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Xcess Pressure Reduce carbon footprint increase revenue
Deep Tech Shariah compliant- RM 1,500,000Min. Target
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- Equity - i-RCPS
- ~ up to 13.04%
- RM 30,000,000
- RM 1,500,000
- RM 4,500,000
- -
UM Innovations Curated
- Xcess Pressure Sdn Bhd
- Suite 12, Level 5 Research Management & Innovation Complex, Universiti Malaya, Lingkungan Budi
- 1425923P
- -
In Partnership With
Summary
Xcess Pressure Sdn Bhd is a hydropower company that aims to generate clean energy from excess pressure in water distribution pipes. Despite the losses and high carbon footprint due to the energy used to pump water, the water industry has much potential to become profitable by generating clean renewable energy using Xcess Pressure's Super Butterfly in-pipe hydropower system. They are raising RM5.5 million.
Highlight
- Since the first patent in 2019, Xcess Pressure has formed strategic partnerships with water operators from most states in Malaysia, their most prominent being Air Selangor, having just completed a successful pilot project; as well as Pengurusan Aset Air Berhad (PAAB), the developer and financier of Malaysia’s water infrastructure.
- Currently, Xcess Pressure focuses on the 'outright purchase' business model to meet client needs. This approach is projected to generate RM31.8 million in revenue by the fifth year with a Profit Before Tax (PBT) margin of 37%, driven by the installation of 45 Super Butterfly units producing a cumulative 37.8 million kWh annually. In the future, a 'revenue-sharing' model could be explored to provide consistent long-term revenue streams as the company expands and scales its operations.
- Designed to be a budget-friendly implementation catering to water operators and selling clean energy to other energy-intensive industries in Malaysia and the rest of the ASEAN region.
- Designed to outdo competitors in the global hydropower market in terms of energy generation efficiency under inconsistent water flow.
- Potential to succeed in the local market with predicted yearly energy generated by water industry up to 442GWh, which is RM106 million a year.
The water industry is on the verge of a crisis, with data showing more energy used to pump water to consumers each year. This resulted in recorded losses for 14 consecutive years, as well as an increased carbon footprint on the environment. Even with the recently introduced new water tariff rates this year, water operators were still urged to generate non-tariff revenue. Dr Iswadi Jauhari, the founder of Xcess Pressure, looked into the way water was being distributed and found pressure reducer valves (PRVs) that helped protect water pipes from bursting by limiting the excess pressure. He realised that the water industry can finally get a comeback, by harnessing the excess water pressure in pipes and generating clean electricity - helping the industry as well as the environment. Hence, he developed the Super Butterfly hydropower system.
The Super Butterfly is unique in that, in comparison to other hydropower systems in the market, is designed to handle inconsistent water flow and demand worldwide. Alongside that, its turbine is designed to generate clean energy at a higher efficiency, as well as be 70% more affordable to install at a local water operator’s site. Xcess Pressure allows for different business models for the needs of different clients: outright purchase, revenue sharing model, and licensing. Xcess Pressure, since the first patent, has received significant support and backing. Since the first patent in 2019, Xcess Pressure has formed strategic partnerships with water operators from most states in Malaysia, their most prominent being Air Selangor, having just completed a successful pilot project; as well as Pengurusan Aset Air Berhad (PAAB), the developer and financier of Malaysia’s water infrastructure.
With the funding, Xcess Pressure plans to expand to other projects outside the Klang Valley, as well as toward the whole region of ASEAN. They aim to be listed through IPO by 2030.
Problem
Problems with Water and Energy
Malaysia Water Industry at a Loss
Since 2010, the Malaysian water industry has registered fourteen consecutive years of loss-making, where total costs exceed total revenue. The Malaysian Industry Status & Outlook Report 2020/21 records annual operating costs at RM7.6 billion where annual revenues are only RM5 billion! That is a loss of RM2.6 billion; and of the RM7.6 billion, RM4 billion is spent on energy costs alone which comprises nearly half of the operational costs. Water operators use a high number of electrical pumps for water distribution purposes. Thus, making the water service industry financially sustainable is very critical and this has to be addressed from various aspects such as from the operational standpoint and infrastructure standpoint respectively.
High Energy Costs, High Carbon Footprint
Due to the mass use of electrical pumps for water distribution, not only does this affect operational costs but uses significant electrical power to pump water to consumers, especially during peak periods of consumption. This high demand for electrical power in turn contributes to increased carbon footprint for the environment. Hence, this is where Super Butterfly comes in, as a source of regenerative electrical power produced by the excess water pressure in pipes.
Water Distribution Efficiency
The current process of distributing water from its raw sources to end users is lacking in that it is not operating as efficiently as it could be. This is due to a lack of comprehensive management of water pressure throughout Malaysia’s water supply pipelines. Water pressure created from electrical pumps and natural gravitational flow of water from elevated raw sources and dams can lead to costly pipe damage if not properly regulated. That's where pressure reducer valves or PRVs step in - they are implemented in the pipe system in order to reduce and regulate this energy of natural water flow. However, while PRVs do a great job at regulating water pressure in pipes, Xcess Pressure saw greater potential for more than just pressure regulation - harnessing the pressure to regenerate energy which also helps to recover losses and restore the environment.
Solution
The Answer: Renewable Energy & Revenue with Excess Pressure
Xcess Pressure’s innovative solution, the Super Butterfly, allows water operators to harness and turn this excess pressure into clean electric energy. By installing this hydropower system in water pipes, clean energy can be generated constantly with excess pressure as the flow of water passes through the system. This high-value energy generated from this system not only reduces carbon footprint but also helps offset water operators' high operation and maintenance expenses by 10 to 15%. In short, Super Butterfly reduces carbon footprint by providing an alternate source of energy in contrast to traditional fuel sources, while profit is gained from potential revenue through the sales of energy from this system. To compare against other renewable energy sources, solar panels for example can only generate power during 3 to 4 hours of peak daylight during the day, whereas water runs in the pipelines 24/7. Hence, this is deemed the most suitable approach for water operators to operate more efficiently and profitably while contributing to the health of the environment.
Product
The Super Butterfly
Following years of R&D and prototype testing, the second-generation Super Butterfly was patented in 2022.
With a simple yet unique design, Super Butterfly is engineered towards peak efficiency. One unit of the Super Butterfly hydropower system can generate up to 120 kW of power. If more power is available, more Super Butterfly units can be installed whether in parallel or in series.
As designed, the Super Butterfly is equipped with a turbine blade within a blade housing, which generates electricity as water flows through the main pipe. Aside from the main pipe and turbine is also attached a bypass pipe to allow water to flow during maintenance and peak periods of water supply. Valves are added to control the water flow through this Super Butterfly system through average, peak, and maintenance periods.
As observed in the diagram above, Super Butterfly operates with control valves during average, peak, and maintenance periods. This is done to ensure optimal power generation through the main pipe area, as well as control water flow and pressure through those periods. Here is how it will look like during each period:
During the average flow demand period, the main pipe will be open and the bypass pipe closed. For the peak period, to allow as much water to be distributed as possible, both main and bypass pipes are opened.
Maintenance or service work can be done during low-demand periods by closing the main pipe and opening the bypass.
As for maintenance, maintaining the Super Butterfly system will not be an issue as the system is designed to be easily repairable within 2 days, depending on the distance of the site from Xcess Pressure headquarters. The parts for replacement when necessary are easily fabricated, whereas routine maintenance is performed on an active schedule. This is to ensure the Super Butterfly system operates at its optimum at all times in all places. Given that a situation should call for the repair of the system, it would not disrupt water flow, nor would it affect energy and revenue generation.
In 2024, Xcess Pressure introduced the 3rd Generation Super Butterfly, covered under patent PI2024007567. This latest version is designed to handle more complex and high-capacity water flows, up to three times the volume compared to the 2nd Generation system. With an improved nozzle design, added supporting nozzle, and larger turbine blade area, the 3rd Generation model enhances power generation without disrupting water supply.
This latest patent is jointly owned by Xcess Pressure and Universiti Malaya, with a 70:30 ownership split. Xcess Pressure holds the majority share, ensuring strong commercial rights while maintaining strategic collaboration with the university.
Below are the diagrams: i) Super Butterfly system installation at site, and ii) Water distribution flow and the proposed location for Super Butterfly installation.
SCHEMATICS
WATER DISTRIBUTION FLOW
The above chart diagram details how water is distributed from sources and using pumping stations to transfer water from the elevated impounding reservoir to treatment plants, other balancing and service reservoirs, and finally to consumers with PRVs in between to regulate and manage the water pressure so that the pipes will not burst. In place of PRVs, will be where Super Butterfly will be implemented not merely to reduce water pressure but to convert it to clean energy as well. This hydropower system is made with this water distribution flow in mind.
OTHER APPLICATIONS FOR SUPER BUTTERFLY
Besides the main application for Super Butterfly for general drinking water system, Super Butterfly also has the potential to be applied to wastewater and power plant cooling water systems, with some adjustments. If conditions permit, both upstream and downstream water sources of the wastewater sector can be utilised for power generation.
The above schematic shows an example of a cooling water system in a coal-fired thermal power plant. With some adjustments, the Super Butterfly system can also be applicable here, further diversifying the sources of energy generated by the system.
LAB SCALE TESTING
The Super Butterfly system has undergone a series of testing at operational conditions. This testing session was witnessed by the relevant agencies of water sector in Malaysia such as PETRA (Ministry of Energy Transition and Water Transformation) which is Xcess Pressure’s main funder (with a project completed under a research grant provided by them), Suruhanjaya Perkhidmatan Air Negara (SPAN), and Pengurusan Aset Air Berhad (PAAB).
PILOT PROJECT
Xcess Pressure in collaboration with Air Selangor - the largest water operator in the country - conducted the first pilot project of its kind in Malaysia, after years of rigorous planning. The pilot testing at the actual water operator’s site was closely monitored and supervised by water operator personnel.
The pilot testing at the Air Selangor site involved a custom installation of the Super Butterfly system, which delivered 50 kW of power. This power output, equivalent to powering 50 homes, was determined by the water flow rate and excess water pressure inside the pipe at the installation site. It is important to note the Super Butterfly system does not control the power generation as it is dependent on the site conditions.
Moreover, the Super Butterfly installed at the pilot project site did not take much space. At the Air Selangor site, the device installed only measured 11 meters x 2.6 meters. Having a space saving device ensures that no extra effort is needed such as clearing of land or cutting trees to install the Super Butterfly to the pipes.
In summary, the pilot project and testing was a success. This ensured that Super Butterfly can be implemented and functions without disrupting water supply flow to consumers.
Traction
Proven Traction, Propelling Forward
Xcess Pressure has made significant strides since its inception, with a clear roadmap for the future. From 2021 to 2024, the company has achieved multiple milestones, such as initiating a pilot project with Malaysia’s largest water operator, Air Selangor, and submitting a proposal for system sales to Pahang’s state water operator. Xcess Pressure has also earned recognition as one of the best deep tech startups in Malaysia through Petronas FUTURETECH 2.0 and reached the finals of the 2023 Sino Swiss Business Incubation Competition (SSBICom) held in China. Now, in 2024, Xcess Pressure has embarked on a joint proposal with Syarikat Air Negeri Sembilan (SAINS) and Pengurusan Aset Air Berhad (PAAB) for the implementation of the Super Butterfly system in Negeri Sembilan.This significant collaboration underscores the growing confidence in Xcess Pressure’s technology and its potential to revolutionize hydropower integration in water systems.
This growth is supported by Xcess Pressure’s innovative product development. The first Super Butterfly patent, filed in 2019, laid the foundation for the company's technology. In 2022, the second patent was introduced, offering improved efficiency and the ability to handle inconsistent water flow. Building on this momentum in 2024, Xcess Pressure is set to file a third patent, which will allow the system to manage up to three times the water capacity of the second patent, further enhancing its capabilities and showcasing its commitment to innovation in hydropower technology.
Looking ahead, Xcess Pressure aims to secure at least 5MW of projects locally, valued at RM50 million, within the next 3-5 years, and continues to expand both domestically and internationally. With an IPO listing planned for the future and aspirations for global mass production by 2035, Xcess Pressure is poised for long-term success in the renewable energy market. This steady and realistic growth trajectory highlights the company’s potential to revolutionize the energy sector through in-pipe hydropower solutions.
Customers
PRIMARY CUSTOMERS: WATER OPERATORS
The primary customers of Xcess Pressure are water operators in Malaysia. Utilising a beachhead strategy, Xcess Pressure intends to leverage their point of focus on Air Selangor, building confidence in their solution - the Super Butterfly - with a renown national water operator. Provided that Air Selangor has set the standard for the rest of the country’s water management, Xcess Pressure believes that their ability to convince and gain approval from Malaysia’s best gives them the opportunity to convince the rest of the country to adopt their technology.
With Air Selangor as their first customer, Xcess Pressure can leverage this to ensure their ability to branch out to other water operators in the other Malaysian states such as the likes of Syarikat Air Terengganu Sdn Bhd, Lembaga Air Perak, Pengurusan Air Pahang Berhad, Kuching Water Board, and more. By using this beachhead strategy and targeting water operators as the primary customers, this ensures the Super Butterfly is delivered effectively to the water industry as a long term solution to the problems faced over the years, and ultimately as a benefit to all.
SECONDARY CUSTOMERS: ENERGY-INTENSIVE INDUSTRIES
The secondary customers of Xcess Pressure are energy-intensive industries in Malaysia. As a byproduct of implementing Super Butterfly, the clean energy that is generated from the excess water pressure in pipes has applications on and off the grid. Such applications include uses for:
- district cooling systems,
- cold weather farming,
- cold storage,
- green hydrogen production,
- electric vehicle (EV) charging stations
- green data centers
- 5G network connectivity,
- and more!
Energy-intensive industries in need of energy for such applications nearby Super Butterfly-powered pipelines will benefit from the clean energy generated from excess water pressure. With the energy supplied, Xcess Pressure will be generating revenue from the industries’ use of Super Butterfly’s energy - the continuation of which will guarantee an increase in profit margin as time progresses.
Business Model
Sustainable Business Model for a Sustainable Future
Xcess Pressure’s business model is dependent on the financial strength of the water operators and project locations. There are three models available namely: outright purchase, revenue sharing model, and licensing.
1. OUTRIGHT PURCHASE
Xcess Pressure's financial projections demonstrate a strategic path toward profitability and growth as the company expands the installation of its in-pipe hydropower systems across water treatment facilities in Malaysia.
- Sales Growth: Starting from three units in the first year, sales are expected to grow to 15 units by the fifth year. This represents a steady increase in market penetration, with the Super Butterfly (SB) system installed across an increasing number of water treatment plants.
- Energy and Revenue Generation: Each SB unit generates clean energy, adding substantial new energy capacity annually. By the fifth year, the cumulative energy generated is projected to reach 37.8 million kWh, translating into significant revenue from energy production at RM0.24 per kWh.
- Revenue Breakdown:
- Outright Sales: Revenue from the sale of SB units is projected to rise from RM6 million in the first year to RM30 million by the fifth year, showcasing robust growth potential.
- Maintenance Revenue: As installations grow, so does the maintenance revenue, adding an extra recurring revenue stream, which reaches RM1.8 million by the fifth year.
Projected Revenue and Profitability Growth
The financial outlook for Xcess Pressure over five years highlights the potential for strong returns for investors, driven by both revenue growth and improving profitability.
- Revenue and Profitability: Total revenue is projected to increase from RM8 million in the first year to RM31.8 million by the fifth year. Alongside this revenue growth, profitability also improves, with Profit Before Tax (PBT) margins increasing from 10% in the first year to 37% in the fifth year.
- EBITDA Growth: Earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to grow significantly, reflecting the efficiency and scalability of the business model. EBITDA margins improve steadily as revenue and operational efficiency increase.
2. REVENUE SHARING MODEL (LONG TERM)
The second model is a revenue sharing model. Under this model, Xcess Pressure acts as a project developer where they fully finance, construct, operate and maintain the Super Butterfly at the project site, while the operator pays nothing. Under this model, the revenues from electricity sales will be shared between Xcess Pressure and the water operators through this model and JV partnership instead. With this model, projects or power plants using Super Butterfly technology will be managed by Xcess Pressure for a long duration, recouping the initial investment little by little through the sales of energy generated by the Super Butterfly system yearly.
3. LICENSING
The third available business model is licensing. As for the licensing business model, it will most likely be used in overseas ventures in time to come. Water operators in countries outside Malaysia who wish to have the Super Butterfly implemented will obtain a license from Xcess Pressure. This license guarantees the operator the permission to operate Super Butterfly while Xcess Pressure gains revenue via royalties from licensees.
Market
Captivating the Region’s Market
The potential market in the five most populated ASEAN countries (Malaysia, Indonesia, Vietnam, Thailand, and the Philippines) is estimated to be more than RM0.75 billion per year. Globally, it will be much bigger. This market will grow in tandem with population and economy. According to the Air Selangor Handbook, water demand in Malaysia alone is expected to increase by 103% in 2050 from 2020. With the increase in water demand and Super Butterfly in mind, this presents Xcess Pressure with a massive opportunity to harness excess in-pipe water pressure to generate clean energy, reduce carbon footprint, and ultimately gain much profit.
Based on the estimated energy consumption for the water industry, these are the potential in-pipe hydro energy generation per year in selective ASEAN countries. According to World Energy Outlook Special Report 2017, Malaysia alone stands to generate 442 GWh per year with Super Butterfly. Following a tariff of RM0.24 per kWh, that means Malaysia can generate up to RM106 million in revenue from clean energy generated.
With this opportunity, Xcess Pressure with their 3MW system can produce about 26.28GWh per year, capturing 5.95% of the total 442 GWh potential market in Malaysia.
Competition
Staking Out the Competition
There are currently three known competitors who also supply in-pipe hydropower systems globally. They are:
- Lucid Energy, US
- SOAR, US; and
- Daikin, Japan
As observed in the diagram above, the three competitors supply hydropower systems with their respective designs in the global market. Although these other hydropower systems are available in the market, they have lower power generation efficiency in comparison to Super Butterfly and are not as adaptable for inconsistent water flow conditions specific to Malaysia. More importantly, Super Butterfly is more economically viable for installation, especially for the developing ASEAN region.
These competitors will not pose as much of a threat to Super Butterfly market-wise as not only does Super Butterfly outdo them in efficiency and price, but that they are only catered to their respective regions. Daikin, for instance, is known to have aggressive marketing - but only in Japan. Even if Daikin were to penetrate the ASEAN market, their CAPEX would be too expensive for them to do so. Hence, having this much space in the ASEAN region means much opportunity for Xcess Pressure to capture the region’s market and cater to the needs of the region.
Funding
Funding: Strength in Resource
PURPOSE OF FUNDS
Xcess Pressure is currently requesting a funding of RM4.5 million, with 70% of the funds allocated towards CAPEX, and 30% on OPEX.
If only the minimum target of RM1,500,000 is met, please use the following fund allocation:
Besides the CAPEX and OPEX allocations, the funding requested by Xcess Pressure will also empower them financially to aggressively filter and prioritize implementation projects in various areas of the country and later on in the ASEAN region. The ability for prioritization is also crucial in strategically maximizing the potential usage of Super Butterfly, which better guarantees targeted end results.
PAST FUNDING
The Super Butterfly has currently received RM3.49 million in funding as well as previous grants over the years of its research and development. Since 2017, Dr. Iswadi Jauhari, the founder of Xcess Pressure and mastermind behind the Super Butterfly has received grants before the company was formed during his time researching the project at Universiti Malaya. The latest grant was RM1.47 million granted by MOSTI - Technology Development Fund 2 (TeD2), which is a government agency grant valid until 2027. The mass support for the Super Butterfly solution gained from various sources over the years is highly indicative of its confidence and the potential of this technology to work wonders in the world at large today, starting with Malaysia.
Vision
The Vision
Our vision is to be the leading provider of sustainable energy solutions through in-pipe hydropower technology, empowering water providers and industries across ASEAN and globally to achieve carbon neutrality and enhance operational efficiency by 2035.
The Mission
Our mission is to drive sustainable energy solutions by harnessing excess water pressure through innovative in-pipe hydropower systems, enabling water providers and industries to reduce carbon emissions, optimize operational efficiency, and promote a greener future across ASEAN and beyond.
Founders
Dr. Iswadi Jauhari is the founder and Executive Director of Xcess Pressure. He received his Bachelor’s (1995), Master’s (1997) and Doctorate (2003) degrees in engineering from the Ehime University Japan. His expertises are in the areas of materials, design and energy. He is the innovator behind the Super Butterfly. With his expertise in engineering and experience researching and developing hydropower systems in Universiti Malaya, the Super Butterfly was born. The name ‘Super Butterfly’ was adopted for the hydropower system when he heard his Kelantanese engineer said in his Kelate accent that it is “serupa butterfly” (serupa sounding like Super) upon seeing the first working prototype that has a twin-turbine, shaped like a butterfly.
Farahani Abd Rahman Sazli (Managing Director)
Farahani received her biomedical science degree and medical science degree from Universiti Kebangsaan Malaysia. Since then, she has been exposed to entrepreneurship education and training programmes while engaging and building positive relationships with water industry personnel and relevant authorities for market validation purposes.
Team
Hasmadi Ahmad (Chief Engineer)
He graduated with a Bachelor of Electric and Electronic Engineering from Tokushima Engineering University, Japan in 1995. He has vast experiences as Mechanical and Electrical and project engineer in various companies in Malaysia and Japan for almost 16 years. His experiences comprise of project design, development and management including R&D.
Muhammad Iqbal Ismail (Mechanical Engineer)
Muhammad Iqbal Ismail obtained a Bachelor of Mechanical Engineering, Universiti Malaya (UM) in 2020. He implements his skill mainly on Solidworks in designing the prototype. He is the key mechanical designer of the Super Butterfly.
Dr. Sabariah Julaihi (R&D Collaborator Universiti Malaya)
Sabariah Julaihi is currently working as a senior lecturer at the Department of Mechanical Engineering, Faculty of Engineering, Universiti Malaya (UM). She received her MSc and PhD from the University of Sheffield, United Kingdom in 2004 and 2010 in Automatic Control and System Engineering in 2004.
Investment Terms
Disclosure
- pitchIN and its officers and staff may also be investing in this campaign
- Under ECF Guidelines, valuation is determined and set by the Issuer. Investors are advised to carefully peruse all investment offers and documents before making investment decisions.
- Equity - i-RCPS
- ~ up to 13.04%
- RM 30,000,000
- RM 1,500,000
- RM 4,500,000
- -
UM Innovations Curated
- Xcess Pressure Sdn Bhd
- Suite 12, Level 5 Research Management & Innovation Complex, Universiti Malaya, Lingkungan Budi
- 1425923P
- -