The Company is focusing on immediate markets for its 530 series engine. This single rotor model is in limited production. In an industrial/automotive single rotor form, as required for hybrid cars and for the emerging world market for utility and auxiliary power units, this model is de-rated to 35 horsepower to provide an extended life. In a high performance recreational form it can deliver over 50 horsepower per rotor with a corresponding life consistent with expectations in this market. The company is aware that large producers of recreational vehicles will be reluctant to quickly switch to a new engine manufactured by a company without an established service network. For this reason, the Company is concentrating on smaller, existing personal watercraft manufacturers. The management understands this market, having generated the SuperTrapp product line that dominated the world high-performance, after-market for muffler and spark arrestor systems including the marine market.
The marine industry is looking for a low emissions powerplant that might also provide more power in a smaller, lighter unit. With low fuel consumption and very low emissions as key market requirements the Company feels that show-casing their engine in boats which compete with those built by affiliates of the engine suppliers (Bombardier and Mercury) is the best way to enter the market for the Rotapower engine. Its immediate advantages in power, weight, size, vibration and noise make it a strong product enhancer.
The Company expects to supply growing numbers of its 530 series engines for use in both hybrid vehicles and utility applications where volume, weight, emissions, and vibration are important considerations.
Medium and Longer Term
The 150 series engines, which are scheduled to enter production 6 months after the 530 series enters volume production, constitutes a very large and growing world market for a 7.5 to 20 HP engines. The 150 series like the 530 series will be inexpensive to manufacture and maintain, generate low emissions and provide multi-fuel capability. Taken together, these models can address the majority of this 11 million engines per year industrial and recreational market. Production of the 150 series will allow the Company to address the world two-stroke motor scooter market which totals 15 million units/year and is in dire need of a low cost low emission alternative. This market is most likely to be addressed through licensing and /or joint venture type production. Longer-range plans include the development of a 50cc model for the commercial small engine market (weed-eaters, chain saws, etc.). Success in this very high volume market (10+ million engines/year in U.S.) could lead to sales significantly larger than projected within this business plan.