Interview with Powerdyne International CEO James O'Rourke
- In a few words, can you explain what the company does or is planning to do?
Our plans and vision for providing greener, more reliable power, which will be more cost effective for the 21st Century remains unchanged. What is changing is how we get there. Our focus will be changing from developing our own manufacturing capabilities for the PDI Generators to one of Marketing and Sales.
There is a niche market for 500kW to 1,500kW power solutions that is being serviced. Our market research has indicated that there is a great opportunity in the 500kW to 1,000kW power range in the Caribbean Market as well as the 1,000 to 1,500kW power range in the California Market. So we are going to going to focus all our resources into Marketing and Sales while outsourcing our manufacturing.
2.What Direction do you see your industry headed toward over the next 5 years?
As corporate capitalization budgets continue to shrink and the grid becomes more unstable and more expenses the PDI power Solution becomes the most reasonable power solution. By providing the power generating equipment at no cost to the end user it will allow them to get more reliable power at a cheaper price, which all goes to the bottom line profits.
We will initially focus on the niche market I mentioned before but quickly expand into the multi megawatt power solutions. This will allow the end user to either use the PDI Solution to help supplement the grid or come completely off the grid basically forming his own micro grid.
As for the exact market segment we will service, it is basically limitless at this time, we are in the position to provide PDI Power Solutions to Commercial, Industrial, Communication & Data Center, Hospitals, First Repose Centers in addition to industrial parks and housing communities that are looking to establish a micro grid that will provide more reliable and cost effective power.
3. What are the key risks the company faces right now?
The risk I foresee is the availability of working capital when we need it to fund projects. However with that said we do expect to be self-funding after the first 3,000kW of billable power has been installed. We are currently working on financing for our first projects.
4. What projects are you currently looking to begin and/or complete during the next 3-6 months?
What we are focused on now is establishing an experienced Product Representative network so we can begin selling the PDI Power Solutions nationally and throughout the Caribbean. Our goal would be to have 3 to 4 PDI Purchase Power Agreements executed and generating billable power within the next 6 to 12 months.
5. What are the current challenges you're facing that could prevent or slow progress from this/these project(s)?
We are currently working with a multiple Investment groups on obtaining financing for our first projects. As previously mentioned the only challenges I foresee will be the availability of cash when we need it until we become self-financing.
6. If all goes as planned, how much revenue does the company anticipate generating from this/these project(s)?
You need to keep in mind the revenue that is generated from the PDI Power Solutions are dependent upon the price of delivered gas versus the cost of delivered electricity for that specific location. The price for delivered gas and electricity can vary greatly from region to region state-to-state, city to city and within that city or town. However if I use the Caribbean as a revenue-projecting model, we have the potential of generating $800,000 per year on a 500kW PDI Power Solution.
Also a typical PPA has a term of 10 to 15 years however we would consider shorter terms under the right circumstances. Based on a standard PPA we can expect to see revenues between $8-$12 million per the life of the agreement. Powerdyne's goal is to have a minimum of 3,000kW in the next 12 months based on this revenue projecting we have the potential of generation $4,800,000 per year.
7. How are you currently marketing your product/brand?
Currently we are marketing our power solutions by means of direct sales, but over the next few weeks we will be bringing on experienced product line representatives who currently sell in the power generating market. With the addition of these new representatives we will be able to expand our market presence quickly without incurring increased overhead.
8. Where do you think the most significant growth will occur for the company over the next 3-6months?
I feel the most significant growth will come initially from the Caribbean and California markets. These two locations have the greatest immediate needs for reliable cost effective power.
9. You're the CEO of a small cap company. What is the major discerning factor that sets the company apart from the rest and gives you a competitive advantage?
The PDI Genset is an extremely cost efficient power solution that is designed for 24/7 primary power for small and medium users (500KW to under 5MW). Additionally, the PDI power solution can be customized to the customer's specific needs including cogen (CHPC cogeneration, heat, power, cooling). And the most powerful marketing feature: the client incurs minimal to no capital outlay (other than an engineering study) to acquire the PDI Power Solution.
I'd like to thank Mr. O'Rourke for taking the time to inform us all on the progress that's being made over at Powerdyne and look forward to the future success of the company.