Axial Vector Energy Corporation Provides 1st Quarter, FY10 Progress Report
Axial Vector Energy Corporation provided a 1st Quarter, FY10 progress report.
Business Development: As announced on March 9th, AVEC's presentation and discussion panel participation at the Saudi Gulf Environment Forum (http://gulfenvironmentforum.com), March 7th-9th, resulted in some 40 senior level contacts indicating an interest in doing business with AVEC and/or Petro Avec. All 40 were visited; two are now engaged in negotiations.
Avec Virginia Report: In October, AVEC announced the opening of a new sales and production facility in Virginia. Engine and generator demonstrations, technical exchanges, contract discussions, engineering, and related activities resulted in the Kirloskar Oil Engines (KOEL) contract and the VA production team being awarded an innovative research grant from the U.S. Government, the details of which are subject to a non-disclosure. Phase II Government work, which will offset R&D costs for several months, is anticipated to commence in the second quarter. Production preparations with KOEL will also continue through the second quarter.
Avec India Report: In March, AVEC received an initial $250,000 technology transfer fee from Kirloskar Oil Engines (KOEL) in India. KOEL, which produces over $320 million of engines per year for the Asian market, is investing $2 million on a production line for AVEC engines and will be fulfilling AVEC's Eurasian order backlog. Production is anticipated to commence later in the year. At present, KOEL is working with AVEC Virginia to optimize and standardize production around the best of Japanese just-in-time (JIT) manufacturing processes.
Petro Avec JV Report: In Q3, FY09, AVEC announced that its Petro Avec joint venture was negotiating with a large oil firm in India. Those discussions are complete and a resultant agreement is before the Indian government, awaiting approval. Elsewhere, conversations with oil producers and refiners continue on three continents. Optimally, the firm hopes to have several, two-phase projects running this year
-- one in Saudi Arabia, one in India and, ideally, one in both the EU and the U.S. Each project will involve commercial-off-the-shelf equipment assembly in Germany, third party test and evaluation, and subsequent installation at the client site. These demonstration projects are required by each producer/refiner, as a condition for larger scale adoption of the technology. Separately, Petro Avec JV partner Petrosonics secured additional patents during the quarter.
US Wind JV Report: The US Wind JV, formed to syndicate projects using AVEC generators, failed to launch as planned when the global credit crisis hit AVEC's capital partners in Dubai. The capital markets are improving, however, and the US Wind JV is on the list of projects that we're showing to institutional investors.
Stated AVEC Chairman Sam Higgins, "The good news is that we have highly competitive products, substantive production capability coming on line, a healthy backlog of product orders, and our first revenue, albeit modest. Over the next 12 months, we'll be driving toward earnings and improved cash flow, an expanding end-user market, an improving bond rating, full SEC reporting and compliance, and analyst coverage. Higher levels of capitalization will get us there faster and we're pursuing a combination of existing shareholder friendly financing strategies. We'll share details as events occur."
LOBBYIST IN Washington, D.C.
We have interviewed several top lobbying firms in Washington, D.C., all of whom are eager to represent us to the U.S. Government. We will finalize this agreement in April. It has been determined by all that our unique family of GREEN ENERGY technologies are prequalified for Grants and Project Loans for manufacturing them in the USA. The project areas include both civilian and military and would allow mass production of our ultra low-carbon products in America.
About Axial Vector Energy Corporation
Axial Vector Energy Corporation (AVEC) is a global solutions provider that owns, develops, invest in and licenses revolutionary technologies including, internal combustion engine and electric power generator technologies that have unlimited potential in military, industrial and commercial applications. AVEC and its partners are positioned to become unrivalled leaders in international engine and energy markets with technologies that produce more efficient, cost effective, environmentally sensitive and versatile solutions for use in a wide variety of important applications around the world.