IPRO 307 Home Page - Final Report

The goals of this project are to analyze the wind resources in Chicago, verify the efficiency of a TurbodynamX wind turbine design, develop a business plan for TurbodynamX, Inc., and research feasibility for a wind farm at Iroquois Landing. These objectives were accomplished through the following tasks:

· Collect and analyze wind data from a monitoring system located at 87^th Street and Lake Michigan

· Collect and analyze wind and power data from a TurbodynamX prototype wind turbine, once installed

· Perform market research for Illinois and Wisconsin

· Analyze market data and generate a marketing plan

· Collect information on and around Iroquois Landing

Basic Organization/Tasks:

The students working on this project were divided into two groups, which allowed the team to focus on the diverse technical and business issues associated with the project. The Business Team worked on completing the Business Plan and associated tasks while the Technical Team worked on the remaining tasks.

Critical Technical/non-Technical Issues

· Information gathering from wind monitoring systems

· Feasibility research of the Iroquois Landing wind farm

Conclusion

· TurbodynamX Business Plan rough draft completed

· Preliminary Iroquois Landing research completed

Next Steps

· Build a wind farm on Iroquois Landing

· Collect and analyze data from TurbodynamX wind turbine at the Field Museum

· Use the Business Plan to obtain funding to open a TurbodynamX production facility

Advisors:

George Nassos

Said Al-Hallaj

Jean-Charles Poullain

Larry Nora

Team Members:

Introduction

Project Description

The group that is representing this project includes a sponsor, advisors, and student members. The Illinois Institute of Technology is sponsoring the project. George Nassos and Said Al-Hallaj are the acting advisors that are responsible for the students.

A program at IIT called IPRO assembled the students. The IPRO program prepares students for the practical challenges they will face in a changing workplace by emulating a cross-functional team environment. The program engages multidisciplinary teams of students in semester long projects based on real world from sponsors that reflect the diversity of the workplace.

The teams include students from all academic levels and disciplines. Through this program, students have the opportunity to develop a unique portfolio of real-world experience that will help focus their academic efforts to career directions that best fit their skills.

IIT has conducted extensive research in the energy field, specifically that of solar power, photovoltaics, fuel cells, and battery design, but very little in wind energy. Much of this work has been performed through the Department of Chemical Engineering.

A French company has developed new technology for a wind turbine that produces significantly more energy for a given rotor diameter, while at the same time eliminating most of the associated noise and dangers to birds. This company has provided a 12-kilowatt prototype unit for research purposes.

The project is not only directed to assessing the efficiency of the wind turbine, but also to the development of a unique stable energy source that integrates several renewable energy sources. The project partners have agreed to work with IIT to develop this system.

The original plan was to have the turbine installed during the Fall 2002 semester in order to conduct the research required. However, the permit required for the construction and installation of the turbine was not received until the end of April. The original objectives for the technical team were to collect and analyze wind data from a monitoring system, install two other wind monitoring systems and collect data, and collect data from the turbine once it was installed. Since the permit was not received until late April, the technical team took on another task of looking at the feasibility of a wind farm in the Chicago area, located on Iroquois landing on the south side. The business team worked on completing the startup business plan for TurbodynamX. This would focus on the market identified by last semesters IPRO team, mainly Illinois, but would expand to include Wisconsin and Michigan.

IPRO Organization

The IPRO team consisted of ten student members, two faculty advisors, two industry advisors, and one student advisor. To better focus on the diverse technical and business issues associated with the project, the IPRO team was divided into two groups, one technical and one business. Leaders and members of the Technical Team and Business Team are as follows:

Overall Team Leader

David Gosnell

Business Team

Faculty Advisor: George Nassos

Team Leader: Tom Malewicki

Team Members: David Gosnell

Kristofer Mertes

Atul Talwar

Technical Team

Faculty Advisor: Said Al-Hallaj

Student Advisor: Andrew Mills

Industry Advisors: Larry Nora

J.C. Poullain

Team Leader: Antonio Arenas

Team Members: Kavin Ammigan

Joseph Dillard

Margarita Dimitropoulou

Robert Meyer

Christie View

Tasks

Business Team

To create a draft business plan for TurbodynamX, Inc.

Technical Team

To perform wind data analysis at

To perform feasibility analysis for Iroquois Landing wind farm

Problems Encountered

Since this is the third semester of the IPRO, there was a lot of work already done prior to the start of this semester. It was therefore a challenge to catch up and learn quickly. However, we all managed to do that in a quick period of time.

Group dynamics was another factor. From the start, the way that each member of the group interacted and dealt with others was very important to the way the group functioned. Personalities of different people did clash sometimes. However, since the entire group must work together towards a common goal, most of the personality conflicts faded away after a period of time. Towards the end of our project, the group worked very efficiently.

Before going ahead with putting up the wind turbine at the Field Museum, we had to wait for the permit application to be approved by the city of Chicago. We expected to get the permit by the mid February. However, the permit application was sent back by the city of Chicago at least twice during the semester. After modifications to the application, we finally got the permit early April. Therefore, our goal of putting up the Field Museum turbine before the end of this semester was not achieved. The wind turbine should be up by early June. It will be unveiled on June 20, 2003.

On of our goals at the beginning of the semester was to obtain the permit for putting up the wind turbine at the Field Museum, wind data collection using the wind monitoring systems at different locations and lastly, a building integration study. However, a couple of weeks into the semester, our main goal shifted to a wind farm feasibility study. At that moment in time, our set of goals we were working towards seemed to be a lot. We therefore ended up dropping the building integration study and focus more on the wind farm feasibility study.

The business team encountered several problems while working on the business plan. All four of the members never had any experience in writing a business plan before, since all four are majoring in engineering. Therefore, writing a business plan for a company that doesn’t exist yet was really hard especially since the members had to come up with all the ideas. Since TurbodynamX is a small wind turbine manufacturer there isn’t that much information on just small wind turbine companies. Most companies manufacture many other products besides wind turbines. Finally, the task of writing the business plan was overwhelming, therefore the business team really didn’t write a business plan but just a small part of it. A business plan involves not just the executive summary and market plan but many other parts that deal with financial matters.

Technical Team members had to contact the Port Authority at Iroquois Landing to find out about existing surveys and development restrictions/specifications and to obtain accurate maps and property lines of the proposed Iroquois Landing wind farm. We dealt with Mr. Anthony Ianello, the executive director of the Port Authority, to get permission to set up a wind monitoring system on the site. Near the end of the semester, it was hard to get in touch with him and some required information about the site was not obtained. For example, we never got the accurate property lines of the proposed site.

The above were the main problems encountered during the semester. Most of the problems were tackled the right way and as a team, we were able to find solutions to them.

Future Tasks

On the business side, establishing a detailed business plan is a crucial step for the project. Since the purpose of the business team was to write a business plan for TurbodynamX, next semester’s business team can continue in pursuing that goal. The operational plan, management and organization, and the financial plan should be primary areas of focus beginning next semester.

During the four months of this project, a lot of technical data were obtained and the project goals became clearer. However, more work still needs to be done for the Field Museum wind turbine and the feasibility study of the wind farm. Future technical goals include:

Field Museum turbine data collection: This involves this collection of data on the wind turbine. This can only be done after the turbine is set up and running, which will be after June 20^th. Data on the amount of power generated, the wind speed, and the overall efficiency of the turbine need to be collected.

Building Integration Study: This is another future task which needs to be worked on. This involves finding ways in which turbines can be integrated in the designs of buildings. Turbines may be placed on top of buildings or even between buildings.

Further study on Iroquois Landing wind farm: Further feasibility study could be done on the proposed site. This includes the FAA’s final say about having the wind farm next to the heliport. The accurate property lines of the proposed site (Iroquois Landing) must be obtained. Further studies on noise and birds must be done. Environmental studies must be carried out too.

Turbine Foundations: Different options for foundations of the wind turbines should be looked at. A cost analysis of the different options for foundations should be done as well.

Background

Introduction

As the economic and environmental cost of using fossil for electricity generation increases, cleaner alternative sources of energy are being sought. One form of alternative energy already employed with a lot of potential is wind power.

Wind power generates less than 1% of the total electricity in the United States. Coal, oil, and gas fired plants account for almost 65% of the electricity produced. Many harmful gases such as a sulfur dioxide and carbon dioxide are produced and byproducts, negatively impacting the environment. Using current technology, wind could be used to generate at least 30% of the electricity required in the United States, while creating no pollution.

Current wind resources are located in rural areas in large facilities owned by utilities. States such as California, Minnesota, North Dakota, Texas, and Wisconsin are using these wind farms. While successful, these wind farms have some limitations. Large-scale wind farms consume vast amounts of space. While the land may still be used for agricultural purposes, in an urban setting large wind turbines are not feasible. Urban areas also produce large amounts of turbulence reducing the efficiency of wind turbines. Additionally, large wind turbine farms must be situated in areas with strong constant winds, which are usually located far from utility connections. As a result large costs can be incurred when building the infrastructure to transmit the electricity generated to the power grid.

While smaller, most current turbine models still take up large amounts of space due to the construction of their towers. Currently most small-scale wind turbines use a lattice truss anchored to guy-wires spreading some distance from the tower. In addition to the extra space used, the guy-wires present a hazard for birds, as they have difficulty seeing the wires while flying.

Instead of using the open truss design, the TurbodynamX model favors a tubular steel design to raise the turbine to its 30 feet height. A tubular steel mast offers several advantages over the open truss design. As a freestanding structure with an engineered concrete footing, the tubular steel mast does not require guy-wires. Without any guy-wires, the turbines footprint is reduced to the mast’s footings and other associated equipment.

Additional advantages of the TurbodyanmX design opens up previously untapped wind resources. Smaller simpler turbines must use the wind to orient themselves directly into the wind. By incorporating a computer controlled swivel device, the TurbodynamX model can orient itself into the wind. When the wind velocity increases beyond the designed efficiency of the turbine blades, the computer can automatically pivot the turbine away from the wind to maintain optimized airflow by reducing the surface area facing into the wind.

Smaller wind turbines are becoming more feasible as newer generations are extracting more power from the wind; however further advances are still possible. Systems integration and some state funding are available to make wind turbines a clean and attractive source of energy. The State of Illinois DCCA provides financial assistance and rebates for wind turbines at $2000 per kW.

Smaller wind turbine systems can be divided into two categories: connected systems and remote systems. Connected systems are connected to the existing electricity grid, while remote systems are placed where the utility infrastructure has not reached the area.

In connected systems, the wind turbine is connected to a building as a supplement, where the power generated by the wind turbine is consumed as it is generated. A building with a wind turbine supplementing its grid connection can potentially lower its electricity costs.

While the power generated by the wind turbine may peak at the manufacturer’s specifications, the generated supply is rarely constant. The create greater efficiency with wind turbines, a storage medium such as batteries can be used to store the electricity produced when wind is abundant and discharged as needed. Systems with storage capacity may be used in applications where blackouts are frequent. Economic benefits include the use of wind-generated electricity to flatten out the peaks in electricity costs seen daily.

Remote systems offer another potential method to exploit the power of the wind. In areas inaccessible to utility connections, or unincorporated areas where there are no utilities, wind turbines with a storage medium could supply power. Applications include communications relay stations, which are usually located far away from civilization, and require a constant supply of power.

Rural buildings that require energy but are not connected to the utility grid could also benefit from wind turbines. A wind turbine working in conjunction with a diesel generator will allow for a steady source of power. Power generated by the wind turbine will supplement the power generated from a diesel generator, reducing its load and byproducts created from it.

Additional uses for wind turbines are mechanical work, such as pumping water. Windmills in the countryside have been used for hundreds of years to pump water to irrigate fields and fill water troughs. Generally, a windmill had to be directly over the source of the water, usually preventing optimal siting. A wind turbine used to generate electricity to perform mechanical work allows for greater flexibility. A wind turbine may now be placed where the winds are favorable, while the pumps can be placed remotely. Additional benefits of an electric system are simplicity and greater capacity. Electric pumps are usually easier to maintain and have a higher capacity than traditional windmills.

Illinois, through DCCA, offers economic benefits to promote wind turbines as a source of energy. A grant of 50% up to a maximum of $2.00 per watt, with a maximum of $400,000 is offered if the peak output is 10kW to 999kW. TurbodynamX’s wind turbine is eligible for this grant. Additionally, net metering is being offered by public utilities such as ComEd to promote local sources of power generation. If a customer installs a wind turbine for a building connected to the grid, the utility company will buy back the excess power generated or turn back the customer’s meter. Advantages of this scheme help eliminate the need for a storage medium, reducing the total cost of a wind turbine system.

Wind power will never generate 100% of the electricity consumed in the United States, however, wind power has the potential to reduce dependence on much more polluting forms of energy. Coupled with other clean sources of energy and storage mediums on a smaller scale, wind turbines have the potential to create clean and reliable sources of energy on both a large and local scale.

Potential of wind generation sites are graded by a feasibility scale of 1-4. While the majority of the northern portion of Illinois has fair resources, there are pockets with excellent wind resources. Towards the southern half of Illinois the wind resources begin to taper off. Additionally, local pockets of good to excellent resources are found as a result of local geography. An example is the shoreline of Lake Michigan, boasting good to excellent wind resources due to the lake effect.

Economically, Illinois enjoys a strong position in population and economic activity. Roughly ¾ of the 12,000,000 population lives in the northern portion of the state.

Counties such as Cook, Kane, and McHenry boast high population numbers. Kane and McHenry counties also lay claim to some of the wealthiest residents of Illinois with a median household income of $60,000. Industries in the northern portion of the state include a mix of heavy manufacturing, trade, and service industries. In Cook County for example, the revenue from manufacturing exceeds $74 billion, and trade accounts for $120 billion in the county’s economy.

In the middle portion of Illinois, the population density thins out considerably. Median household incomes also decline in the southern region of the state. Industries in the southern portion of Illinois are based on agriculture, industrial manufacturing and trade.

Agriculture plays a large part in the region economy with the majority of the land used in the production of various grains. Industries also take advantage of the lower population density to establish heavy manufacturing plants. Finally trade and transportation plays a major role economically as the production from both the fields and factories needs to be distributed regionally and beyond.

Counties such as Peoria and McLean County are the economic heavyweights in the middle region of Illinois. McLean boasts revenues of $3.8 billion in manufacturing and $1.3 billion in trade. Peoria boasts revenues of $4.3 billion in manufacturing and $5.8 billion in trade.

Turbine Specifications

The wind turbine is a three-blade fairing-mounted wind turbine. A fixed ring or fairing surrounds the blades. With an optimized profile, the fairing improves air distribution for a given flow rate, minimizes sound emission, provides greater wild life protection and gives the turbine a higher output than turbines without a fairing. Also featuring an automated management system, this turbine swivels into the optimal angle for production. In case of an emergency, a warning signal can be sent via a mobile phone or a fax machine.

Performance:

Operating speed

Start-up wind speed 6.71 mph

Nominal wind speed 30.32 mph

Cut-out wind speed 67.11 mph

Survival wind speed 201.33 mph

Fairing:

Overall diameter 17.30 ft.

Leading edge diameter 15.09 ft.

Materials GFP Epoxy Resin

Rotor:

Diameter 14.44 ft.

Number of blades 3

Blade materials GFP Epoxy Resin

Generator:

Type Synchronous

Drive Direct

Excitation Permanent magnets

Nominal power 12 kW

Nominal rotation speed 282 rpm

Rotation range 0-325 rpm

Turning system:

Type Active, 2 geared rotors

Rotation speed 3.6 degrees/s

Control Microprocessor A photograph of the TurbodynamX CH CAP HORN 10/POL prototype turbine to be installed at the Field Museum

Operating temperatures -40 to 40 (degrees C)

Business Plan

Executive Summary

Renewable clean energy comes from sources such as; solar, wind, biomass, hydrogen, geothermal, hydroelectric, and from ocean waves. The only forms of energy that are economical almost anywhere in the world are solar and wind energy. Though the sun shines everyday, the electricity produced through solar cells wouldn’t be enough to power an average home at all times. Therefore, wind energy is the consumer’s number one form of renewable clean energy to power homes and provide electric power for other purposes. Since a small wind turbine needs a startup wind speed, the location of the wind turbine is very important. The average wind needs to be a certain speed and the wind turbine needs to be efficient. TurbodynamX currently manufactures only one wind turbine, the CH CAP HORN 12/5.3, which is more efficient than any other unit of comparable size in the world.

TurbodynamX is a company that wants to produce and sell 12 kW wind turbine units in the Midwest. The CH CAP HORN 12/5.3 small wind turbine is a breakthrough in wind turbine technology. This wind turbine has a composite fairing around its blades. Imagine an long airplane wing surrounding the blades, due to the same reasons that airplanes get lift from its wing, the TurbodynamX’s fairing surrounding the blades produces a wind draft that gets sucked on the inside of the fairing This extra wind makes the TurbodynamX’s 12kW wind turbine 50% more efficient than any of its direct competitors. The CH CAP HORN 12/5.3 is able to produce electricity at wind speeds greater than any others wind turbine. While the competitions wind turbines have a low wind cutoff, TurbodynamX’s wind turbine keeps going at much higher wind velocities, therefore making it more efficient. Its breakthrough technology will keep the wind turbine producing 12kW continuously and returning a higher and faster payback.

Due to the rising awareness of air, water, and land pollution, Illinois and other states have set goals to decrease pollution all together and wind turbines are the forefront in meeting the states objectives. The increase in states incentives for using and connecting their renewable energy to the power grid will drive the consumer’s price for a wind turbine for half the price. These incentives and the highly efficient 12kW CH CAP HORN 12/5.3 wind turbine will be the leader in producing small wind turbines for farmers, green energy activists, early adopters of this technology, and entrepreneurs. There are many remote farms and homes that aren’t connected to the power grid, and they would benefit the most from TurbodynamX. While other homes and farms that are connected to the grid can buy a TurbodynamX wind turbine, these owners are more energy conscious and would like to make a profit in the long run. Entrepreneurs that would like to treat the wind turbine as an investment and companies that would like backup power for their facilities would also purchase a wind turbine, due to its clean and continuous power generation. Many of the 12kW CH CAP HORN 12/5.3 wind turbine owners would be very energy conscious people because this wind turbine is very efficient for its size. There are hundreds of remote farms and homes all over the Midwest with sufficient wind speeds. Therefore, these customers are looking already for a convenient and reliable source of energy, which provides an opportunity for TurbodynamX to give them just that and much more. Not only is the TurbodynamX wind turbine more efficient than any other but it on board processor and its low maintenance cost will keep any customer happy at all times.

As for the future, TurbodynamX will benefit from it as long as there is wind. In the near future, there will be more incentives which will mean more customers shopping for efficient, reliable, clean energy. More states adopting states incentives for renewable energy means that TurbodynamX can expand outside Illinois, Wisconsin, and Michigan. There are many states with or without incentives that can benefit from wind energy. TurbodynamX may also produce larger wind turbines that can power more than just two average homes. TurbodynamX wind turbine may find itself powering large scale homes, large businesses, and even maybe communities.

General Company Description

TurbodynamX is a company that produces wind energy equipment that generates clean renewable energy. TurbodynamX is interested in expanding the market for this renewable energy and to provide power generation equipment for consumers. It wants to be recognized as the leader in producing highly efficient, reliable, and cost effective wind turbines. This company wants to become the primary source of small wind turbines in the US. In the first year its goal is to produce, sell, and install 100 units and then increase sales volume by 25% annually. By the fifth year of production it is expected to reduce the installed turbine price by half, and have 25% of the market. TurbodynamX customers would be people or businesses that are not connected to the power grid. This includes institutions such as hospitals, schools, universities, and governmental buildings, energy conscious consumers, and industries. The wind energy industry is a relatively new industry in the Midwest, but increasing due to governmental green energy laws and incentives for using renewable energy. With more states adopting clean energy legislation the market for wind energy is expected to increase. This increase in green energy laws and the market will drive the consumers to TurbodynamX due to its quiet and more efficient wind turbine than any other on the market. This product is more efficient than that of any direct competitor. CITA (Compagnie Internationale de Turbines Atmospheriques) has developed the technology for TurbodynamX which has the right to license it in the U.S. and CITA in Europe. CITA has also developed a custom small wind turbine to be used in Antarctica.

Products and Services

The product produced manufactured by TurbodynamX is a 12kW small wind turbine. The blades are surrounded by a composite fairing which increases the wind velocity that passes through the blades. Blade pitch is variable which is controlled by sophisticated electronics, in order to protect the turbine and to generate as much power as possible. The wind turbine cell pivots at the top of the mast to face into the wind. The fairing allows a TurbodynamX wind turbine to produce as much as 50% more power than most wind turbines for a given rotor diameter. The variable pitch blades allow the TurbodynamX wind turbine to continue generating power at wind velocities greater than its competitors. The basic installed wind turbine cost will be $60,000. Wind assessment studies, ground studies, permitting, and regulatory work, are not included in this price. Leasing and financing will be available through a preferred financial institution.

Economics

The market for small wind turbine is relatively small compared to the overall size of the wind energy market. Wind energy is the fastest growing form of energy production in the U.S. and in Europe. It is estimated that wind energy grows at 25% each year. Wind energy in the U.S. is nothing compared to the amount of megawatts that European countries such as Germany, Spain, and Denmark utilize. When wind energy is talked about most it’s mostly known by huge wind farms where each wind turbine can produce as much as 3MW. TurbodynamX manufactures wind turbines that are smaller than 100kW and the market for small wind turbines is the greatest in the U.S. The leading producer of small wind turbines is the U.S. and the market for small wind turbines grew more than 35% during the past year. In addition, the U.S. has over 15MW of power generated from small wind turbines alone more than any other country.

The growth potential for TurbodynamX is increasing every year because of the rising incentives at the state level. Many states have issued buy-downs, retail production tax credit, net metering, and other incentives that help buyers pay for their wind turbine equipment and buy the excess electricity produced by the wind turbine. States adopting their own incentives will drive the small wind turbine market incredibly and help TurbodynamX to become ahead of any other company in the small wind turbine market.

TurbodynamX is a new manufacturer of small wind turbines but a barrier that it faces with the public is the unique technology that it has patented for its 12kW wind turbine. The composite fairing around the blades of the TurbodynamX 12kW wind turbine is a huge advantage to the wind turbine and a new technology developed by CITA. The biggest obstacle that TurbodynamX faces is convincing the public that the composite fairing is an advantage and a needed piece of equipment that improves a small wind turbine significantly. Another barrier that TurbodynamX faces is high production costs because of the expensive composite material it uses for its blades and fairing. TurbodynamX leading in the market for producing small wind turbines will drive the costs of the composite material down. New government regulations and incentives will drive the public to buy more economical small wind turbines and this will turn the public to buy only TurbodynamX wind turbines.

Product

The CH CAP HORN 12/5.3 is the only product of TurbodynamX right now. This is a 12kW small wind turbine that has a composite fairing around its blades (see Figure 1 in Appendix). This wind turbine also has blade pitch capability which faces the unit into the wind and regulates power generation as well. It only needs 30W of power to operate. Please see Appendix A.1 for further features of the CH CAP HORN 12/5.3.

The blade pitch allows power generation at up to 30 m/s wind speeds. The fairing and the blades are made from GFP Epoxy Resin. This makes the wind turbine relatively light, therefore making movements more efficient and with ease. The faring and the blade pitch allow the wind turbine to be very efficient in maintaining the 12kW continuously. The faring also helps the CH CAP HORN 12/5.3 achieve being one hundred percent more efficient in power generation than any other wind turbine of the same size. Due to the craftsmanship and the GFP Epoxy Resin, the maintenance is reduced to only once a year.

Customers

Residential Customers

Farmers Without Grid Access – Rural residences that are not currently connected to the power grid, and which are too far from the grid for connection to be economically viable.

· Age 35-70

· Gender Both

· Location Remote Rural

· Income level $17,000-$26,000

· Social class/occupation Farming

· Education High School/College

· Access to Grid No

Farmers With Grid Access – Rural residences that are currently connected to the power grid, but want a wind turbine to reduce energy costs.

· Age 35-70

· Gender Both

· Location Rural

· Income level $17,000-$26,000

· Social class/occupation Farming

· Education High School/College

· Access to Grid Yes

Green Energy Activists – Customers dismayed with conventional energy production practices who are willing to pay a premium in order to ensure they are using clean energy.

· Age 25-45

· Gender Both

· Location Metropolitan

· Income level $25,000-$65,000

· Social class/occupation Blue Collar/White Collar

· Education High School/College

· Access to Grid Yes

Early Adopters – Persons who have the financial capacity to purchase a wind turbine and do so simply for the novelty or bragging rights.

· Age 30-70

· Gender Both

· Location Metropolitan/Suburban

· Income level $45,000+

· Social class/occupation White Collar/Retired

· Education College

· Access to Grid Yes

Entrepreneurs – Persons intending to treat the wind turbine as an investment. That is, someone who purchases a wind turbine in hopes of generating enough electricity to both power his or her own home and sell the excess to generate income.

· Age 25-45

· Gender Both

· Location Rural/Metropolitan/Suburban

· Income level $30,000+

· Social class/occupation Self-Employed

· Education High School/College

· Access to Grid Yes

Corporate Customers

Service Critical Corporations – Companies that need a constant source of energy, independent of the power grid. Although connected to the grid, these companies need an uninterruptible source of energy to conduct their business. It will probably need to be connected to an electrical storage unit.

· Industry (or portion of an industry) Medical/Technology/Telecommunications

· Location Metropolitan

· Size of firm Medium/Large

· Quality/technology/price preferences High Tech/Reliable/Price is no object

· Energy Demand High and Constant

Energy Conscious Corporations – Companies that provide a green product, or wish to promote an energy conscious attitude. These companies are willing to pay a premium for green energy.

· Industry (or portion of an industry) Sporting/Outdoors/Various

· Location Metropolitan

· Size of firm Small/Medium

· Quality/technology/price preferences High Tech/Reliable/Price is no object

· Energy Demand Moderate during normal business hours

Schools – Schools which intend to teach the benefits of green energy, including wind energy, would greatly benefit from having a wind turbine on site.

· Industry (or portion of an industry) Education

· Location Metropolitan/Rural

· Size of firm Small/Medium

· Quality/technology/price preferences New Technology/Low Price (grants)

· Energy Demand Moderate during normal school hours

Government Agencies – These organizations would be able to greatly reduce the cost of wind turbines with grants and subsidies. Also, the energy generated by on-site turbines would help to fulfill renewable energy quotas implied by law.

· Industry (or portion of an industry) Government

· Location Metropolitan

· Size of firm Medium/Large

· Quality/technology/price preferences Low Price (grants)

· Energy Demand Moderate during normal business hours

Competition

Presently, TurbodynamX product consists of a wind turbine capable of generating 12 kW of power. Established companies also have turbines ranging from small to large, generating anywhere from a few hundred watts to a few million watts. The following is a list of major competitors and their location in the United States.

· U.S. Wind Turbine, LLC - Kentucky

· Airmisc Co. - Illinois

· Enerex L.L.C - Michigan

· Windstream Power Systems Inc - Vermont

· American Independent Power - Massachusetts

· Atlantic Orient Corporation - Vermont

· Bergey Windpower Co. - Oklahoma

· Free Earth Cooperative - California

· Northern Power Systems - Vermont

· PicoTurbine - New Jersey

· Sencenbaugh Wind Electric - California

· Southwest Windpower, Inc. - Arizona

· Terra Moya Aqua, Inc. (TMA) - Wyoming

· Wind Turbine Industries Corporation - Minnesota

· Windlite Corporation - California

· Wingen 2000 - California

The companies listed above will compete with TurbodynamX in production, sales and services offered after purchase. Even though TurbodynamX only has one competitor in Illinois, most companies offer out of state sales. In addition, the companies listed above offer a far more diversified product line-up including solar, water and hybrid energy units.

The services offered by TurbodynamX to its customers will be the same as any other renewable corporation. The TurbodynamX product, however, will be superior in quality and efficiency, driving the unit price down.

Table 1: Competitive Analysis

Factor	TurbodynamX	Strength	Weakness	Bergey Windpower Co.	Airmisc Co.	Windstream Power Systems Inc	Importance to Customer
Products	12 kW small wind turbine	x		10 kW small wind turbine	8 kW small wind turbine	12 kW small wind turbine	4
Price	$60,000		x	$35,000	$25,000	$42,000	5
Quality	Long lasting, services for any encountered problems	x		services for any encountered problems	services for any encountered problems	services for any encountered problems	4
Service	Installation, maintenance, services	x		Installation, services	Installation, services	Installation, services	3
Reliability	Great	x		Good	Good	Good	3
Stability	Great	x		Good	Good	Good	4
Company Reputation	Known in France, stating up in the US		x	US based	US based	US based	2
Location	USA	x		USA	USA	USA	2
Credit Policies	Credit for old products	x		None	None	None	3

From the table above TurbodynamX strengths outweigh its weaknesses. The price paid for a turbine from TurbodynamX is much higher than any of the leading competitors, but the quality and effectiveness of the product is also much higher. TurbodynamX turbine uses wind more efficiently to generate more power for longer periods of time. Even though TurbodynamX is a new company in the United States its sister company in France is well known and reputable.

Niche

The need for renewable energy in the world is increasing faster then ever. More and more companies are realizing and dealing with this demand by producing a wide range of systems producing power from natural resources. One of the most abundant resources that these companies are taking advantage of is wind. That is where TurbodynamX comes into play, producing the most efficient wind turbine available. Though the initial cost inches higher than leading competitors, the payback is higher, making TurbodynamX the company of choice.

Strategy

Promotion

TurbodynamX will use advertising, word of mouth, and renewable energy conferences to get the word out about their new product. Advertisements and articles can be placed in scientific and renewable energy magazines to introduce their wind turbine into the market. These will be the best places for the ads because consumers interested in renewable energy may likely read these types of magazines. Methods other than paid advertising could be a brochure of company products and an introduction into renewable energy, conferences that deal with the topic of renewable energy and the idea of dealer incentives if a consumer changes brands of wind turbine to those produced by TurbodynamX. Word of mouth can also be used for promotion of the company, and this would be stimulated from satisfied users of TurbodynamX brand wind turbines. Another idea for company promotion would be to have the company name or website painted somewhere on the turbine itself, in order to introduce viewers of the turbine to the company. TurbodynamX could be painted on the fairing surrounding the blades, since the fairing remains still while the unit is in operation. TurbodynamX would also like to obtain contracts with larger institutions such as universities, hospitals, or cities in order to get the product out into the market. They could also include a discount on the purchase of the turbines, for a large quantity purchased. TurbodynamX would also put in place a system that would contact customers on a timely basis, to question them about their wind turbine. This contact would be done to see how the turbine is working, to find out if there are any problems, and to see if the customer is satisfied. This will help to promote a strong interest in customer service and satisfaction.

Pricing

The price of the TurbodynamX consumer wind turbine is set at $60,000. However, this price can go down with state tax incentives, net metering, rebates, and state grants, which are listed below for Illinois, Michigan, and Wisconsin. This price is higher than the main competitors of TurbodynamX, but this is due to many factors. The TurbodynamX wind turbine uses different technology which produces more power for a given rotor diameter. The wind turbine is also claimed to be a more efficient, higher quality, and longer lasting turbine compared to those of competitors. The material cost is also higher due to the use of composite materials. Although the price of the TurbodynamX turbine is higher that that of competitors, due to consumer interests it is believed that this will not have a great effect on consumers. Consumers of wind turbines would be interested in a product that is of high quality and has a long lifetime. The customer service provided by the company that produces the turbine would also be important to the customer. TurbodynamX believes that they produce the highest quality and longest lasting wind turbine on the market. TurbodynamX would also like to have a service team that would visit customers to provide maintenance for the turbines, and they would fix any problems encountered by the owner. Due to the cost of the turbine, TurbodynamX would like to use a finance company to handle the customer payments for the turbine.

State of Illinois Wind Energy Incentives

The state of Illinois has a property tax provision for renewable energy systems, which allows the wind energy system to be valued at no more than a conventional energy system. This tax assessment applies to industrial, commercial, and residential areas.

Commonwealth Edison created a billing experiment in 2000 for net metering of wind energy systems that generate 40 kW or less. This net metering program is available to all customers, but the total enrolled is limited by a generating capacity, which cannot exceed 0.1 % of the peak demand of the utility. Any excess generation will be purchased by the utility at the avoided cost for energy.

There are also rebates and buy downs available for wind energy projects. These funds can be granted for a wind project that is larger than 10kW, up to sixty percent of the project cost up to a maximum amount of $300,000. Associations, individuals, private businesses, public and private schools, colleges and universities, non-profit organizations, and units of state and local government are eligible for these rebates. Any recipients must be located within the service area of an investor owned or municipal gas or electric utility.

State grants are available for funding of capital projects of renewable energy technology, including wind. These grants range in value from $60,000 to $1 million, and the current value per year is about $5 million. However, these grants are not available for residential projects.

There has been an Illinois Clean Energy Community Foundation set up, which is a one time $250 million foundation. This was set up in 1999 from ComEd selling off its coal power plants. A portion of these funds goes to clean coal technology and development, a portion to efficiency, renewable energy, and environmental projects.

The City of Chicago also has a $100 million fund for projects that benefit the environment.

The Renewable Energy Resources and Efficiency Programs and the Illinois Clean Energy Community Trust may also be used to fund some research and outreach programs.

State of Michigan Wind Energy Incentives

The state of Michigan does not have any state tax incentives to help with the cost of a wind turbine system. However, the state started offering a $3 per watt payment to install a wind turbine system in 2001, up to a maximum payment of $5,000 per applicant. The only problem being that this fund was spent in the first four months and has not been extended. Michigan also does not have and research or outreach programs for wind energy.

State of Wisconsin Wind Energy Incentives

The state of Wisconsin has a property tax incentive for industrial, commercial, and residential taxpayers. They can claim an exemption for any value added by a qualified wind energy system for property taxes.

Limited funding grants are also available under the state’s Renewable Energy Assistance Program. Technical grants of fifty percent of a project up to $15,000 and construction grants of ten to twenty percent of a project up to $75,000 are available. Businesses, municipalities, and non-profit organizations are qualified for these grants.

Low-interest loans are available to homeowners in order to finance wind energy applications on existing one or two family owner-occupied homes.

Wisconsin also offers cash back rewards and state rebates. A fund of $500,000 is in existence in order to offset the costs of installing renewable energy systems. Payments will be made ranging from $200 to $50,000 with a maximum of twenty-five percent of the installed cost. This rebate is decided from a technology and system specific formula. The payments are based on the size of the wind turbine and the estimated annual power generation for the turbine. Those eligible to participate are individuals, businesses, institutions, state, tribal and municipal governments, and non-profit organizations. These funds are given out after the wind turbine system is installed. Anyone involved in a low-interest loan program is not eligible for a rebate.

Any system that generates under 20 kW is available for net metering. The excess generation at the end of a monthly billing period is credited to the customer at the retail rate for renewable energy.

A public benefits fund of $80 million per year was created in 2000 for environmental research, energy efficient programs, and renewable energy.

Proposed Location

TurbodynamX has already decided on a location in Chicago, Illinois. The chosen location may be important to potential customers. Customers will be welcome to visit the place of business in order to purchase a turbine, or for any questions they may have. The building layout will include an office area for these purposes. A visit to the place of business would only be convenient for potential customers who live in the Chicago area. Anyone outside this area would not likely be visiting the business. These customers would most-likely purchase a turbine by phone, fax, or e-mail. Competition is not located within close proximity to TurbodynamX.

Distribution Channels

TurbodynamX will sell its turbines in many ways: by visits from customers to the place of business, over the phone, by fax, or over the web. A website will be set up which displays the products and shows ways to conduct the purchase. TurbodynamX will have salespeople on its staff, which will complete sales of turbines to customers. However, the customer will be responsible for finding a contractor to install the turbine at their location.

Appendix A

Technical Team

Wind Monitoring Systems: USX Data

In the beginning of the semester we hoped that the permit for installing a wind turbine in the Field museum would have been approved and that we would have been able to collect data from the site throughout the semester. However, the permit was approved on Friday, April 4, 2003, not allowing the technical team any time to collect and verify the wind data from the Field museum site. Therefore, over the last three months wind data have been collected from the USX site.

Members of the technical team visited the site and helped in the collection of the data for month February. However, the tasks of semester IPRO did not include conducting the analysis of the data. The wind analysis was a continuation of previous semester’s IPRO work and was conducted as a study for the city of Chicago, Department of Environment. The analysis that is included above is obtained from this study.

Obtaining the chip for the wind analysis –February 17 2003

The data that is essential for this study are the mean wind speed, the distribution of the wind speeds, and the direction of the wind speed. Table 1 portrays the mean wind speed and the distribution shape factor for months December to April. The available wind energy will be predicted based on those two parameters.

Average Wind speed
Month	m/s	Mph	Shape Factor
December-02	6.45	14.43	2.6
January-03	5.74	12.84	2.6
February-03	5.75	12.87	1.9
March-03	5.18	11.59	2.14
April-03	5.01	11.21	2.7

Table 1 – general patterns in wind data – mean and shape of distribution

The wind speed range is of Class 4 which is “near good” or “good” for wind power. However the annual wind speed is expected to be lower due to the fact that the following months to be studied are not as windy as winter months, as concluded from previous studies.

The wind rose in Figure 1 above shows the directional content of the wind for the entire data set.

Figure 1 – Wind rose for entire dataset (December-March)

As we observe from Fig. 1 shows the prevailing wind direction is from the west. Furthermore, winds from the southwest and northwest are as common. The prevailing wind direction will be utilized in keeping the wind turbine from obstructions in the direction of the prevailing winds. Equally important, is the energy content of the wind from each direction. It is possible for the wind blowing from a certain direction at low speeds, to have a low wind energy content. The Figure 2 above, the wind energy compass illustrates that information.

Figure 2 – Wind energy compass for entire dataset

Figure 2 shows that the wind blowing from the lake, is of very high energy content. This wind generates power proportionally higher than that from the steady winds from the west and therefore it is important to capture it.

The monthly average wind speed dropped as expected in March from 5.7- 6.4 m/s during the previous months to 5.18 m/s. According to that data set, the wind speed should drop even more as summer approaches.

By comparing January and March, who had a low shape factor, we observe that although the mean wind speed was lower on March, the energy production will be higher than if wind speed was low and The low shape factor found during the analysis of the March data shows that although the mean wind speed was low, the energy production will be higher than if the wind speed was low and the shape factor was higher.

Figure 3-6 illustrates this claim.

Figure 3 – Comparison of wind data from January and March

Figure 4 – Comparison of energy distributions for January and March using an ideal turbine

From the data from month March we can see that the energy produced will be decreased by 14%. However, looking at Figure 5 below, we can see that if the shape factor of March was similar to the one of January, the energy produced in March would be 26% less than that of January.

Figure 5 – Comparison of January to hypothetical case with high shape factor in March

Figure 6 – Comparison of January to hypothetical case with high shape factor in March

In conclusion, “the wind resource at the USX site is “good”, but may fall to “near good” later in the study. The important directions to keep unobstructed when sitting a wind turbine are the west and northeastern directions. Also, the wind from the lake is infrequent; however, it carries a high-energy content”.[1].

Wind Farm Feasibility Study: Progress

Property

The major concern of the technical team for this semester was the wind farm feasibility study at Iroquois Landing. For this purpose information about the land was gathered and analyzed. The Iroquois Landing block, which lies from the Calumet River to Calumet Park is owned by the Port Authority and is zoned for heavy industry. Port Authority has shown interest in allowing wind assessment tower to be erected. They requested information about height of tower, depth of digging, duration installation, collection of data, and removal, and access to any other pertinent technical information.

Quality of Available Land

The whole property is filled with slag (residue from iron ore to steel conversion), Dredge spoils (sand and silt), Biological Sludge (biologically treated sewage), construction materials (brick, wood, ash and cinders). Moreover, digging farther than five feet into soil (land fill), will probably result in hitting water, clay and mud mixture. Digging approximately 100 feet will result in hitting bedrock. The terrain is uneven, hilly and covered with various vegetation which includes 12’ to 30’ feet trees, shrubs, and grasses. Analytical survey information with soil samples will be provided from the Port Authority after the receipt of wind assessment proposal and approval of the proposal. Specifications and pertinent information was made available to Anthony Ianello, director of the Port Authority per his request and are now waiting for him to obtain surveying and property line information from his engineers.

Property

The northern one third of the land located parallel to the Calumet River is currently operated by a company named CERES. All of CERES land is constantly in flux, except in winter months and therefore there is no available land for a permanent structure.

Heliport

A Heliport that is operated by Chicago FD – Air Sea Rescue is located on the Southeast corner of the Iroquois Landing site. The heliport is regulated by FAA, and it includes three flight patterns: westbound, eastbound and northbound paths from the heliport. The FAA Regulations state that heliport must have at least one unobstructed flight path; therefore, north and west bound paths may need to be removed or redirected due to turbine height. Moreover, it should be taken into account that communication is important for the heliport and consequently, turbines must not interfere with radio signals (EMF interference).

Other leases exist on the site and additional information on the property lines will be provided by Anthony Ianello.

Bird Issues

Any wind farm study should contain information about the wildlife as well as the bird and noise issues that are related to the site studied. In our case, Iroquois Landing is situated close to a residential area. Calumet Lake and the University of Chicago area are major bird areas, but there is no reference to the Iroquois Landing as a bird area according to the birding page on the City of Chicago website. However, students visited the site and there appears to be a large population of seagulls in the area. The Calumet Park which is north of the Iroquois Landing serves as a gathering place for seagulls especially in the summer when people come out to feed the birds. Thus, the project should continue taking into consideration bird safety to avoid hurdles in the future. Luckily though, from research conducted it appears that death of birds from wind turbines is not a major issue. A publication by the National Wind Coordinating Committee (NWCC) contains the following estimates for avian death in the United States.

· Approximate 100 million to well over 1 billion deaths

· 60-80 million from vehicles

· 98-980 million from buildings and windows

· 174 million from power lines

· 4-50 million from communication towers

· only 10,000-40,000 from Wind generation facilities

The data above suggest that wind generation facilities are responsible for only about .01-.02 percent of avian death in the U.S, which is about 2.19 deaths per turbine per year.

An additional concern is that since the land is undeveloped, it may well be a habitat for various types of wildlife. Environmental assessments will need to be carried out to determine if the place is ideal for a wind farm.

Noise and Visual Issues

As far as the noise from the turbine is concerned, studies have shown that a conversation could be held at the base of turbines. At 650ft, which is the recommended distance from the tower base, the noise from a turbine is less than 47dB, below the noise generated by a kitchen refrigerator or even normal conversation. Furthermore, research on other wind farms revealed that the Sprit Lake site in Iowa has 660 kW turbines very close to playground outside of school. Additionally, it is known that wind turbines have been erected on farmland and farmers can plant crops without interference from structures. One visual issue revealed after studies on various wind farms, is the Rotor clip that causes blinking due to shadow. However, shadow will only be cast in direction of residences only in early morning and evening hours.

Taking into account Chicago’s climate and browsing through various wind farm websites on similar climates we decided that possibility of ice buildup on the blades should be examined. Build up of rime ice (white ice) is the most common problem on the rotor blades. This is due to the weak bond in between its ice particles. Thus, most wind farms are at least 650ft from any road or residence for safety reasons. Preventive measures of ice throw include sensors that turn off turbine during severe icing, heaters on rotor blades, and special coatings or finishing paints (Teflon or black paint). However, ice throw is not common, but it is known to happen. Most ice build up falls directly beneath the turbine at its lowest point. This means that in our case the wind turbines should include preventive measures to confront this obstacle.

Wind Farm Construction Issues

For the wind farm project to be implemented there will be a need to dig out access roads, for cranes and general access to the site. Furthermore, local traffic will be created by semis and cranes during the period of construction. One more construction issue will be the type of foundation used. Our foundation options should be cost and technically feasible. The cost of foundations for offshore turbines doubles. Fill is not natural land, but its purpose is to build structures upon it. The suitable foundation used will be determined after studies of the land have been conducted. Foundations for the type of turbines we are looking into have a 14’ diameter and a depth of 28’ and should cause any problems.