Business Summary

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An overview of BlackLight’s business, technology and market potential.
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BlackLight Power Business Summary
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Electrochemical and Thermal Presentation August 2014

Industry Overview and Market Opportunity

Industry Overview and Market Opportunity

According to the Energy Information Association (“EIA”), during the last two decades, global demand for energy has nearly doubled. This rapid growth has resulted in imbalances of supply and demand of electricity and natural resources worldwide. Global energy demand has grown 12% from 2005 to 2010, and the EIA projects growth of 56% by 2040 from 2010 demand levels. Energy provided by existing renewable sources, primarily wind and solar which are relatively poor sources of baseload power, is projected to grow rapidly during this time period, but is expected to satisfy only 15% of global demand by the year 2040 (Figure 1). In fact, despite global mandates on the use of renewable forms of energy and increased energy conservation, consumption of fossil fuels is projected to increase 46% over the same time period.

Figure 1. Projected total global energy consumption with fuel-type breakdown.
Global Energy Consumption
Sources: EIA IEO 2013.
(1) Liquids excludes unconventional liquids such as biofuels, bitumen extra-heavy oils, coal-to-liquids, and gas-to-liquids.

Being an investment of over $75M, BlackLight’s proprietary process is the culmination of years of research into the existence of lower-energy-state hydrogen that the Company has trademarked a HYDRINO®. The corresponding energy release represents a new energy source that could be a cost effective, environmentally friendly replacement for fossil fuels. As such, BlackLight’s potential addressable market is enormous by any measure. According to EIA, the annual market for fossil fuels in the United States is approximately $1 trillion, and management estimates the global market to be in excess of $4 trillion. As noted above, these markets are expected to experience significant growth through the year 2040. This growth in energy demand will also result in enormous capital investment. The International Energy Agency estimates over $1 trillion of annual energy-related capital expenditures through 2030.

To meet demand for key energy sources, the United States is forced to rely on foreign countries, many of which maintain delicate political relationships with the United States. In 2010, petroleum, America’s lifeblood, made up 37% of the energy it consumed compared to just 8% from renewables. Precariously, in 2012, the U.S. imported about 40% of the crude oil and refined petroleum products that it uses costing approximately 55% of total non-renewable fuel spending [source: EIA]. Given that energy has become a “national security issue” and is at the center of global environmental concerns, BlackLight believes its technology will be embraced by regulators, energy producers, and consumers alike.

Company Overview

Company Overview

(Supporting papers are in the Tech/Theory Presentations and Papers section.)

BlackLight Power believes it has developed a process to form a previously undiscovered form of hydrogen, Hydrinos. The Company believes this process, the “BlackLight Process,” of making Hydrinos shown schematically in Figure 2 results in a nonpolluting new primary source of energy. The proprietary BlackLight Process entails three approaches to making power by transforming hydrogen to a lower energy state, Hydrino state. One involves igniting brilliant light-emitting plasma of H2O-based solid fuel and converting the light into electricity using mass-produce commercial photovoltaic (solar) cells. The second uses electrochemical reactants and corresponding electrochemical reactions wherein only H2O vapor is consumed to concomitantly directly produce electricity. The third involves thermally regenerative solid fuels developed by the Company that undergo a chemical reaction to transform hydrogen to Hydrinos and release a large gain in thermal power that can used directly in heating applications or to produce electricity using conventional steam-based power plant equipment. The Company has developed four power systems for producing electricity powered by forming Hydrinos by the direct electric and thermal energy releasing reactions: one plasma-emitted light to electric, one electrochemical system and two thermal systems.

A SunCell™ produces millions of watts of power in a volume that is one hundred thousandth of a liter corresponding to a power density of over an astonishing 100 billion watts per liter. Using a proprietary solid fuel comprising a conductive matrix that has bound water confined between opposing roller electrodes of a SunCell™, and applying a current of 12,000 amps through the fuel, water ignites into an extraordinary bright flash of optical power released by the transition of hydrogen of H2O into Hydrinos. The energy release of H2O fuel, freely available in the humidity in the air, is one hundred times that of an equivalent amount of high-octane gasoline. The fuel can be continuously fed into the electrodes to continuously output power. The H2O-based fuel ignition produces brilliant plasma, an essentially fully ionized gaseous physical state of the fuel comprising essentially positive ions and free electrons. The SunCell™ plasma has the same temperature as the Sun emitting the same solar spectrum of light but at extraordinary power equivalent to 50,000 times the Sun’s intensity at the Earth’s surface. Optical power is converted directly into electricity using mass-produced commercial photovoltaic cells (solar cells). Simply replacing the consumed H2O regenerates the fuel. Using readily available components, BlackLight has developed a modular system engineering design of an electric generator that is closed except for the addition of H2O fuel and generates up to ten million watts of electricity, enough to power ten thousand homes. Remarkably, the cell of the device is less than a cubic foot in volume. SunCell™ technology permits independence from existing infrastructure, grid in the case of electricity and fuels in the case of motive power. The safe, nonpolluting SunCell™ uses cheap, abundant, nontoxic, commodity chemicals, with no apparent long-term supply issues that might preclude commercial, high volume manufacturing. At tens of thousands of Sun equivalents, the corresponding reduction in the area of the photovoltaic converter gives rise to a projected cost of the SunCell™ of about $100/kW compared to over ten times that for conventional power sources of electricity. Applications and markets for the SunCell™ extend across the global power spectrum, including thermal, stationary electrical power, motive, and defense.

An electrochemical CIHT (Catalyst Induced Hydrino Transition) cell generates electricity from H2O vapor that may be extracted from air using a charge and discharge cycle to convert the H2O into Hydrinos, oxygen, and excess electricity. During a charging phase, hydrogen and oxygen are generated by electrolysis of H2O at the anode and cathode, respectively. Then, the cell is discharged and Hydrinos are formed in an electrochemical reaction that consumes initially the hydrogen and then H2O fed to the cell to produce a large gain in electrical output. Unlike a conventional hydrogen fuel cell, the cost is forecast to be under $100 per kW compared to over $5000 per kW for a fuel cell. This is in part due to the CIHT cell’s electrical energy released per hydrogen being over 200 times greater, and the CIHT materials being inexpensive. Moreover, fuel cells cannot utilize water as the source of hydrogen, since their product is water. For CIHT, no conventional fuel is required to provide autonomous continuous power for applications such as electronics, power tools, and sensors.

In addition, the Company has developed two power plant system designs that convert the thermal power from thermal producing solid fuel chemistries that in turn can be thermally regenerated into electricity. One comprises a multi-tube thermally interacting bundle of cells wherein the Hydrino reactions are maintained and regenerated alternately in batch-mode in a given cell of the bundle of cells. Heat from the power production phase of a thermally reversible cycle provides the energy for regeneration of the initial reactants from the products. Since there are reactants undergoing both modes at any given time, the thermal power output of the system comprising a bundle of cells is constant. The capital cost is projected to be about $1400 per kW electric. The other system comprises an array of reactor cells wherein power and regeneration chemistries occur synchronously in each cell, and each cell outputs constant power. The capital cost is projected to be about $1050 per kW electric. Thus, the Company believes that continuous generation of power liberated by forming Hydrinos is commercially feasible using simplistic and efficient systems that concurrently maintain regeneration as part of the thermal energy balance. The system is closed except that only hydrogen consumed in forming Hydrinos needs to be replaced.

Company Overview

Figure 2. Hydrino reaction
(“BlackLight Process”)

hydrino reaction

• Atomic hydrogen reacts with an energy acceptor called a catalyst wherein energy is transferred from atomic hydrogen to the catalyst that forms an ion due to accepting the energy.

• Then, the negative electron drops to a lower shell closer to the positive proton to form a smaller hydrogen atom, which the Company calls a “Hydrino”, releasing energy to produce electricity or heat depending on the design of the system.

• The catalyst ion regains its lost electrons to reform the catalyst for another cycle with the release of the initial energy accepted from H (atomic hydrogen). The high current of the SunCell™ counters the limiting effect of the charge accumulation from the catalyst losing its electrons to result in a massively high reaction rate.

Table 1. Capital and generation costs comparisons of BlackLight Power sources versus other primary energy sources or power converters.

Average Generating Capacity (MW) Installed Cost ($/kW) Levelized cost of Electricity ($/kWh) CO2 Emission (lb per MWh)
CENTRAL GENERATION
BLP Thermal 1 1,000 <0.01 0
Natural Gas Combined Cycle 550 1,000 0.06 800
Coal 600 3,000 0.065 2,500
Nuclear 1,100 5,400 0.12
DISTRIBUTED GENERATION APPLICATIONS
BLP SunCell™ <10
<100 <0.01 0
Solid Oxide Fuel Cell* 2.4 5,000 0.21 850
Wind* 100 2,000 0.10
Photovoltaic* 10 3,000 0.20

Sources: EIA, *Lazard 7.0 and Management estimates
BlackLight believes the process can provide economically green competitive products in a wide range of applications including:
• Residential electrical power• Commercial electrical power• Micro-distributed electrical power• Motive power• Marine power• Aviation power• Aerospace• Defense • Space and process heating— Commercial/industrial process heating— Residential heating• Distributed power• Central power generation• Co-generation• Other applications, including lighting, lasers and specialty chemicals

Solid Fuel Catalyst Induced Hydrino Transition (SF-CIHT) Cell

SunCell™

SunCell Logo

BlackLight Power, Inc. has developed a game-changing, nonpolluting fundamentally new primary source of energy from the conversion of hydrogen into a prior undiscovered, more stable form of hydrogen called “Hydrino” that releases two hundred times more energy than burning hydrogen. This enormous chemical energy gain is thermodynamically enabling of using ubiquitous H2O water as the source of hydrogen fuel to form Hydrinos and oxygen. The SunCell™ was invented to harness this clean energy source of optical power of tens of thousands of Sun equivalents that can be directly converted to electrical output using commercial photovoltaic cells.

SunCell™ technology is under rapid development for commercialization. It is already producing photovoltaic generated electrical power from cells producing millions of watts of light is capable of rapid displacement of fuels, power sources, and infrastructure due to its vast superiority and use of existing mass-produced components. The power density is so much higher than any other power technology that it will force society to undergo a disruptive transformation based on the individual’s access to billions of watts of power, the equivalent of a current central power plant. Moreover, this power source will force a theoretical paradigm shift regarding the nature of atoms being mathematical according to quantum theory versus physical based on classical physical laws. Only the latter, the pillars of our modern engineered society, correctly predicted and allows for the existence of Hydrino. BlackLight has solved the theory, identified Hydrino by many analytical techniques, shown that Hydrino is the pervasive dark matter of the universe corresponding to a nonpolluting product of the most extraordinary energy source ever harnessed, and invented and developed commercializable power systems. To protect its intellectual property, multiple worldwide patent applications have been filed on BlackLight’s proprietary pioneering innovations and inventions.

Confirmed by four independent academic scientists from different prestigious universities, BlackLight Power, Inc. has a proprietary breakthrough power-producing system operating on demand in its facility in Cranbury, NJ, that converts H2O bound in a electrically conductive matrix of a solid fuel into hydrinos at a power density that is at least ten millions times higher than any other power source in the world. The millions of watts of power in the form of light can be converted directly to electricity using highly efficient, high power concentrator solar cells. Specifically, using a proprietary water-based solid fuel confined between opposing roller electrodes of a SunCell™, and applying a current of 12,000 amps through the fuel, water ignites into an extraordinary bright flash of optical power. The fuel was sequentially fed into the electrodes to produce pulses of millions of watts of power in a volume that is one ten thousandths of a liter corresponding to a power density of over an astonishing 100 billion watts per liter. As a comparison, the electrical output power of a central power generation plant is typically 1 billion watts from a boiler 100 million times larger, and the maximum capacity of the United States electrical grid is about 1,170 billion watts. Based on a spectroscopic technique called Stark line broadening, the H2O-based fuel ignition produces brilliant plasma, an essentially fully ionized gaseous physical state of the fuel comprising essentially positive ions and free electrons. From a spectroscopic signature called a blackbody curve (Figure 3), the SunCell™ plasma was determined to have the same temperature as the Sun emitting the same solar spectrum of light but at extraordinary power equivalent to 50,000 times the Sun’s intensity at the Earth’s surface. Optical power was converted directly into electricity using photovoltaic cells (solar cells). Simply replacing the consumed H2O regenerated the fuel, and the fuel can be continuously fed into the electrodes to continuously output power.

Figure 3. Intensity-normalized, superposition of visible spectra of the SunCell™ plasma and Sun’s radiation at the Earth’s surface demonstrating that they both emit blackbody radiation of about 5800-6000K.

The safe, non-polluting power-producing SunCell™ system invented to harness this fundamentally new primary energy source as electrical output catalytically converts the hydrogen of the H2O-based solid fuel into the non-polluting product, lower-energy state hydrogen called “Hydrino”, by allowing the electrons to fall to smaller radii around the nucleus. The energy release of H2O fuel that can be acquired from the humidity in the air is one hundred times that of an equivalent amount of high-octane gasoline. H of H2O is converted to Hydrinos with a net release of large multiples of the energy required to ignite the fuel (e.g. 100 times) by application of the high current. The overall reaction is H2O to Hydrinos, oxygen, and electricity. The safe, nonpolluting products can be vented to atmosphere. Hydrino is lighter than air and cannot be contained in the atmosphere such that it is vented to space where it is observed in vast abundance.

Based on a vast body of data, the Hydrino product is very likely the dark matter of the universe (Figure 4), a form of matter so stable and inert that it has defied identification over decades despite the astronomical observation that it accounts for almost all of the mass of the universe. The terrestrial implications, confirmed by the Company’s laboratory data, is that Hydrinos are safe and non-polluting, and the corresponding source of power is inexhaustible. The continuous autonomous generation of electricity from H2O by a safe, nonpolluting, simple, reliable, sustainable, inexpensive system operating under standard conditions would be transformational to the energy industry.

Figure 4. Hubble Space Telescope image of galaxy cluster Cl 0024+17 shows a ghostly “ring” of dark matter, a prior unknown substance that pervades the universe. Courtesy of NASA/ESA, M.J. Jee and H. Ford (Johns Hopkins University), Nov. 2004.

Galaxy

Dark matter whose identity has been sought for decades is known to comprise almost all of the mass of the universe with the small balance of visible matter being ordinary hydrogen and all other elements, also observed on Earth, at relative trace abundance. Due to its conventional absolute lack of interaction with light, dark matter has resisted detection other than by its gravitational signatures on an astronomical scale. BlackLight’s theoretical, spectroscopic, astronomical, and analytical data regarding Hydrinos and dark matter have been widely published in the scientific literature in about 100 articles and a comprehensive three-volume theory book. The prestigious European Physical Journal D selected as a highlighted article, the Company’s results of the predicted characteristic high-energy light emission from hydrogen forming Hydrinos using a high-voltage pinched pulsed plasma source that further reported the replication of this signature at the Harvard-Smithsonian Center for Astrophysics (CfA) (Figure 5A-B). The brilliant plasma of solid fuel of the SunCell™ (Figure 6) also produces the continuum radiation signature (Figure 5C).

Figure 5A. Hydrino continuum radiation (Upper curve) and helium control showing discrete line emission (Lower Curve) recorded at the Harvard Smithsonian Center for Astrophysics (CfA). (Since this light is not of visible wavelengths it is referred to as blacklight.)

Figure 5B. Schematic and system for producing and recording the hydrino continuum radiation.

Schematic System

Figure 5C. Energetic plasma of solid fuel that also produces the hydrino continuum radiation that gives rise to fully ionized plasma at about 5800K.

Schematic Figure 5C

The hydrogen emission from forming Hydrinos is extraordinary being in the high-energy, vacuum ultraviolet region of the electromagnetic spectrum and uniquely comprises a continuum of wavelengths. In contrast, the prior known hydrogen light emission from the relaxation of excited electronics states comprises discrete wavelengths at much lower energies. BlackLight was the first to demonstrate that hydrogen emits higher energy light than previously thought possible based on the mathematical postulated lowest hydrogen energy level or ground state of quantum theory. Moreover, BlackLight has published evidence that Hydrinos are a natural constituent of the Earth. The Hydrino molecular product is safe being inert and is also much lighter than air; so, there is a fast rate of its escaping to space after being released into the atmosphere. Therefore, the Hydrino power-generating process does not give rise to pollution, green-house gases, or radiation as conventional systems do. Moreover the source of fuel to form Hydrinos, water, is the fundamental chemical of life and covers most of the Earth. The process of the conversion of water vapor (H2O) to electricity and the products of oxygen and Hydrinos, dark matter form of H2, has unsurpassed fuel cycle sustainability, availability, handling, cost, and environmental advantages.

Each SunCell™ comprises two electrodes that confine a highly electrically conductive H2O-based solid fuel that serves as a source of reactants to form Hydrinos. A low-voltage, very high current (about one thousand times that of household currents) ignites the water to form hydrinos and cause a brilliant burst of plasma. The plasma particles recombine to emit light of millions of watts that can be converted directly to electricity using photovoltaic or solar cells. Very high-power, high efficiency concentrator cells capable of converting optical power at 20,000 Sun equivalents are commercially available to convert the SunCell™ optical power directly into electricity at its 100 billion watts per liter power density. The 50,000 Sun intensity of the SunCell™ can be distributed across a compacted stacked array of photovoltaics using a light distribution system comprising lenses, mirrors, and fiber optic cables. Each photovoltaic cell comprises a flat panel of a semiconductor material that exhibits the photovoltaic effect, a method of generating electrical power by converting radiation such as solar radiation into direct current electricity. Light absorption in the semiconductor material creates energized charge carriers of opposite polarity that are collected at corresponding negative and positive electrode contacts on opposite sides of the flat panel to create a voltage that can deliver power to an external load.

BlackLight has developed a modular system engineering design (Figure 6) of an electric generator that is closed except for the addition of H2O fuel and generates up to ten million watts (13,000 HP) of electricity with the commensurate photovoltaic stack area, enough to power ten thousand homes, a supertanker, fifty 200 kW (267 HP) cars, and a high-speed railway train such as that of Eurostar and larger. Remarkably, the cell of the device is less than a cubic foot in volume, uses readily-available components, and no new technology is needed. The safe SunCell™ uses cheap, abundant, nontoxic, commodity chemicals, with no apparent long-term supply issues that might preclude commercial, high volume manufacturing. Moreover, the power converter is mass-produced for the solar power industry. The SunCell™ power is in the form of light that has the same spectral composition as sunlight. With the discovery of the photovoltaic effect by Becquerel in 1839 and the invention of the first modern solar cell by Chapin, Fuller and Pearson of Bell Labs, an era of cheap clean energy from the Sun was envisioned for mankind. Realization of that vision is enabled by the invention of the SunCell™ that overcomes the impediment of the very low power density of sunlight. With advances since its inception, solar cells have demonstrated the capacity to convert light into electricity at tens of thousands of times higher power levels than sunlight at much higher efficiency at high versus low light intensity. At 50,000 times brighter than sunlight, the corresponding reduction in the area of the photovoltaic converter gives rise to a projected cost of the SunCell™ of about $100/kW compared to over ten times that for conventional power sources of electricity.

Figure 6. System design of 10 MW SunCell™ generator that is about nine by nine by nine inches in size.

Schematic

The SunCells™ are continuously regenerative and can provide essentially instantaneous power output. Thus, shortcomings of alternative power sources such as grid load leveling in stationary fuel cell applications and a battery assist in motive applications are eliminated. In power applications, a portion of the output can power the fuel ignition such that the system is an autonomous source of on-site power, independent of the grid or fuels infrastructure as well being constantly available unlike sun, wind, or other variable power sources.

Applications and markets for the SunCell™ extend across the global power spectrum, including thermal, stationary electrical power, motive, and defense. Given the independence from existing infrastructure, grid in the case of electricity and fuels in the case of motive power, the SunCell™ power source is a further game changer for all forms of transportation: automobile, freight trucks, rail, marine, aviation, and aerospace in that the power density is one million times that of the engine of a Formula One racer, and ten million times that of a jet engine. Beyond being in a power density class of its own by over a factor of over one million, SunCell™ technology is superior in all other categories as well: no fuels cost, projected cheaper capital costs than any other power source, no infrastructure costs, no limits to manufacturability, and no pollution of any kind including green house gases. Essentially all power sources should be displaced by SunCell™ technology untethered from an electrical distribution or fuel infrastructure at capital cost of 1 to 10% that of historic systems.

Consider the automotive SunCell™ application. Based on the hydrogen content of H2O and the electricity that can be produced from the corresponding hydrogen, the maximum theoretical range from a liter of water for a standard mid-sized car is 3000 miles. A concept SunCell™ electric vehicle is shown in Figure 7. Based on projections of the SunCell™ power density and available materials, a 250 cubic centimeter generator could deliver 200 kW or 267 HP and weigh less than 2 kg, less than 1% the weight of an internal combustion engine (ICE) of the same power. The total projected cost of the SunCell™ generator, control electronics, electric motors, and transmission, is less than the cost of the of the ICE and drive train of a conventional gasoline-fired vehicle without any fuel costs or pollution; nor, does the SunCell™-powered car require an expensive, range limiting battery or electric charging as is the case of electric vehicles such as the Chevrolet Volt, Nissan Leaf, or Tesla. The corresponding SunCell™ economics forecast a shift from the fossil fuel business to vehicle leasing or a mileage credit card system as a means to derive even greater profits from payment for miles traveled without the need to extract, refine, transport, or sell gasoline, for example.

Figure 7. Concept SUV architecture utilizing a SunCell™ generator having a photovoltaic converter.

Schematic

Industry Overview

SunCell™ Business and Licensing

Under the general licensing business model of SunCells™ for all power applications in their markets: (i) OEMs make a standard SunCell that serves a “Block” comprising a modular-scalable electric power generator capable of 250 kW to 10 MW with the installation of the appropriate capacity of photovoltaic cells for light to electricity conversion wherein the Blocks are owned by BLP and leased to each distribution company (DISCO) in a FIELD designated from the group of essentially all power applications such as stationary, motive, freight, marine, aviation, defense, and aerospace; (ii) BLP provides Blocks each capable of DC power of a given nameplate capacity; (iii) DISCO pays for power conversion equipment such as an inverter to output AC and warranties any power conditioning damage to the Block; (iv) DISCO is responsible for regulatory approvals in its territory, installation, maintenance, and operations; (v) Block warranties are provided by OEMs of parts and assembly; (vi) OEMs provide indemnification for all claims/damages related to their product except intellectual property (IP), and BLP indemnifies for IP claims, maintains IP, and defends the IP against infringement; (vii) DISCO sells power under power purchase agreements with customers; (viii) BLP receives 50% of power sales revenue for all applicable markets (gross or net depending on the circumstance); (ix) BLP receives grant back IP and DISCO receives state of the art system with improvements incorporating new BLP IP.

The payoff time of the capital equipment in hours is the capital cost such as $100/kW divided by the cost of electricity at the load such as $0.15/kWh. A unit could pay for itself in less than a month with the electrical power revenue sold under a power purchase agreement with the consumer. As a simplified example of the economics, consider that BLP supplies a 1 MW electric unit to a distribution company (DISCO). Then, DISCO deploys the unit and collects fees for generating at-load electrical power. The revenue is split equally between BLP and DISCO. The exemplary 1 MW unit corresponds to a 1000 kW unit. There are 8760 hours in a year. So, at $0.15/kWh, the revenue is $1,314,000. DISCO receives $657,000, and BLP receives $657,000. Consider the 250 million vehicles in the US at an estimated 250 thousand watt average power. The aggregate power of 62,500 billion watts dwarfs the 1,170 billion watts of grid power. Adding aviation, marine, and thermal multiplies this number. The SunCell block treats power as a single fungible commodity in anticipation and enablement of a fluid market with power sources being interchangeable and capable of multitasks wherein the traditional market distinctions dissolve.

Industry Overview

Catalyst Induced Hydrino Transition (CIHT) Electrochemical Cell

The forerunner technology to the SunCell™ that uses the same catalyst is the continuously operating CIHT electrochemical cell power-producing system. It converts ubiquitous H2O vapor into electricity as the only source of fuel. As presented in six validation reports, the CIHT cell has been confirmed by independent leading scientists from academia and industry with PhDs from prestigious universities including the Massachusetts Institute of Technology and the California Institute of Technology. The hydrogen atoms (2H) of H2O are extracted by the well-known process of electrolysis to serve as fuel to activate the cell. Then, H is converted to Hydrinos with a net release of multiple amounts of electricity than that of the activation wherein additional H2O is directly converted to Hydrinos, oxygen, and electricity.

The CIHT cells are continuously regenerative and operate at essentially instantaneous constant power output during discharge over long duration. In power applications, a portion of a stack could provide electrolysis power for another such that the system is an autonomous source of on-site power, independent of the grid or fuels infrastructure as well being independent of the sun, wind, or other external variable power sources. The CIHT cell operates under conditions that are similar to those of existing technology such as fuel cells and batteries, but has extraordinary distinctions that define a new category for CIHT. For example, it does not require an external primary energy source of chemical fuels or electricity derived from chemical fuels, it creates power essentially instantaneously, and uses abundant, nontoxic, commodity chemicals that project a factor of 10 times reduction in capital costs relative to conventional electricity sources. With projected cheaper capital costs than any other electrochemical power source, no infrastructure costs, no fuels cost, and no pollution including green house gases, the CIHT cell, even in its current, non-optimized state, projects commercial competitiveness as stand-alone power in smaller-scale power markets such as portable electronics, power tools, and sensors.

Each CIHT cell comprises a positive electrode, the cathode, a negative electrode, the anode, and an electrolyte that also serves as a source of reactants to form Hydrinos. Due to oxidation-reduction half cell reactions, a Hydrino-producing reaction mixture is constituted with the migration of electrons through an external circuit and ion mass transport through a separate internal path through the electrolyte to complete an electrical circuit. The cells operate in an electrolytically regenerative manner wherein atomic hydrogen is formed by electrolysis of H2O and supplied to the electrochemical process to initiate the conversion of H2O to electricity wherein the hydrogen catalyst and subsequently Hydrinos are formed by a reaction of the reaction mixture during cell discharge with a net large gain of electrical output. A schematic is shown in Figure 8.

Figure 8. CIHT cell schematic.

Schematic

As mentioned, the theoretical basis and laboratory performance of CIHT technology has been tested and confirmed by multiple independent outside experts. Each validator concluded that BlackLight has successfully solved the theoretical basis, invented, fabricated, and tested CIHT cells that run on H2O vapor input as hydrogen fuel while producing net electrical output of greater than 10 times the electrolysis input to initiate the process. Cells have produced steady power for over two months before being stopped for cell materials and hydrino product analysis. Based on the laws of thermodynamics there is no alternative source of energy other than the formation of Hydrinos in an electrochemical reaction that manifests its power output as electricity.

Advanced CIHT electrochemical cells were independently replicated offsite as well. The ENSER Corporation and a industry expert performed about thirty tests at ENSER’s premises and achieved the three specified goals: (1) independent validation of BlackLight’s results offsite by unrelated highly qualified third parties, (2) confirmation that hydrino was the product of any excess electricity observed by three analytical tests on the cell products, and (3) the determination that BlackLight Power had achieved fifty times higher power density with stabilization of the electrodes from corrosion.

Further commercial analysis by the validators confirmed that each cell uses cheap, abundant, nontoxic, commodity chemicals. There seems to be no future projected shortage of materials to preclude massive manufacturing. Nor, is the capital cost prohibitive. The cost of the chemicals based on optimization of the cell dimensions is estimated to be under $100/kW compared to over ten times that for fuel cells that further require a source of hydrogen or hydrogen gas and a fuel infrastructure. The systems and operational parameters of the CIHT cell are very simple compared to those of fuel cells such that the cost of chemicals is anticipated to constitute most of the cell capital cost. Moreover, it is significant that the CIHT cell is safe in that it could be operated open to the atmosphere. There was no self-discharge, and the power is essentially instantaneous, a tremendous advantage over conventional fuel cells that have a very long delay between power availability and demand due to gas diffusion limitations. Furthermore, the power density may be high, 3000 W/liter, that is higher than that of lithium ion batteries.

To advance CIHT technology to commercialization, the essential milestone is scalability in terms of the size of the electrodes and the development of a bipolar plate comprising a back-to-back positive and negative electrode that can be stacked with intervening layers of electrolyte to form a stack of CIHT cells having a voltage that is the integer multiple of the number of cells. BlackLight has achieved both milestones with multiple times electrical gain operating at the 10 W scale. The Company plans to license original equipment manufacturers (OEMs) to fabricate CIHT units to sell, with the Company receiving a royalty on sales.

Industry Overview

Thermal Power Systems

In addition, to electrochemical systems, the Company has developed thermal producing solid fuel chemistries that in turn can be thermally regenerated. Thus, the Company believes that continuous generation of power liberated by forming Hydrinos is commercially feasible using simplistic and efficient systems that concurrently maintain regeneration as part of the thermal energy balance. The system is closed except that only hydrogen consumed in forming Hydrinos needs to be replaced. The solid fuel chemistries have been developed which are very efficient at liberating thermal energy from forming Hydrinos. In principle, green, thermal central and distributed power plants can be operated continuously as power and regeneration reactions of the fuel mixture are maintained in synchrony. Chemistries and engineering designs have been developed for two thermal-Rankine systems. One shown in Figures 9 and 10 comprises a multi-tube thermally interacting bundle of cells wherein the Hydrino reactions are maintained and regenerated alternately in batch-mode in a given cell of the bundle of cells. Heat from the power production phase of a thermally reversible cycle provides the energy for regeneration of the initial reactants from the products. Since there are reactants undergoing both modes at any given time, the thermal power output of the system comprising a bundle of cells is constant. The capital cost is projected to be about $1400 per kW electric.

Figure 9. Schematic of boiler housing thermally coupled multi-cell bundles.

Schematic

Figure 10. Schematic of steam driven electrical power generation system having thermally-coupled cells in reactor bundles.

Schematic

The other system shown in Figures 11 and 12 comprises an array of reactor cells wherein power and regeneration chemistries occur synchronously in each cell, and each cell outputs constant power. The capital cost is projected to be about $1050 per kW electric. Based on the observed energy gain and successful thermal regeneration of the solid fuel, the Company believes that environmentally friendly distributed and central power plants can be operated continuously as power and regeneration reactions are maintained in synchrony. The system may be self-contained except that only the hydrogen consumed in forming Hydrinos need be replaced as molecular Hydrino is released. Due to the independence from fuels infrastructure and the absence of any pollution whatsoever, new power-generation business opportunities of distributed generation may exist even at thermal power scales that are achievable in the nearer term using modification of readily available commercial equipment. The system applications for distributed power (1 to 10 MW electric) and central generation retrofit and green-field projects are projected to be very competitive relative to existing power sources and systems.

Figure 11. Schematic of boiler system having self thermally regenerative cells.

Schematic

Figure 12. Schematic of steam driven electrical power generation system having self thermally regenerative cells.

Schematic

BlackLight has published in the engineering literature on power plant designs such as the one comprising a multi-tube thermally interacting bundle of cells wherein cells producing power provide heat to those undergoing regeneration and another comprising an array of reactor cells wherein power and regeneration chemistries occur synchronously. In recent work at BlackLight, the application of the catalyst that enables the Sun and CIHT cells has given rise to a breakthrough in the development of commercially competitive thermally regenerative solid fuels for utilization in these plants. The high energy gains observed on solid fuels reactions with instruments which operate like power equipment (Figure 13) have been confirmed. Independent off-site tests at several academic and industry laboratories using commercial instruments have confirmed that these new solid fuels release multiples of the maximum theoretical energy possible. Hydrinos were observed to have formed as a result of the heat release.

Figure 13. Calorimetric instruments for testing thermal power balance of solid fuels.

LabPic1LabPic2

Industry Overview

Thermal Business and Licensing

BlackLight’s business model for thermal power using solid fuels is focused on licensing power producers to utilize the BlackLight Process as a fuel/heat source replacement. The Company intends to license the BlackLight Process and its related energy technology to power producers and power users globally in all fields of power production and utilization in exchange for royalty fees and milestone payments. BlackLight is non-exclusively licensing its process to make power for a fixed royalty payment per kilowatt-hour of thermal or electric (e.g. $x per thermal kilowatt hour or $y per BTU). BlackLight anticipates licensees contracting for retrofit of existing plants and for turnkey plants to be built by engineering, procurement and construction (EPC) firms and OEMs. To date, the Company has licensed the rights to produce approximately 8,250 MW of new electrical power to seven companies, including five electrical utilities and two independent power producers. Collectively, these utility companies own, purchase, or manage electric power production of approximately 7,600 MW and service nearly one million customers. The avoided fuel costs from these agreements could be in excess of $2 billion per year.

Industry Overview

Classical Theory

The theory upon which BlackLight’s technology has been developed is based on the classical laws of physics. Dr. Mills has recently finalized the Grand-Unified Theory of Classical Physics that comprehensively addresses the basic problems in chemistry and physics using these physical laws in exact solutions. It solves the physical observables of the universe from the scale of subatomic particles to that of the cosmos—an unmatched range of 85 orders of magnitude (1 followed by 85 zeros). In contrast, the incumbent atomic theory of quantum mechanics only addressees atomic-scale problems and uses approximations and pure mathematics, devoid of physics. BlackLight’s wholly owned subsidiary, Millsian, Inc., is dedicated to developing computational, chemical-design software tools based on solving molecular structures using these laws. The essentially real-time, analytical solutions of the precise physical structure of molecules of boundless extent and complexity, not possible using quantum mechanics, further validates the classical theory relied on by the Company.

Industry Overview

Millsian

BlackLight’s wholly owned subsidiary, Millsian, Inc., is dedicated to developing computational, chemical-design technology based on solving atomic and molecular structures using the classical laws of physics as applied in the GUT-CP. Millsian software is a molecular modeling tool built on those solutions. Millsian 2.0 beta software, released in July 2009, can build exact 3D structures and precisely calculate the total bond energy and the heat of formation of almost all organic molecules and the major classes of compounds, including complex proteins and DNA of interest to pharmaceutical researchers (Figure 14).

Figure 14. Drug molecules and small biomolecules rendered using Millsian.

Schematic

In a further advancement, Millsian 2.1 beta software, released in January 2012 can also determine a very important parameter of potential drug molecules that is predictive of bioavailability. By contrast, the majority of competitor molecular modeling software is based on traditional quantum methods that resort to approximations for even the simplest systems and are not very predictive. The Company believes that Millsian software will become an invaluable tool for conducting research and development. Furthermore, the Millsian analytical results which are more competitive in accuracy and acquisition time relative to quantum-mechanical-based algorithms that rely on approximations importantly validate the classical theory relied on by the Company. There are currently over 3,500 downloads of the Millsian software being used by academic and company notable groups.

Industry Overview

Patents and Proprietary Technology

The Company’s main priority is to file and obtain patents relating to the BlackLight Process, systems, and applications of the process. We have filed numerous patent applications worldwide regarding these embodiments to protect the technology as it has progressed to the current SunCell™, CIHT, and solid fuels technologies being pursued for commercial use.

Numerous patent applications have been filed worldwide. Sixty-two issued patents provide coverage in many major energy markets (4 in the U.S.), and greater than 100 pending applications have been filed with important applications in U.S.

World-wide applications related to the solid fuels process and thermal power plants were filed on April 24, 2008 and July 30, 2009.

An application regarding engineered thermal-to-electric systems and CIHT was filed on March 18, 2010.

A separate series of patent applications for protection of the underlying technology of Millsian software were also filed with the most recent filing on September 25, 2009.

Patents regarding CIHT were filed on March 17, 2011, the application on CIHT entitled “H2O-Based Electrochemical Hydrogen-Catalyst Power System” was filed on March 30, 2012, and the application “CIHT Power System” was filed on May 21, 2013.

World-wide applications on the breakthrough energetic plasma producing SunCell™ were filed on January 10, 2014 as the application entitled “Power Generation Systems and Methods Regarding Same.”

In addition to the patent applications pending or granted in the United States, corresponding applications have been filed or granted in over 50 foreign countries. The Company anticipates that the string of United States patent applications and foreign counterparts will provide broad patent protection of the Company’s valuable technology, if these applications ultimately issue as patents. BlackLight’s intellectual property counsel is Finnegan, Henderson, Farabow, Garret & Dunner, LLP based in Washington, DC.

Industry Overview

Facilities and Employees

BlackLight owns and occupies a 53,000 square foot modern research and development facility equipped with state-of-the-art laboratory equipment. The Company’s technical core competencies are theoretical physics, molecular modeling, SunCell™ solid fuels development, characterization of chemical processes, thermal power measurement, and chemical, material, plasma characterization and spectroscopy, system engineering and development, photovoltaic power conversion, and electrochemical system research. Currently, the Company has seventeen employees and eight consultants wherein the majority of employees and consultants are scientists and engineers.