Our company was founded in 2014 with the goal of offering an oil-free alternative to current compressors. We intend to reduce the cost of ownership by 20% and increase reliability compared to current oil-free compressors.
Thank you to everyone that tuned in to the second and last investor webinar of our current capital raise! In case you missed it, we introduced the team, talked about the company, and discussed our plans for 2023.
Our Innovative Team
Todd Thompson is the CEO and co-founder of Carnot Compression, Inc. He has 25 years of experience in finance, corporate development strategy, as well as mergers and acquisitions. Prior to founding Carnot, Todd was a consultant for several large companies. Todd graduated from the University of Virginia.
Hans Shillinger is the COO and co-founder, with 30+ years of experience in engineering. He previously spent a lot of time with Quanta Service, a big engineering and construction firm. Hans is a CalPoly grad.
Our VP of Engineering, Chris Finley, has 20+ years of experience in mechanical engineering and cryogenics. (Rotating machinery). Chris worked extensively for Ibarra International before joining our company.
Christophe Duchateau is our engineering scientist. He began his career at Bechtel before joining us. He has a Ph.D. with a postdoc at Stanford.
Our intern, M Iffat Hassan, has a Ph.D. candidate at the University of Nevada Reno in mechanical engineering.
More About Us
The objective is to lower the carbon footprint of industry by reducing energy consumption from compressors.. with a completely oil-free process.
There's approximately $12B spent annually on energy costs to power compressors. This technology has a high ceiling in terms of the efficiency potential it can reach. If we hit our efficiency potential, there's a 20%+ savings opportunity. This could represent an opportunity of $2B+ in the US if we were to replace every compressor in the market with ours.
So the value proposition is providing a lower lifetime cost of ownership... Not just with energy savings but with lower maintenance costs and a longer operating life. Our initial target market is the 5-25 horsepower oil-free compressed air market.
Exciting Things in Store for 2023
This is a very exciting year for us. We see ourselves transitioning from the R&D/product development stage to product commercialization by the end of the year! 2023 will be split into two main phases. The first phase is extended field testing that is in place and ongoing in the dairy industry right now.
We're looking to have other field tests come online. This will lead to low rate initial production capabilities by the end of the year. The second half of the year will be spent mapping out the production ready design. The goal is to ramp up to delivering our first commercial units by the second half of the year and into 2024.
We intend to have channel partnerships in place to support a much broader commercial launch. Those discussions are ongoing as we speak, and the big objective here is to formalize those partnerships over the first half of the year.
One of the big target market opportunities for us is the dairy industry – specifically to supply oil-free air for robotic milking machines. This is a huge market, largely off the radar screen if you're not in the industry. However, there are 70,000+ robotic milking machines estimated to be installed worldwide, and that's growing about 20% per year.
If you look broadly at the dairy space, robotic milking machines are still a very low market share of overall dairy operations. So there's still a lot of upside there in terms of driving that installed base.
These machines need a continuous supply of oil-free air to run their pneumatic systems. We've had multiple customers come to us, seeing our design as a potential solution to a current problem that they have. We are executing two test projects with Dairy Specialists, and we see this as a very exciting near-term market opportunity for us.
Another early adopter market that we see is automotive painting. When you run a paint sprayer, if you have any oil that carries over in the compressed airstream, it can damage the paint job. We conservatively estimate there are 60,000+ auto paint shops in the US. Currently, we have a beta test project lined up in California at an automotive shop that's funded by the CEC.
Thank You For Your Time!
Read more about Carnot Compression by visiting our raise page on StartEngine for more information. For those who want to catch up on our full webinar recap, you can watch it here.