Wellhead Energy Systems
Wellhead Energy Systems
 

Governor Beshear Announces Two Start-Up Energy Firms to Receive Funding from Kentucky New Energy Ventures Fund

Press Release Date: Monday, March 01, 2010
Somerset and Mt. Sterling companies awarded a combined $530,000 to develop alternative fuels and renewable energy technologies

SOMERSET, Ky. – Gov. Steve Beshear today announced two Kentucky companies have been awarded a combined $530,000 in funding from the Kentucky New Energy Ventures Fund. The state program provides public funds to promising, early-stage Kentucky companies developing and commercializing alternative fuels and renewable energy technologies.

Wellhead Energy Systems, located in Somerset, was approved for an investment of up to $500,000 to develop generator systems that can be placed near natural gas wells to produce electricity for rural communities. Southeast Biofuels, in Mt. Sterling, was approved for a grant of up to $30,000 to develop a portable system that can produce ethanol using sorghum as a feedstock.

Kentucky Governor Steve Beshear“These Kentucky New Energy Ventures Fund awards demonstrate how small rural companies with big and innovative ideas can start up and succeed no matter where they are located in the Commonwealth,” said Gov. Beshear. “Best of all, these energy companies are developing technologies that can be put to work here in Kentucky – while providing jobs for Kentuckians.”

Many natural gas wells in Kentucky’s rural areas are unproductive because they lack access to transport pipelines. Wellhead Energy Systems’ technology can take natural gas from these isolated wells, clean it, compress it and feed it into a self-contained, on-site generator system. The natural gas-powered generators convert the gas into electricity for use by local utilities, rural residents and industrial locations.

“By placing the generators closer to electrical users, our company plans to create a distributed energy supply to provide secure and reliable electrical power for rural communities,” said David Weddle, president and CEO of Wellhead. “We are also going to use an existing local manufacturer to produce our generator units, which will help keep and create jobs in the Somerset area.”

Southeast Biofuels is developing a portable system to convert sweet sorghum into ethanol for use as a fuel additive. The modular fermentation system will produce the liquid fuel at sites where the sorghum feed stock is grown and harvested. Sweet sorghum is similar to corn and grows well in Kentucky, even on marginal lands. The stalks and leaves can be processed in ways similar to sugar cane, with the juice pressed out so it can be fermented into ethanol.

“We plan to initially focus on expanding existing sorghum crops, and then later extending our production onto marginal lands,” said Stephen Popyach, president of Southeast Biofuels. “Our crops will help keep money within the Kentucky economy that is currently flowing out to pay for petroleum fuels. We’ll also help existing farms earn an income by paying to use their land to grow our crops.”

The Kentucky New Energy Ventures Fund provides one-time grants of $30,000 that must be matched on a dollar-for-dollar basis. Equity investments by the fund typically range from $250,000 to $750,000 and must be matched dollar-for-dollar through qualified financing or stand-alone investment by the company. The fund is managed by the Kentucky Cabinet for Economic Development, through its Department of Commercialization and Innovation (DCI), and is administered under contract to DCI by the Kentucky Science and Technology Corporation. An application and guidelines are available at http://www.startupkentucky.com.

To date, the Kentucky New Energy Ventures Fund has made 25 awards for a total of $2.85 million, including 20 grants of $30,000 each and five investments ranging from $250,000 to $750,000. The majority of the companies receiving KNEV awards are located in rural Kentucky communities and are developing alternative and renewable energy technologies based on clean coal, solar, wind or biofuel.


Rural Kentucky Firm Announces $1.5 Million New Energy Investment

SOMERSET, Kentucky — February 4, 2010 — Wellhead Energy Systems, LLC today announced it has received a $1.5 million investment from one of the nation’s leading energy services companies to begin manufacturing an advanced technology system in Somerset converting existing, stranded natural gas reserves into electricity to be distributed directly to industry or the regional power grid.

“We are excited that Enerfab has formed this strategic alliance. Their investment makes it possible to move forward with production of our self-contained energy conversion stations,” said David Weddle, Wellhead Energy’s CEO. “Our innovative technology offers utilities, municipalities and medium to large scale manufacturing facilities the ability to use clean distributed energy while creating a market for the stranded assets of natural gas producers. This is especially important where secure, reliable power and resource utilization are critical to the success of all parties involved.”

Enerfab Inc. is a leading provider of maintenance services, capital equipment components and technology solutions for the energy industry and other industrial markets. Enerfab Inc. was recognized in 2008 as the fastest growing privately held company in Cincinnati, by Cincy Business Magazine. Enerfab employs approximately 4,000 people and operates 8 regional facilities throughout the U.S.

Wendell Bell, Enerfab Vice Chairman and CEO stated “We see this as an exciting strategic partnership combining our expertise in manufacturing, construction and many years in the energy market with the technology and knowhow of Wellhead Energy Systems.”
“As it exists, the carbon footprint of natural gas is 50% less than coal and it is our goal that by the end of 2011 our energy conversion stations will be a carbon neutral power source,” said Weddle.

Natural gas has been proven to be one of the nation’s best and cleanest resources for energy generation. Natural gas is available in abundant supply and is constrained only by the ability to get it into the market. Based on current market conditions and the devalued price, natural gas has become the “fuel of choice” when looking into new forms of energy generation. There are “proved” reserves across the U.S. where energy may be created, yet this energy is available only where adequate pipeline “highways” can transport it into the current energy market.

Much of the nation’s natural gas resources are located away from these existing pipelines, and the random location of existing, capped wells make them financially impractical to extend the traditional pipeline infrastructure. Thousands of these “stranded” wells lie dormant, but can be made available for clean energy generation.

Wellhead Energy Systems will employ these stranded natural resources to create distributed energy to be used where it exists or sent to the grid in the form of electricity as a “cogenerator” for local utilities. By establishing a network of its energy conversion stations, Wellhead will be able to deliver energy at a cost comparable to these utilities. In turn, local utilities will be able to rely on this self-supporting “downstream generation™” as energy backup, security and additional capacity necessary to support the U.S.’s growing demand for energy independence.

According to Weddle, “Our technology has already gained acceptance with a regional power supplier and we are looking forward to working with all utilities nationally and providing them with electricity generated from our distributed energy stations (250 kWh - 2 MW) to meet their growing demand for clean, reliable and sustainable sources of power where it is needed.”
Press Contacts:

David H. Weddle, CEO

Wellhead Energy Systems, LLC
dave.weddle@wellheadenergy.com

(606) 416-0140


New Energy Company Announces Executive Team

SOMERSET, Kentucky — January 7, 2010 — Wellhead Energy Systems LLC, based in Somerset, KY, announced today its executive team led by a group of seasoned and energetic executives and managers deeply involved in the distributed and clean energy fields.

David H. Weddle, CEO

Mr. Weddle has held senior level, executive management positions in the recycling, equipment, marketing and technology sectors. He began his career in education and soon became a leading sales representative at IBM. Following IBM, he held positions in software and insurance industry sales prior to opening his executive management consultancy, justinfo communications. Mr. Weddle used his experience to develop a strong consulting business including two profitable companies, Vanguard

Marketing and Prescriptions by Mail, Inc. Vanguard Marketing led the way in the late 1980s on importing and distributing leading edge nutritional supplements into the United States. Prescriptions by Mail, Inc. was developed in the early 1990s and became a leader and innovator in the online pharmacy business. PBM focused its business on providing low cost medications to uninsured and elderly consumers that could not afford medications.

Mr. Weddle led and completed the successful acquisition strategy of both Vanguard and PBM and has continued to develop innovative strategic alliances in a variety of markets. Justinfo, his strategic consulting and business development company, saw the need and opportunity for leadership in the energy and waste sectors. Mr. Weddle, as a consultant, worked with Diatec, an Israeli company, focusing its
energy on the recycling and reclaiming of materials from disposable diapers. This opportunity allowed him to expand his knowledge by accepting a long term contract with Knowaste LLC, a division of Caithness Energy LLC. Over the next eight years, Mr. Weddle assisted Caithness Energy expand the presence of Knowaste LLC throughout the world, by developing international plans, marketing strategies and
licensing to secure their market presence.

Mr. Weddle has “hands on” experience in growing both top and bottom lines by energizing declining established businesses and creating, implementing and managing new startups and programs. Mr. Weddle has a wide base of international experience working in various marketing and operational positions throughout Europe and Asia. He has used his knowledge and experience to develop the “Partnerships in Power” concept and founded the effENERGY business model establishing the collaborative approach of energy creation by joining successful businesses interested in creating new revenue opportunities by utilizing existing talent, knowledge and expertise.

Mr. Weddle holds a Bachelors degree in Education from North Texas State University and has continued graduate studies at Georgia State University and Harvard University.

Donald Moss, VP Business Development

Mr. Moss completed his undergraduate work at the University of Kentucky, and received his Juris Doctorate degree from the University of Kentucky College of Law. He has been involved in business and financial services for the past 35 years.

Mr. Moss has been involved in the oil & gas industry since 1981. He has served as the Operator of a number of wells, leased land, sold and supervised drilling programs, and brokered production. Most recently, he spent two years working as a consultant to various companies looking at purchasing the Somerset Refinery, in Somerset, Kentucky. In this capacity, he was responsible for interviewing past and present employees, along with past vendors and producers, reviewing and compiling data for due diligence, and helping formulate and develop business plans and pro formas for interested parties. He is currently working as a business consultant on projects which include such varied interests as gas stripping, coal gasification, cellulosic ethanol, bio-mass, bio-diesel, and gas-to-electricity.

An active participant in civic affairs, Mr. Moss has been President of Little League, President of Rotary, Chairman of Hospice, and is currently serving as Chairman of the Board of Trustees for the Lake Cumberland Regional Hospital in Somerset, Kentucky.

 


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