Composite Technology Corporation ("CTC" or the "Company") provides innovative energy efficient products and renewable energy products to the electrical utility industry. We offer two primary products: electrical transmission cable conductors and wind turbines. Our conductors use advanced composite materials that result in energy efficient conductors for electrical transmission systems. Our advanced wind turbines offer a more reliable, clean, renewable energy alternative to greenhouse gas emitting energy sources, such as fossil fuel and coal. Our most advanced turbines also enable simpler grid synchronization resulting in wind farms that are more reliable, efficient and easier to operate. The Company's products benefit from proprietary and patented technologies that result in products that we believe have substantial economic benefits over similar, more traditional products. Our primary products consist of our ACCC (Aluminum Conductor Composite Core) conductor sold under our CTC Cable segment ("Cable") and our DeWind wind powered electricity generating turbines sold under our DeWind segment ("Wind").
Recent media attention and increased governmental regulations have highlighted the global need for increasing the supply of clean, renewable, energy sources and to improve the efficiency of the energy delivery systems and power networks. The demand for energy from developing nations coupled with the increased usage of energy per capita in developed countries have resulted in fully loaded transmission grids that have higher losses and lower reliability. Combined with higher energy costs due to higher fossil fuel prices, and greater environmental costs, and the demand to reduce greenhouse gas emissions, there is unprecedented demand for more renewable energy with better economics, with a more efficient transmission to deliver the power. Historically low electrical transmission grid investment has created grid constraints which result in well-publicized electricity shortages such as "brownouts" or "rolling blackouts." Such shortages can cause significant and measurable impacts to an affected region's economy. The combination of increased energy costs have led to increased investments in renewable energy and efficiency efforts by corporations driven in part by global, national, and local governmental pressure through treaties, tax incentives, and renewable energy portfolio standards.
We conduct our operations through two segments we refer to and account for separately as DeWind and CTC Cable:
The DeWind segment sells machines that convert wind energy into electricity known as "wind turbines", and operates under the trade name DeWind. The DeWind segment represents the operations of the EU Energy, Ltd., acquisition completed in July, 2006. DeWind sells wind turbines in the US, Europe, and South America directly to utilities and wind farm developers as a turnkey wind turbine unit, currently in 1.25 megawatt and 2.0 megawatt models. DeWind has sold wind turbines commercially since 1996 and has over 570 wind turbines installed worldwide, principally in Germany and Austria. We are positioning our new models of DeWind turbine as a better and more reliable wind turbine using an innovative and improved drive train/generator combination as compared to competitive wind turbines.
The CTC Cable segment sells ACCC conductor (Aluminum Conductor Composite Core), an advanced composite core overhead electrical transmission conductor, as well as manufactures and sells ACCC core, the composite core component of the ACCC conductor, along with hardware connector accessories. We sell ACCC conductor and core directly and through distribution agreements both internationally and in North America. We also sell ACCC conductor hardware and engineering design services. We have had ACCC conductor available for commercial sale since June, 2005. We are positioning our ACCC conductor as the most energy efficient, highest performance and overall cost efficient alternative to the traditional ACSR (Aluminum Conductor Steel Reinforced), newer variant ACSS (Aluminum Conductor Strength Steel), new technology ACCR (Aluminum Conductor Composite Reinforced), and AAC (All Aluminum Conductor).
We believe that the combination of DeWind and CTC Cable will provide substantial synergies and benefits to each business unit. One of the key issues to building wind farms in the U.S. and elsewhere is the capacity of the electrical transmission grid and the connection to the grid. We believe that sales of our wind turbines to wind farm developers will result in additional ACCC conductor sales through demand for more efficient transmission to the grid and necessary increased grid capacity investment. For our wind turbines, we are in the process of incorporating our composite materials design know-how into new blade designs and making improvements to the drive train to improve their performance, which we believe will result in a lower cost of energy for wind farm developers and operators.
The Company was incorporated in Florida on February 26, 1980 and reincorporated in Nevada on June 27, 2001. We maintain our principal corporate offices at 2026 McGaw Avenue, Irvine, California 92614. Our telephone number at that address is (949) 428-8500. We maintain a website at www.compositetechcorp.com. On our website, we also publish information relating to CTC's corporate governance and responsibility. The content on any web site referred to in this filing is not incorporated by reference into this filing unless expressly noted otherwise.
