GREY:XEBEQ - Post by User
Post by
ZouZS3on Mar 20, 2022 6:39pm
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Post# 34530046
First Mover
First Mover Adding to SORNG1's comments:
Firstly, Xebec is really focusing on North American Market & they have pressure. Specifically I can, I can say that our glass manufacturing customer base would like us to go further global with them. As we mentioned, we've gone to quite a few locations around the globe. But certainly the North American content, for example, is one good application for this. said Jim
Xebec's sales focus is on standard products that can be factory produced, tested and shipped and installed in days. "we are finalizing our last two legacy RNG projects and look forward to ensuring that we can put our time and energy into standardized systems, which will really give us scale and help the industry reduce cost." said Jim.
The price point for the product starts at $1.5 million as opposed to $2 million to $4 million for custom-designed and engineered turnkey systems.
There is plenty of room to increase prices due to inflation and pass it on to the customer & still remain competitive.
Installation and commissioning time also compares versus custom-designed systems as it comes down to 2 weeks versus the 8 to 12 weeks seen with existing RNG systems.
They want to get the order lead time to weeks once they have scaled up production (big improvement)
They aim to produce Biostream units into inventory and sell them throughout the world.
No competitive product out there. They have basically put everything into 1 container.
Since it's a standard product, they have a price list. The sales people sell over the price list. And that's it. There's no more engineering. It simplifies their operations significantly. It derisks everything.
Main reason why they switched to Biostream is because there is a risk reduction. It's a factory produced product. You have a bill of material. You know your cost. You test the system in the factory. You know it works. And then you deliver it and you know what the delivery, installation & start up time is.
Everything is a lot more predictable.The sales people have a price list. They know for how much they have to sell the product. And that's it. There's no more drawing up preliminary bill of materials to estimate what it will cost to build a project. Take it or leave it. Here is the product. You need two, buy two. Here is the price. And that's it. It's very straightforward. It's a much better business model.
And yes converting a couple thousands electricity generators and displacing them with Xebec's RNG product from Germany's 9,000 biogas installations, most of them producing electricity and running on Caterpillar and General Electric containerized electricity generators operating for the last 30 years. Mr. Munro is an award-winning senior executive with a record in managing North American based businesses with strong expertise in business development, operations and strategic planning. He was most recently the Canadian General Manager at GE Power Conversion. Mr. Munro had a longstanding career at GE as a Vice President and General Manager in several business units and was recognized for his skill at turning around poorly performing divisions and restructuring business lines generating over $200 million in revenues.
HELIUM
There's been a significant short shortage of helium. We saw helium prices in 2020 increase by tenfold. This is driven predominantly by the fact that he most of the helium in North America was provided from the U.S. strategic reserve.
All of a sudden in 2020, there were announcements made that this reserve was running out of helium. Russia is also a very large helium producer. They need to understand a little bit more the fallout of the Ukrainian conflict.but both Xebec and Air Liquide believe that this is going to be a very strong market for them in North America.