Enginuity Power Systems is a startup developing a new generation of engines and appliances that are affordable and efficient, saving money for consumers and businesses. Its main product, the E|ONE micro-CHP (combined heat and power) system is under development, with a range of future products on the way.
The company has scalable power systems and a technology that combines features like simplicity, lower manufacturing costs, minimal vibration, and improvement in fuel efficiency to maximize power output while at the same time minimizing the weight.
Enginuity Power Systems has several patents protecting its innovative technology, and it’s currently running an equity crowdfunding campaign at StartEngine to raise capital and achieve its strategic business goals. And that means individual investors have a chance to get in early.
The target market is U.S. homes that currently use other sources of energy, such as natural gas and propane. In particular, they’re focused on customers in locations with “favorable economics and state incentives.” The projected sales are 410,000 units per year, which could lead to more than $4 billion in revenue per year.
We had an exclusive interview with the executive team of Enginuity Power Systems. Here are the insights their team shares, to help you decide if you want to invest in this startup.
What Are Current Products and Future Products?
To address the problem of grid inefficiency, Enginuity created the E|ONE, an All-In-One appliance that functions as a home furnace, water heater, on-demand power generator, and it fits within the footprint of a conventional water heater. Enginuity also designed the E|ONE so it can utilize, supply, or transact power with the grid, and it can also operate completely off-grid for maximum reliability.
We are currently developing an E|ONE derivative for military applications, as well as larger versions of the E|ONE for commercial, industrial, agricultural, and institutional applications.
What Is the History of the Executive Team?
We have an executive team with complementary entrepreneurial, corporate and government backgrounds, with a strong industrial and technology focus. In additional, Enginuity’s Board includes a former CTO of Honeywell Buildings’ Technologies, which is actively supporting our commercialization efforts.
Jacques Beaudry-Losique: President
Mr. Beaudry-Losique is a cleantech executive with a track record of growing revenues and raising capital. Jacques also demonstrated a high degree of effectiveness in US Government Affairs.
Formerly, Jacques was a senior executive within the Department of Energy, where he led multiple $100+ million energy efficiency and renewable energy programs. Jacques was promoted to become Deputy Assistant Secretary and managed a portfolio of six major clean energy programs. In the context of these programs, Jacques invested more than $1.5 billion in cleantech program funding.
Jacques began his career with blue-chip companies such as McKinsey, General Electric and Shell in various operational and business development roles.
Jacques has advanced degrees from Stanford and MIT.
James Warren: Founder & Inventor
Mr. Warren is the original inventor of the Enginuity’s multiple IC engine architectures. From Enginuity Power Systems’ start in November of 2015 and continuing through to today he has continued to refine the engine designs for maximum performance and reliability. He leads the effort to develop groundbreaking applications which leverage the engine’s unique qualities to create new levels of efficiency.
To date Jim has designed, patented, and tested four different architectures of opposed piston engines, each one specifically targeted at a major market segment. A prolific industrial designer, Jim is responsible for many of the thirty granted and applied for by the corporation and continues to push all phases of the technology forward.
Steve Niswander: Chairman and Founder
Steve Niswander is Chairman of Enginuity and leads our commercial efforts. He was elected Chairman of the Board of Directors in November 2015, at the company’s inception. Prior to Enginuity, Steve was conducting business development and contract management for a major financial services company.
Previously, Mr. Niswander owned and operated an automotive dealer group in the Washington DC metro area. Mr. Niswander is a board member and former President of Alexandria Sportsman’s Club. He has sat on the board of the Alexandria Chamber of Commerce.
Mr. Niswander graduated from East Tennessee State University.
Vince Meyers: EVP, Operations
Mr. Meyers joined Enginuity as the director of program management in November 2015. Vince is responsible for managing both prototype construction, intellectual property development as well as managing Enginuity’s research and development subsidiary, Katech Engineering. He also plays a leadership role with respect to the company’s contracts, strategic manufacturing partnerships, planning, and product development.
Before joining Enginuity, Mr. Meyers founded and was the Managing Partner for the Strategic Equity Group, a position he assumed in 2005. In this role, he was responsible for the acquisition and development of residential and commercial real-estate properties as well as provided management consulting and business development services. Prior to Strategic Equity Group, he was the President and CEO of AEW, operating multiple automotive components retail and wholesale distribution locations in the mid-Atlantic states. Prior to that endeavor, Vince was the team principal of a successful private auto racing team, in which he was involved in optimizing high performance engines. Being a lifelong entrepreneur, Vince brings a unique managerial and visionary skillset to the team.
Phil Zoldak: Senior Director of Product Development
Phil Zoldak leads the engineering team effort in delivering E|ONE and executing the product development roadmap. Phil has over 21 years’ experience and a proven track record of developing novel engine and thermodynamic technologies and leading large multi-disciplinary project teams consisting of both industry, government and academic associates. Phil is the author of over 30 publications and holder of 4 patents with several pending.
Formerly, Phil was a Manager of Engine Development and Test Operations at Hyundai where he led the development and product launch of 5 new engines for the 2021 model year. Additionally, he was the Principal Investigator for a Department of Energy funded project “Hyundai Multi-mode Gasoline Compression Ignition” and has managed over $30M of R&D project budgets.
Phil began his career working in the Advanced Technologies department of Navistar and has held leadership positions at 2 previous start-up companies and has an extensive engine development experience with Honda.
Phil holds a bachelor’s in applied science-Mechanical Engineering from University of Waterloo and Masters of Applied Science from the University of Windsor and is currently in the final stages of completing his PhD in Natural Gas Injection and Combustion from Michigan Technological University.
Lara Reyes: Director of Government Markets
Lara has worked for the US Department of Defense and Industry Partners for over 25 years. Her work and expertise include large-scale executive program management, business strategy & development, logistics, public relations, contracts/proposals, and domestic/international negotiations. She also has extensive background in research, development, test and evaluation (RDT&E) including both domestic and international partnerships and is an RDT&E subject matter expert and has helped transition multiple advanced new technology platforms to our service members over the past 25 years.
Lara was formerly the Managing Director of a government consulting business, the Power Pack Group, where she worked to help small businesses break into the Federal Sector. Lara began consulting with Enginuity in 2016 and joined the team full time in 2019.
Lara has a master’s from the University of Miami and the Harvard Kennedy School of Public Policy.
Do You Have Any Key Partnerships? If Yes, What Synergies or Goals Are to Be Achieved?
Oak Ridge National Labs is currently working with Enginuity’s engineering team on testing, validation, and optimization of our E|ONE system. The purpose of the program is to increase efficiency to provide the cleanest energy possible.
Working with Enginuity, Bradford White Tanks has developed a cutting-edge thermal storage vessel to be used in E|ONE production. The goal is to meld efficiency and cost-effective thermal use.
Enginuity’s wholly owned engine production subsidiary, Katech Engineering in Detroit MI, is currently developing and testing power generation systems ranging from the E|ONE’s 8 kW unit all the way up to a 250-kW system for advanced Micro-grid applications. The goal is to fundamentally reshape energy distribution into a more sustainable form.
Enginuity is currently partnered with the US Army on cutting edge new hybrid technology development both for E|ONE and advanced hybridized generator power supply for military applications.
Any Major News or Events That Are Notable?
In 2020, Enginuity Power Systems acquired Katech Inc. to create product development and pilot manufacturing capabilities. While these goals have been accomplished, we also have been able to create a positive cash flow stream from other Katech assets.
In May 2021, Enginuity appointed Dr. Datta Godbole, a former Honeywell Building Technologies CTO, as a Board Member of Enginuity, and hired Dr. Phil Zoldak, formerly from Hyundai Corporation, to lead our product development and commercialization efforts.
In August 2021, Enginuity’s Katech subsidiary received a $785,000 award, cost shared at 20% with Enginuity, to develop a propane injection system for a 250-kw unit, which will become a platform for a future commercial & industrial product.
Enginuity will soon launch a $4 million DoD/Army program for advanced development of a 2-5kW hybrid load following (FTL) genset, that looks to consolidate three legacy systems into a single system to substantially advance power and energy supply for our service members.
What Are Your Goals About This Equity Crowdfunding Campaign?
Our primary objectives are to complete our E|ONE commercialization efforts, and gain worldwide visibility amongst potential investors, business partners, and potential buyers.
Any Milestones Achieved?
- Won “Best in Show” award at International Builders’ Show in 2020.
- CARB emission levels met for our category in Fall 2020.
- Successfully tested 8 kW, 17 kW and 250 kW platforms.
- First DoD contract in 2020 to develop concept for hybrid genset for the Military.
- Second DoD Contract in 2021 for hybrid genset development of proof-of-concept systems for the Military.
- Built and tested multiple E|ONE prototypes.
What Is Your Unique Selling Point and Key Advantages of Your Product(s)?
- Reduce carbon emissions.
- Lower utility costs from day one.
- Provide electrical resilience and peace of mind -> no more outages!
- Potential source of additional revenue by selling power to the grid.
- Provide for energy assurance at home and on-grid/off-grid.
In addition, Enginuity’s E|ONE and E|TWO systems can complement renewables like wind and solar when the sun’s not shining, and the wind dies down. As we like to say, “Enginuity makes renewables reliable.”
What Are Your Main Competitors?
We compete primarily with traditional HVAC players, water heater manufacturers and back-up generation players. However, our product occupies a distinct niche and many of these players can also be partners. We believe we complement solar PV and battery combos, especially in Northern latitudes.
What Are Your Main Patents?
We own a series of 30 interrelated patents and applications related to a distributed energy appliance that includes an efficient and clean power device and integration of this device with thermal storage. We own these intellectual property rights in Canada, The United States, the Eurozone, and Japan.
Where Do You See Enginuity Power Systems in the Future? Vision? Goals?
Enginuity is beginning production of our E|ONE distributed energy system with the goal of delivering to consumers a brand-new appliance that will make Enginuity a recognized leader in the field.
Over the next decade Enginuity intends to fundamentally restructure the production of distribution of energy away from the inefficient “powerplant and line” construct to a more flexible and sustainable model where the power is created right where it’s used, and fully integrated with renewables
Additionally, Enginuity is building a sizeable presence with its Military hybrid power/energy applications, with the goal of becoming the next line of procurement across various sectors of the Military. Enginuity will continue to grow this sector of its business and capture more of this market into the future.
What Is Your Biggest Drawback or Threat Now?
Time to market, which is a function of capital availability. For both economic and environmental reasons we must get our systems into the hands of consumers right now. Although we are moving as fast as we can, recent events in both California and Texas underscore the fact that we need to move faster. Furthermore, the value of E|ONE as a source of power for the grid for peak shaving or disruptions grows exponentially as more units get installed.
Investing through equity and real estate crowdfunding or asset tokenization requires a high degree of risk tolerance. Despite what individual companies may promise, there’s always the chance of losing a portion, or the entirety, of your investment. These risks include:
1) Greater chance of failure
2) Risk of fraudulent activity
3) Lack of liquidity
4) Economic downturns
5) Dearth of investor education
Read more: Private Investing Risks
On the date of publication, Stavros Georgiadis, CFA did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Stavros Georgiadis is a CFA charter holder, an Equity Research Analyst, and an Economist. He focuses on U.S. stocks and has his own stock market blog at thestockmarketontheinternet.com/. He has written in the past various articles for other publications and can be reached on Twitter and on LinkedIn.