Ramgen Business Overview

Ramgen Power Systems, Inc. (“Ramgen”) is a privately-held research and development company, focused on unique energy related applications of supersonic aircraft technology. Supersonic aircraft use well understood shock waves generated by their ramp-like engine inlet systems to produce high levels of compression at exceptionally high efficiency. Ramgen’s primary innovation is the application of these supersonic flight inlet concepts and methods to air and gas compression in non-flight applications. Ramgen also has high speed combustor and expander technology under development.

Ramgen’s technologies and know-how are being applied to four clear commercial applications:
• CO2 compressors;
• Oil-free industrial air compressors;
• Low emission and high flame stability gas turbine combustors; and,
• Military electric drive propulsion systems and auxiliary power units.

The dominant opportunity is the CO2 compressor. As outlined in this summary, Ramgen’s compression technology has unique technical and commercial advantages when applied to a CO2 compressor. The Ramgen CO2 compressor is projected to reduce the capital costs of CO2 compression by 65% and produce a minimum of 25% operating cost savings.

Ramgen's CO2 Compressor

Source: Ramgen Power Systems

Applying these cost savings to a new 400 MW clean coal plant would result in capital cost savings of approximately $22.0 million and in annual operating cost savings of approximately $5.0 million. There is a multi-billion dollar per year market potential for Ramgen’s CO2 compressor technology when applied to carbon capture and storage, and enhanced oil recovery.

Ramgen has successfully demonstrated the “proof-of-concept” of its compression technology and has created an advanced set of analysis tools for developing application specific designs. The information produced by these tools provides compelling evidence that Ramgen’s shock wave compression technology can be commercially viable.

Ramgen’s compression technology can also be applied to lower the costs and improve the efficiency in the $175 million per year oil-free industrial air compressor market.

Ramgen has also developed and successfully demonstrated its advanced vortex combustion technology (“AVC”) at the U. S. Government National Energy Laboratory (“NETL”). This technology offers stable, dry-low NOX emissions levels for new and retrofit applications to conventional gas turbine power plants, and also offers promise as a low emissions combustor on hydrogen and hydrogen-rich fuels. These markets are substantial and global.

Additionally, Ramgen is under contract with the Defense Advance Research Programs Agency (“DARPA”) to conduct preliminary engineering work on a new auxiliary power unit. This unit combines the advantages of Ramgen’s compressor, combustor and expander technologies into a gas turbine auxiliary power unit that delivers the efficiency of a diesel engine at 10% of the weight. Military applications for this system include advanced weapons systems, naval electric propulsion and power systems, and forward base stationary power generation. Future spin-off civilian applications would include distributed power generation.

Founded as a Washington State corporation, Ramgen received its first significant funding in 1998, and since that time has received more than $22 million in private funds and $26 million in non-dilutive government contract revenues from the Department of Energy (“DOE”) and the Department of Defense (“DoD”). These funds have enabled Ramgen to develop the intellectual property for it to become a technological leader with potentially enormous economically and environmentally driven markets.

Ramgen has been guided by a long-term management team that takes pride in its ability to nimbly adapt to changing opportunities and results. Ramgen has been successful in attracting and retaining a world-class team of scientists and engineers that includes experienced professionals from Boeing, Pratt & Whitney, Caterpillar/Solar, Ingersoll-Rand and Rocketdyne. Ramgen has also developed a network of consultants, government scientists and academic advisors that greatly leverages the intellectual and experience base being applied to advance the development of its technologies.

To the best of Ramgen’s knowledge, no potential competitor is currently undertaking significant research and development using supersonic shock wave technology in a stationary platform. Ramgen possesses extensive and growing protection on its innovations and inventions, and continues to strengthen its intellectual property position. Ramgen filed its first patent application in 1992, and since that time, eleven U. S. and three foreign patents are in force, with three U. S. and seven foreign or international patent applications pending. These patents and applications include claims covering both general processes and specific techniques relating to the creation and exploitation of shock waves caused by a supersonically rotating disk within a housing, as well as advanced vortex combustion.