Emrgy Inc. – Russell Fager – 2023

Goals

There are thousands of miles of irrigation canals but only a fraction are close to suitable points of interconnection in which to utilize Emrgy’s technology.

To address this challenge, Emrgy enlisted Russell Fager to identify novel commercialization strategies that it can use to monetize power generated from its distributed hydrokinetic technology within the next 48 months. To ensure a well-defined strategic direction and a high degree of practicality, the project was focused on the California market, where Emrgy currently operates.

Solutions

Russell approached this project through a structured three-phase process:

• Business Case Identification: Russell identified nine distinct business opportunities for Emrgy to monetize its hydrokinetic turbines in California. These included green ammonia and hydrogen production, power monetization through Virtual Power Purchase Agreements (VPPA) and Renewable Energy Certificates (REC), microgrid development to enhance grid resilience and mitigate wildfire risks, rural electric vehicle (EV) charging infrastructure, and turbine placement at wastewater treatment facilities, data centers, and cryptocurrency mining operations.

• Market Sizing and Analysis: Russell conducted a comprehensive market analysis for each of these nine use cases. This analysis encompassed the Total Addressable Market (TAM), Serviceable Addressable Market (SAM), and Serviceable Obtainable Market (SOM). Based on this research and market sizing assessments, microgrids emerged as the most promising commercial opportunity for Emrgy to pursue within California in the next 48 months.

• Go-to-Market Strategy: Focusing on microgrids as the primary opportunity, Russell developed a detailed go-to-market action plan. This plan included a 5-year financial Profit and Loss (P&L) projection. 

Potential Impact

As a result, his analysis projected that Emrgy could attain $30 million in revenue, accompanied by a $2.8 million EBITDA, through the sale of more than 1000 turbines to strategic utility partners in California, primarily for microgrid applications.

Furthermore, this strategy had the potential to offset 5.3 metric tonnes of CO2e emissions by deploying 7.5 megawatts of renewable energy assets over a 5 year period, thus reinforcing California’s grid, increasing clean energy capacity, and contributing to wildfire risk mitigation.