Dealer, Distributer, Sales Agent information for A2WH Solar powered WAED/AWG Atomospheric Water Generator

We also support commissioned agent relationships wh
ere we pay you a commission on all deals you close without requiring you to stock units. This commission rate is obviously lower than the discount rates received for distributors who are buying, stocking and installing inventory. We have a large pool of referrals and we are only willing to pay commissions on deals once so you may end up sharing commissions. The only way we can guarantee payment is if you collect the purchase order and payment from the customer. You do not have the ability to bind A2WH so you must work closely with us to ensure you have proper terms and pricing for the customer. You must have an affiliate commission agreement in place before you qualify for commissions. We do not support commission on referrals where you do not close the deal and collect the customer purchase order.

Standard Unit

We offer a standard unit self contained unit rated for 3 to 8 liters per day depending on region. These are not customized and are shipped with identical configuration. You can obtain larger systems simply by installing multiple of these standard units. All other units are custom configured for the installation location.

Sizing

Plan an installed size equal to 1 square meter per 2 to 5 liters of water per day. Also plan on approximately 5 pounds of system per pound of water produced per day. At 3 liters per square meter it will generally allow service walk ways and other infrastructure needed for larger systems. This can vary depending on the local climate. You must conduct local tests of the system because these numbers will vary by region and by micro climate.

Difference between A2WH and other systems

Our unit does not use refrigeration at all and can deliver water with a much lower long term cost once the total operational and energy costs are factored in.

Other units typically consume anywhere from 2,000 up to 6,000 watts per gallon using what is basically a air conditioner to chill air to the dew point. At $0.15 per Kwh this means their units will consume $0.30 to $0.90 in power per gallon produced. If you amortize this power cost into their costs then the unit producing 1 gallon per day will cost somewhere around an additional $2190 over a 20 year life (even more if you allow for increasing electricity prices). When you add wholesale initial acquisition cost of $800 for your unit it comes out at $2990 which is 190% our cost even comparing our retail to their wholesale.

We did an analysis for a guy in Sanderson TX which indicated the need for a $23,000 solar array to run a competitors 6 gallon per day system in his area. Even if you divide by 6 to reach a 1 gallon per day system it equal $3,833 for the solar array plus the $800 for the kiosk style unit which places their costs at $46334 which is 308% of our cost.

Capital Intensive Deployment

You should be aware that with our solar powered unit the capital cost generally runs many times that of the grid powered units. This is offset by a much lower operation cost. The A2WH system requires an investment model similar to large scale photo voltaic or large scale wind systems which are capital intensive.

In some areas the electricity cost for a normal electric powered AWG unit can be as high as $1.20 a gallon with $0.40 per gallon typical depending on climate.

Our A2WH system delivers costs closer to $0.12 per gallon for multi-thousand gallon systems but you pay for the entire 20 year production up front. Very large systems can range down to under $0.01 per gallon which can make the system more cost effective than any electric refrigeration based system once energy costs are factored in.

From a commissioned agent perspective high initial capital is good since it maximizes commissions. You do not get any commission on the electricity costs which are the major cost drivers for the other technologies.

The critical aspect of every sale is to get the customer thinking about minimizing long term operational costs rather than minimizing capital outlay.

Proof and Reference

We have a small number of units in the field in remote locations USA. Plan on installing your own reference sites. If you do not have the ability to fund your own reference sites then you do not have the resources to be a distributer.

We are privately funded growing from margins so we do not have the level of exposure the major companies normally expect and are comfortable with.

Based on our current contact with the major corporations the most we would expect them to fund is a 300 to 1,000 gallon system that they can use as a test bed to validate suitability to for their business and they will want 2 years of operating data at this scale before taking the risk for a production system. The only place we have not seen this true is where existing or near term water shortages risk idling their plant. In these instances saving as little as two weeks production at the plant can pay for the system.

Discount model

We follow a similar pricing curve to that used in the electronics industry here in the USA. You can look at the price for most components on Digi-key and have a good idea of our pricing curve.

Current Production Capacity

Our current production capacity is limited to units from 5 liters per day up to 600 liters per day. The technology can scale into several million liters per day but our current facility is not large enough to store work in transit between stations for more than 600 liters per day.

Importing into countries outside of the USA

A2WH is only accepting orders in the USA. To ship units into a new country requires that we file a local patent in that country. We have chosen to defer this expense until the demand for units in that country justify the expense.

Our policy is that the first order shipped into a new country must be large enough to pay for the filing costs in that country. Smaller orders can be accepted but the filing costs will be added to the price of the unit and repaid to the initial importer at as an additional discount of 7% of gross until they have recouped the filing fees.

Typical prices

These prices are representative. All costs are basic estimates and are influenced by region and fluctuating materials costs. All orders must be pre-paid and we lock prices in when the payment is received by pre-purchasing the supplies at that time.

Limitations

No Travel to close deals

It is A2WH policy to not travel to foreign countries to close deals. Even very large deals. We can offer installation and consulting services but we have encountered a high degree of fraud from countries trying to get us to travel for final deal closure. If you have a deal that really needs us present then you will need to break it up into smaller deals that can be closed without our local presence. Once you have established a paying relationship with us our risk from accepting travel goes way down.

Agricultural use not generally viable

No technology is generally viable for agriculture when water costs any more than $1,000 per acre foot.   Most farmers in the USA are paying less than $200 per acre foot and even in California the quoted cost viability limit seems to be around $800 per acre foot when growing premium crops such as citrus and almonds.

The lowest we think A2WH can ever reach without fundamental technology improvement is about $0.005 USD per gallon and that is only when selling multiple 50 million gallon per day systems.      At $0.005 USD per gallon it still represents a cost of $1,630 per acre foot.   For smaller systems say multiple 1 million gallon per day systems the cost will be closer to $0.012 USD per gallon which works out to $3,910 USD per acre foot.

This is comparable to the cost of coastal desalination ran from diesel systems and then piped inland for more than 300 miles once the full cost of energy, membranes, brine disposal, pipeline, pumps, and plant are amortized in but it still seems to high to support agriculture.

There are exceptions where especially for high value crops like citrus where a small amount of high purity water can be used to desalinate root zones which can triple production. It can also be viable to keep expensive infrastructure crops alive during drought such as almond groves which are expensive to replant.

We have been in contact with a USA state that is running a 3 million acre foot per year deficit and the system seems to pay for it's self there simply because it's allows continued economic growth where they may be forced to start to restrict growth.   In this instance any impact of economic growth greater than 2% is enough to pay for the system. In this instance a majority of the economic growth impact is driven by residential construction and light industry not agriculture.

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(WATER Conservation) Reduce Evaporation Losses from Reservoirs and Lakes. A perfect companion for A2WH and can deliver an even lower cost per liter.

This discussion contains forward looking statements which are based on current expectations and differences can be expected. All statements and expressions are the opinion of management of A2WH and are not meant to be either investment advice or a solicitation or recommendation to buy, sell, or hold securities. Many of these statements are based on sound economic reasoning, however actual response of the economy is heavily influenced by politics and large business and so the outcome could end up substantially different.

Joe Ellsworth.com Joe is a distributed systems architect with experience at CTO, CEO, VP and Principal architect positions. He has significant experience solving very large distributed systems problems for Fortune 50 companies. Joe describes his rational for his involvement in the A2WH, CorrectEnergySolutions and Renewable cooling projects.

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