The Problem

In a previous paper (ap2 ENERGY SCARCITY AND NEW OPTIONS-Jsn, this site), a new vessel (called a SEMAN or Seagoing Energy Module with Automatic Navigation-stabilization) is described that can harvest energy from wind, waves and sun from the ocean. In that paper, it is noted that the oceans have enough area in high wind zones to allow 200 million SEMAN to operate profitably (the SEMAN should have winds greater than 15 KN to operate profitably). In a companion paper (ap3 NEW JOBS FOR THE COMING GENERATION-Feb, this site), the ocean-based jobs generated by these SEMAN are described. There are land-based jobs connected with these SEMAN as well. These land workers build the SEMAN and process the energy and the products generated for sale on the land. The number of jobs that can be generated by this technology is roughly 550 million. These workers can generate enough energy to replace most of the fossil fuels currently being used on land as well as sequester the carbon dioxide currently being emitted on land as a solid on the floor of the deep ocean (see ap1 AIR POLLUTION AND CLIMATE CHANGE). Clearly this number of people in a new area (the oceans and nearby shores), with a new purpose (clean energy and climate restoration) and a new occupation (energy harvest and carbon sequestration) is sufficient to be called a new civilization.

A great deal of capital will be required to make this civilization a reality. This capital requirement can be broken down into two parts.

Concept development and prototype construction and test.
Company operation, development of the land-sea interfaces, construction of millions of SEMAN and insuring the SEMAN against accidental damage and destruction.

This paper will address how the capital can be obtained for each of these parts.

The Classical Capital Development Cycle and its Limitations

Normally, item 1 would be covered by venture capitalists and banks would cover item 2. However, this development is unusual for four reasons.

This project was started to provide middle class employment in green industries that address the key problems of our times (lack of green energy, food, jobs and climate change). The population targeted for this work will, for the most part, be relatively poor (working people rather than rich investors), although middle class people will be more and more involved. Banks will probably not view funding SEMAN for such people as a good risk. Their goal is profit, not jobs.
This project is unusual enough to be difficult to sell to a venture capitalist used to small, tightly focused projects. Building a new civilization is a very large project to undertake.
If a SEMAN owner doesn’t make his/her payments, it will be difficult for the bank to repossess the SEMAN because it could be anywhere on the world’s oceans, and could move rapidly to a new location.
It will be difficult to insure a SEMAN in the early stages of this civilization before groups of SEMAN (or pods) are formed, because there will be no data on the ability of SEMAN owners to keep out of trouble, and few helpers to get them out, once in. Thus SEMAN loss due to weather and accidents may be a problem in the early phase of deployment. Later, more means of helping distressed SEMAN will be available.

Thus an alternate means of funding must be worked out to finance this new civilization.

Solution-A New Kind of Funding

At the beginning of this project, it was recognized that initial funding would have to come from private sources until the viability of the project was recognizable. Thus Dr. Wald, the CEO of Aquater2050 LLC, provided most of the funds required for research, design, and prototype construction. In essence, he was the principal venture capitalist.

At this point, however, the prototype SEMAN design is complete, and the construction is almost complete, so the project viability is becoming apparent. Once the prototype is complete, wealthy people can just purchase SEMAN copies, but SEMAN were developed to provide middle class jobs to working people who cannot afford to purchase SEMAN outright. Furthermore, there is a need for company operation and final prototype funds. Thus a SEMAN construction fund (the Aquater Fund) is becoming important. It may be that the right source for the money for this fund is the working people of the world because this is the group that would benefit the most from the success of this program. It could enhance their living conditions and boost them into the middle class. These workers could provide two types of payments into a fund for development.

A one time donation of say $7 (average)-which they could afford as the price of a movie or dinner out-given by people who see the potential in this program.
A membership fee of $7 that is renewed annually for the Aquater Alliance, a group of workers that want to become SEMAN owners. These members would share in the results of research obtained by Aquater2050 LLC.

When the prototype construction and test is complete and enough money has collected in the fund, a SEMAN could be built for a suitable Aquater Alliance candidate. The candidate would be chosen from the Aquater Alliance members by skill test and lottery, and the lottery would be weighted somewhat in favor of those members that have belonged for the longest time. Then, as SEMAN are constructed, the new owners would take ownership, work the SEMAN and pay a mortgage payment into that fund until the SEMAN is paid for. As operating characteristics for SEMAN are collected from these new owners, longevity and profitability statistics would be obtained, and banks might also be persuaded to provide money for the fund. That way, in a relatively short time, the fund would be able to carry all of the Aquater Alliance members that want to buy and operate a SEMAN. The lottery would then be unnecessary. Eventually, banks would be bought out, and construction of SEMAN for Aquater Alliance members would be carried out entirely by the fund in order to insure that the fund is operated for the benefit of the Aquater Alliance and SEMAN owners. Funds for insuring SEMAN against damage or loss would also come from this fund, and insurance payments paid into it. Operating funds for the Aquater2050 LLC would come only from interest on the Aquater fund money. Aquater Alliance members would have voting rights and receive a share of any profits as soon as enough money is in the fund (say $10 to $100 million) to start building and insuring operations. Before operations start, money coming in will build the fund and operate the company. Note that any Alliance members that drop out of the Alliance and stop making yearly payments will no longer have access to the funds for SEMAN construction, or voting rights. Further, there is no right of return of prior payments.

The advantages of this method of funding are as follows.

The development priorities would be determined for the benefit of the members of the Aquater Alliance and Aquater2050 LLC rather than for the venture capitalist.
The workers of the new civilization would be the primary payer and the primary beneficiary of the Aquater2050 development program.
The speed of colonization of the oceans will be limited only by the interest of owner/operators in working as Aquaters rather than by lack of construction funds from banks, so the benefits of the Aquaters and the SEMAN to civilization can rapidly accrue.

The interest in ocean colonization will probably be driven by the availability of jobs. Current data show that the availability of jobs in the normal land sectors is falling off due to automation, and will continue to do so (see ap3, ap3A and ap3B), so the interest should be strong. Interest will also be driven by the services the Aquater Alliance and the SEMAN can provide (green energy, climate restoration, jobs). If the interest falls off, the ability to gather money for the Aquater construction fund will fall off, and ocean colonization will slow or halt, as it should. If the interest remains strong, as expected, the oceans will eventually reach their capacity (~200 million SEMAN). If the population of the earth levels out, the ability of the oceans to cover the energy generation and carbon sequestration needs of the earth will also level out. If the earth’s population doesn’t level out, the oceans will fill, and the colonization of space will then become necessary, a possibility addressed in ap6 THE FINAL SOLUTION TO MAN’S POPULATION (see the December entry on this site), and with the vote of the Aquater Alliance members, the funds can be applied to this colonization. At any rate, the Aquater Alliance and market forces rather than venture capitalists and banks will control the funds.

The success of this funding procedure depends on getting the word out that desirable middle class jobs on the ocean will soon be available for working people, and many small donations are needed to develop the Aquater Fund necessary to manufacture SEMAN and so make these jobs available.

Summary and Conclusions

In several Aquater Papers, a new vessel called a SEMAN has been described which is capable of meeting the need for clean energy and the need to sequester carbon dioxide. In addition, it could provide hundreds of millions of new middle class jobs for the working people of the world. In order to finance a transition to clean energy and a stable climate, a large amount of capital will be necessary to build SEMAN. A new way to obtain this capital is proposed in this paper.

It is proposed that the right source for these funds is the working people of our civilization because these are the people that would benefit the most from the success of this program. This program could not only provide clean energy and sequester carbon dioxide, but it could boost workers into the middle class. Such workers could provide either of two types of payments into a fund (the Aquater Fund).

A one time donation of say $7 (average) or more, which they could afford as the price of a movie or dinner out-given by people who see the potential in this program.
A membership fee of $7 that is renewed annually to the Aquater Alliance, a group of workers that want to become SEMAN owners. These members would share in the results of research obtained by Aquater2050 LLC.

When the prototype construction and test is complete and enough money has collected in the fund, a SEMAN could be built for a suitable Aquater Alliance candidate. The candidate would be chosen from the Aquater Alliance members by lottery and skill test, and the lottery would be weighted somewhat in favor of those members that have belonged for the longest time. Then, as SEMAN are constructed, the new owners would take ownership, work the SEMAN and pay a mortgage payment into that fund until the SEMAN is paid for. As operating characteristics for SEMAN are collected from these new owners, longevity and profitability statistics would be obtained, and banks might also be persuaded to provide money for the fund. That way, in a relatively short time, the fund would be able to carry all of the Aquater Alliance members that want to buy and operate a SEMAN. The lottery would then be unnecessary. Eventually, banks would be bought out by the Aquater Alliance, and construction of SEMAN for Aquater Alliance members would be carried out entirely by the fund in order to insure that the Fund is operated for the benefit of the Aquater Alliance members and the working people of the world. Operating funds for the Aquater2050 LLC would come from interest on the Aquater Fund, not the fund itself. Funds for insuring SEMAN against damage or loss would also come from this fund, and mortgage and insurance payments paid into it. Operating funds for the Aquater2050 LLC would come only from interest on the Aquater fund money. Aquater Alliance members would have voting rights and receive a share of any profits as soon as enough money is in the fund (say $10 to $100 million) to start building and insuring operations. Before operations start, money coming in will build the fund and operate the company. Note that any Alliance members that drop out of the Alliance and stop making yearly payments will no longer have access to the funds for SEMAN construction, or voting rights. Further, there is no right of return of prior payments.

The success of this funding procedure depends primarily on getting the word out that desirable middle class jobs on the ocean will soon be available for working people, and many small donations are needed to develop the Aquater Fund necessary to manufacture SEMAN and so make these jobs available.

It is important to note that the financial arrangements necessary to implement this method have not been made, and certain legal issues have not been explored. Thus the $7.00 fee advertised on this site is not part of this possible financing procedure. If Aquater2050 LLC decides to implement this scheme, a statement will be made on the home page of this site.

Notes

The design work for the SEMAN is done. The physical prototype of the SEMAN is nearly complete-see “SEMAN prototype”, this site, bottom of the home page.

To donate to help complete this prototype, click “Add To Cart” on the home page.