Entire islands like Bermuda, Jamaica, Hawaii, Guam, etc. are completely dependent on oil burning power plants. Others have only natural gas.

With niches like that, we think we have a good place to start. Of course, there is some competition in the space now. Hyperion Power Generation and NuScale have also recognized that there is a need for reliable power in somewhat remote places. I have been studying energy technology for nearly three decades and I only know one alternative to fossil fuel that will work.

I am excited by the fact that it actually works a lot better. As a guy who has lived the high energy, off grid life that fission can provide, I just need to figure out how to get over the first unit hurdle.

Entire islands like Bermuda, Jamaica, Hawaii, Guam, etc. are completely dependent on oil burning power plants. Others have only natural gas.

With niches like that, we think we have a good place to start. Of course, there is some competition in the space now. Hyperion Power Generation and NuScale have also recognized that there is a need for reliable power in somewhat remote places. I have been studying energy technology for nearly three decades and I only know one alternative to fossil fuel that will work.

I am excited by the fact that it actually works a lot better. As a guy who has lived the high energy, off grid life that fission can provide, I just need to figure out how to get over the first unit hurdle.

Yes, I’d agree with you that those economics work, but it’s a niche application. The efficiency & economics I’m doing really relate to grid-connected power supplies, whether centrally- or locally-sited that must compete against the relevant buss bar rate.

To some degree, that is admittedly a matter of marketing strategy (e.g., entry markets vs. long term markets), but I would caution you that many an emerging technology – from fuel cells to solar – have looked at the off-grid space as an entry spot, with only mixed results. I am by no means an expert in those markets, but my understanding is that the challenge has been more one of inertia & infrastructure than fundamental economics. The odds are good that within 20 miles of an off-grid application, there’s someone who knows how to fix an engine, keeps a supply of spare spark plugs on hand and can spare some fuel oil if you’re in a pinch. Not so for other techs, for better or for worse. This has made those hard to crack, notwithstanding the competing economics.

Anyway, that’s off topic here – just a word of caution.

Yes, I’d agree with you that those economics work, but it’s a niche application. The efficiency & economics I’m doing really relate to grid-connected power supplies, whether centrally- or locally-sited that must compete against the relevant buss bar rate.

To some degree, that is admittedly a matter of marketing strategy (e.g., entry markets vs. long term markets), but I would caution you that many an emerging technology – from fuel cells to solar – have looked at the off-grid space as an entry spot, with only mixed results. I am by no means an expert in those markets, but my understanding is that the challenge has been more one of inertia & infrastructure than fundamental economics. The odds are good that within 20 miles of an off-grid application, there’s someone who knows how to fix an engine, keeps a supply of spare spark plugs on hand and can spare some fuel oil if you’re in a pinch. Not so for other techs, for better or for worse. This has made those hard to crack, notwithstanding the competing economics.

Anyway, that’s off topic here – just a word of caution.

It is a pleasure to enter into a discussion with someone who can actually run numbers. I have no quibbles with your figures, but I neglected to provide a few more details about the specific context of my discussion with the financial types. We were not talking about 1000 MWe or larger machines. As you have accurately pointed out, those machines are not appropriate for heat recovery systems.

The power plants that are the right size to locate near heat customers are on the order of 5-50 MWe. They would not be remote, but close to customers in order to successfully transmit the waste heat.

In that size range, we are not trying to compete against utility scale plants that have access to cheap fuel like mine mouth coal. Instead, we are aiming to supply power in place where it is useful but either supplied by a 5-50 MWe diesel engine or not available at all.

At current prices for diesel fuel, assuming a very efficient machine with a heat rate of 8,000 BTU per kilowatt hour, the fuel cost alone is running at about 28 cents per kilowatt hour.

Large diesel engines will cost at least $1000 and probably more like $3000 per KW new and they need regular maintenance by well trained people. Besides, they are notoriously dirty and CO2 emitting.

I hope you can now see why we believe that the ROI might be high enough to attract private capital.

BTW – I just read an interesting article in Fortune about Bill Gates and his plans after leaving Microsoft. Apparently he has already made an investment with a VC that is working on a nuclear energy project.

It is a pleasure to enter into a discussion with someone who can actually run numbers. I have no quibbles with your figures, but I neglected to provide a few more details about the specific context of my discussion with the financial types. We were not talking about 1000 MWe or larger machines. As you have accurately pointed out, those machines are not appropriate for heat recovery systems.

The power plants that are the right size to locate near heat customers are on the order of 5-50 MWe. They would not be remote, but close to customers in order to successfully transmit the waste heat.

In that size range, we are not trying to compete against utility scale plants that have access to cheap fuel like mine mouth coal. Instead, we are aiming to supply power in place where it is useful but either supplied by a 5-50 MWe diesel engine or not available at all.

At current prices for diesel fuel, assuming a very efficient machine with a heat rate of 8,000 BTU per kilowatt hour, the fuel cost alone is running at about 28 cents per kilowatt hour.

Large diesel engines will cost at least $1000 and probably more like $3000 per KW new and they need regular maintenance by well trained people. Besides, they are notoriously dirty and CO2 emitting.

I hope you can now see why we believe that the ROI might be high enough to attract private capital.

BTW – I just read an interesting article in Fortune about Bill Gates and his plans after leaving Microsoft. Apparently he has already made an investment with a VC that is working on a nuclear energy project.

Re the wasted heat from powerplants, in Europe (darn them crafty Europeans) powerplant’s waste heat is often used to heat the homes near the facility.

In Germany and Denmark it is quite common for a community to own their own windfarm or powerplant cooperatively, so the motivation to have a clean efficient power source is high.