Irvine-based Ener-Core Inc. has signed its first large-scale commercial order after some missteps, management changes and a company split.
It will deliver two of its Power Oxidizers, valued at $2.1 million combined, to its global commercial licensee partner Dresser-Rand. The Siemens AG unit and turbine supplier has sold and will deliver the completed power system to Pacific Ethanol Inc. to convert the waste gases from the ethanol production process at its Stockton operation into reusable energy.
The entire system costs about $5 million, a capital investment, but will enable the ethanol plant to purchase less energy for operations, saving $3 million to $4 million annually, according to Pacific Ethanol.
The two-megawatt system, which produces nearly eight times the power of Ener-Core’s two existing oxidizers in the field, will be operational next year. A megawatt of energy powers about 1,000 U.S. homes.
The startup, founded in 2008 as Flex-Energy LLC, showed promise by developing a system that turned methane gas emitted from landfills into electrical power. It raised more than $20 million from venture capitalists, including Irvine-based Sail Venture Partners, the majority owner before a reverse merger in June 2013 created Ener-Core, which trades on the Over-the-Counter board.
Flex-Energy, before the split, acquired the energy systems business of Ingersoll Rand Co. and set out to sell the division’s microturbines, microturbine systems, and recuperators that go into power stations. That strategy failed as potential turbine customers viewed Flex-Energy as a competitor.
“That turned out to be a limiting move,” said Alain Castro, who took the helm at Ener-Core in May 2013. “The best strategy was to partner with turbine companies, not be a turbine company.”
Ener-Core is making another big shift as it enters deals for stations with larger capacities.
The company plans to stop manufacturing units in Irvine over the next year to concentrate solely on licensing the technology and supporting commercialization of its licensing partners.
“Our partners will take over manufacturing,” Castro said. “These large companies, like Dresser and Seimens, they can make it at a lower cost, which is ultimately better.”
Ener-Core employs about 25 and has two smaller 250-kilowatt projects operating at University of California-Irvine and in the Netherlands, with three more projects in the works, including one at Santiago Canyon landfill in Orange.
Gaming Sector’s Impact
Walt Scacchi, research director for UC Irvine’s Institute for Virtual Environments & Computer Games, recently testified before the state Assembly Committee on Arts, Entertainment, Sports, Tourism and Internet Media at a hearing on the importance of the gaming sector in California and how the state can maintain its leadership role and strengthen its position.
OC is home to one the strongest gaming hubs in the country, with more than 15 companies tied to the thriving sector, including Blizzard Entertainment, Kingston, Little Orbit and Oculus. The local industry generates more than $2 billion annually, according to Business Journal research.
Young Tech Champs
The Broadcom Foundation and the Society for Science & the Public have announced the 30 finalists for the fifth annual Broadcom Masters science, technology, engineering and math competition. The middle school students, chosen from among 2,230 applicants in 39 states and American Samoa, win an all-expense paid trip to Silicon Valley to compete for cash and prizes. California has the most finalists, with eight, but none from OC. To see who the winners are, visit www.broadcomfoundation.org/masters/winners/2015#finalists.
