Lasted edited by Andrew Munsey, updated on June 15, 2016 at 1:01 am.
On Jan. 3, 2008, Don Grant, who said he was with South Shore Energy Generation of Ontario, Canada, phoned saying he was looking into purchasing several 10 MW Directory:Energy By Motion (EBM) generator units from Gamma Managers, and said he was interested in securing licensing rights for North America. On further due diligence Don Grant concluded that EBM does not have what is alleged here, and that the company is probably fraudulent.
On Feb. 12, 2008, Krisztina Sulyok of Gamma Managers wrote: "We have no 10 MW prototype unit now, we are looking for investor(s) to install the first commercial size (self-running) EBM Driving Unit."
On Jan. 5, 2008, the following message was received by email:
1. Regarding the 10 MWe EBM Power Plant in Budapest and in Cambridge, Ontario, we have not authorized Mr. Don Grant, or anybody else to speak for our company and/or for our EBM Products, specifically to spread incorrect information.
2. We are herewith asking you to publish a correction in this matter, citing our request.
Krisztina Sulyok M.Sc., B.Sc.Econ.
I just got off the phone with Don Grant of South Shore Energy Generation in Ontario (in business 5 years). He said I could publish the following information.
He said that EBM has a 10 MW prototype running, which has been witnessed by at least 5 engineers in Budapest. They are in process of translating the blueprints into English ($25k), slated to be done in March 2008.
He said that McDonald Steel in Cambridge Ontario is contracted to manufacture the units. McDonald owns Tiger Cat. The units will take 10-13 months to manufacture.
The device is undergoing CSA approval, which is expected to be completed in March. The components going into the device are all CSA approved.
Don, who has been investigating EBM for 5 years, is scheduling to go in with 5 people this month to see the device and he invited me to go as well (under NDA). The entourage will include 2 engineers, a lawyer, Don's replacement contingency.
He said the device requires 5 MW to start up, and produces 10 MW continuous plus heat (e.g. could be used in conjunction with a greenhouse).
Don has two investors who have paid 25 mil. each, to purchase two 10 MW units (pending the outcome of their inspection in Jan). He is looking for two more investors, to buy two additional units.
He thinks he can get 28 cents/kw-h from Ontario Power Generation, which would give him a one year return on investment. He's offering his investors a 20% return, plus 1% of the business for 5 years, which would probably come to around $3 million/year. If he goes off shore, he could get much more.
Ontario is paying 14 c/kw-h for wind, and 42 c/kw-h for solar.
Don owns a security company and a leasing company and a maintenance company, all of which he will put to use in installing the unit in an underground bunker.
The unit can run continuously except for two days of the year when it needs to be inspected. It carries a 40 year warranty.
The company is working on a 225 MW version.
On Jan. 3, 2007, an advisor, Jim, wrote:
The payback seems off, by nearly an order of magnitude.
First, wholesale power in Ontario ranges from .03/kWH off peak to .06-.12/kWH ave, in daytime hours. [Remember this is Hydro country.]
Second, the Net power from the device is what one needs to determine, vs life cycle cost.
A payback of 6-10 years is quite acceptable for energy systems like Wind turbines, which use no fuel, and have little maintenance. With Tax credits and incentives, the payback is reduced to 4-5 years.
Solar PV systems have a base payback of 16-22 years but with incentives and tax credits can drop to 8-10 years! This will come down with lower PV panel costs this year.
On Jan. 4, 2008, Jim added:
We buy a lot of power from Canada for the Northeast US, at very competitive rates to Seabrook nuclear, but end up paying an average of about $.12/kwh retail, including distribution and maintenance charges. Raw power runs .03-.06/kWH, from CAN, but can be higher in the peak summer periods.
http://www.theimo.com/ provides a way to get current wholesale pricing for Ontarion power. Ontario’s current winter pricing is close to $.03/kWH (a far cry from the $.28/kWH ave., which EBM suggested in their model for quick payback)
Don Grant's Fax # is 519-759-7103.