Can Mass Megawatts Wind Power Secure Its Niche?

Mass Megawatts Wind Power, Inc. is a publicly traded company (MMGW.OB) with its patented vertical MultiAxis Turbosystem “MAT” has accumulated a net loss of $4.4 million since its inception in May 1997. The company’s net loss during the nine months ended Jan. 31 totaled $511,832. Mass Megawatts said it is actively seeking equity investors and plans to secure additional investment from its CEO.

On the positive since April 2009, the company has made some progress setting up a possible “commercial wind power solution” niche market play.

For example, it announced that Arthur B. Berry III, President and principal owner of Camelback Mountain Resort located in Tannersville, and situated in the heart of Pennsylvania’s Pocono Mountains, had taken an equity position in Electric City Wind Power Corp., a licensed manufacturer of the Mass Megawatts MAT or Multi-Axis Turbosystem wind energy generator. Mass Megawatts Wind Power, Inc. is a major shareholder in Electric City Wind Power Corp and receives a 10% licensing fee on all of the Electric City’s sales volume.

This comes on the heels of a recent sale of a 550 kW wind power project priced at $1.1 million to a Pennsylvania wind power development company. Electric City Wind Power Corporation, the group purchasing the MATS wind power project, is based in Pittson, PA, which is located between Scranton and Wilkes Barre. Christopher T. Powell, a senior partner in Powell Law of Scranton, Pennsylvania, who represented Electric City Wind Power in its negotiations with Mass Megawatts.

Additionally the sale of a 500 kW wind power project in New York State for $1 million was announced. The group purchasing the 500 kW MATS wind power project is headed by Catherine and Daniel Donnelly, principals of Donnelly Mechanical, the major New York City based HVAC and mechanical provider.

The company is also connected with the sale of a MAT wind power plant used by the United States Army. The 50 kilowatt wind power project will be constructed at U.S. Army Intelligence Headquarters located in Fort Huachuca, Arizona. Construction will begin this spring as part of the Army’s ongoing efforts to expand into renewable energy.

The MAT design enables power output to be achieved at a much lower wind speed, providing a more consistent power output to the utility power grid. The patented system uses a multiple axis design utilizing wind from every direction. It is made to capture wind in high and medium ranges with a turbo feature. The Tower has a lower price point, is easier to maintain for a lowered operating cost. By comparison the horizontal axis (windmill) design has a much higher operating cost due to the cyclical stress on the single axis. The windmill product must be placed high above ground to avoid turbulence which makes servicing the windmill difficult and in some location endangers migratory birds.

Wind Power Technologies Comparison Item Horizontal (Airplane propeller type) (HAWT) Old Vertical Turbines (VAWT) New Multi Axis Turbo System Design (MAT) Description Over 95% of wind turbines currently in use Various designs; largely experimental Utilizes the positive technological aspects of both horizontal (HAWT) and vertical (VAWT) Definition HAWT (Horizontal axis wind turbine) VAWT (Vertical axis wind turbine) MAT (Multi axis Turbo system) Cost per kWh in 16 MPH (ave) wind 4.5 to 5 cents per kWh 7 cents per kWh Less than 4.5 cents per kWh Advantages • No cyclical stress unlike vertical axis. • Ability to place high above the ground to avoid turbulence. • Components on ground level for simplified installation and easier maintenance. • Manufacturing backlog avoided through limited use of custom made components. • 35% to 60% less expensive per kWh than HAWT or VAWT depending on local labor cost and local access to components. • Smaller blades use a fraction of the material per rated kilowatt. • Modular and scalable. • Inexpensive to repair, high maintenance components such as gearboxes and generators are at ground level , isolated from problem causing vibrations. This dramatically reduces premature failure. • Use of local vendors and workforce. • Reduced stress on bearings. • Extremely quiet-no noise. • NO Bird Kill. • Stiffer blades and higher efficiency (cannot have both with vertical axis turbines). • Easy start in lower wind speed. • Ability to place high above the ground to avoid turbulence. • Component failures are isolated, preventing a complete shutdown of a MAT. • Lower capital expenditures and maintenance costs enables profitability at twenty times more locations than HAWTs and VAWTs also at lower cost. Disadvantages • Blades on top of tower, difficult to maintain and repair. • Expensive to manufacture. • Expensive to repair- all components on top of tower. • Extreme stress on bearings. • Avian mortality issues. • Long periods of downtime for repairs; necessitates the use of a crane. • Blades have problematic cyclical stress unlike horizontal. • More stress on bearings than horizontal. • Lower efficiency per swept area. • Higher efficient version is: A) difficult to start, B)more prone to shaft problem with larger blades. • Difficult to mount on higher tower. • Bearing replacement requires tower to be taken down. • Control difficulties. • Takes more swept blade area to produce same amount of power as horizontal turbine (Moot point due to lower blade cost per kilowatt/hour produced). • Possible perceived aesthetics issues.

The Company's new MAT wind turbine, which has several national and international patents pending, is designed to reduce the cost of wind generated electricity by 40% over current methods. This will render wind energy, including the cost of power transmission from high wind locations, competitive with the costs of fossil fuel supply.

Energy Source Comparison

(1) 2¢ at good hydroelectric sites
(2) in 15 mph average wind speed conditions
(3) depending on size and location of facility, with smaller
remote locations having higher costs

Business Development Strategy

The company is in transition with potential success and patented technologies. Technically the company has solid experience but must ramp up its sales and marketing channels. It has also begun to focus on market share within California's electricity market.

By law the California and Automated Power exchanges are mandated to buy any renewable power that is generated. The power can be sold profitably on the California and Automated Power exchanges. At a conservative selling price, a good profit can be realized without a major marketing and sales infrastructure. The company has potential if it can successfully develop a high quality sales and marketing niche that could generate consistent long term growth.

Disclosure: The author at the time of writing this article did not own any interest in the companies listed.

Comments

[john s. gordon:]

does the cost of nuclear (fission) include permanent transport/disposal/sto... of high level waste?
> jack

Jun 15 08:31 AM

[billp37:]

Correct or not?

fast neutron
Santa Fe, NM
January 12, 2009

From actual experience, wind farms produce 1.2 watts per square meter. Solar Thermal and Photovoltaic methods capture 5 to 6 watts per square meter. There is no economy of size in either technology. Dividing the watts you need by those values gives the land area in square meters needed to produce the juice. The numbers are astronomical

www.topix.net/forum/so...

Jun 15 09:05 AM

[Nick Gogerty:]

just a quick question. The $1.1m sale for 550KW works out to $2m per MW installed. This doesn't quite square with the less than $0.045/kwh unless the wind yield utilization cost is much higher than towers. Could you help clarify as Towers are going for $1.8-$2.1m/MW installed. Also interested in how much field time these things have had in terms gear life and repair. Fewer moving parts etc. helps lower TCO over 20 years span. One last question, how long will the company garuntee gear box etc. for as many big order are based on Project finance profiles with low tolerance for risk or a need to insure against mechanical failure. Getting a manufacturer warranty or solid field proven MTBF on gearboxes etc. will really be crucial milestones for the technology and the company. thanks.

Jun 15 09:05 AM

[Ferdinand E...:]

High level waste, Jack? In France the insiders call it high-level fuel, which is why they don't have to worry about waste or fuel. Of course they can't make a big thing about it, but there it is.

Jun 15 11:20 AM

[john s. gordon:]

reprocessing of spent fuel is in theory a wonderful idea if you have no accidents & if there is no diversion of dangerous material to terrorist organizations.
carter administration stopped reprocessing after there was unaccounted-for 'disappearance' of material @ the kerr-mcgee plant.
there have been accidents in japan & scotland.
> jack

Jun 15 05:09 PM