Open Energy Corporation (OTCBB: OEGY)
Open Energy Corporation (OTCBB: OEGY) is a renewable energy (RE) company focused on the development and commercialization of a portfolio of technologies capable of delivering low-risk, cost-competitive electricity, fresh water and related commodities on a global basis. Open Energy offers building-integrated photovoltaic (PV) roofing materials for commercial, industrial, and residential markets. Marketed under the trade name SolarSave®, the product line includes roofing membranes, roofing tiles, custom architectural PV glass, and balance of systems equipment such as inverters, combiners, and accessories. The Company also holds an exclusive, worldwide license to a solar thermal technology called SunCone™ CSP (Concentrating Solar Power), which is currently being developed to produce electricity and potable water using only the power of the sun.
BRIEF HISTORY
The Company. was incorporated in Nevada on April 11, 2002 under the name of Barnabus Energy, a small oil and gas developer. Then, in June of 2005, management made a business decision to shift their strategic focus. Motivated by the explosive growth in wind and solar technologies, and convinced that market forces and legislative mandates were aligned, they made a fundamental decision to transform ourselves into a renewable energy company. David P. Saltman was named President and CEO and the corporate offices were moved to Southern California. Cheryl Bostater was named Chief Financial Officer. Derek May, former President of Qualcomm Consumer Products, became Chairman.
In July of 2005, the Company signed an exclusive international license for SunCone™ CSP (concentrating solar power) technology. SunCone™ CSP is the invention of Dr. Melvin Prueitt, world-renowned physicist, inventor and former senior research scientist at the Los Alamos National Laboratory. The device is capable of concentrating the sun’s energy to heat fluid and drive a turbine to produce electricity, or to purify water using only the power of the sun. Dr. Prueitt worked on nuclear defense initiatives for over twenty years before devoting his creative energies to solving critical social problems, and they are honored to be entrusted with his technology.
Thirty days later, they signed an agreement to acquire controlling interest in Toronto-based Solar Roofing Systems (SRS)and their patented SolarSave® integrated photovoltaic (PV) roofing membranes. Solar Roofing Systems CEO Norman Dodd subsequently joined the Board of Directors. In November, they signed an agreement to acquire California-based Connect Renewable Energy Inc. (CRE), which manufactures PV solar integrated roofing tiles. In addition to delivering superior products, these acquisitions provided us with national manufacturing, marketing, sales and service capabilities.
By April of 2006, the Company had completed the sales of its oil and gas holdings, signed agreements to secure over $20 million in finance, completed 100% acquisitions of SRS and CRE, produced the first SunCone™ CSP prototype, and changed their name to Open Energy Corporation to better reflect their mission, vision and strategic focus.They have now entered a marketplace which is predicted to grow at an annualized rate of 23% (Renewable Energy World), with superior products, a distinguished leadership team, and a strategy which they believe will lead to profitability and long term success.
COMPANY STRATEGY
While there are a number of opportunities in the renewable energy field, among them wind turbines, bio-fuels and biomass conversion, hydrogen fuel cells, geothermal projects and tidal technologies, the Company believes that their greatest opportunities lie in the utilization of a very powerful nuclear reactor safely situated 93 million miles away at the center of their solar system. Every hour of every day the earth receives enough solar energy to fulfill its entire energy requirements for one year. What they need is the will and creativity to harness this clean, green renewable resource.
OEC has developed and patented a portfolio of breakthrough technologies that they believe will dramatically expand the use of solar energy in the commercial production of electricity, fresh water and related commodities. Strategies to accomplish their business goals include:
* Build strong domestic and international demand for SolarSave® products via industry promotions, and through their network of dealers and solar integrators;
* Advance their products, expand their manufacturing capacities, and strengthen their supplier relationships in order to remain competitive within the industry;
* Complete development and commercialization of SunCone™ CSP. Continue their leadership and innovation by developing new products, new technologies and new strategic alliances.
WHY RENEWABLE ENERGY
Market Overview
In many ways, Open Energy Corporation is simply following in the footsteps of industrial giants such as BP, Shell, GE, Sharp, Siemens and others who have made significant investments in wind, solar, bio-fuel, and hydrogen alternatives. Escalating oil and gas prices, political instability in the Middle East, growing concerns about the impacts of global warming, and clear public support for energy alternatives have all contributed to renewable energy becoming one of the most rapidly growing sectors of the global economy.
In 1995, Royal Dutch Shell predicted the decline in fossil fuel reserves and the emergence of renewable energy alternatives. Open Energy Corporation intends to become a significant contributor to this “green” growth curve.
Growth of Photovoltaics
Bell Labs invented the first photovoltaic (PV) cell in 1954. This revolutionary technology utilizes thinly sliced silicon or other semi-conductor material to convert sunlight directly into electricity. As PV cells absorb sunlight, electrons within the crystalline material are stimulated, creating a direct current which flows to metal contacts on the cells’ surface. Cells are strung together in arrays, or modules, to generate electrical power. In the past, PV was used primarily in remote locations or aboard satellites. In the last several years, however, the market for solar power has undergone phenomenal growth.
Since 2000. the global solar industry has accelerated at an average annual growth rate of 38%, according to Solarbuzz. This industry consulting firm estimates that in 2004 solar PV was already a $6.5 billion industry, with world shipments of 1194 megawatts (MW). They predicted that the solar industry will grow to $18.5 billion by 2010. Government grants, tax incentives, and feed-in tariffs (which require utilities to buy back excess power generated by PV systems) have helped to spur the growth of the solar industry.
Japan currently leads the world in PV with 602 MW of production capacity, followed by Germany with 314 MW. With 30% tax credits provided by the recently enacted U.S. Energy Bill, and incentive programs offered in all 50 states, the US posted impressive growth in PV system installations, and now ranks third in the world. According to the Department of Energy, US production reached a record 139 MW in 2004. California alone installed 75 megawatts of solar PV and, in 2005, passed the largest solar funding initiative in US history.
Incentives for Solar Energy
Most 50 states and the District of Columbia offer of financial incentives to help support solar energy investment. As of July 2006, California provides a $2.20 per watt rebate. This can result in savings of up to 50% on the system’s total purchase price. In other states, the incentives can be even more generous. For example, New Jersey currently offers rebates of $5.50 per watt, resulting in net savings of as much as 70%. For information on state and federal net metering, cash rebates, accelerated depreciation, tax incentive programs, feed-in tariffs, and renewable energy (“green”) credits consult the Database of State Incentives for Renewable Energy, funded by the U.S. Department of Energy at www.dsireusa.org.
Solar Energy Benefits
Economic Benefits: Delivers power at a fixed price over twenty years versus the escalating and unpredictable costs of oil, gas and grid electricity. Lessens their collective dependence on foreign oil imports, contributing to the balance of trade and to national energy security. Creates local jobs.
Environmental Benefits: Slows the burning of fossil fuels, the largest contributor of green house gas emissions and air pollution. Preserves natural habitats that are often damaged or destroyed by oil, gas and coal exploitation. Saves forests that are often cut down for cooking and heating purposes.
Social Benefits: Provides vital resources to the millions of people worldwide who lack access to reliable power or safe drinking water. Increases availability of electronic communications and can help stem mass migration to crowded urban centers.
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