 Good afternoon, Howard Wing, Cold Green. We have a very, very controversial topic to discuss today, AC versus DC. And I'm talking alternating current versus direct current. You will recall, of course, the current wars. And they were current about 120 years ago, and now we're about to make them current again. Of course, I'm referring to the big epic battle between Nikolai Tesla and Thomas Edison. When Edison first was developing the, not just the light bulb, but the current through which the electricity should travel, he was an alternating current type guy, and Tesla was a direct current type guy. We'll get into that later. Tesla won, but Edison is about to come back with a bang, as will be explained by my esteemed guest, Mr. Henry Lee, CEO of ADC Energy. ADC, get it, direct current energy. So welcome very much, Henry. He just flew in from Los Angeles this afternoon, but you're still looking fresh as a fiddle, and I'm sure you'll be bursting with direct current, or no, yes, direct current energy all through the program. So welcome, Henry. You want to give a, well, why don't we put the first slide up, and then you can give a little background on the company, just for beginners. So thank you for having me, Howard. I appreciate your time and aloha to you. ADC Energy, our mission is very simple. It is two words. It is power everyone. Our mission as the business is to deploy our technology so that everybody in the world, regardless of socioeconomic status, will have access to clean, green, renewable energy. That is our mission. Nothing ambitious about that. A little bit, a little bit. Because there are 7.3 billion people on the face of this earth, and there are at least two, if not closer to 3 billion, who do not currently have access to electricity. One of the projects I've been working on indirectly is to get PV panels into the remote villages of the third world so that people can at least have light at night so the woman of the house can see what she's doing cooking, and kids can do their homework. But I think you have a larger vision than that. Well, you know, the goal here is that if we're shooting for the moon and we miss by a little bit, we'll still be in the stars. So yes, our goal is a lofty one, but I will tell you this, Howard, that you only need two things to power everyone. You need technology. You need visionaries. ADC Energy has a technology. We're in Hawaii, and we think we found a mass of visionaries. Beautiful, beautiful. Why don't we jump into the first slide? Because I think we have something like 20 slides here. We go back to Thomas Edison, and the reason we go back to him is so picture the world back then, the world knew nothing but fire as light, candles, kerosene, oil lamps. And then in comes Thomas Edison, he goes, I have a new form of light. I call it the light bulb. It's surrounded by glass, and it's a vacuum. So what do you do? If all you know is fire as light, and this man comes with a piece of glass and says, I can make light, what is your response? Incredibility. Well, the thing is, you now know what kind of impact the light bulb had on the world. Very few people know that Thomas Edison was working on something even more immense, and you had touched upon that, and that is DC power. However, he ran out of time. He couldn't finish that. The reason we're here in Hawaii is because ADC Energy actually finished Thomas Edison's incomplete project. A few little technological improvements since Edison's date, which I'm sure you'll get into. Yes, so the concept we're bringing to Hawaii is that we're actually bringing an economy based on our technology. We consider our technology a seed, and when we plant that seed, that seed will grow. And that's the concept. We're bringing an economy based on the technology. So ADC Energy is not here for product or anything like that. It's here to actually plant an organic seed based on brand new technology and with the local's assistance in having it grow and deploy to power everybody. Beautiful. And here, since you're only a part-time Hawaii boy, here's a quiz for you. Where were the first incandescent lamps switched on west of the Rockies? West of the Rockies. I have no clue. About a half mile from here, Eel on a palace. King Kalakaua went to the World's Fair in Paris, met Edison, the two of them immediately connected and Edison arranged for the Eel on a palace to be illuminated. Well there you go, history repeats itself because our technology is actually the world shifting back to DC power. And that's because you had mentioned PV panels, the entire world is going renewable, renewable energy specifically solar energy is generated in DC power and there you go, that story about the lights going off in Eel on a palace. We would love to light up the Eel on a palace. So why don't we hop on the next slide? So that slide is basically a picture of Hawaii's energy world. I think it's a little less than 100% right now because Hawaii has taken on the initiative to become renewable. Not like any island nation like Australia, United Kingdom, Philippines, Hawaii's electricity and energy is based on importing oil and coal and the world is shifting from that. It's kind of obvious. Everybody's agreed except for some presidents that the world needs renewable and is shifting to renewable, which means the world is shifting to a DC power base. And here's another quiz for you since you're not truly a local boy. I'm over one. Which state in the union on a per capita basis has the highest infiltration of PV energy, photovoltaic energy? I would hazard a guess that it's Hawaii. It definitely is such that in the middle of a sunny day we produce too much energy via PV. The utilities can't throttle back sufficiently. So something we're working on is storage to store that in the middle of the day so we can shave the evening peak. While storage is a critical component of our technology and I think I'm directly quoting from HIKO in a study that they just did which says, storage is the holy grail of Hawaii's energy future. Absolutely. I said it first but they're catching on real, real quick. Why don't we go to the, oh and incidentally we are down to about 80% or 79% oil and renewables are the other 20% plus efficiency. That's my field. And that's our field too. ADC energy is predominantly efficiency and specifically because we remove the inverter converter component. Precisely. Why don't we go to the next slide? So what we've done here is this is actually from the HawaiiCleanEnergy.gov site. This is Hawaii's clean energy goals. One of the most forward thinking states in the United States. In fact the world to commit to 100% renewable energy by 2045. These are the clean energy goals but we shifted them a little bit because we think with ADC as a technology and the culture of Hawaii as the visionaries we can actually make Hawaii the world leader. Not a world leader but the world leader. This would in combination with the technology and visionaries this would be a given as opposed to a maybe. Absolutely and Governor Ege fully fully supports us in that. Governor Ege was the one who signed the law into law the fact that we will have 100% clean energy, electrical energy by the year 2045. The mandate. Yeah. And it's one of the very few places in the world that's made a specific legal commitment to that. And we're ahead of schedule. And that's fantastic. Yeah. Yeah. So we go to the next slide here. So you're familiar with renewable energy. You're familiar with the concept of the inverter. The inverter is that component that converts solar DC power into AC power. In our view the only reason Tesla went out with AC power is because DC power does not travel long distance. That is why you need an inverter. And I don't know if you knew this Howard but did you know that there is a form of pollution that arises from generating solar energy? The energy that went into making the solar panels. Actually in the process itself it's called harmonics and non-linear loads. Now I'm not a science guy but I did my research. My research was actually vetted by the U.S. Greenville Council and also by NASA. The science, just do a little research, the science is undisputed. Inverters in solar PV arrays create what's called harmonics. Those harmonics basically create a distorted form of electricity and when you feed that back into the grid by way of back feed you're actually ruining the grid. It is if we call it dirty energy. I've heard of that. Just to be clear about inverters we all have our small little electric gadgets and when we plug them in very often it's not just a straight line but there's a little black box. And I think that's converting 120 volts down to 24 or 12 volts, whatever, you know the little black boxes. Those are miniature inverters just so we have a layman understanding of that. Kind of just to take a couple of steps back, the world currently only knows two forms of energy transmission AC power alternating current or DC power direct current. There's only those two. ADC energy actually created a third form of energy transmission called alternating direct current that's what ADC stands for. Under what you're saying like with your AC adapter for your laptop or the solar PV panel with the inverter you have to convert back and forth specifically because DC power does not travel long distance. That's what Edison was working on. How can I transmit DC power long distance? That's the critical issue. That's where ADC comes in. Our technology allows long distance transmission of DC power which basically means this. You don't need to convert energy back and forth. You could go straight from a solar panel straight into storage and distribute AC and DC throughout a facility. You can remove that inverter component altogether all of the waste, all of the dirty energy, all of the issues that with storage for example ventilation, heating, discharging, recharging, battery life. When you don't need to convert back and forth anymore your batteries can last a lot longer, operate at a safe temperature and provide you with the energy that everybody thinks you can get from solar energy but really is a tough stretch right now. On that very cheery note we need to take a break Howard Wake Code Green, Henry Lee back in a moment. Good noon again Howard Wake Code Green my esteemed guest today, Henry Lee CEO of ADC Energy and ADC means alternating direct current, a whole new concept in the electricity world. Henry why don't we jump to the next slide here. Yes here we are. This is a basic summary of why DC power is relevant today is because the entire world is switching to renewables specifically solar and because of that solar energy is generated in DC power but because you have to convert it there's a lot of waste and there's also back feed what I was mentioning as a quote unquote type of pollution formed by generating solar energy. The slide in the lower left is I believe it's 60 acres on the island of Kauai and those PV panels from my studies and my investigation is saving the residents sometimes maybe one to two cents off their bill but 60 acres of Kauai are gone and that's because of inefficiency. Whereas with DC you could cut the acreage down to 30 acres. In our business model we've created what we call the on-site microgrid so your solar panel will actually generate energy on-site, store on-site and use on-site. So yes solar fields, solar farms are definitely relevant but actually your house is actually safely powering on-site itself. Sounds futuristic but it is here. Let's hop on to the next slide. This is the concept of back feed also known as harmonics and non-linear loads. As a very simple example if you ever see the traffic lights and you see the little cells popped that's because of the back feed and that's what's actually happening on the grid. I don't know if you're aware Howard but HECO just submitted a plan to they call it modernized but it's actually a form of repair I believe it is and the budget is $209 million and a lot of that has to do with distribution. When the utility lines were set nobody was really anticipating this influx of like you said PV panels between 10 a.m. and 2 p.m. and that all surging back into the utility grid does have an effect. So our concept removes all of that all of those issues with the inverted energy feeding back into the grid. All the while reducing the energy needs by 50%. Correct in efficiency standards by removing 50% to 60% of waste and actually keeping it you don't actually have to generate more you just have access to more because you're not throwing it away or losing it in heat so you're actually keeping more so the capacity you have you have more energy available. Beautiful and let's go to the next slide. This is exciting stuff. This quote is from HECO's proposal where it directly says storage is the holy grail of Hawaii's energy future and what you see there is two critical barriers to the holy grail. One is the inverter and two is lithium ion batteries the easiest example is if you remember that phone that had the battery issues that you can take on the airplane. Those are the issues with storage however in our system we call it a straight DC to DC system so that there is no inversion there is no overheating there's no lithium ion issues it's a completely different form of energy transmission so we remove those issues. And for a while the airlines tried to say no phones with lithium ion batteries but that's totally... They still ask you in some airports do you have a lithium ion battery in your bag? And what are you supposed to say? Of course I do. Of course. So that's a real dilemma I would not want to be the airline executives on that one. So let's hop on to the oh here's our next slide. Well this slide just basically is another concept of these are direct quotes from Forbes and the BBC the concept of battery storage and such. You see fires explosions heat risk damage and then the concept of it discharging and recharging really quick that's the issue with lithium ion and the inverter. So this is actually based on an interview I did with some South Australian folks and I kept asking how much is this going to cost you and nobody had an answer. Nobody had an answer. But we do have a from HECO we have the repair answer of 209 million dollars. That's one. So we consider that a band-aid for the current technology what we would propose and what we're submitting to the people of Hawaii and in fact globally we've now gotten a lot of global transaction. So you see Hawaii's HECO solution is 209 million dollars. That is one solution I mean it is a solution to do that or you could remove that inverter component and have a cleaner greener form of energy transmission and in fact our concept is if you're going to spend 209 million to repair how about budget some of that to create a technology that can actually grow and bring revenues to the economy as well. That's our concept is to bring an economy that can grow from the state of Hawaii. All the while reducing our dependence on foreign oil so that instead of our exporting those dollars to the oil producing nations we keep those dollars right here. At the top of that the concept is that as our technology grows there are many different avenues of growth that the people of Hawaii could actually generate revenues from now exporting clean green technology. Exporting over a very large long distance. Well yeah technically yeah. So this next slide is a concept of the holy grail. Those four words solar energy without inverters if you're in the industry you get two reactions one is that's impossible and the second is oh my god that's possible. Those four words got us a five hour meeting one on one with NASA engineers because they really wanted to see how is it possible to do that. And so when we did our presentation we're now at a step where they've acknowledged that we've come up with a real technological breakthrough and we're going to collaborate with them on future developments of what we could do with ADC energy. So they may do a pilot project then or that's currently in the works right now. That would be exciting. Well definitely so that concept solar energy without inverters in the renewable energy world like I said it's either impossible or it's possible when you actually see it like on our website we actually show the concept of long distance DC power. At that point it's oh my god that is possible. Well I know that there's a plan I don't know if there's been a dirt dug with this yet but Wyoming of all places has tremendous wind power and there's a plan to ship that to California which of course is power hungry via DC I don't know if you'd heard about that. I haven't but it wouldn't surprise me that there are multiple concepts of transmitting DC power like a remote solar farm transmitting 500 miles how do we do that. Our concept is simple it's use what you have use it in an efficient manner why throw it away you know I think there was an article I read where China recognizes the concept of renewable energy and high voltage DC power and they're spending get this a trillion dollars to create an entire new utility grid on high voltage DC power I don't know why you would do that if you could use your existing system in a clean safe efficient manner. And I was in China about a year ago and I can testify I was there in June this is in the Shanghai region it gets hot there's no absence of solar power there. There's a lot of pollution yeah so yeah it you know everywhere in the world you'll see like you mentioned wind power the United Kingdom has wind power but they have too much wind power they can't handle it their grid can't handle it Australia has wind power but it's not generating enough so they have to subsidize wind farms. Every part of the world has an issue and it's really in our view simple solution use what you have in the most efficient manner possible yeah and you'll be fine you will be fine sounds like Germany could also benefit from this with all the wind and all the solar they've got they were the pioneers the European pioneers. You heard what I'm gonna say Germany right my my understanding is that all of the renewable energy that Germany has they can't use all of it and so they were trying to ship it out and they couldn't because it was affecting the distribution. Yeah yeah yeah yeah why don't we go to the next slide here. So this is our simple business model this is all ADC energy does we create a world powered by batteries charged by the sun the critical differences we do not use an inverter you do not have the heat you do not have the back feed you don't have those safety concerns you don't have any of those issues it's highly efficient as a system. I like that mission statement the definition of a good mission statement is if you're walking down a dark alley and suddenly a masked man appears and points a gun to your head and says what's your mission statement you need to. We only have two words. Well this is an explanation of our two critical functions we are the only company in the world that can perform these two functions with electricity one is we can transmit AC and DC power simultaneously on existing wires which means Howard in this building if it went ADC energy your plugs could flow AC and DC power at the same time and you'd not have to swap out the wires and then that forms the basis of critical function number two which is long distance DC power transmission without inverts that is what Thomas Edison was working on. I like that acronym OMG yeah we've created the 24 volts mind you to picture that is less than three nine volt batteries we have the ability to power currently an entire building's lighting systems on the equivalent voltage of less than three nine volt batteries that is slightly mind-boggling this the the concept of the ONG the on-site microgrid is first you start with the lights we've created battery powered lights then they become solar powered lights you can take anywhere from 20 to 40 percent of your electrical use off grid and then we add the heating ventilation and air conditioning now you're about 70 to almost 90 percent removing that from the utility we don't go 100 percent off grid it's almost impossible to do that at the same time you want to utilize all the power that's there so we provide an efficient solution that provides efficiency for the consumer and also takes load off of the utility yep yep and we've got time for one more slide if we've got we have any more I think so that is your ADC powered world right there so if you see it the demand side which is our current business model each OMG consider facilities warehouses houses each OMG is basically able to power itself on the supply side the utilities already are into this space they want to do this space the solar farms and utility scale storage but that critical piece in the middle the utility the transmission lines that's the critical missing function this is where ADC energy comes in and allows existing utility lines to be used to pipe solar farm energy store it and then safely transmitted to each OMG so if you picture Puerto Rico for example yes if you had a series of OMGs in Puerto Rico they would still be powered today and on that very very cheerful note we well down but you have any clue I think you did your closing well always last close is our website is www.adcenergy.org you can actually see the two critical functions so you can actually see what we're talking about so you know this technology exists mm-hmm and on that very cheery note thank you very much Henry Lee CEO of ADC energy back in two weeks with another cheerful show thank you very much