chile activities update , page-14

We know that companies often save up potential news to announce when it is most convenient. CWE learned that technique for the first time in Dec 2009 when, after prompting, it produced only one substantial announcement before the SPP close. However, they made good use of that in the lead up to the SPP in 2010. We may not like to be manipulated but management still has to go through that procedure to generate funds.

Long before you have even provided proof of principle you put out feelers and ideas as to where your new device might have application. That exercise doesn't take a great deal of effort nor does it cost much; write letters, read widely, study wave maps, make contacts. Potential markets can be multiple. Then, after years of R&D, when you have demonstrated that your device works you can set about making real company to company relationships with signed MoUs, etc. Progress could be rapid and they must be ready to strike. CWE is at that stage where they can say, "It works and it works well!" (It is the pumping operation that is critical. Sticking on an off-the-shelf generator at the end of the pipe is only PR value.)

Just at present CWE is still in the Great Chasm (Death Zone) of innovative companies where initial full scale demonstration has occurred but the necessary substantial funding for commercial demonstration has not. Hence they are forced to pussy foot around for grants to give the essential impetus.

For the same reason their horizons have had to come down in plant size from 15MW to 5, to 3, to 1 – 2MW. The grant they receive may help fund only a tiny plant. They will then still have to traverse the next phase by applying to the Venture Capital Fund to build the smallest reputable 25 to 50 MW plant.

Juke