Email: rannett@faroffre.com?subject=Enquiry regarding web site&body=Richard,
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04 September 2011

 

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INVESTMENT

 

FOR is actively searching for investors in this project.  Projects on such a scale cannot be developed by small companies.

 

In the short term we are looking for investors that can help us put together the ¼ scale device.   Its capital cost is approximately 400k.

 

We need 150,000£ finance right now and would be willing to sell 15% equity.  This value of the equity is based on 134k£ cash spent, labour to date, value of invention and 250K ready to be spent.

 

Alternatively, if the amount is available as loan equity we would be willing to pay a return similar to banks rates that are available on personal loads.

 

Once the ¼ scale platform is built, if it works, then there is an option to continue to invest or sell to another larger investor.  That would be 2 years from now. So the earliest exit time would be at this point.

 

If the platform survives the first storm and it was looking really stable then work could begin immediately on the full scale design and its associated environmental statement.  The later could be submitted ASAP since it took 2 years to get the previous one.

 

In the long term, which is very much dependant on whether we can conclude that we have successful ¼ scale platform, large corporate investors will be needed.  

 

A full scale design is needed to provide an accurate cost estimate of the platform and then a more detailed cost analysis of the generator, electrolyser and delivery system must be completed.  With the costs a financial model can be built to give a payback period, noting that Economies of Scale cannot be found just building one offs. Our current financial model, perhaps with 50% EU grant funding, there is an overall 10 year payback period. This might, for an initial setup, look attractive, noting this does not include ROCs.  

 

Our estimate of a full scale 2MW wind turbine is 10m£.   This platform would generate Hydrogen for sale.  We estimate that it can fuel approximately 300 cars for 20 years minimum.

 

We hope you are interested in making an investment.