Business and product development plan for

Hydrogen Oman

Done by: Mohammed Al Barwani

General structure of business plan

1.0 Company description and overview of activities.

2.0 SWOT analysis.

3.0 Organization and management.

4.0 Product line and legal issues.

5.0 Marketing strategy.

6.0 Funding request.

7.0 Executive summary.

1.0 Company Description and overview of activities

This is a research and development company that focuses on creating a strong brand of being the

market leader in efficient hydrogen generation. This will be achieved via the kits that the

company develops for medium scale power generation (generators, cars and buses) and the

patents to be sold from continuously improving on the efficiency of those kits ( by employing

experts and professional in the field). The first product to be developed is a kit to be used for

powering an efficient hydrogen vehicle (competing with leaders in the industry such as

Hydrogen London and BMW) through direct combustion (of hydrogen) rather than using water

fuel cells. Further research will be conducted by the company to increase the efficiencies via

other renewable energies (such as solar and others) and therefore develop more patents for sell to

companies around the world.

Mission

To be a global leader in research and development activities related to the efficient generation of

hydrogen gas on demand via electricity and other renewable energies.

Vision

To be achieve global eminence in the development of renewable and clean energy.

Marketplace needs

The world is in demand of energy and this demand is increasing rapidly year by year. Energy

derived from Oil and gas based resources is becoming less popular with time due to scarce

reserves (in many countries around the world) and their polluting effect. As a result, countries

are actively switching toward renewable energies such as wind solar and hydrogen. Even though

hydrogen is the most abundant element on earth and is seen as a valuable alternative in the near

future, its generation has always been very costly and its storage as well. First of all,

conventional methods of generating hydrogen have always resulted in low efficiencies that are

not attractive to the common public. Secondly, hydrogen storage, as well as being dangerous, is

very costly. The product proposes to solve those problems by not only reducing the current

requirements for hydrogen generation via a modern electrolysis technique, but also generating it

at a high enough rate to run a combustion engine.

2.0 SWOT analysis

Opportunities

Hydrogen engines are currently are under development stage and are expected to

overcome the efficiencies exhibited by fuel cells in 20-30 years. Hydrogen engines work

by combusting hydrogen on demand.

Emerging countries in Europe shifting towards the hydrogen infra-structure.

Increasing demand for energy reflected by increase in worldwide energy consumption.

Dramatic shift towards renewable energy in the last decade.

Threats

Companies like Proton are continuously updating their hydrogen generations systems for

medium scale power generation.

Countries which are fully dependent on oil and gas may not adopt the hydrogen

infrastructure any time soon. This may prevent investors from pursuing such technologies

in the short term.

Strengths

The climate in the Gulf countries. With the development of other renewable energies

such as solar energy, those can be used as a stimulus for hydrogen generation, especially

in a country like Oman.

Weaknesses

Lack of high experts in the field of electronics and engine combustion. Foreign expertise

may be required.

Industry description

There are few companies in the world that are involved in the hydrogen generation industry. The

most well known is (in generation) is proton, which specializes in hydrogen generation for

generator purposes via the process of electrolysis. They are also used to feed fuel cells that

generate electricity from hydrogen.

Vehicles that run on hydrogen include employ the fuel cell technology (to generate electricity for

powering vehicles) and are known for attainting a maximum efficiency of around sixty percent.

The market leaders in this are Hydrogen London BMW, Toyota and hydrogen London. At the

moment, hydrogen engines are still under development stage and are expected to overcome the

efficiencies of vehicles running on water fuel cells (that rely on stored hydrogen obtained from

conventional electrolysis).

Target Market

The target market will be generator and car companies who are interested in buying patents

relating to high efficiency hydrogen generation.

3.0 Organization & Management

The company will be a private limited company (Ltd) to start with (later to be converted to a

public limited and listed on the Muscat Stock Exchange). The organizational structure will be as

follows:

At the maturity stage of the company, we would expect more than 200 hundred employees. The

percentage of ownership will be dictated by the terms of the TRC.

Chairman

R&D manager Finance manager Technical director

Deputy Chairman

Marketing and

HR manager

development

manager

R$D workforce

Team of PHD

holders with

ideas. Roughly

a team of five.

Marketing

Workforce

Team of web

developers in

charge of

marketing the

new kits to be

developed. A

team of four.

Technical work

force

In charge of

implementing

ideas formulated

by the R$D

workforce. This will

constitute the

majority (roughly a

team of 150).

Finance work force

Responsible for

managing the

finance and budget

of the company.

Consisting of four

employees.

4.0 Product line and legal issues

Description of product

Kits that produce hydrogen efficiently and on demand, especially designed for generator and

vehicle applications (medium scale energy requirements).

Intellectual property

Using the process outlined in hydrogen generation (as stated on the research proposal paper) is a

trade circuit and non will have the right to produce without the legal permission of Mohammed

Hilal Al Barwani.

Research and development activities

Further research will be done in exploring the use of solar energy to increase the efficiency of

hydrogen generation via the process outlined (as stated on the research proposal paper).

5.0 Marketing strategy

The marketing strategy to be adopted initially is public demonstrations of systems powered by

the kits. This will be accompanied by the establishment of a hydrogen society in Oman and a

website marketing the efficiencies attained by the company’s kits.

6.0 Funding request

For the research and development company, the CAPEX and OPEX costs are as shown in figure

1, with the CAPEX costs involving the cost of developing the kit (as indicated in the proposal

form and funded by the TRC ) and developing a hydrogen car ( from personal funding , investor

or selling a patent ).

1st year (cost of kit development, to be

funded by TRC )

2nd year ( maximum

cost of developing a hydrogen run

by the kit)

3rd year (maximum cost of developing other

kits)

Total (R.O)

CAPEX 2830 7000 90170 100000

OPEX (maximum cost: of rent and employee expenses)

82080 82080 135840 300000

TOTAL (R.O) 85000 89022.6 226010 310000

CAPEX AND OPEX EXPEDITURES

Item Expenditures quantity Maximum Cost

1 USB Bitscope oscilloscope 1 $465

2 Model 4012A MHZ Sweep Function Generators 2 $3395

3 Xilinix Spartan-3E XC3S500E FPGA development BORAD 2 $79.99

4 USB JTAG platform programmer 2 $20

5 Pintek DP-25 ( probe for high voltage) 1 $212.70

6 10 MHZ DDS Function Signal Generator Module sine 1 $106.00

7 30V 5A Adjustable DC Power Supply LED Display YIHUA 305D 1 $62.99

8 Large 1.4"/2.25" Iron Powder Toroidal Core - T 225A 2 2 $26

9 Digital 4 decimal high precision mass balance ( 15 kg max) 1 $100

10 IWATSU SG-4101 FUNCTION GENERATOR TESTED GOOD 2 $700

11 Radio Amplifiers 1 $200

12 Chemicals ( for anodizing the electrodes) 1 $1,500

13 anodizing equipments 1 $100

14 Wiring connectors 1 $100

15 PC's for recording measurements 1 $300

16 Workshop rent (for eight months) 1 $16,000

17 Technical support ( for eight months) 1 $200,000

18 Miscellaneous ( including safety equipments & generators) 1 $3,000

Total costs for year1 (R.O)

84910.12

Total

$223,448

Item Expenditures quantity Maximum cost

1 flash back arrester 2 $20

2 One way check valve 2 $30

3 Small hydrogen regulator(2-3 bars) 2 $20

4 ECU combustion kit 2 $200

5 Hydrogen tube 2 $10,000

6 Car 2 $8,000

7 work shop rent 1 $16,000

8 Technical support 4 $200,000

Total costs for year2 ( R.O)

89022.6

$234,270

Item Expenditures Maximum cost

1 cost of developing other kits $237,289.47

2 work shop rent $31,578.95

3 technical support $325,894.74

Total( R.O) 226010

$594,763.16

Figure2. CAPEX and OPEX expenditures for the first, second and third years respectively.

Forecasted Cash Flow Statement in quarters ( every four months for next three years)

1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th

Cash Inflows

Total Cash Inflows 0 0 0 0 70000 0 0 0 500000 0 0 0

Cash Outflows

rent and salaries 21250 20520 20520 20520 20520 20520 20520 20520 33960 33960 33960 33960

equipments 2830 0 0 0 7000 0 0 0 9017 0 0 0

others 0 0 0 0 0 0

total cash outflow 24080 20520 20520 20520 27520 20520 20520 20520 42977 33960 33960 33960

Opening Cash 0 0 0 0 0 0 0 0 0 0 0 0

Net cash flow -24080

-20520

-20520

-20520

42480 -20520

-20520

-20520 457023 -33960 -33960 -33960

cumulative net cash 24080 44600 65120 85640 43160 63680 84200 104720 352303 318343 284383 250423

Figure3. table illustrating the forecasted cash flows

The increasing demand for clean energy in the world, as well as the shift from water fuel cell

technology to hydrogen engine development ( which rely on direct combustion), is the reason for

starting this research and development company, which is specialized in developing kits for the

Figure4 table illustrating the forecasted cumulative cash flows with time

7.0 Executive summary

-200000

-100000

0

100000

200000

300000

400000

1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th Cu

mu

lati

ve n

et

cash

flo

w(

R.O

)

Time ( in units of quarter or every four months )

Forecasted Cumulative cash versus time

Cumulative cash versus time

Break

even time

≈2 years

efficient generation of hydrogen. In the long term, this enterprise may drive the energy future of

the world as societies move away from depleting oil and gas based resources.

Appendix

.

The electrical

control module

The hydrogen generating element of

water splitter device

The frequency control

module

Picture of the prototype to be developed.

Figure4. picture of the first prototype to be developed

Figure 7. recent development in hydrogen combustion technology