Transcript Investment Summary - Quantum Fusion, Inc.

Fusion: Disruptive Innovation
 We have discovered a means for achieving microthermonuclear fusion in vibrating gas bubbles in liquid
 Our discovery allows constructing inexpensive power
generators that run on deuterium
 Our technology will render fossil fuels obsolete
 Because our work parallels controversial “bubble fusion”
we go against “expert opinion”
What is Fusion?
 Hydrogen isotopes deuterium and tritium combine
forming helium and releasing massive amounts of heat
 10 micrograms of deuterium = 1 barrel of oil (!!!)
Why Fusion?
 Everyone agrees that fusion energy (which powers the
sun) is the power of future
 Unlike chemical energy that comes from burning fossil
fuels fusion energy produces no emissions
 Unlike conventional nuclear power fusion does not
produce radioactive waste
 Unlike wind or solar power fusion energy does not
require massive installations and is virtually free
(deuterium is cheap and we need minuscule quantities)
Where is Fusion?
 Government has spent billions and decades of research
on fusion projects involving giant magnets (magnetic
confinement) and powerful lasers (inertial confinement)
 These fusion mega-projects are unsuccessful but “toobig-to-fail”, so funding continues
 Proponents of fusion mega-projects are threatened by
“cold” fusion and “bubble fusion” and therefore will
thrash any competing idea
Competing Idea: Cavitation
 Cavitation is a natural process that results in formation of
bubbles in liquid
 Cavitation bubbles expand and collapse violently releasing
tremendous energy that easily eats through thick metal
parts in pumps and turbines
Cavitation-Induced Fusion (CIF)
 Theoretical calculations show that under the right
conditions gas within cavitation bubbles can heat up to
fusion temperatures (millions degrees Celsius)!
 Seven different groups in U.S. and Russia have conducted
successful experiments demonstrating CIF
 Unfortunately, widely publicized work by Taleyarkhan
(Purdue), ended in scandal with lasting damage to the field
“Bubblegate” Scandal
 Critical account is given by Krivit (New Energy Times)
 Politics, academic rivalry, and clashes with special interest
groups killed otherwise promising field of research
 As a result Taleyarkhan was
debarred from federal funding and
Purdue lost majority of it’s nuclear
engineering faculty
 The science, however, remains
CIF: Successful Experiments
 1990: Lipson et al. (USSR)
 2002: Taleyarkhan et al. (USA, ORNL)
 2005: Xu et al. (USA, Purdue)
 2006: Taleyarkhan et al. (USA, Purdue)
 2006: Forringer et al. (USA, Purdue)
 2006: Bugg et al. (USA, Purdue)
 2008: Bityurin et al. (Russia)
 2008: Smorodov et al. (Russia)
CIF Science
 Conventional textbook physics (NOT cold fusion)
 Solid theoretical foundation (dozens of papers)
 4 independent successful experiments in USA,
and 3 in Russia (Russian work is not known in the
US)
 Yet due to the “bubblegate” scandal the results are
not universally accepted (skewed perception)
Our Accomplishments
 Analytical model in Wolfram Mathematica
 Molecular dynamics (MD) simulation software
 Three experiments
 Preliminary results
 Prototype generator hardware
Single-Bubble Experiment
Multi-Bubble Experiment
Prototype Generator Hardware
Our Results
 Analytical model and MD simulation predicts
fusion
 Neutrons were detected in several experiments
 Commercial generator prototype designed
 Careful experimentation required to validate
our model and refine it into an engineering tool
Immediate Goals: 2012

Demonstrate CIF proof of commercial concept

Detailed experimental plan is in place; will test best options first

May require up to 12 months to test all feasible options

Outcome = repeatable on-demand fusion

File global patents

Engage industry and academia in technology validation

We will publish our results in peer-reviewed journals

We will engage AECOM (world’s largest engineering firm) and Pennsylvania State
University to validate the results
 Develop modeling software for CIF engineering to facilitate next stage (net energy
production)

Minimum capital requirement: $562k USD
Roadmap beyond 2012
 2013
 Process control demonstration
 Net energy demonstration
 2014 – 50 kW commercial generator prototype,
technology license agreements, IPO
 Capital required to IPO stage may be up to $50 million,
but with proof of commercial concept in hand finding
further investors will be easy
 2016 – 50 MW commercial generator
Commercial Viability
 We estimate that 1 liter of carrier liquid saturated
with fusion bubbles will produce at least 10kW of
power
 Power output scales with volume
 Power output exponentially depends on
temperature: tenfold temperature increase results in
50,000 increase in output power!
 Therefore minute process improvement will result in
huge power output boost (no diminishing returns)
Commercial Products & Services
 Technology licensing
 Heat for evaporative desalination
 Industrial process and residential low-grade heat (kW-MW)
 Electric power generation
 Generator design and manufacturing
CIF Power Plant
Aside from the CIF reactor, this is a completely standard power plant design
CIF Commercial Potential

CIF is inherently safe

No radioactivity, no possibility of meltdown or explosion, no hazardous waste, no
fear of weapons proliferation, no carbon emissions or pollutants
 CIF is the ONLY new energy source that can compete against fossil fuels and win:

Wind, solar and biomass can never replace fossil fuels due to costs and intermittency

CIF can be used for residential, industrial process heating, and power generation

CIF power plant requires none of the safeguards of existing nuclear plants

CIF can scale from a few MW (e.g. compounds, neighborhoods) to thousands of
MW (grid power)

CIF can replace oil, coal and natural gas in virtually all stationary applications

Did we mention desalination? Fusion will provide free unlimited fresh water.
Intellectual Property
 U.S. Patent Application #61,560,666, “Cavitation-Induced
Fusion”, filed 11/16/2011
 World patent applications will be filed in 2012
The Company
 Quantum Fusion, Inc. is wholly owned by Quantum
Potential Corporation
 Location: Penn State Innovation Park
 Employees: 5 (including part time)
 State of the art equipment
 Office, lab, industrial space
The Quantum Fusion Team

Dr. Max Fomitchev-Zamilov – president, chief scientist

Sergei Godin – chief engineer, alternative energy, electrical engineering and cavitation technology expert

Dr. Andrew Belmonte – consultant, mathematical modeling (Associate Prof. of Mathematics at Penn State)

Dr. Stu Kurtz – consultant, plasma science (Prof. Emeritus of Electrical Engineering, former Director of
Materials Research Institute, Penn State)

Dr. Gary Catchen – consultant, neutron detection (Prof. of Nuclear Engineering, Penn State)

Ken Robinson – VP business development (VP and National Director of Business Development, AECOM)

Dr. Richard Lahey* – consultant, bubble fusion pioneer (Prof. Emeritus of Engineering, RPI)

Dr. Robert Nigmatulin* – consultant, principle contributor to nano-scale sonofusion theory (Member, Russian
Academy of Sciences; Director, Institute of Oceanology RAS)

Collectively, this team has the scientific, engineering and management expertise needed to succeed quickly

* Collaborators for Skolkovo application
Competition – The Race is On!
 Impulse Devices - received $35M on CIF research sponsored by DoD
 General Fusion – raised $13.75M and $19.5M in private equity in two
rounds of funding
 Lawrenceville Plasma Physics – started by former DoE National Lab
scientists
 Defkalion – the Greeks may have a working cold fusion reactor
 The competition is good, but our approach is superior:

We have access to valuable Russian research not known in the West

Extensive interaction with key US researchers has given us unique insights

Our approach is simpler and significantly cheaper
Our Competitive Advantage

Prior work relies on D-D fusion. We will use D-T fusion as it
gives 1,000 times higher reaction rate.

Prior work relies on cavitation to create random bubbles,
which is difficult and hard to control. We will inject
engineered bubbles instead.

Prior work relies on high pressure (40-1,000 bars). We have
engineered our bubble content (light and heavy gas mixture) to
create strong shock that will produce fusion at just 1.5 bars of
pressure.

Prior work relies on acoustic cavitation, which is inefficient.
We will use hydrodynamic cavitation in our commercial unit.
Investment Offer & ROI
 $1 million = 10% ownership, non-dilutable
 We need at least $562k for 2012 to complete our R&D program
 We are aiming to disrupt a multi-trillion dollar energy market.
Our technology has a potential to displace all fossil and
conventional nuclear fuels all together. Even if we capture just
0.1% of the market the expected ROI will be well in excess of
100x
Technical Risks
 The only foreseeable risk is in single-bubble fusion. Is it
repeatable? Can we control it? We will eliminate this risk in 2012.
 The rest of the hardware for commercial generator is essentially
designed and requires only ordinary engineering.
 Other technical risks may include inability to control fusion yield
beyond break-even point for reasons we currently cannot think of.
We will tackle this issue in 2013.
Reasons to Invest

We are humble, we recognize mistakes, we will listen to your advice

We have more than one approach to the problem in case we hit a
roadblock

We have committed our own money

We will succeed: preliminary data and works by others support our
optimism
Reasons Not to Invest
?
Our model may be wrong and our results may be in error
?
Our model may be correct, but despite 12 months of effort we
may fail to demonstrate repeatable fusion for various technical
reasons that we cannot anticipate currently
?
Someone may come up with a better technology sooner
?
You will miss the money
?
You are afraid of the risk
Fusion Benefits for the USA
 Smooth transition away from fossil fuels
 Renewed technological leadership
 Birth of an entire new industry = employment!
 Markedly reduced energy and transportation costs =
cheaper goods and services, hence
 Higher consumer spending, GDP & tax revenue
growth, reduced deficit
Fusion Benefits for the World
 Markedly reduced energy and transportation costs =
sharp improvement in living standards, hence
 More middle class (and larger markets!)
 Cheap desalination will solve food and water
shortages, deserts will become oases
 Reduced emissions of all types
 A new age of prosperity for all of humanity
Invest in Quantum Fusion
“It is not because things are difficult we do not dare, it is
because we do not dare that they are difficult.” – Seneca
Contact
Dr. Max Fomitchev-Zamilov, President
200 Innovation Blvd, Suite 254, State College, PA 16803
[email protected] | 814-777-8993
www.quantum-fusion.com