Qnetic Corporation

OUR STORY:

Qnetic’s origins lie in a three-month, 6,000km bicycle trip. A journey through sun and rain, hills  and plains, to find an answer to the question: when we are old, forty years from now and looking back on our lives, what did we do that made a positive impact in the world?

That journey provided the time and perspective to find the answer.

Our experience as engineers told us that redefining our energy system is the key to solving many of the problems facing our planet, and the biggest of all the world’s problems is global warming.

The biggest problems are also the biggest opportunities…

THREE SIMPLE STEPS…

To a next-generation clean, sustainable energy system:

Decarbonization is not a renewable energy problem; it is an energy storage problem.

Our cheapest power sources are wind and solar—and they’re scalable!—but the sun doesn’t shine at night and the wind doesn’t always blow. This is the intermittency problem. It makes reliance on mass-scale renewables impossible.

The only way to replace fossil fuels by renewables is by storing energy. Lots of it…

Storage solutions exist, but they are not up to the job. Some are not scalable; some degrade and need replacement every few years; some have fire or toxic chemical risks; and all are too expensive.

To solve these problems and help build the future we want, we created the Qnetic Mechanical Battery.

OUR MISSION:

Our mission is to enable the sustainable energy transition, by building the best possible energy storage.

Our focus is bulk storage of energy, answering the grid’s 24-hour supply and demand cycles and supporting the transition to solar and wind.

OUR PRODUCT:

Qnetic charges using electricity, and discharges electrical power just like any other battery.

But Qnetic is different.

Unlike traditional batteries, Qnetic doesn’t store energy as an electrochemical potential. Instead, it uses a motor to spin a rotor, efficiently converting electrical energy into kinetic energy.

The faster the rotor spins, the more kinetic energy it contains, and when it reaches top speed, Qnetic is fully charged.

Thanks to a near-perfect vacuum, and a rotor that floats on a contactless magnetic cushion, the rotor remains at high speed and Qnetic stays charged. This innovative design ensures Qnetic is ready when it’s needed.

When power is required, the dual-function motor becomes a generator. The process is reversed, and the rotor slows down as its kinetic energy is efficiently turned back into electricity.

10%-Scale Prototype:

We built this prototype to help you understand how it works, demonstrating charging and discharging:

NOTE—the full-size Qnetic is 10× the size of this prototype! We need your investment to build it.

Patent Protection:

In April 2023, we filed our first PCT patent application. This invention cleverly disables the strongest rotor vibrations (called the ‘critical mode’). It means that during general running, our bearing can have very low stiffness, and hence low losses.

This is a very important flywheel innovation that is unique to Qnetic.

Funded by your investment, we plan three more patents in 2023, creating huge company value and helping protect our technology advantage

• The overall product architecture
• The rotor type
• Passive and active safety systems

Qnetic installation:

Due to its mega size, Qnetic is installed in specific energy storage facilities which are usually operating close to wind and solar farms, or close to the community they are serving.

An energy storage facility comprises an unlimited number of Qnetic, connected together to form a megawatt-scale battery that can support the needs an entire town, for example.

Qnetic is installed in the ground for two reasons:

• Intrinsic safety
• Low visual impact on the landscape

OUR COMPETING SPACE:

Not all batteries are alike—the capability to economically discharge for a long duration sets them apart.

To exploit renewable power 24-hours a day, storage needs to do ‘daily energy shifting’. With enough storage doing daily energy shifting, we can power lights in the evening using solar from the day, and we can power our offices in the morning using wind power from the night. It’s that simple, and that essential.

To achieve it, a storage system must be capable of discharging energy for 4 to 12 hours. This is the #1 application for energy storage and what Qnetic was designed for.

Combined with hydrogen energy storage for long-duration, Qnetic will enable us to shut-down all the coal and gas power plants for good.

How does Qnetic compare to the main competitor for daily energy shifting: lithium-ion batteries? 

Qnetic Beats Lithium-ion Batteries for Energy Shifting

OUR CUSTOMERS CAN MAKE MORE MONEY

Thanks to a lifetime of 15,000 cycles with no degradation, customers should expect Qnetic to be twice as profitable as Li-ion batteries.

The report at the ⬇️ bottom of the page ⬇️ explains how researchers at Imperial College London calculated this IRR comparison.

ENABLING SUSTAINABLE ENERGY INDEPENDENCE:

The supply-chain and raw material origins of lithium-ion batteries are a geopolitical issue—most countries are not in control of their energy storage resources.

Qnetic is not a chemical battery, so it’s fundamentally different. It uses common engineering materials, easily sourced locally and independently.

We don’t believe in shipping Qnetic across the world. Instead, we are committed to manufacturing Qnetic locally, creating local jobs. Great companies are built on great people and great people serve their communities.

CLEAN ENERGY FOR ALL:

POWER ON-DEMAND:

Qnetic is specially designed to store the cheapest forms of energy—solar and wind power. It provides power on-demand to multiple users, lowering the electricity bill and eliminating carbon emissions from the mains supply.

OUR SOURCES OF REVENUE:

Qnetic has several ways to generate revenue:

   1. PRODUCT SALES—customers can buy the product outright. Revenue will be generated when each product is sold and installed at the customer site.

   2. LEASING—for customers on a tight capital budget, Qnetic will manufacture the product and then, using financial partners, lease the battery over a multi-year period to the customer, charging a fee per period or per kWh discharged.

   3. MAINTENANCE—for a recurring fee, Qnetic will monitor the products over its installed lifetime, gather data on performance metrics, and ensure that it is operating safely and optimally.

   4. LICENSING—in select geographies, Qnetic will work with a local partner to either accelerate bringing the product to market and/or meet local legal requirements.

2030 PROJECTIONS:

Projections cannot be guaranteed.

Qnetic wants to halt climate change. By 2030 we will have avoided the release of 2 million tonnes of CO2 from legacy fossil fuel power, by accelerating renewables deployment.

To achieve the goal, Qnetic will become a multi-billion-dollar company by installing 2GWh of storage annually.

Qnetic is a company that respects its people, its partners, its customers and the environment.

Qnetic’s ambitions are planetary.

OUR TEAM:

Our team boasts extensive expertise in business, finance, and multiple engineering disciples including mechanical, electrical and composite materials.

With several experts in wind turbines and rotating machinery design, we are exceptionally well equipped to drive Qnetic’s ongoing development.

Moving forward, Qnetic will further strengthen our engineering expertise and hire professionals in market development and manufacturing.

HUGE, EXPONENTIAL MARKET:

Source: BloombergNEF Global Energy Storage Outlook 2021;

The energy storage market is doubling every three years. It is one of the hottest topics of today—and for the coming decades.

THE RIGHT INVESTMENT AT THE RIGHT TIME:

Forbes Source

Source

Compared to most clean-tech investments, Qnetic is a highly differentiated technology that will disrupt the energy storage market.

OUR ROADMAP:

Our first objective is to develop the technology and prove it’s superior performance and cost to lithium-ion. To do that, we have three phases:

  1—R&D Phase: design the product and prove its performance based on numerical models. Build a 10%-scale ‘functional model’ prototype. This phase is complete.

  2—PROTOTYPE: prove the system works in the real world and validate the numerical models. This is the current stage and the initial focus of your investment.

  3—MVP: build the full product, test it, certify it for sale, and start generating revenue. That’s where we will be next year.

We signed a Letter of Intent with Bügerwindpark Janneby in Germany, to install and test our MVP in real-world conditions. See the document at the ⬇️ bottom of the page ⬇️ for more information.

Janneby’s Reinhard Thomsen, left, and Jörg Peter Thordsen, centre, shaking hands with Qnetic’s Dr. Mathias Mier, right.

USE OF YOUR INVESTMENT:

Thanks for studying Qnetic’s value proposition.

If you have reached this point, you might be seriously considering an investment. Investing in an early-stage startup like Qnetic is high-risk/high-reward. You could lose your investment if we do not succeed… But in order to succeed, Qnetic must become a large and successful enterprise. So if you are ready to take the risk, no matter how small your investment, it will enable Qnetic’s mission to save the planet. Buckle-up and join the ride !

QNETIC IS A RARE OPPORTUNITY:

Qnetic Disclosure under Section 17b of the Securities Act