Aeration in-silo dryer for grain and seed by ckd11816

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									     Aeration in-silo dryer for grain and seed



           Patent Support Request Presentation



Vitaliy G. Danchenko, Larysa P. Potapovych, Ronald T. Noyes
                      +380 562 368275
                        vdan@ua.fm
                 Elevator Limited Company
                       Dniepropetrovsk

                                                         1
                       Outline

1.    Proprietary statement
2.    Market need
3.    Technology description & Advantages
4.    Experimental results
5.    Stage of development, Next steps & Costs
6.    Targeted market segment
7.    Competition & Competitive matrix
8.    Improvements achieved
9.    Patent support request
10.   Action Plan for licensing


                                                 2
    Proprietary information statement




The technology material presented is
available for licensing or joint product
development.




                                           3
      Problem Description & Market Need


• 40% from 40 millions tons of grain growing at Ukraine is
  harvested in moist state. Due to lack of drying equipment at a
  reasonable price and effective grain drying technologies 6
  millions tons of grain is lost because of spoilage. It costs $0.8
  billions for Ukrainian economics.
• According to statistics only 30% of grain enterprises are
  provided with drying capacity. Conventional drying equipment is
  not available for most of small and middle farms at Ukraine and
  others countries because of its high cost and power inputs
  during operation. Farmers need inexpensive and effective
  dryers.
• The potential market of the dryers at a reasonable price and
  operation costs with possibility to cover its cost quickly is
  practically unlimited in Ukraine as 6…8 millions of harvesting
  grain are not provided with drying equipment.



                                                                      4
         Technical Merits
  The proposed aeration in-silo dryer has the following
  advantages in comparison with thermal dryers afforded at the
  market:

• obtainable price (approximately half as much as thermal dryers
  prices);
• high quality of drying for grain and seed;
• possibility of earlier harvesting on 1…2 weeks;
• replacing expensive and faulty fuel energy carrier with
  economically priced fan power;
• environmentally appropriate and fire safety drying conditions;
• carefule grain finish drying after imperfect thermal drying;
• ease of assembling and handling;
• not high operation cost;
• quick payback (during one year) due to the obtainable price and
  low (10 times less in comparison with the thermal dryers) power
  inputs.
                                                                 5
     Description of dryer design and operations

•  The proposed aeration dryer is designed as conventional grain silo. Its
  bottom can be conical or flat. A perforated multi-sectional air distributor
  is installed on the bottom. Ducts of gas jetting system feed the air
  distributor.
• The gas is purged through the air distributor sectional layerwise. Having
  processed grain the gas is removed outside the dryer through a slot gap
  between the roof and sidewall sheet.
• The dryer construction provide enriching the air feeding grain bulk with
  ozone which has properties of both disinfector and drying agent. To
  improve the air drying properties there are systems for its drying and
  heating.
• To simplify dryer assembling and operation processes it is provided
  with collapsible prefabrication sectional bottom.


                                                                          6
    Technological peculiarities of the offered aeration
          dryer in comparison with analogues

•   Horizontal, shorter in size in comparison with vertical and less power-
    intensive way of gas movement using anisotropic properties of grain body
    resistance to air flow.
•   Providing of moistened air removing from the dryer without its repeated
    contact with dry grain.
•   The dryer design provides its rigidity both to internal loading from the grain
    weight ant to environmental stress that allows applying dryers with the
    height much more than the diameter.
•   Opportunity of feeding any height of grain bulk with gas of identical initial
    characteristics with providing level-by-level adjustable on speed purge of
    the bulk;
•   Exception of an opportunity for reproduction and further development of
    pests in moist grain and maintenance of its qualitative parameters both
    during drying and the subsequent storage in a dry condition.
•   Reduction of time and labor input of bottom assembly due to use of factory
    manufactured section elements without application of building equipment
    and concrete works.



                                                                                 7
               Experimental results
•   Researches of the preparatory grain fumigation with the
    ozonized air are fulfilled with the positive results.

•   Processes of the gas moving inside the aeration dryer and
    moisture removing are studied with help of developed
    calculation model.

•   Two aeration dryer imitators of 200 kg capacity are
    manufactured. Equipment for creation and monitoring of
    necessity medium inside the dryer as well as drying
    equipment is prepared. The tests will be begun in November
    of 2006.

•   Engineering documentation for manufacture of field aeration
    dryer prototype of 18 ton capacity is issued. The prototype will
    be manufactured and prepared for the field test in February of
    2007.

                                                                       8
  The stage of development and the international
                    patenting


• Dryers’ design and grain drying technologies have been
  studied by patent and subject literature;
• 16 technical solutions the closest to the proposed dryer
  have been selected to use as analogs and prototypes;
• Application materials on the invention (drawings of the
  dryer design, the description of its operation and the
  patent formula) have been prepared;
• The application materials on invention have been
  discussed preliminary with a patent agent for their
  completion according to the international patenting
  requirements and submitting to the State patent
  association of Ukraine.

                                                        9
         Next Steps for Development
•   Manufacturing the aeration dryer, its exploratory finalizing,
    engineering follow up, correcting make-ready and certification
•   Presentation of the dryer full-scale prototype to managers of
    Ukrainian enterprises at training center of Agricultural Department in
    Mayskoye village, Dniepropetrovsk region, and obtaining official
    appreciation of the dryer for market penetration
•   Development of presentation materials, Web-site
•   Development of the business plan to get budgetary (innovation)
    financing for preproduction and dryers manufacturing by the way of
    componentry manufacturing at various producing plants and next
    assembling by Elevator Ltd staff
•   International Patent application to take out the Patent in USA,
    Canada, Ukraine
•   Cooperation with Companies which interested in the aeration dryers
    (GSI International, USA, Westeel, Canada, etc) to issue the license
    and organize joint business
•   Exposition of the aeration dryer at Agro 2007 Exhibition (Kyev,
    Ukraine), Agricultural Show in Hanover (Germany) and Brno
    (Czechia). Making of contract for dryers manufacturing and delivery
•   Creation of dealer system for advertising and sealing

                                                                         10
                   Development Costs
    Development of the aeration dryer prototype consists of the
    following work stages:
•   analytical research;
•   laboratory experiment preparing;
•   laboratory experiment to option the aeration technology
    parameters;
•   issuing of design and engineering documentation;
•   preproduction work for new details and assembly unit;
•   manufacturing of the prototype and purchasing equipment for
    the field tests;
•   field tests of the aeration dryer;
•   refinement of the dryer design by the test results.

    Total development cost for the aeration dryer
    prototype of 100…150 ton capacity amounts
    approximately 0.9 million of USD.

                                                                  11
       Commercial potential
Aeration dryer has all opportunities to win at the
     trade market owing to high technical and
  economic characteristics, parameters of quality
       and ecological compatibility as well as
   replacement of expensive energy carriers in
 technological process of grain and seeds drying
       such as natural gas and mineral oil by
          inexpensive energy of the fan.



                                                 12
            Targeted Market Segment
        The aeration dryer may be widely adopted at:
• Seed-farming enterprises for:
 carefully and pollution-free seed drying with ambient air;
 germinating power stimulation and increasing the crop capacity
  (conceivably on 10…15%) due to seed processing with ozone.

• Small and middle farms for:economical
 drying small grain batch;
 Economical drying (without applying of expensive fuel).

• Large grain enterprises for:
 Finish drying after incomplete thermal drying to abate power
  inputs;
 Providing possibility to begin harvesting 1…2 weeks earlier with
  furthering grain ripening during drying process.


                                                                     13
                                               Competition
              My competitors are manufacturers of thermal dryers GSI, MFS (USA), Westeel (Canada), Arai
               (Poland), Meri (Finland). Apparently from the resulted table, of eleven basic characteristics
               for a choice of the dryer, offered aeration one has ten superlative characteristics of higher,
                                            except for one – the speed of drying.

                     Thermal dryers                                               Aeration dryer

High cost                                                     Price of the equipment is 3 times below than thermal
                                                              dryers
High power inputs                                             Power inputs are more than 2 times below, than at
                                                              thermal drying

Cracking and damages of grain, caused by internal             Use of sparing drying and after-dying excludes
pressure                                                      damage of grain
Are not economic enough at drying grain and seeds of          Economic at drying small parties of grain and seeds
small parties
Not high quality of seeds drying                              High quality of grain and seeds drying
Possibility of ignition at drying of olive cultures           Ignition-safe conditions of drying
Environmental contamination by products of energy             Ecological safety of drying
combustion
Insufficient efficiency of drying grain after pre cleaning,   Efficiency of drying after pre cleaning for 1-2 weeks
for 1 – 2 weeks
Complexity of installation and operation                      Simplicity of installation and operation
High speed of drying due to high-temperature heating          Speed of drying is slower than in thermal dryers
Use of expensive energy resources - natural gas or            Low-cost energy of the fan
diesel fuel

                                                                                                                      14
      Competitive Matrix of the proposed and known dryers
  Important dryer’s       Proposed     Thermal dryer of column type      Thermal
   characteristics        aeration     GSI,MFS (USA), Westeel          bunker dryer
                            dryer      (Canada), Arai (Poland), Meri     GSI and
                                       (Finland)                       MFS (USA)
Weight, tons                 3.8                   10.8                   13.0
Dryer’s cost, $ USA        17 000                 85 000                 58 000
Weight of drying grain
batch, tons                  100                    100                    100
(corn – on 15%,
wheat – on 5%)
Drying period, hours      Corn 36                Corn 4.0               Corn 5.0
                          Wheat 96              Wheat 15.8             Wheat 20.5
Cost of gas for drying        -                 Corn 18.2              Corn 16.3
of one batch, $ USA                             Wheat 70.5             Wheat 62.5
diesel oil, $ USA             -                 Corn 25.4                   -
                                                Wheat 98.7
electric power,           Corn 13.5             Corn 3.2                Corn 2.8
$ USA                     Wheat 43.3            Wheat 10.9              Wheat 9.8

Cost of total spending,   Corn 13.5             Corn 21.4              Corn 19.1
$ USA                     Wheat 43.3            Wheat 81.4             Wheat 72.3
                                                                                      15
    Competitive Matrix of the proposed and known
                dryers (continuation)
  Important         Proposed       Thermal dryer of column    Thermal bunker
   dryer’s        aeration dryer   type GSI,MFS (USA),         dryer GSI and
characteristics                    Westeel (Canada), Arai       MFS (USA)
                                   (Poland), Meri (Finland)
Grain drying
efficiency         Not enough                High                 High
                      high

Drying
efficiency for    High economy        Not high economy          Not high
small grain                                                     economy
batch

Seed drying          Not high         High productivity           High
efficiency         productivity       Not high economy         productivity
                  High economy                                  Not high
                                                                economy

                                                                               16
    Competitive Matrix of the proposed and known
                dryers (continuation)


  Important         Proposed       Thermal dryer of column    Thermal bunker
   dryer’s        aeration dryer   type GSI,MFS (USA),         dryer GSI and
characteristics                    Westeel (Canada), Arai       MFS (USA)
                                   (Poland), Meri (Finland)
Quality of                          Corn - high for < 25%     Corn - high for
marketable            High                moisture            < 25% moisture
grain drying                            Wheat - high           Wheat - high

Quality of            High             Not enough high         Not enough
seed drying                                                       high

Grain quality                                                    Doesn’t
after drying       Improves           Doesn’t deteriorate       deteriorate
and ripening


                                                                                17
 Competitive Matrix of the proposed and known
             dryers (continuation)

  Important         Proposed       Thermal dryer of column    Thermal bunker
   dryer’s        aeration dryer   type GSI,MFS (USA),         dryer GSI and
characteristics                    Westeel (Canada), Arai       MFS (USA)
                                   (Poland), Meri (Finland)
Finishing
drying of         Economically
seed and          and rationally         Doesn’t apply        Doesn’t apply
grain after
incomplete
thermal
drying
Ecological
compatibility         High             Not enough high         Not enough
                                                                  high
Fire safety       High for any       Not enough high at        Not enough
                  grain-crops      drying oil-bearing crops   high at drying
                                                               oil-bearing
                                                                           18
                                                                  crops
               Reached improvements
   The proposed aeration dryer design is improved in comparison with the
   prototype and possesses 15 distinctive attributes (according to the patent
   formula):

The improvements allow:
• To reduce energy expenses more than in 2 times for drying;
• To provide natural and ecologically pure ripening of grain and seeds;
• To raise operational and functional qualities;
• To raise a degree of factory manufacturing;
• To reduce the price of the equipment (in 3 … of 5 times in comparison with
   similar thermal dryers);
• To reduce influence of surrounding atmosphere on process of drying;
• To provide qualitative drying of the grain not dependent on height of a grain
   embankment;
• To provide use in other brunches, for example, for drying loose materials or
   crushed wood.


                                                                                  19
     The requirement of patent support
    The requirement of patent financial support in the
    sum of $2,200.00 USD is necessary for
    submission of the international application. It is
    planning the following clauses of expenses:
1. Patent investigations -                    $350
2. Drafting of the Patent Formula -           $150
3. Drafting of the declaration and drawing - $150
4. Application submission -                   $50
5. Duty -                                     $1500
Total -                                       $ 2 200



                                                         20
         Action Plan for Licensing
• Prepare list of competitors and companies to contact
• Find and assemble marketing team
• Develop business-plan to obtain investment
• Prepare promotional material
• Manufacture demonstrational prototype of the aeration
  dryer
• Carry out presentation of the proposed dryer for
  stakeholders abroad and for representatives of the
  foreign companies in Ukraine
• Prepare Partner project for development of seed
  aeration dryer together with US and Canadian experts
• Negotiate with stakeholders about creation of joint
  enterprises for manufacturing aeration dryers on
  licensing basis

                                                      21
   Contact information


V.Danchenko, L.Potapovych,
     +380562-368275
       vdan@ua.fm
 Elevator Limited Company
     Dniepropetrovsk




                             22

								
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