4.1. SR 10-06-1997 - Laserfiche WebLink

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ning. In the industry, it is considered an economic dinosaur. In contrast, a Capstone turbine will retail at $12,000, and while it produces only 24 kilowatts, that's only about $500 per installed watt. And they can be connected for greater output. In the cutthroat energy markets of the future, utilities are wondering if the turbine is friend or foe. The prospect of huge addi- tional sales also has gas companies intrigued. Electric utility customers might become gas customers, generating their own electricity. Southern California Gas Co., a unit of Los Angeles-based Pacific Enterprises Inc., has purchased turbines, and is studying if they could be put widely into place, according to a company spokesman. In Third World nations, Craig points out, the tiny turbine stacks up well. It is small enough so that it could be easily shipped to remote villages - where reliability is key - thus voiding the need for expensive stringing of powerlines. "Globally, there might be a market for hundreds of thousands of these turbines," ventured Dan Rastler, a researcher with the Electric Power Research Institute in Palo Alto, an industry research and think tank. Nationally, Reilly of SCE guessed that perhaps 10,000 to 15,000 micro turbines could be installed within five years, if the lit- fie engines work as advertised. So maybe there is a real-world demand for Craig, his intrepid investors and their mr- bines. But can Capstone produce in volume, and not hit bottlenecks? What about price and reliability? A network of Southern California ven- dors are ready for the task of greatly increased production, claimed Craig. "We believe the market is for thousands of units, and that is what we have to produce to bring prices down. The supply base is in position to allow us to grow to 100,000 units a year," he states. Craig's easy banter sometimes sounds too easy - but he is the man who brought automobile turbochargers to market by the millions for AlliedSignal. In fact, AlliedSignal could mm out to be Capstone's biggest competitor in the micro- turbine market. The firm is building a tur- bine about twice as large as Capstone's, also with mass production in mind. Nevertheless, Capstone Turbine officials How the Capstone turbogenerator works Intake air (1) is drawn through the generator by the compressor (2) which incre&~es the pressure of the air, and forces it into the recuperator(3). Here, exhaust heat is used toprehsat the air before it enters the combustion chamber (4) where the heated air is mixed with fuel and burned. The mixture is then expanded through the turbine ~5), which drives the compressor and generator. Since the generator is mounted on the same shaft as the turbine. it rotates at the same speed and produces up to 24 kW ot mectric power. The combusted air is then exhausted through lbo recuperator (6) before being discharged at (7). Generator Exhaust outlet Recuperator Combustion chamber cooling fins Preheats air entering combustor and Burns multiple fuels. lessens amount of fuel needed. Air bearing Eliminates lubrication Generater Compressor One-piece rotor assembly Turbine Rocupnrator housing Source: Capstone'Turbine Turbine power: Capstone says its machine believe they can compete with the larger firm. Capstone has attracted a cadre of venture capitalists, including Seattle-based Paul Allen Group, to pour perhaps $20 million to date into the enterprise, although no one will say exactly how much. Other backers include New Zealand- based Fletcher Challenge Ltd., Rowayton, Conn.-based Canaan Partners and Dallas- based Sevin Rosen Funds. "We think there is a market for the tur- bine, and that the turbine offers low-cost, reliable and clean power," said Vern Raburn, chief executive of the Paul Allen Group. "The utility market is a huge market...we think the rewards justify the risk." And providing competition to the electric company is just a first step. As a longer term goal, Capstone hopes to use turbines, in con- nection with flywheels, to power motor vehicles. A flywheel is a kinetic energy storage device, sometimes called a mechanical bat- tery. The idea is to spin a wheel up very fast, and then draw energy out of it. Capstone has teamed up with Rosen Motors Inc. in Woodland Hills, formed by Compaq chief- tain Ben Rosen, and his brother Harold, a can produce power cheaply. longtime Hughes engineer of note. The' have poured $10 million into flywhee, design. The gameplan is to perfect a flywheel - made partially of space-age plastic compos- ites - that would spin in a vacuum chamber at 54,000 RPM,To date, the Rosens haven't made it work, but they feel they are closing in, according to insider accounts. In a motor vehicle, the flywheel would supplement the turbine, when power was needed on hills, or for acceleration. The whole result, on paper, is efficient, and clean-burning. When braking, the turbine-powered vehi- cles would put power back into, or re- charge, the flywheel. The turbine-flywheel combination, on paper, easily beats batteries, which are very heavy, and of limited range.The Rosens have stated that their car will emit almost no emissions and have plenty of pep. Craig, when he allows himself to muse, sees a bright future for the Capstone turbine- flywheel motor vehicles, which could even become mobile powerplants. "Oh, I see the day when you might drive to your remote cabin near Big Bear, and then plug the car in when you get there, to pre vide electricity during your stay," he says. Reprinted by permission of the Los Angeles Business Journal