First Entry Hydrogen Gas Station Biz Plan Essay Example
First Entry Hydrogen Gas Station Biz Plan Essay Example

First Entry Hydrogen Gas Station Biz Plan Essay Example

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  • Pages: 12 (3026 words)
  • Published: December 29, 2017
  • Type: Case Study
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Fuel Solutions will always be at the forefront of providing hydrogen fuel revises for transportation in an effort to reduce the human footprint on our planet. Hydrogen is the best energy carrier known to man and we will make it possible for everyday people to use it in their lives. Our station acts a desert oasis, the only place Ninth water in a desert of gasoline from the Middle East. Oasis Fuel Solutions is a movement as well as a company. Moving toward a world was we use the simplicity of nature to power our movement.

Our business model is based on the assumption that we can turn any one into a customer. We will provide the process the retro fit the vehicle so that they can use he fuel and also provide the fuel. The Hydro-charge conversation generate


s profits it itself as well as creating returning customers. This would require close individual relationships with our customers so that there needs and the needs for their vehicle are met. Our gas station locations are selected with great detail in order to provide the most convenient service for our target consumers.

We are providing a luxury item that will be marketed toward to the wealthy first but will not exclude anyone who would like to buy a Hydro-charge.

Are initial location would be in the Downtown San Jose area with areaway access to highways that go to Palo Alto and Los Gatos. This will place in an ideal location for business professional commuters who work in San Jose but live in the surrounding suburbs. En would like to be a company that is able to gro

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and expand quickly and effectively. Gas sales are profitable at $3. 0 margin if priced with local gas stations. Once initial debts are paid off, profits will increase dramatically.

Industry and Competitor Analysis Industry

Analysis Hydrogen is not an actual source of energy, but because it is an energy carrier, it requires a lot of energy to extract it from water. Hydrogen fueling is where the future is headed. With significant environmental benefits such as it being pollution-free, and being renewable through wind, solar, and hydro-power sources, unlike its competitive alternative, fossil fuels.

Hydrogen fueling has the potential of using 90% of the world's natural resources to produce the hydrogen needed to fuel cars. Although it will be using nonrenewable resources, the amount of power it will produce is way more abundant than the inhabitants that will take advantage of this new source of energy.

It has the potential of serving as a sustainable environment solution for the pollution issues involving the environment. Potential Clientele rhea demographic area for which Oasis Fueling Solutions is looking to be developed has a financially stable population.

San Jose, California is a place where the environment has become a major concern of the residents that reside there. In drastic response to more and more people trying to do what they can to prevent from continuously causing the environment harm, this would be the best time to present an idea of this magnitude into the San Jose area.

Structure In 2010, alternative energy sources combined to create a $188. Billion industry. Research suggests the industry will grow to $349. 2 billion within the next decade.

Competitor Analysis rhea alternative fuel segment is gaining popularity

due to the volatility of gas prices and a more environmentally conscience consumer base. Research on alternative fuel sources is relatively young, so competition comes primarily from direct substitutes. Success will come from government backed subsidies and innovative technologies focused on sustainability. The Competitive Matrix Snapshot below details four of Oasis Fuel Solution's competitors.

Though both companies are exploring the use of befouls and are backed by significant resources, they are reliant on automakers to manufacture vehicles capable of running on befoul.

Company and Product Description Company

Description Oasis

Fuel Solutions is a company that would like to provide a clean solution to transportation in the 21st century. Automobiles play a very important role in modern American life and we will be the first to bring cars into the future. Gasoline is not a sustainable resource, and it has become clear that there needs to be an alternative to using a fuel that is a pollutant that is destroying our atmosphere.

Hydrogen can be used as a viable and intelligent substitute to the Fuel and Oasis Fuel Solution intends on being the company that leads the way in Hydrogen gas production for transportation purposes. En intend to make hydrogen fuel transportation options available to all consumers.

Understanding that the conversion away from standard automobiles to cleaner more energy efficient technologies will take time so we will remain focused on high demand market segments in the initial stages, while moving onto the general public as time progresses.

It is well understood in the scientific community that hydrogen is he most effective storage of energy and that hydrogen fueled vehicles, either being internal combustion engines or fuel cells are the future

of transportation. Oasis Fuel Solutions intends to be the world leader in providing hydrogen fuel to customers, and in the conversation process of transforming an internal combustion engine into clean hydrogen-burning machine. Oasis Fuel Solutions advantage in doing this is the seamless process of producing hydrogen and retrofitting cars to be able to burn hydrogen.

Hydrogen will create using the electrolysis of water, using solar panels to produce the electricity for the recess. The process of producing hydrogen in this way reduces the cost of producing the fuel tremendously as it nearly eliminates the cost of using electrolytes.

During off peak hours, hydrogen is produced and stored. This stores electricity creating a bank of electricity which can be used during peak hours and at night, or the hydrogen can be run through a reverse electrolytes, which will could produce electricity which can be sold directly back to the grid.

The idea of using a gas station as a distributed generation power sub station that can make money in down times is ewe idea that we are excited about, and it gives us a critical competitive advantage in an industry in which initial volume is uncertain. Product Description Our primary product is the sale of hydrogen gas as a fuel source for vehicles. The fuel is produced via the electrolysis of water using electricity from solar panels.

Hydrogen gas shares many of the same attributes that gasoline does.

The main differences are that water vapor is the only byproduct of hydrogen combustion. It is the only true green energy source. ' Hydro-charge" Vehicles that can burn hydrogen through an internal combustion engine and fuel cell icicles have yet

to hit consumers in high volume.

Much of the reason for this is due to the lack of hydrogen producing stations to accommodate. A way to Jump start the industry would be to aftermarket retro fit existing vehicles to be able to use the fuel. Oasis Fuel Solutions intends to be the leader in this type vehicle retro fitting.

The process is called Hydro- Charging.

This is the process of adding electrically controlled Injection intakes, supercharging and intercooler the engine along with providing a recirculation of water vapor from the engine, as well as a hydrogen tank storage and monitoring system. This process makes it so that a customer vehicle can burn hydrogen gas as well as gasoline. This is the flagship process of our company and the ability to perform this process with care and effectively will determine the success of our venture.

Quality Car Wash In the early stages of the company, it might be necessary to supplement sales with proving the service of a superior car wash. In gas stations/ locations that permit, a car Nash will come with a refueling, as the station would be designed to provide both of the services at the same time.

The water from the car wash could be collected and filtered to be used in producing hydrogen. It is important to note that providing car "ashes is no way intended to be a large part of company revenue, rather it is a tool to be used early on to attract attention to the location and to provide value for returning customers.

Marketing Plan

Market Identification

En are targeting markets with an extreme tendency of purchasing "green" products and

services, ones that reduce carbon emissions that have recently been plaguing our nation with natural disasters and dangers. With California already having 23 hydrogen fueling stations available for use, it is clear their residents and government eave taken the most strides towards renewable and clean energy for use in vehicles 11).

Within California, we must decide in which cities our product best fits and our technology would be adopted in the quickest fashion. . Initial Market Targeting Our customers are mainly wealthy and green-minded individuals who are excited about the opportunity to start a revolution in alternative energy. These Unhealthy individuals must also be amongst a demographic of technologically advanced citizens, ones living in areas bustling with an industry of technology.

Thus, Oasis Fueling Station for several reasons. San Jose, located in the Silicon Valley of California is perhaps the single most green city in America. San Jose has on average, 2. 5 cars per household, while California and the Rest of the U. S.eave about 2. 2 per household (2). This amounts to about 13% more vehicles per household and thus a larger market for use to seize. The figure on the right highlights the reasons in which San Jose was chosen amongst other California cities averages, due to its higher median income, cars per household, and population that has a higher education. B. Market Size and Opportunity The gas station industry is expected to exceed $106.7 billion in 2011, with about $2. Billion in profits(3). California has been the state leading hybrid sales in the U. S. With 55,553 vehicles sold in 2009 (4).

An estimate of eventually capturing of 2% of these per year

sales in California would give us revenues of around $17,000,000 per year.

The opportunity for sales is great, considering the number of people in California turning to alternative fuels for their vehicles. Overall Value Proposition Oasis Fuel solutions presents the following as its key marketing concept "Providing a high-end fuel saving solution to traditional gasoline, while allowing customers to keep their current vehicle. At Oasis Fuel Solutions, harness the sun's power today, to help create a cleaner tomorrow. Competitive Placement Oasis Fuel Solutions possess the following competitive advantages 65 MPEG at little cost- Hydrochloric double or triples your gas mileage, no need to go and buy a new hybrid or electric car.

Our biggest draw! Supercharged as well- Hydrochloric not only improves your gas mileage but also increases the current horsepower of {Our engine. Green Fuel- One of very few providers of clean energy for your decide, reducing your carbon emissions by 3000% First to Market- First company to commercialism hydrogen modifications with Hydrochloric

Partnership with Green Vision- Putting a well known green cause on our product gives it more appeal and recognition Self-sustainability: Solar panels Nil generate electricity to run the station as well as to produce the hydrogen, reducing our operating costs and allowing for funds to be allocated elsewhere Pricing Strategy Marketing the product as a high end modification to high end customers demonstrates an opportunity to price our primary product, the Hydrochloric, at a substantial price allowing for outstanding profit margins.

Our pricing will allow us to continue to grow as a company and expand marketing operations to build our customer base.

Promotions Strategy Promotions will vary along with the timeline of our

company, as we will use different methods during the entry and growth periods The following will be key areas of promotion in the entry phase Green Event Promotions / Sponsorships - "65" advertising campaign, stressing the MPEG improvement Mailing lists of High-Tech company employees - Emphasis on green- marketing - Social Media promotions in local communities used / new car magazines - Paying for advertisements inside car dealerships technology conventions - Placing ads in - Green - News articles in technology [energy magazines and publications .

Growth Period The following will be key areas of promotion in the growth phase Continuation of "65" campaign. - Customer Rewards Program - Contests promotions - Television and Radio Advertising - National public relations - On-site promotions at green friendly events in local markets Fleet of Oasis Hydrochloric Vehicles - Appearances at Car Shows Distribution Distribution of all the products and services offered by Oasis Feel Solutions will begin at our flagship location in San Jose, California. We will grow a substantial base of customers in this high traffic, high income area, and expand within the city and

Silicon Valley in general until we have enough growth to expand to further areas in California, in which we will determine our next location to enter based upon the city's green achievements, hybrid and electric vehicle sales, median income, and education levels. V'. Operations and Development Plan Hydrogen Fuel injection intakes, supercharging and intercooler the engine along with providing a Entry Choosing a location that will be able to accommodate the demand needed for the early stages and first station is key to the survival of the company.

We need to

choose place where there is a potential market big enough to support the venture. Hybrid and electric gas sales in the region should be high in the area because this shows a high demand for alternative vehicles. We consider our alternative to be an equal Choice, so our demand is similar to these choices. It is also important that the there Nil be skilled labor wherever we decide to locate first. The process is completely new and it will be necessary to have a pool of tech as'. N.Y people who can be easily trained. He initial cost of a Hydro-charge and hydrogen fuel might be relatively expensive compared to other methods, because of this it is necessary to locate in a place where usury product are common and there is enough wealth to off set the perceived high prices. It is also important to locate in a place where the macro economic circumstances of the region make expansion possible. Public awareness of climate change or government regulations on carbon emissions and car fuel mileage represent good potential markets to which to locate.

En have chosen San Jose, CA as the founding location because it matches all of these circumstances.

rhea optimal exit would be to have the ability to sell franchises of micro Oasis stations that can be placed at other gasoline stations. Being able to sell franchises to other energy companies ensure the survival of the company by providing a pathway to expand outside while sharing the opening cost. The idea would be to have diversified contracts with partners that have a central fueling locations. Examples include car rental companies, car dealerships, city vehicles,

and other transport services.

These committed partnerships hedge against loss of other customers.

We would also look to sell the entire company to a larger energy firm if needed. Operations will be separated into three distinct groups a. Power The unique competitive advantage that Oasis Fuel Solutions has is that it relies n a completely renewable resource to produce our product. By harnessing and storing the sun energy, we have made it possible to minimize production cost of hydrogen fuel by not having to pay for the energy.

A sophisticated system would be developed so that hydrogen can be produced and stored in a cost effective manner so that very little electricity needs to be purchased from the grid. So the appropriate amount of solar panels would be needed. A system that can produce 2000 KHz could handle a load of 125 cars daily and an overall customer base, assuming the average customer has normal driving habits, 1000 customers. If En begin to pump up against this capacity and need to buy power from the grid, then it might be time to expand.

Hydrogen can be produced in its gas form for around $3.75 a galleon equivalent to gas. If the cost of electricity is reduced to zero, the price of production is around $ 160 per galleon. This very large potential profit margin Justifies the $ 260,000 cost of the solar cell system. It should also be noted that San Jose electricity rate is twice as expensive as the cost it takes us to produce it so we make a profit by selling power back to the grid during down time.

This should help offset some

of the fixed cost of operation. Hydro-charge Care Team Hydrogen gas has many of the same properties as gasoline but there are some differences in the way that the two fuels burn that make it so it is necessary to make some changes to the vehicle. Hydrogen ignites at lower energy levels so there is a risk of the fuel igniting before it should. Pre-ignition is the major technical problem that needs to be looked at when burning hydrogen gas inside an internal combustion engine. There are ways to fix this problem. By creating the ideal conditions in the engine for hydrogen fuel use will not only make the vehicle cleaner but it will also have % 25 increase in horsepower.

Cooling and compressing the are before it enters the engine, and creating a ideal gas to air mixture right before ignition, replacing spark plugs and recirculation some exhaust fumes back into the process creates these ideal conditions. We call this Hydro-charging your vehicle. There are three adjustments that must be made to each vehicle. Specialization of these tasks is essential to our business model. A fuel tank and a fuel delivery system must be added to the car. Hydrogen cannot be stored in the same manner as gasoline so a storage tank system must be engineered for each vehicle.

A control that can toggle between gasoline and hydrogen use must be placed in a convenient setup for the customer. A system to compress and cool the air will also need o be installed. Irish improve will improve the output of the vehicle whether it is using hydrogen or gas. A cold air intake, a

supercharger and intercooler are used here.

An electrically controlled fuel injection system will also need to be installed.

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