Magnetic Power Inc. New Executive Summary Substitutes VPF for ZPE.
Date: Monday, November 14, 2005 @ 20:01:55 EST
MPI’s mission is to supply the world with clean, abundant, and inexpensive electricity.
The company is developing technology it calls Magnetic Power ModulesTM.
Based upon breakthrough discoveries in MPI’s labs, Magnetic Power
Modules are being designed that operate continuously, without fuel,
extracting electricity by converting abundant, renewable, Virtual
Photon Flux (VPF), an energy source that exists everywhere in the
universe. The process will create no pollution. The cost of electricity
is estimated to be less than 1 cent/Kwh, significantly less than any
competing form of power generation today or in the foreseeable future.
Magnetic Power Modules will be scaled to a wide range of applications.
They appear suitable for the relatively small power needs of consumer
devices up through the massive needs of power generation plants.
Magnetic Power Modules Range of Applications
A few watts
Portable and emergency generators
4 or more kW
Modular units for distributed power generation
Up to 100 kW or more
Up to 150 kW
Aerospace industry and power plants
1 mW (Megawatt)
Following the VPF research in private laboratories around the world,
and based on recent breakthroughs in MPI laboratories, prototypes are
currently being built that the Company expects will soon receive
external validation. The first in a substantial series of patent
applications was filed in January, 2005. A plug-in hybrid
car may be modified, to become a prototype powered by VPF for local
driving, during 2006.
The commercial potential of Magnetic Power Modules is huge, with
applications throughout the roughly $1.8 trillion worldwide market for
energy. The Company forecasts rapidly growing revenues and profits,
with revenues beginning in 2006. Positive impacts on global social,
economic, and environmental conditions are anticipated.
After establishing the commercial viability of Magnetic Power Modules
in proprietary labs operated by the Company, MPI will implement a
global partnering, patenting and licensing strategy – analogous to
Genentech in the biotech industry – to catalyze worldwide adoption of
the technology. This strategy maximizes chances of ongoing success by:
- generating early contract revenues and investment through key strategic alliances;
- protecting MPI’s proprietary technology with a formidable patent portfolio;
- building a foundation to support worldwide market adoption of MPI technology.
Revenues from licenses of Magnetic Power Modules are conservatively projected to exceed $200 million annually by 2009:
2006: $10 million; 2007: $25 million; 2008: $75 million; 2009: $225 million
If market conditions are right, the Company will consider an Initial
Public Offering within two or three years, providing investors with an
attractive exit strategy.
Virtual Photon Flux -- A Brief Overview
Conventional wisdom suggests we will be dependent on oil, gas, coal and
nuclear power for the foreseeable future. Alternative energy sources
are thought to be limited to solar, wind, fuel cells, biofuels, and
other solutions with little chance of replacing oil, gas, coal and
nuclear power. However, a far more vital family of energy conversion
processes has begun to emerge, which we refer to as Virtual Photon Flux
(VPF) energy conversion. VPF holds the promise of cost competitive
electric power and automotive propulsion. VPF extraction processes
consume no fuel in the traditional sense and produce no pollution.
Scientists have long been aware the earth is immersed in an extremely
dense sea of energy that permeates every nook and cranny of the
universe. For many years, only visionaries like Nikola Tesla
recognized this huge reservoir could be a source of usable energy.
Tesla, the genius who gave birth to alternating current, said in a talk
to electrical engineers in 1891: "Ere many generations pass, our
machinery will be driven by a power obtainable at any point in the
universe. …Throughout space there is energy.” A growing
number of scientists and engineers consider it possible to tap energy
from space for practical use.
In 1984, Dr. Robert Forward, then a physicist at Hughes Aircraft,
suggested that Zero Point Energy, (ZPE), could be tapped for the direct
generation of electricity. Two years later the USAF sought the
utilization of ZPE for power and propulsion.. Since then, other
physicists have stated there is nothing to preclude the conversion of
ZPE as a source of energy for power and propulsion. Aviation Week
and Space Technology reported in their March 1, 2004 issue that at
least two major aerospace firms, and the Defense Advanced Research
Projects Agency, are studying ZPE. A NASA news release dated March 30,
2005 states: "[ZPE] . . . is a potentially bottomless sea of invisible,
ultra-powerful energy suspected to exist in the vacuum of space.”
NASA data suggests that far more than 20 times the solar energy
available, at the peak of a sunny day, can be extracted from the Zero
Point Field per unit of surface area on earth – well in excess of 20
kilowatts per square meter, around the clock, seven days per
week. Dr. Fabrizio Pinto, formerly a physicist with the Jet
Propulsion Laboratory, has obtained U.S. Patents related to extracting
ZPE using the Casimir Force, discovered in 1947. Pinto observes, “ZPE
is expected to exhibit infinite density and to be universally present,
and might therefore be a limitless source of energy.”
Recently, MPI engineers determined that conversion of ZPE was not
likely to be the source of the energy in our Magnetic Power
Modules. ZPE seems limited to conversion of the Casimir
Force. Our experiments, which extract energy from what we term
Quantum Dynamos, lead more directly to practical, cost-effective,
technology. We have concluded that rather than converting ZPE,
our generators are tapping an equally limitless source of energy that
requires more accurate terminology. Therefore, we have coined the
term, Virtual Photon Flux.
MPI’s proprietary technology extracts VPF from the interaction of
magnetic fields. This basic concept has fascinated scientists for many
years. Nobel physicist Werner Heisenberg is quoted as stating we “could
utilize magnetism as an energy source”. Hans Coler, a German inventor
supported by Hitler’s Navy, reportedly built a working 6 Kilowatt,
solid-state, magnetic "space energy receiver”. This generator was
destroyed by an Allied bomb during WWII. At the time, there was no
comprehension as to the source of the energy. Coler wrote: “These
fundamental researches…have made the first real and large breach in the
citadel of present scientific belief.”
VPF conversion devices have been prototyped in laboratories
throughout the world. MPI has a team of outstanding engineers
developing pre-commercial generators leading to the development of
Demonstration Devices and toys to illustrate the feasibility of
practical designs. One kilowatt Modules aimed at the market
for homes and portable generators should be ready for production, by a
licensee, by the close of 2006. . Modules can be combined for
greater power output, in a manner analogous to solar cells.
Compact automotive power systems, as well as megawatt modules and small
battery replacements, powering laptop computers, will follow.
If MPI and others developing related technologies succeed, this heralds
the beginning of a profound transition in the global economy and the
quality of life on earth. Great numbers of new jobs will emerge. Energy
independence is likely to be realized by all countries, large and
small, rich and poor. Reversing the rising prices of gas and oil, as
well as reducing air pollution -- and slowing very dangerous global
warming, is inherent in the achievement.
MPI management believes this is likely to be a near-term event.
A Brief History of MPI
In recent decades, the search for clean, commercially viable sources of
energy has been the goal of many inventors, scientists and visionaries,
including MPI founder, CEO and Chairman, Mark Goldes.
In 1984, a magnetic system that seemed promising came to the attention
of Mr. Goldes. MPI (Magnetic Power Inc.) began in 1984, and was
incorporated in 1987, to acquire and commercialize breakthrough
technologies for electricity generation and distribution. MPI engineers
and scientists have closely scrutinized many technologies and devices
claiming such advances. From the hundreds examined in this rigorous
process, only two have survived to become core MPI technologies:
Magnetic Power Modules, described above, and superconducting polymers
the Company calls UltraconductorsTM, a product now being developed in
an MPI subsidiary company called RTS (Room Temperature Superconductors,
Ultraconductors are the commercial equivalent of a room temperature
superconductor. They result from more than twenty years of published,
peer reviewed, scientific research, including twelve years of
development. Scientific American has said the development of such a
superconductor would “surely initiate a second industrial
revolution.” Potential markets are estimated in multiple billions
In 1995, MPI was awarded a Phase I, Small Business Innovation Research
(SBIR) contract by the U.S. Air Force to identify early commercial
applications of Ultraconductors. Following Ultraconductor tests by the
USAF, a Phase II SBIR contract was awarded to MPI. The two MPI
contracts — and two additional SBIR awards which went to RTS – were
completed by the RTS scientific team. Ultraconductors have now been
independently reproduced and tested in the U.S. by Fractal Systems,
under a USAF contract.
More information about RTS, along with a business plan in a password
protected area, can be found on the website:
www.ultraconductors.com MPI and RTS technologies are
highly synergistic. Plans for the RTS subsidiary include a sale to a
strategic partner, a larger firm, or perhaps even an IPO, within two to
three years. Until recently, MPI and RTS shared management and
staff, but each firm will soon have its own team.
Key MPI People
Mark Goldes - Chairman and CEO – Mr. Goldes began full-time work to
uncover practical alternatives to fossil and uranium fuels in 1973. He
earlier served as Chairman and CEO of the Aesop Company, a specialized
financial consulting firm, and later founded SunWind Ltd., a renewable
energy company. Mr. Goldes is also Chairman and CEO of Room Temperature
Superconductors Inc., MPI’s subsidiary.
Henry Waxman - President and Chief Operating Officer – Named
Entrepreneur of the Year in 1991 by Ernst and Young, Mr. Waxman has
spent the last 20+ years in entrepreneurial ventures with positive
social and environmental impact. In 1995 he created his third
company, MM Reserves, Ltd. (MMRL), a consulting firm focusing on
startups, pre-revenue or turn-around situations.
MPI and RTS together have raised a total of more than $7.5 million in
equity capital from private Angel investors. Of this amount, over $4
million was directly, and another $1 million indirectly, invested in
RTS. Additional funding has been provided by four completed U.S.
government contracts related to Ultraconductors. A $5 million
investment and an unrelated $6 million commitment are pending. A
Strategic Partner has signed an agreement to provide an additional
investment of $5 million to support early, pilot plant, production of
Magnetic Power Modules in cooperation with MPI.
Magnetic Power Inc.
301A North Main Street, Sebastopol, CA 95472 voice: 707 829-9391 fax: 707 829-1002