Sustainable oil-free air compressors

INVEST IN CARNOT COMPRESSION TODAY!

Carnot Compression has developed an innovative, patented compressor technology that solves many of the problems with existing compressors. The Carnot® Compressor’s unique, oil-free process has an opportunity to dramatically lower lifetime costs of ownership for compression across industrial, agricultural, and commercial applications. The Carnot Compressor is in the prototype stages of development and is not currently available to the general public.
... Show more
This Reg CF offering is made available through StartEngine Capital, LLC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
Carnot Compression

Reasons to Invest

  • Huge Market - Compressed air will soon be a $40.43B market


  • Proprietary Technology – Carnot has multiple patents, trademarks, and trade secrets protecting the technology.


  • Customer Traction – Carnot has identified an addressable market opportunity to provide oil-free air for robotic milking systems and is currently beta testing a device for this market.



overview


Carnot Compression: Delivering low-temperature, oil-free compressed air


At Carnot®, our simple, robust compressor provides a low-maintenance, long operating life product, all to give our customers…

 

Cost Savings – Carnot has a roadmap to reduce lifetime costs from compressors.


Clean Technology – Carnot eliminates oil contamination and disposal and has the potential to dramatically lower energy consumption from compressors.

 

With a team supported by world-class institutions including Munro & Associates and Oak Ridge National Laboratory, we believe Carnot’s technology is well positioned to reduce carbon emissions across a variety of industries. 

The Problem


12% of U.S. industrial sector electrical consumption goes to powering air compressors


Oil-free compressed air is a must-have for many facilities in sectors like manufacturing and scientific research, automotive painting, food and beverage, and more. In several of these places, their air purity is of the utmost importance, as any small presence of oil could cause massive damages in lost product, contamination, downtime, and other setbacks.

According to our research, people who only need low horsepower oil-free air compressors (especially the 5-30 horsepower range) are limited to machines with many moving parts and frequent maintenance requirements. Often, the machines do not last very long when operated in demanding conditions, in our view.


Carnot's proprietary technology has the potential to lower total cost of ownership all through: 

  • Reduced energy consumption
  • Eliminating the need for frequent routine service visits
  • Eliminating downtime
  • Eliminating the need for oil and filter changes
  • Having a longer operating life compared to incumbent technologies


Compressors utilize a massive amount of energy—estimated at $227 billion every year in energy costs (source).


Approximately ⅔ of air compressors are oil-flooded. Plus, conventional oil-free compressors under 100HP are typically more costly and less efficient. Our goal is to offer an oil-flooded alternative with a lower lifetime operating cost than oil-flooded compressors.



The Solution


We’ve found a more efficient and reliable solution that should cut costs by 20% or more

Carnot has developed a patented process that is capable of compressing air in an isothermal manner. This allows for a constant temperature with a single moving part for compression–a spinning drum.

 

By efficiently capturing the heat from compression, we believe we have a path to dramatically lower lifetime ownership costs, allowing our customers to increase their business’s operating profits. 


*Products shown in this image are in the prototype phase, the Carnot Compressor is not currently available on the market.


Our Product


*The features listed in this graphic are anticipated features of the Carnot Compressor. The Carnot Compressor is in prototype stages and is not available on the market.



The Carnot® Compressor uses a centrifugal process to a compress a gas/liquid emulsion, separating out the compressed gas and recycling the working liquid, while keeping a low internal temperature.


The low temperature means that our system is able to generate oil-free compressed air with a low output-temperature, which gives us a path to high operating efficiency.

The Market


The potential for widespread applications for our technology means access to multiple markets

Air compressors make up a growing market that's projected to pass $40 billion by 2028 (source), with the oil-free compression segment representing around a third of the sector. Worldwide, it is estimated that compressors account for over 30% of electricity demand for electric motors (source).




*Products shown in this image are in the prototype phase, the Carnot Compressor is not currently available on the market.

Our Traction


A robust IP portfolio and commercial validation

Since forming the company in 2014, we’ve steadily developed our technology through a series of component tests, prototypes, patents, alpha testing at a customer location, and beta-testing at a customer location in a beachhead market. 


Our progress has been fueled by multiple million-dollar grants from the National Science Foundation and the California Energy Commission. Funding from these grants has helped accelerate our development to its current near-commercial state. Additionally, we have invested in filing and receiving multiple patents for intellectual property, and have trademarked the Carnot® Compressor. 


In March 2022, Carnot began a $2 million project with the California Energy Commission, providing a non-dilutive funding runway to further develop and test the technology.



Our Business Model

We are currently testing a beta version 10HP compressor designed for robotic milking systems. Our testing partner is an installer of dairy automation systems in the western US, and represents an early sales channel partnership opportunity. We believe that once we complete our beta test program, we will have sufficient orders to transition to a production launch.


Current oil-free air compressors in the 10 horsepower range sell for upwards of $20,000 (source). After our market entry, we believe that a successful operating history and low maintenance costs will enable us to build customer loyalty at a price point that we feel will generate attractive operating margins.

Why Invest


Innovative product with multi-faceted market potential, all backed by an adept team

We believe the dynamic nature of our key technology allows Carnot the opportunity to disrupt the current state of our initial target market, while simultaneously penetrating a variety of other sectors. The many available industry applications will allow Carnot Compression to generate a steady cash-flow and rapidly scale.

 

Carnot Compression has built a team and product that are situated to conquer the compressed air market. The revolutionary and impactful Carnot® Compressor, combined with our exceptional team will be a huge upset to a stagnant market that has been in need of some fresh ideas for years.   

*Products shown in this image are in the prototype phase, the Carnot Compressor is not currently available on the market.


After our market entry we believe that consumers may quickly adopt the Carnot® Compressor, and this may give us an opportunity to be one of the leaders in the oil-free market.


Our first offerings will be in the 5-25 horsepower range and we plan to scale up to 100+ horsepower. Our goal is to offer an oil-free alternative with lower lifetime costs and higher reliability than current oil-free compressors. In our view, meeting this goal will enable us to dramatically lower the carbon footprint from air compressors and gain significant market share.


We set ourselves apart from all competitors with our patented platform technology. Our process is capable of achieving high pressure rises in a single stage of compression, at low temperature rise, with a 100% duty cycle machine.


We believe the Carnot® Compressor will be an attractive product for customers in all industries due to our ability to help minimize total ownership costs of the fifth utility.


Our product is protected by a deep IP portfolio of issued and filed patents, trademarks, and trade secrets.


Invest today!

Quick Insert
Replace
Drop video
(or click)

Loading video

Drop image
(or click)

Loading image

Code View
Drop image
(or click)

Loading image




 Color#61BD6D    

 Color#1ABC9C    

 Color#54ACD2    

 Color#2C82C9    

 Color#9365B8    

 Color#475577    

 Color#CCCCCC    



 Color#41A85F    

 Color#00A885    

 Color#3D8EB9    

 Color#2969B0    

 Color#553982    

 Color#28324E    

 Color#000000    



 Color#F7DA64    

 Color#FBA026    

 Color#EB6B56    

 Color#E25041    

 Color#A38F84    

 Color#EFEFEF    

 Color#FFFFFF    



 Color#FAC51C    

 Color#F37934    

 Color#D14841    

 Color#B8312F    

 Color#7C706B    

 Color#D1D5D8    

 Clear Formatting 


By URL
Drop image
(or click)

Loading image

Emoticons




 Color#61BD6D    

 Color#1ABC9C    

 Color#54ACD2    

 Color#2C82C9    

 Color#9365B8    

 Color#475577    

 Color#CCCCCC    



 Color#41A85F    

 Color#00A885    

 Color#3D8EB9    

 Color#2969B0    

 Color#553982    

 Color#28324E    

 Color#000000    



 Color#F7DA64    

 Color#FBA026    

 Color#EB6B56    

 Color#E25041    

 Color#A38F84    

 Color#EFEFEF    

 Color#FFFFFF    



 Color#FAC51C    

 Color#F37934    

 Color#D14841    

 Color#B8312F    

 Color#7C706B    

 Color#D1D5D8    

 Clear Formatting 


Code View




 Color#61BD6D    

 Color#1ABC9C    

 Color#54ACD2    

 Color#2C82C9    

 Color#9365B8    

 Color#475577    

 Color#CCCCCC    



 Color#41A85F    

 Color#00A885    

 Color#3D8EB9    

 Color#2969B0    

 Color#553982    

 Color#28324E    

 Color#000000    



 Color#F7DA64    

 Color#FBA026    

 Color#EB6B56    

 Color#E25041    

 Color#A38F84    

 Color#EFEFEF    

 Color#FFFFFF    



 Color#FAC51C    

 Color#F37934    

 Color#D14841    

 Color#B8312F    

 Color#7C706B    

 Color#D1D5D8    

 Clear Formatting 


Align
Italic (⌘I)
Code View
Insert Image
Drop image
(or click)

Loading image

Bold (⌘B)
Drop image
(or click)

Loading image

Code View
Replace
Drop image
(or click)

Loading image

Code View
Ordered List
Quick Insert
Font Size
Insert Link (⌘K)
Quick Insert
Insert Image
Drop image
(or click)

Loading image

Insert Image
Drop image
(or click)

Loading image

Insert Image
Drop image
(or click)

Loading image

ABOUT

HEADQUARTERS
5610 Scotts Valley Drive, Ste. B513
Scotts Valley , CA 95066
VALUATION
$22.25M
PREVIOUSLY CROWDFUNDED
$954k

Carnot Compression has developed an innovative, patented compressor technology that solves many of the problems with existing compressors. The Carnot® Compressor’s unique, oil-free process has an opportunity to dramatically lower lifetime costs of ownership for compression across industrial, agricultural, and commercial applications. The Carnot Compressor is in the prototype stages of development and is not currently available to the general public.

TEAM

Todd Thompson
Todd Thompson
CEO and Co-founder

Todd is CEO and a co-founder of Carnot Compression. Todd has nearly 30 years' experience in corporate finance, business development, strategy, and operations. Prior to Carnot, Todd held multiple leadership roles with a publicly traded industrial company in corporate development, finance, and strategic planning, where he led efforts to enter multiple new markets, both organically and via acquisition. 

Hans Shillinger
Hans Shillinger
COO and Co-founder

Hans Shillinger is a professional engineer and a named inventor on all of Carnot's patents. Hans has 30 years’ of professional engineering experience and is a named inventor on Carnot’s patents.

Sean Kilgrow

Sean Kilgrow

Director

Sean is an accomplished leader with deep expertise in the discovery and development of power and industrial projects, including renewable energy, powerdelivery, and energy storage projects. Biogas and anaerobic digestion developments have been a recent focus. Registered Professional Civil Engineer with a Class A and C-10 Electrical License, State of CA.

Sean spends approximately 1 hour per week on Carnot.

Wayne Hagan

Wayne Hagan

Director

Wayne is a Professional Engineer with over 25 years of experience in engineering, design, construction, business development, and operations management with leading global engineering and construction firms. 

Wayne spends approximately 1 hour per week on Carnot.

Larry Leis

Larry Leis

Director

Larry is an early investor in Carnot. He also serves as Vice President and Member of the Boardat Conestoga Energy Holdings.

Chris Finley

Chris Finley

VP Engineering

Chris is a mechanical engineer with over 15 years’ experience in R&D, engineering, product development, and business development for mechanical systems in oil and gas applications. Chris is a recognized cryogenics expert and has published numerous papers on cryogenics, expanders, pumps, and turbines, with a focus on LNG applications.

Christophe Duchateau

Christophe Duchateau

Principal Engineering Scientist

Christophe is a process engineering specialist who worked in oil and gas R&D for 10 years, followed by 2 years in fluid flow simulations for product development. He has a proven track record in a broad range of engineering topics spanning applied thermodynamics, chemical engineering, and fluidics. Christophe earned his Ph.D. in process engineering and was a postdoctoral fellow at Stanford University.

M Iffat Hassan

M Iffat Hassan

Intern

Iffat is a PhD. candidate in Mechanical Engineering at the University of Nevada, Reno.

Kurt Schoeller

Kurt Schoeller

Sales & Marketing Director

Kurt Schoeller has 15 years of sales and service experience in the compressed air industry, including roles with BOGE and Atlas Copco. Kurt is also an experienced Drill Sergeant in the US Army and serves as a career counselor to military veterans.

Kurt has been recalled to active duty with the US Army and currently spends 1-2 hours per week with Carnot.

TERMS

Carnot Compression
Overview
PRICE PER SHARE
$1.60
DEADLINE
Jan 5, 2023
VALUATION
$22.25M
AMOUNT RAISED
$82,929.17
Breakdown
MIN INVESTMENT
$320.00
MAX INVESTMENT
$3,200,000.00
MIN NUMBER OF SHARES OFFERED
6,250
OFFERING TYPE
Equity
ASSET TYPE
COMMON
SHARES OFFERED
Common Stock
MAX NUMBER OF SHARES OFFERED
2,000,000

Maximum Number of Shares Offered subject to adjustment for bonus shares


Company

:

Carnot Compression Inc.

Corporate Address

:

5610 Scotts Valley Drive, Ste. B513, Scotts Valley , CA 95066

Offering Minimum

:

$10,000.00

Offering Maximum

:

$3,200,000.00

Minimum Investment Amount

(per investor)

:

$320.00











Terms


Offering Type

:

Equity

Security Name

:

Common Stock

Minimum Number of Shares Offered

:

6,250

Maximum Number of Shares Offered

:

2,000,000

Price per Share

:

$1.60

Pre-Money Valuation

:

$22,246,772.80











*Maximum number of shares offered subject to adjustment for bonus shares. See Bonus info below.

Voting Rights of Securities Sold in this Offering

Voting Proxy. Each Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.

Investment Incentives & Bonuses*

Loyalty Bonus | 15% Bonus Shares

Previous investors receive 15% bonus shares. Eligible investors will also receive the Loyalty Bonus in addition to other eligible bonuses.

Time-Based:

Friends and Family Early Birds

Invest within the first 72 hours and receive 20% bonus shares

Super Early Bird Bonus

Invest within the first week and receive 15% bonus shares

Early Bird Bonus

Invest within the first two weeks and receive 10% bonus shares

Amount-Based:

$1,000+ | 1K Club

3% bonus shares + Access to Carnot Compression’s Investors Club 

$2,000+ | 2K Club

5% bonus shares +Access to Carnot Compression’s Investors Club 

$5,000+ | 5K Club

10% bonus shares + Access to Carnot Compression’s Investors Club 

$10,000+ | 10K Club

15% bonus shares + Access to Carnot Compression’s Investors Club 

$25,000+ | 25K Club

20% bonus shares + Meet with Management (In-person or Virtual)

*All perks occur when the offering is completed.

The 10% StartEngine OWNers' Bonus

Carnot Compression Inc. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Common Stock at $1.60 / share, you will receive 110 shares of Common Stock, meaning you'll own 110 shares for $160. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.

Investors will receive the highest single bonus they are eligible for among the bonuses based on the amount invested and time of offering elapsed (if any). Eligible investors will also receive the Owner’s Bonus and 15% Loyalty Bonus in addition to the aforementioned bonus.

Irregular Use of Proceeds

The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments. Salary payments made to one’s self, a friend or relative. Any expense labeled “Travel and Entertainment”.

PRESS

Article Image
Interesting Engineering

Company Creates Sustainable 16th Century-Inspired Air Compressor

Article Image
New Atlas

Carnot puts a centrifugal spin on a 500-year-old air compressor design

Article Image
The American Society of Mechanical Engineers

Air compressors are one of the most common pieces of equipment used in manufacturing, air tools, garages and anywhere else where compressed air is needed.










ALL UPDATES

12.01.22

Only 2 weeks left for the Live Webinar!


We’re pumped to have you join our webinar, and meet with the Carnot Compression Management Team, on December 15th at 1:30 PST.


Carnot is on a mission to reduce the lifetime ownership costs for air and gas compressors with its patented, oil-free compression technology.   The Carnot Compressor could be a game changer for countless industries: thanks to its ability to deliver low-temperature, oil-free compressed air.


Find out how we do it: it’ll blow you away! 

Through using our patented technology, our clean compressors eliminate oil contamination and disposal, with a path to lowering energy consumption. Carnot Compression can save consumers money and create a cleaner future!

We are laser focused on growth. The compressed air market is reaching $40.38B by 2028! We have raised over $1M in investments and are actively underway with a $2M research grant from the California Energy Commission.. 

Join the Carnot community of investors today!


Register for our webinar today by clicking here. Remember to share this invitation to your friends, family, and network!


Warmly,

Todd Thompson
CEO and Cofounder
Carnot Compression

12.01.22

Blog Alert: Why You Should Invest in Carnot.


Hello Carnot Compression Community! 👋


Carnot Compression’s compressor uses a patented isothermal process to eliminate the problem of oil contamination in industrial air compressors. Our goal is to offer an oil-free alternative. We're on a mission to lower lifetime costs and provide higher reliability compared to other oil-flooded and oil-free compressors.


We set ourselves apart from all competitors with our patented platform technology. Our process is capable of achieving high pressure rises in a single stage of compression, at low temperature rise, with a 100% duty cycle machine.


According to our research, people who only need low horsepower oil-free air compressors are limited to machines with many moving parts and frequent maintenance requirements. Often, the machines do not last very long when operated in demanding conditions.


We recently wrote a blog explaining why we believe Carnot is an attractive investment. Read to learn more here


Visit StartEngine and download our pitch deck to learn more about Carnot Compression and how you can join our investment opportunity. 



Warmly,

Todd Thompson



11.07.22

Is the Carnot® Compressor the Perfect Fit for Robotic Milking Machines?

We believe automation will continue to be a growth driver in the dairy industry for many years to come, which is why we’re so excited about the fit we see with the Carnot® Compressor and robotic milking machines.   With an estimated installed base of well over 50,000 milking robots and 20-25% estimated annual growth, there's a massive opportunity for Carnot in this industry alone.    Milking robots require a continuous supply of oil-free compressed air, and as we continue our beta test program we believe the Carnot® Compressor can become the preferred solution in this growing industry.

Don't miss out on your chance to invest early in Carnot Compression as we bring our revolutionary Oil-Free Compressor to market!

 

10.24.22

We’re progressing on multiple fronts.

We are well underway with EPC-21-017, a $2.0 million research grant with the California Energy Commission.  The main project objectives are to continue to improve the efficiency of the Carnot® Compressor and test more advanced beta units at representative customer locations in California, thereby positioning us for broad-scale commercialization.  As of September 30, 2022, we still have slightly over $1.8 million of available funding to spend.  At our budgeted spend rate for this project, we expect the project to provide funding well into 2025.

Beta testing is ongoing at Tilla-Bay Farms.  A second beta test unit for Dairy Specialists is in process and we are looking forward to delivering  this unit to a location in Colorado.  More to come on our progress in the dairy industry in future updates.

Thanks to the 73 investors who have committed over $75,000 to our campaign in the first couple of weeks.   Including our first RegCF campaign, we’ve now raised over $1 million on StartEngine!

Please join us in our journey to bring the Carnot Compressor to market.  Invest today!



10.13.22

Early Bird Bonus Shares Still Available!

We're off to a great start with over $70,000 of commitments one week into our raise.  Many thanks to the 66 investors in our new campaign.  Don't miss your chance for early investor bonus shares, still a few days left!


In the meantime we continue to deliver oil-free compressed air to Tilla-Bay Farms!

10.06.22

Be an Early Bird!

We are off to a fantastic start with over $42,000 of commitments in the first 2 days of our raise.  Don’t miss your chance to participate in our early investor bonus opportunities.  EARLY BIRDS GET MORE SHARES!

You can learn more at our campaign page:

www.startengine.com/carnot-compression

As a reminder, with funds from our last raise of over $950,000 from over 1,100 investors, we have we have progressed from proof of concept to testing our first beta units.  We have also secured a $2 million research grant from the California Energy Commission, which provides us with a non-dilutive funding stream to continue to advance our technology. 

Please join us in our journey to bring the Carnot® Compressor to market. Invest today!


10.05.22

We're Back!

We are excited to announce that our capital raise is now live on StartEngine.   Now is your opportunity to invest in our growth.  Many incentives are available for early and large investors, which are described in detail on our campaign page.

www.startengine.com/carnot-compression

As a reminder, with funds from our last raise of over $950,000 from over 1,100 investors, we have we have progressed from proof of concept to testing our first beta units.   We have also secured a $2 million research grant from the California Energy Commission, which provides us with a non-dilutive funding stream to continue to advance our technology.

Please join us in our journey to bring the Carnot® Compressor to market. Invest today!

 

A group of men posing for a photo

Description automatically generated with medium confidence

 

 

 










Owners bonus
Stack Owner's Bonus & Rewards!

Members get an extra 10% shares in addition to rewards below!

REWARDS

Multiple investments in an offering cannot be combined to qualify for a larger campaign perk. Get rewarded for investing more into Carnot Compression.

$320.00

StartEngine Owner’s Bonus

This offering is eligible for the StartEngine Owner’s 10% Bonus program. For details on this program, please see the Offering Summary section below.

$1,000.00

1K Club

3% bonus shares + Access to Carnot Compression’s Investors Club

$2,000.00

2K Club

5% bonus shares +Access to Carnot Compression’s Investors Club

$5,000.00

5K Club

10% bonus shares + Access to Carnot Compression’s Investors Club.

$10,000.00

10K Club

15% bonus shares + Access to Carnot Compression’s Investors Club.

$25,000.00

25K Club

20% bonus shares + Meet with Management (In-person or Virtual)

JOIN THE DISCUSSION













0/2500

HOW INVESTING WORKS

Cancel anytime before 48 hours before a rolling close or the offering end date.