,000 SF of Park 41 (the former Whirlpool facility) will be leased.
• $200K EDA Revolving Loan and $4.8M City Loan with Bond Issuance
• 24 month repayment term and 1.5% effective interest rate on $5M total
• $120K grant towards lease payments at Evansville Enterprise Zone facility.
• Eligible for DOE loan guarantee; Patton-Boggs engaged to prepare application with former FERC Chairperson.
• Pursuing monetization of PPAs with interested parties; legal counsel engaged.
• MOU executed for 20 year PPA with Vectren
• DOD Technology Readiness Assessment at highest readiness level
• Vectren Technology Evaluation prior to MOU for PPA
• Collateral: units in production, inventories, receivables, etc.
• Provision to step-in to complete units for Vectren PPA in case of default

Supporting documents