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Atmocean, Inc.

Sustainable agriculture powered by wave energy.

Closed on 12/19/16

34% funded (of minimum target)

min$25k

max$100k

funding goal 

Reg CF

exemption used 

$5,500,000

pre money valuation 

$250.00

min investment 

$8,450

amount raised 

5

investors 

Security Type
Common Stock - Voting
@ $5.5 mil valuation
Previously aised $3.4 mil.
$250 min. investment

Pitch

Who are we

Atmocean uses wave energy to power desalination without grid electricity, using the resulting fresh water to drip irrigate and grow food in new cropland along the arid coastal regions of Peru, Chile, South Africa, Baja Mexico, Senegal/Morocco/Western Sahara, and Australia.

Problem

1. Sustainable agriculture is limited by lack of available land and fresh water.

2. More food is needed as global population grows to 9 billion by 2050.

3. Large corporations wish to showcase their sustainable business practices.

4. The world is looking to grow rural economies while addressing carbon emissions and therefore in need of net carbon negative solutions.

Solution

Using wave energy to desalinate seawater is a novel concept and currently only pursued by ourselves and two other companies. While these two other companies (Seatricity and Carnegie) focus on big systems that require large capital expenditures, large boats with high daily price tags to rent, and large port and pier structures, Atmocean designed its system to be deployed anywhere in the world. Our system fits into standard shipping containers, can be deployed in remote communities, and most importantly can be built and serviced in those same communities. As the marine environment is complex to operate in, we don't believe a solution lies in a 800 ton piece of equipment. How do you install it, what happens if there is a problem, what does it cost to service? We believe in a small modular design that local fishing fleets can handle, is scaleable, and effectively answers the pressing question of delivering fresh water to coastal communities in a sustainable way; small is beautiful.

Desalination plants are already popping up around the globe. Industrial plants provide a high energy intensive solution, but the process results in huge usage of power with associated emissions. By using renewable wave energy to secure water for desert communities around the world, we stand to address some of the biggest problems facing the world; climate change, water and food security, and generating a new carbon negative economy that keeps people from having to migrate to cities. 

Did we mention we can install our system on existing desalination plants and reduce their energy costs by 20%?

Achievement & Traction

We have received seven grants from Los Alamos & Sandia National Laboratories, Oregon Wave Energy Trust, and UK Technology Strategy Board. We have also conducted over 100 days of ocean tests and four weeks of wave tank trials. With this solid foundation we have achieved the lowest cost wave energy system currently going to market and are matching it with our strategic partner's zero-electricity reverse/osmosis desalination unit. This can be deployed off grid anywhere in the world to provide fresh water for consumption or to drip irrigate arid regions and grow more food, sustainably.

Market

The countries we will operate in have a combined demand for food equal to 56% of the US, and their population is growing at up to 3% per year. Los Alamos National Labs (LANL) conducted a global GIS mapping of areas with suitable waves boarding coastal deserts and designated over 11,000 linear km in in Peru, Chile, Australia, South Africa, Namibia, Morocco, and Baja Mexico that would be suitable for the Atmocean technology. As fresh water can be used by coastal communities, industry, or for agriculture and given Atmocean's system design and ability to deploy in remote regions, the market suggests appropriate space for upwards of 65,000 systems when considering agriculture.

Having been active since mid 2014 in Perú, Atmocean has also seen increased interest in our system from mining operations along the coast as well as industrial plants, municipalities, as well as aquaculture. Atmocean currently has strategic partnerships in place in both Lima and Santiago that are allowing for the continual development of business relationships as the technology is brought to market. 

Competition

We are first to enter this market of "greening the coastal deserts". Other wave energy companies include Carnegie, Resolute, and Seatricity - but they are more expensive and complicated while still in development.

Carnegie Wave out of Australia has a wave energy system that is much more expensive and has spent 150 million dollars to date. They recently abandoned their Ceto-5 design aimed at desalinating seawater and are now at the drawing board for a new design that aims to generate megawatts of power instead of fresh water. We hypothesize that with 11-meter diameter buoys and complicated sea floor connections per buoy, their costs were much higher than potential returns. Seatricity is currently testing a system in the UK that requires an 80-ton anchor which is not feasible for volume installations in remote regions as well as minimizing the impact on the benthic environment.

Atmocean uses a series of suspended subsea platforms, variable sea anchors or VSAs to generate the resistant force needed to counter the rising buoy. Since each pump has a VSA, we do not need a direct seafloor connection per pump. Instead, we string pumps together in strings of 5 with 3 strings making up an array. With an anchor on each end of the string, we keep the system in place like a floating dock. Reducing our seafloor connections reduces our overall costs, time and scale of operations, and impact on the environment. In fact, our system acts as an artificial reef attracting some algae and mollusk growth that in turn attracts juvenile fish. Since each area becomes a no fishing zone, each array acts as a defacto marine protected area or MPA. One would think we would get strong push back from local fishermen, but since we are employing the local community to take care of and operate the system, the whole effort results in a re-tooling of the artisanal fishing industry and we have thus far been welcomed in Perú where we are testing.

Business Model

We offer a vertically integrated business model that improves profitability and enables rapid scale-up. Our focus on simplicity of design allows for easy transport and operations in multiple markets. Our design to pump seawater to shore also allows for multiple market expansions. Currently, desalination makes the most sense where we are within reach of market parity. Fresh water alone opens up markets for agriculture, municipalities, and industry.

 

Atmocean will make returns by selling water per cubic meter, or agricultural produce from drip irrigated lands using the desalinated water.

 

Added perks will come from the ability to monetize the PR benefits of our sustainable impacts as well as selling carbon offsets.

 

Ultimately, Atmocean will seek to be bought out within ten years by a multinational seeking entrance into the renewable marine energy sector, able to buy Atmocean's patented technology and scale this marine energy solution with additional resources.

Team

Philip Kithil, CEO. BA/MSBA Economics. Serial entrepreneur and inventor with six successful startups since 1972. 13 patents in prior auto safety business sold in 2004.

 

Chris White, COO. BS/MSc (Oceanography & Limnology), Chief Operations Officer, currently based in Lima, Peru. Trilingual. Pays attention to every detail!

 

Phil Fullam, Chief Engineer. BS/PE/MBA - Innovative production & design/testing engineer with 40 year experience in new ventures.

Use of Funds

With a minimum of $25,000, we will prepare for a final ocean test in Ilo Perú, set for early 2017. We are set to complete a final wave tank test at Texas A&M in early December, for which a portion of these funds will be used to realize. The upcoming wave tank test will be the 4th this year and is designed to proactively optimize our system. Since wave tank testing costs a fraction of the cost of ocean testing, it is Atmocean's intent to use this last test to get us back to the sea with the most optimum design possible that will allow us to demonstrate a commercially ready technology.  We will use the ocean test to demonstrate a single operational string of pumps and invite numerous regional stakeholders to visit and see for themselves the commercial viability of the project. We are currently working towards securing an ocean permit extension and quoting out local suppliers for materials and labor. Having already deployed two trials in Ilo Perú in 2015, we have a proven supply chain from construction through deployment that is ready to be activated.

Lastly, it is important to mention that Atmocean currently is operating with zero debt and a balanced budget through September 2016. This allows us to take the entirety of the funds raised through this offering and put it towards realizing these final product development efforts.

Updates

Philip Kithil
Philip Kithil3 years ago

This week Atmocean presented at the Ocean Exchange in Savannah Georgia. Chosen as one of 15 finalists, we were honored to inform the exchange about our wave driven desalination system. Unique to the marine energy industry, Atmocean was the only group with a system able to deliver 100,000 gallons of fresh water per day given wave conditions of the west coast of Latin America.

Following the exchange, Atmocean completed a fourth round of marine testing at the Haynes laboratory at Texas A&M yesterday. With close proximity to the lab and very low cost to use the lab, we aim to take full advantage to refine the system to maximize system efficiency prior to our ocean demonstration.

Philip Kithil
Philip Kithil3 years ago

We are pleased to announce that a grant proposal to continue joint work with Los Alamos National Labs has been approved. The next stage of research will entail a more detailed study on Northern Chile and Southern Perú to identify suitable locations where sustainable agriculture can take place and the exact potential for carbon sequestration.

“The goal of this project is to re-assess and determine a detailed carbon sequestration potential for a region of the coastal desert in Peru and Chile. “

With these results, Atmocean is better positioned to secure international grants that would allow implementation of our first commercial system as well as debt financing to scale subsequent commercial systems both North and South of our current testing grounds in Ilo Perú. This is an exciting moment in light of the UN Solution Summit held on September 22nd, as support for the Atmocean mission grows.

Philip Kithil
Philip Kithil3 years ago

Atmocean is pleased to announce that we will be presenting this week at the United Nations on September 21st. The Solution Summit aims to address the UNs Sustainable Development Goals by putting 10 startup companies in front of both government and private companies, able to enact and create real change. This is a unique opportunity and we are excited to represent the marine energy industry at the UN this week!

Read about the event with our press release here.

Philip Kithil
Philip Kithil3 years ago

The news keeps coming!

Excitingly, Atmocean was informed on Monday that we have been chosen by The Ocean Exchange as a top 15 finalist for the Gulfstream(R) Navigator & Wallenius Wilhelmsen Logistics Orcelle(R) Awards with a cash prize of $100,000 each.

Our COO Chris White will travel to Savannah Georgia in November to make a final pitch in an effort to secure a prize and further inform the community at large about the Atmocean story. This is exciting as it continues to validate our efforts, the solution we present, and the need within the current paradigm of today's economic world. You can find more information from the Ocean Exchange press release.

We hope you take a moment in your day to share our story with a friend as we work towards our modest goal that will enable us to move closer towards realizing our ability to deliver fresh water to coastal communities using renewable wave energy.

Philip Kithil
Philip Kithil3 years ago

We are pleased to announce our 3rd successful wave tank trials this year at Texas A&M in the Haynes Laboratory! Running over 50 tests the first week of September, Atmocean was able to successfully measure multiple configurations under a variety of marine conditions including wave amplitude, wave period, and most importantly current. The Haynes laboratory is one of the only wave tank facilities in the United States where currents and waves can be generated at the same time, thereby mimicking real world conditions.

 

With these low cost wave tank studies conducted in 2016, Atmocean will now be able adjust the wave energy converter or WEC, for site specific locations. Given that wave conditions vary around the world and that no two waves are alike, these studies lay the ground work for Atmocean's WEC to become a global solution when considering wave energy. News concerning our test can be found at the marine energy news site, "Tidal Energy Today".

 

"Tidal Energy Today" should be linked to the below web address:

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Q&A


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Larry Berman
Larry Berman - Investor3 years ago
Hi, I am about to make an investment in Atmotion. http://sumo.ly/o9CH via @truCrowd. Pls send a deck to larpat55@aol.com Thanks, Larry
Philip Kithil
Philip Kithil - Issuer    
Greetings Larry Breman. Thanks for the question. You can check out the deck which has just been posted in the Documents Section. We look forward to updating you to our recent successful testing of our system at the wave tank located in the Haynes Laboratory at Texas A&M next week. Your continual interest is appreciated.

3 years ago

Documents

Start-up Valuation View Download
Form C and Offering Statement View Download
Atmocean Slide Deck View Download
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