The Problem

In a previous paper (ap2 ENERGY SCARCITY AND NEW OPTIONS), 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), 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. Note that these papers are found on the January and February entries of this site.

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 and construction of millions of SEMAN and hundreds of land port facilities.

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 investment banks would cover item 2. However, this development is unusual for four reasons.

This project was started to provide employment in green industries that address the key problems of our times (lack of energy, food, jobs and climate change). The population targeted for this work will, for the most part, be relatively poor (the working class), 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 focussed 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 may be a problem.

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. Furthermore, the need for company operation and final prototype funds, and a SEMAN construction fund for new SEMAN are becoming important. It may be that the right source for these funds is the collection of 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 either of two types of payments into a fund (the Aquater Fund).

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 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, however, 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. Operating funds for the Aquater2050 LLC would come from interest on the Aquater fund money.

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 our 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 workers in working as Aquaters rather than by lack of construction funds from banks.

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. 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. 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).

Summary and Conclusion

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 test and 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 collection of 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 a worker 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)-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 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, however, 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 members and the working people of the world. Operating funds for the Aquater2050 LLC would come from interest on the Aquater Fund.

Note 1 To donate to help complete prototype, click on the “Add to Cart” button on the home page.

Note 2 To see progress on prototype, click on “SEMAN Prototype Update” on the Home Page.