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There ’ s an Emerging Market for Pellet Heat

There ’ s an Emerging Market for Pellet Heat. Fossil Fuel prices are unstable and are seen more and more by consumers as “ part of the problem ” Global Warming Taking money out of our local economies Reducing our national security.

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There ’ s an Emerging Market for Pellet Heat

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  1. There’s an Emerging Market for Pellet Heat • Fossil Fuel prices are unstable and are seen more and more by consumers as “part of the problem” • Global Warming • Taking money out of our local economies • Reducing our national security Interphase Energy, LLC

  2. After removing the peak of the 2008 spike and the 2009 recession, we see a steadily increasing price as world demand grows and supply struggles to keep up Oil Prices by year. Interphase Energy, LLC

  3. How does the Marketplace Respond? • Wood Pellets and Natural Gas are the only energy sources ready to replace Oil as a convenient, clean and affordable fuel • Air source heat pumps can’t meet the demand of the average home • Geothermal Heat Pumps are too expensive to install • Propane is as expensive as oil to the end user Interphase Energy, LLC

  4. Wood Pellet Heating Systems Suit Mainers • Consumers are looking for low installed costs, low operating costs, and reliability. They want to feel good about their decisions. • The kedel is a stand alone central heating system. • Installations of the Kedel are marginally more expensive than fossil fuel boilers, typically between $1,000 and $4,000. • Kedels make use of buildings’ existing infrastructure. • Pellet Fuel prices are low and stable. • The Kedel is reliable. It’s also easy to use and service. Interphase Energy, LLC

  5. Who is the Best Candidate to Convert to Wood Pellets? • The best potential customer is someone with an aging oil boiler or warm air furnace. • They know they need to invest in new equipment, but are hesitant to spend a significant amount of money on a new fossil fuel system. Interphase Energy, LLC

  6. Maine Makes Pellets • Maine is home to four active pellet mills producing premium wood pellets: Interphase Energy, LLC

  7. Maine Delivers Pellets • Maine Based Pellet Delivery Companies Cover Nearly Every Corner of the State Interphase Energy, LLC

  8. Meet the answer is simple Interphase Energy, LLC

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  17. Kedel’s Heat Exchanger Cleaner at Work Internet connection is needed to view video. It may take a minute to load. If it doesn’t load, you can view it here: http://www.youtube.com/watch?v=CAIIBi-yFe8 Interphase Energy, LLC

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  19. What does it mean to have a web enabled controller? • A web enabled controller allows you to keep track of your clients’ boilers. • You will know if the boiler fails or if the pellet supply is running low. • You can arrange deliveries around known levels of pellets in the hopper. • You can cement a long term relationship with your client to provide fuel and service. Interphase Energy, LLC

  20. View your Kedel from the Web Interphase Energy, LLC

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  24. What About Maintenance? The Kedel is a low maintenance system For the Consumer: • For an entirely automated system, the homeowner’s interactions can be as infrequent as emptying the ash bin about once a month. • Less automated systems will require a weekly scraping of the burner plate. Interphase Energy, LLC

  25. What About Maintenance? For the Partner: • Twice annual heating exchanger cleaning (takes ten minutes or less). • Annual service/inspection from a qualified technician. Interphase Energy, LLC

  26. For Additional Detail On Warranty, see our Standard Warranty. Interphase Energy, LLC

  27. The Cost Of Kedel • The next few slides show how we estimate the installed cost for a Kedel. • We’ve used our basic model, the Kedel 54 All in One. • These slides are based on actual costing workbooks used by reVision heat, our Kedel Partner in Southern Maine. • Every installation is different, but these figures provide a realistic look at what’s needed to quote and install a Kedel 54 All in One. Interphase Energy, LLC

  28. Sample Cost of Boiler Assembly for Kedel 54 All in One Interphase Energy, LLC

  29. Built Boiler Costs • Most installers will choose to pre-build the Kedel before it leaves the shop. • This includes near boiler piping and pumps. • We estimate this as a parts cost of about $200. Interphase Energy, LLC

  30. Sample Cost/Price of Kedel 54 All in One After Adding “Built Boiler” and Spare Parts Cost Interphase Energy, LLC

  31. Estimated Labor Cost for a Kedel 54 All in One Interphase Energy, LLC

  32. Total Estimated Parts and Labor for a Kedel 54 All in One Interphase Energy, LLC

  33. Meet Interphase Energy, LLC The Importers of Kedel Interphase Energy, LLC

  34. Interphase Energy, LLC was formed in 2012 by a group of Maine entrepreneurs to bring energy systems to market in North America Our Products are: • common sense • fair priced • and technologically advanced Our first product is the Kedel pellet boiler, imported from Denmark. Interphase Energy, LLC

  35. Our Mission and Values Drive Our Work Mission: To provide sustainable energy solutions for everyone. Vision: Our vision is to become the leader in education and distribution of sustainable heating and cooling appliances that captures 30% of oil conversions in the Northeast by 2025. Values: • Partnership, Education and Support • Accessibility • Environmental Stewardship • Pro-active approach to technology and global trends Interphase Energy, LLC

  36. Meet Nordjysk Bioenergi ApS (NBE) The Manufacturers of Kedel Interphase Energy, LLC

  37. Kedel Worldwide • In Europe, the Kedel is sold under the label Black Star. • In Europe, 35,000 Black Star boilers are currently in operation. • NBE maintains a market share of 90 percent in Denmark and a 10 percent share across Europe. Interphase Energy, LLC

  38. Kedels Online in Denmark *Map represents only those systems that are web enabled. Interphase Energy, LLC

  39. Our Kedel is built in state of the art manufacturing Facilities in Denmark and in the Czech Republic (video) Internet connection is needed to view video. It may take a minute to load. If it doesn’t load, you can view it here: http://www.youtube.com/watch?v=EXHMk30pQDE Interphase Energy, LLC

  40. Bringing the Kedel to Market • Interphase Energy is building a network of Kedel Partners and Dealers with Maine’s leading heating contractors, fuel and service providers. • Our goal is to meet the demand of the Market through as few Partners/Dealers as possible. Interphase Energy, LLC

  41. Our Partners are the Foundation of the Kedel Network • Partners will serve as the product’s principal sales drivers, installers, service and fuel providers. • Partners are companies with existing heating sales and service capabilities. • Preferably, Partners also have the ability to deliver pellets and hold a few boilers and spare parts in inventory. • Interphase Energy asks the most of Partners and thus Partners will receive the most competitive pricing, and extensive sales and technical support. Interphase Energy, LLC

  42. Interphase Energy will Help Ensure Your Success • Interphase Energy will provide Partners with an exclusive territory inside of which we will not set up other Partners. • In most cases, territories will be within 20-30 miles of Partners’ physical locations. Partners may sell and service Kedel systems outside of their exclusive territory. • Interphase Energy will direct all inquiries from within an assigned territory to the Partner. • Interphase Energy will provide extensive sales and service training and ongoing support. • Interphase Energy will actively market in Partners’ territory and provide support for local marketing efforts initiated by Partner. • Interphase Energy will provide Partners with a 25% discount (.75 x MSRP). Interphase Energy, LLC

  43. What We Ask of Our Partners • Partners will actively market and promote Kedel • Partners have in-house sales staff. • Partners maintain one functioning Kedel as a show room model. • Partners will actively pursue leads generated by IE in their assigned territory. • Partners will sell a minimum of 25* units per year. • Partners will service the product and warranty for installations in their territory • Partners will provide 24-7 service, internet monitoring, and maintenance agreements to their customers. • Partners will use the online - forum as a first step at solving maintenance and service issues. • Partners will not sell to other dealers. • Partners will make a reasonable effort to hold inventory and parts. • Partners will attend Kedel training on service and installations. *sales goals may be negotiated during the first year of carrying the Kedel line. Interphase Energy, LLC

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