Preon and Micro Turbines

2001/2002

• 1-2MW combined cycle combustion turbines (Kawasaki and Solar) are promoted for on-site power generation to coal bed methane (CBM) developers in Wyoming. CBM developers are interested in larger plants as an alternative to utility power (Alternative Retail Electric Supplier). These plants require pipeline methane gas. Preon receives Memo of Understanding to provide turnkey power plant from Williams but Williams implodes with Enron debacle due to in-house energy trading.
• Preon provides technical presentations to the City of Chicago on the utilization of micro turbines and recips to achieve “green” buildings with CHP and for peak shaving. City of Chicago reacts favorably and requests that City architects are contacted by Preon.
• Preon pursues traditional reciprocating engine-generator “peaker” projects but economics are limited without CHP. Chicago use of electric heat in high-rises precludes CHP. Load profile must include 7x24 use of exhaust heat.

Preon’s Micro Turbine Design for Bunker Igloo Power

2003

• CBM developers recover from the Enron debacle and begin to drill wells. Emphasis is on smaller more portable power plants for self-use versus larger power plants for export power. CBM is now viable use of fuel source for smaller micro turbines. Initial use of small micro turbines by developers was unsuccessful due to micro turbines inability to handle block load of large pumps cycling on. Preon recognizes CBM as a vast potential to sell and maintain micro turbines. Preon funds Preon Powder River LLC to pursue as a dedicated initiative. Preon researches the means to modify the micro turbine to accommodate the dynamic loading.
• Preon provides technical presentations to Architects for the City of Chicago on the use of micro turbines to achieve “green” buildings with CHP. Architects are impressed and meet with City to research most viable new candidates for micro turbines in new construction. Architects encourage Preon to meet with City Mechanical and Electrical Engineering firms to pursue CHP.

Preon’ Proof of Concept Testing of Power Pod™

• Preon surveys landfills in the State that currently flares gas and combines with Unisom Solutions for landfill JV. Survey provided for Cole County but governmental board makes no decision. Landfill Checklist sent to all county boards. Preon determines this application is technically viable but a tough business proposition due to governmental bureaucracy.

2004

• Preon receives contract to beta test (2) non-CHP, LP-based, island-powered micro turbine at Savanna Army Depot for SDTC. Preon was responsible for the design of the fuel delivery system and commissioning/maintenance of the micro turbines. The micro turbines are successfully commissioned and perform as designed.
• Preon works with Greeley and Hansen of Chicago to assist in design of micro turbine CHP plant for digester gas at Mishawaka Indiana WWTP. Preon is tasked to review technologies to remove siloxenes from gas prior to combustion. Preon’s design for siloxene removal is incorporated to the bid specifications but the project comes in over budget and CHP plant is scrapped even though plant is estimated to save $163K annual.
• Preon applies for a patent for its PowerPod™ and the IglooPower™ designs. The PowerPod™ is an integration of a reciprocating engine-generator paralleled with a micro turbine. The engine generator peak-follows and handles about 10% of the kWh while the micro turbines base-load and facilitate the bulk of the power. The PowerPod™ is Preon’s solution to the CBM need for a micro turbine solution that can handle dynamic loading. The IglooPower™ is a multi-redundant power generation scheme utilizing the electric grid, micro turbines and standby diesel gensets for the SDTC project.
• Preon provides technical seminars for Primera: the Chicago City Mechanical and Electrical Engineer designing the new Chicago “green” buildings. Primera agrees that micro turbines with CHP would be a green and secure technology enhancement for the new Chicago Police Stations. Police Stations require 7x24 occupancy and heat can be used for boiler pre-heat. Preon assists Primera with the design integration of CHP and utility interface.

Preon Micro Turbine Installation at Arm Depot

2005

• Preon works with UIC Energy Resource Center (charter is funded by DOE) in response to the States Technology Advancement Collaborative Solicitation to secure grant dollars for the use of micro turbines with CHP for the SDTC project. The Preon/UICERC response achieves “run-up” status from a field of 15 responses to the solicitation.
• Preon successfully completes proof-of-concept tests for the PowerPod™ over 6 months in Gillette Wyoming. Preon’s business model requires clients to sign 5-year leasing contracts. Economics are compelling but CBM developers demand simple rental agreements and stocked/stored equipment versus long-term commitments and waiting out vendor lead times. Manufacturers refuse to invest in project and Preon has no funding source.
• City of Chicago does not have funds for new Chicago Police Stations but remains committed to CHP and micro turbines.

Preon Micro Turbine Installation at Police Department

2006

• SDTC loses funding and does not achieve commercial success but business model is acquired by Secured Digital Storage. Secured Digital Storage signs 5-year Energy Integrator contract with Preon in exchange for Igloo Power™ patent. Preon is responsible for design assistance of micro turbine CHP plant, provisioning of equipment and maintenance of equipment.

Preon’s Micro Turbine CHP Design for Data Centers

• City of Chicago completes engineering on new generation of Police Stations to include micro turbines CHP plants: projects are funded to commence bidding in 2007.
• CBM developers showing more interests in the PowerPod™ as diesel costs make economic metrics more appealing and environmental watchdogs such as Bureau of Land Management, Wyoming Department of Environmental Quality and EPA/DOE exert pressure. The use of larger Ingersoll Rand micro turbines is considered.

2007

• Preon designs Bunker Power micro turbine CHP infrastructure for SDS. Innovative design drives micro turbine reference signal off output of UPS but micro turbines become the source of bulk conditioned (“UPS quality”) power to the computer loads. This precludes double conversion UPS efficiency losses typical of data centers and provides a simpler/more reliable design. SDS construction funding anticipated in 2008.
• Preon secures 5 year contract for micro turbine sale and maintenance of Chicago Police District 7 and District 9 micro turbines. Equipment submittal drawings are reviewed and micro turbines are put into production.
• Preon opens office in Sheridan Wyoming to pursue CBM business. Office is staffed by Electrical Engineer, Justin Carroll. Previously, Justin’s responsibility as a Project Engineer for Pearl (Sheridan Wyoming) was to investigate viability of micro turbines for remote on-site power. Justin oversaw the commissioning of Capstone micro turbines for Nance Oil for CBM operations.
• Preon receives survey and research contract from Anadarko (Wyoming) to investigate alternate power generation resources for remote CBM operations. Preon designs broadband over power line (BPL) communication interface for Thomas Gas Company.

2008

• Preon ships District 9 micro turbine and is scheduled to be commissioned in August. District 7 micro turbine scheduled to ship in May. 2 more new Police Stations (District 12 and 25) are due to bid in 2008. Chicago adapts Preon design as a basis for all future police stations and Chicago becomes first city to utilize micro turbine CHP plants.
• Preon will be shipping a custom micro turbine skid to the CBM Fair in June. Preon has very strong interests with CBM developers in custom micro turbine solutions acquired on simple monthly rental agreements and equipment availability. The rental of the first unit is anticipated in June. Preon has very strong interests with drill rig operators in integrated reciprocating enginegenerator/ micro turbine (PowerPod™) technology. Justin Carroll receives patent for work on a customized gas flow meter.

Preon Design for 200 kW Low-BTU Project

• Preon meets with Turbogenix to investigate the integration of their Organic Rankin Cycle (ORC) technology with micro turbines to achieve CHP operation of micro turbines in CBM applications.
• Preon forms a “Renting/Leasing” business group led by John Sumpter – formerly of Aequitas Capital Management of Seattle Washington. This business initiative provides Preon the means to promote micro turbine CHP plants on a rental or lease basis. While at Aequitas, John provided diligence on emerging firms in distributed generation and renewable energy. John also brokered lease and rental deals between CHP plant operators and traditional money lends like banks.
• Preon’s Washington office pursues use of micro turbines for application in Canadian tar sands gas flaring application.
• Preon’s Wyoming office pursues use of micro turbines for reclamation of depleted oil field gas flaring application.
• Preon Washington office receives Letter of Intent for 3.6 MW tire gas pyrolysis project.

Preon Design for 3.6 MW Tire Pyrolysis Project

• Preon showcases 2 x 100 kW micro turbine skid at Coal Bed Methane Fair in Gillette Wyoming

2 x 100 kW Mobile Micro Turbine Skid

• Preon goes live with micro turbine skid in remote Wyoming CBY location on July 17th.

Micro Turbines Live @ Remote Wyoming Gas Field