AVEC Continues Development and Patent Strategy of Premium-Efficiency Refrigerator & Air Conditioning Electric Compressor Motors
Motor designed to use 35% less electricity than many existing "induction" motors
December 17, 2006
Portland, Oregon, December 17, 2006 — Axial Vector™ Engine Corporation (OTC Bulletin Board: AXVC) announced today its continued development of variable speed drive, permanent magnet, axial flux, coreless and cored premium-efficiency electric motors designed at an energy efficiency of 98% and a power factor a 0.98 is progressing and will begin building a 0.5HP electric motor to validate its revolutionary design. Intimately integrated with its ongoing development efforts, AVEC continues to secure patent rights in its motor, generator and engine technologies.
New Motor Concept Emerges
In the course of developing its high efficiency diesel GENSET, AVEC Introduced a new concept generator in which the magnetic flux conveying the rotational energy to electrical energy (and visa versa) acts axially to the direction of rotation instead of radially across the gap between the rotor and the stator. This is accomplished by a series of alternating rotating and fixed disks. The fixed disks contain copper coil interconnected to accept voltage input in the case of an electric motor. The alternating rotating disks contain high Gauss permanent magnets reacting to the axial magnetic field created by the voltage applied to the fixed coils. This arrangement gives rise to a light weight, high or "premium-efficiency" electric motor.
Initial Applications
Though efficiency gains are applicable to both small and large motors, the initial AVEC application will be with refrigerator and air conditions. The motors, typically less than 5 horsepower, are designed to drive refrigeration and A/C compressors at premium efficiencies. These small compressor motors for commercial and household refrigeration and air conditioning units*, are hermetically sealed into the refrigeration and A/C compressors. The most commonly used motors in appliances (includes refrigerators and A/C units) are the two and four pole single phase induction motor - two pole motors run at 3600 RPM with efficiencies ranging from 45% to 65%. The four pole motors run at 1800 RPM with efficiencies ranging from 55% to 75%. Synchronous induction motors which have efficiencies converting electric energy to rotational energy ranging from 72% to 87% and run at a constant speed during the compressor run cycle are also used, but much less frequently The AVEC Axial Flux Permanent Magnet electric motor is smaller and is 97% to 98% or higher efficient in converting electric energy into high torque rotational energy, without inrush current, and it can be run at variable speed to match the compressor run cycle energy need. This variable speed capability alone improves the run cycle efficiency by an estimated 10%. Thus with the energy efficiency increase coupled with the variable speed capability, the axial flux motor technology will produce an overall efficiency improvement of 30% to 35% or more.
Energy and Operating Cost Savings
The potential energy savings range from 35% compared to the majority of existing units and can rise to 50% and possibly more when compared to the two pole single phase induction motors or to the pre-1980's induction electric motors. This development progress that is applicable to all size of motors is a direct outgrowth of the AVEC GENSET / Generator program and AVEC continues to secure patent rights in its motor and generator technologies.
Rapid Introduction to the Market Place
AVEC expects the improvements that its motor brings to energy efficiency and the resulting major operating costs savings will attract many refrigeration and A/C manufacturers from around the world that are interested in acquiring a royalty based manufacturing license or a license to utilize AVEC technology. AVEC management will begin meeting with industry leaders in this sector in early 2007.
The Cumulative Impact of One Per Cent Efficiency Gains
AVEC sees its motor technologies play a significant role in reducing United States and world electrical energy consumption. Over half of all electrical energy consumed in the United States is used by electric motors. Improving the efficiency of electric motors by only one percent can significantly reduce operating costs. Energy efficiency should be a major consideration when purchasing a motor. For example, even at an electricity rate of $0.08 per kWh, a typical 20-horsepower continuously running motor uses almost $12,000 worth of electricity annually, about 12 times the initial purchase price of the motor. The extra cost of an energy-efficient motor would be quickly recaptured in energy savings. Each percent of improved motor efficiency can create significant amounts of money saved each year. Thus a typical 20 HP motor operating 8,000 hours at full load and at a rate of $0.08 per kWh with a one percent efficiency improvement represents an annual savings of $122. The possible 35% energy savings with the AVEC premium-efficiency motor represents an impressive annual saving of $4,270. Although the economics vary according to application, it is evident that a premium-efficiency motor under typical operation would pay for its price premium of 10% to 30% in reduced energy bills well within a year - an excellent ROI. The AVEC estimated numbers are based on efficiency comparisons of 1800 RPM induction motor on the US Market. Comparisons with 3600 RPM induction motors would show a significantly great difference In efficiency and cost savings in the order of an additional 20%. Typically post-1980's 1 HP varies from 72% to 87% efficiency; 5 HP varies from 80% to 93% efficiency and a 100 HP varies from 92% to 96% efficiency. Many pre-1980's motors had efficiencies as low as 45% to 50%. The AVEC products will go a long way in support of the US Department of Energy (DOE) goal of increasing overall motor system energy efficiency by 12%.
Industrial Electric Motors
From a broader consideration of electric motors of all sizes, AVEC considers its Axial Flux Permanent Magnet motor technology will play a significant role in reducing electrical energy consumption world wide for the same unit output. In 1950, only 20% of the economic output of the US came from industries powered by electricity. Today, 60% (and rising) of the economic output comes from industries powered by electricity. This shift and the rising importance of electricity as a driver in our national prosperity will continue. Today, over 13.5 million electric motors of 1 HP or greater convert electricity into useful work in US industrial process operations. Industry spends over $33 billion annually for electricity dedicated to electric motor-driven systems. Industrial motor systems represent the largest single electric end use in the American economy. Industrial electric motor systems used in production consumption over 691 billion kWh represented 24% of all U.S. electricity consumption which also represented 70% of all electricity consumption by industry in 1994. Roughly 3,500 manufacturing facilities (1.5 percent of the total) account for nearly half of all motor system energy use and potential savings in the manufacturing sector. Because nearly 70% of all electricity used by industry is consumed by some type of motor-driven system, the increased energy efficiency of the AVEC Technology compared to existing motor systems, will contribute to dramatic nationwide energy savings.
In 2001, China consumed approximately 1,400 billion kWh of electricity, second only to the United States, with the large majority of motors driving fans, pumps or compressors. In addition to attractive cost savings, a savings of 25% percent of current motor system energy use in China by 2010 using the AVEC motor technology would result in an annual reduction of 175 billion kWh of electricity, resulting in a annual combustion reduction of 70 million tons of carbon (coal) and 255 million tons of CO2.
Refrigeration
Refrigerators, refrigerator-freezers and freezers have an installed base in the USA of 183 million units and collectively consumed in 2004 over one quad. (1 quad = 2.93 x 1011 kWh or 1015 BTU. World total energy usage is about 300 Quads per year, US usage is about 100 Quads per year in 1996.) The DOE, aware of the immense energy savings possible in the domestic refrigeration sector alone, has mandated increasingly stringent energy performance standards reaching 30% decrease in UEC (Unit Energy Consumption). AVEC's premium-efficiency small motor can substantially contribute to achieving the improved efficiency from the present DOE UEC standard of 486 kWh and 671 kWh respectively for top and side mounted refrigerator-freezers to 340 kWh and 469 kWh respectively by year 2011. It is therefore important to bring this new motor technology with its potential 30% improvement to market as soon as possible.
Worldwide annual production of household refrigerators has reached 65 million units. Virtually all of the households in developed countries have a refrigerator with an approximate worldwide saturation of fifty percent. This is a market that AVEC's compressor motors will be able to excel in reducing operating cost and reducing major energy inefficiency.
China's refrigerator industry is the largest in the world now that three out of every four urban households in that country have refrigerators. Refrigerator production in China increased from 1.4 millions units in 1985 to 10.6 million in 1998, a 21% annual growth rate. With 80% of China's electricity generated by coal burning power plants, the greater energy efficient AVEC refrigerator compressor motors will significantly reduce emissions of air pollutants as well as introduce major energy and operating cost savings.
Air Conditioning
The world market for air conditioners is still growing with annual sales estimated at about 39.7 million units in 2000. Room Air Conditioners (RAC) accounted for 29.9 million units while Central Air Conditioners accounted for 9.8 million units. The American market is the largest with 13.2 million units sold in 2000 representing a growth rate of 3.1%. The Chinese market exploded with sales of 9.2 million units. The Japanese market growth increased by 9% between 1999 and 2000, reaching annual sales of 7.7 million units in 2000. In 2000, the world market for air conditioners was valued at USD $35 billion. This represents an annual US consumption of 183 billion kWh for household air conditioning in 2001. AVEC sees an important market opportunity to introduce substantial operating cost savings and major reduction in kilowatt consumption not only in the US, but worldwide.
Converging with National Energy Goals
"At a time when the U.S. government has established a commitment to reducing America's dependence on foreign oil, any energy savings is worthwhile," declared Dr. Raymond Brouzes, AVEC president and CEO, upon making the announcement. "But the volume of energy savings achievable from this single technology is enormous, making premium-efficiency power technologies like the revolutionary Axial Vector Engine invaluable to America's energy future."
* Revision made since the press release on 12/20/2006 at 16:10 PST.
About Axial Vector™ Engine Corporation
Axial Vector Engine Corporation (AVEC) is a publicly traded company (OTC Bulletin Board: AXVC) that owns, develops, and licenses proprietary intellectual property related to unique and cutting edge internal combustion engine, generator, generator set and electric motor technologies. AVEC is applying these technologies to develop new, smaller, and lighter internal combustion engines that produce significantly greater horsepower and torque on less fuel than conventional engines of similar size. Coupled with its generator and electric motor advanced developments and intellectual property strategy, AVEC's Axial Vector Engine stands tall in offering a realistic prospect of meeting recent U.S. government-mandated engine-efficiency and pollution standards, the DOE Industrial Technology Program "Motor Challenge Program", and the DOE Appliance Energy Standards. Key markets for the AVEC include all forms of transportation, industrial heavy equipment, large- and small-power generation, and electric motors for a multitude of applications such as for appliance and industrial electric motors—both in the United States and worldwide—as well as various U.S. military applications.
Forward-Looking Statements
This news release may be deemed to contain forward-looking information. Any forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including statements as to industry trends, future economic performance, anticipated profitability, anticipated revenues and expenses, and product or service line growth, may be significantly and materially affected by certain risks and uncertainties, including but not limited to failure to meet operating objectives or to execute the operating plan, completion, and other economic factors. Additional risks and uncertainties are described in the Company's public filings with the U.S. Securities and Exchange Commission.
For Further Information Please Contact:
DR. RAYMOND BROUZES, PRESIDENT & CEO
One World Trade Center
121 SW Salmon Street, Ste 1100
Portland, OR 97204
503-471-1348
www.AXIALVECTORENGINE.com
info@AXIALVECTORENGINE.com
Investors:
Redwood Consultants, LLC
415 884-0348
INVESTORINFO@REDWOODCONSULTANTS.COM
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