Specific for this group. If you want our investor deck, you can scan this QR code or a hard copy I have in my hand, and we'll get that downloaded to your phone. I didn't want to kill any trees. I also wanted to take a minute to thank Chris Lahiji and the entire LD Micro team for staging a terrific event. This is my third time being here, and it's always been a terrific event. So Evsan has a patented thermal battery that stores electricity from wind, solar, or other cheap sources of electricity for use 24 hours a day, seven days a week when it's required. It leverages the major trends in the marketplace. First of all, the vilification of fossil fuels, which has led to price increases, taxes, and the push for the electrification of everything.
Where I am from in Ontario, Canada, the fossil fuels have attracted a carbon tax, which right now exceeds the actual cost of either your fuel bill or your electricity bill, and it's become very daunting for people that are relying on, in particular, fuel oil for heating. We also have a major issue that the grid can't support the peak demand today and can't support the peak demand with the electrification that's taking place. We're already seeing instances where consumers who have electric vehicles are being asked to not charge them during the day because we need to run air conditioning. As we electrify more, that's going to continue to be a problem. There's also a significant new home construction deficit, particularly in the area of low-cost homes. All of these issues are addressed with our Evsan thermal battery.
Solar is terrific. Wind power is terrific, but there are problems. Solar doesn't work so well at night, even though there are still needs for electricity at night, and wind doesn't work when there's no wind. Two other primary sources of power generation, whether it's nuclear or hydroelectric, have a fundamental problem that it's hard to turn them off. So overnight, when there's not demand, you have excess electricity that needs to go somewhere, and electricity regrettably is difficult and expensive to store. We're seeing high costs for lithium batteries, not only in the actual cost of the battery but the social costs, whether it's the carbon footprint or the stories of children mining lithium with their bare hands. It doesn't really matter. The challenge is that electricity is hard to store in forms such as batteries. So that's where Evsan comes in with our thermal battery.
We have an efficient, durable battery that leverages the physics of storing electricity as heat. So we convert electricity to heat and use it as heat. There is no subsequent conversion. When you store electricity in other batteries, you convert it from electricity to some other form, then back to electricity, and then to heat, and you have several losses of efficiency throughout that. We have no loss of efficiency. It's very scalable, whether it's for a single-family home or a multiple residential unit. Quite affordable as well. We have a price point of CAD 5,000 as the retail price, which is comparable to a high-efficiency furnace, and it's very sustainable.
Not only do we have the benefit of reducing peak energy demand by up to 95% by moving that demand off-cycle, but we're also using abundant resources, both in the steel that's used for our vessel as well as the silica sand aggregate that's used for filling the battery. Why is all that important? Because winter is coming. Despite anything you may have heard about global warming, it's still going to get cold. In fact, people will be running their furnaces tonight in Los Angeles. So the need for heating is widespread, not only in North America and Europe, but North America and Europe represent our target because it's over 1.3 billion people and 55% of global GDP. There are heating needs in other parts of the world. We have not spent any time looking at that.
Within the United States, you might think, "Well, you know, southern climates don't need it," but guess what? The need for heat is almost throughout the entire country. I used to live in Orlando. I had a furnace. I currently live in Las Vegas. I have a furnace. You look at this map, it tracks what's known as heating degree days. So if I have to heat my home by 10 degrees for 100 days, that's 1,000 degree days, and even if you get into southern Texas or mid-Florida, you're still seeing 1,000 to 2,000 degree days of heating. These places have furnaces, which leads to a very large market. Europe is the same story. With the exception of Spain, Portugal, parts of France, Italy, and Greece, you need heat at least part of the year, so there are huge opportunities here.
In the United States alone, the total available market is $82 billion a year based on the number of furnaces and heat pumps that are sold both for new home construction and for replacement. So our battery is a replacement or an augmentation of your existing gas, oil, or propane-fired furnace. You could have a dual-based system where you maintain that furnace and have the Evsan battery alongside it, but the primary installation would be replacing your gas or oil-fired furnace with an Evsan thermal battery. I've already mentioned the pricing. The additional benefit is for new home construction. It reduces the cost by approximately $10,000 because you don't need to run a gas line to the house, and you don't need to build a chimney.
There is no venting, there's no carbon monoxide, and it'll heat a 2,500 sq ft home for around $3 a day, as well as reducing carbon emissions by over 13,000 pounds per year per installation. So if you think about thermal batteries, it's very old technology. The first thermal batteries were rocks from around the fire that kept the caveman warm while he slept. We've got the earliest evidence of architectural thermal batteries from Korea from 5,000 BC, where they had thermal batteries heated by fires under the floor that heated the stone floor and radiated heat throughout the night, and the largest brick castle in England, the Malbork Castle, is still heated by thermal battery. Today's thermal batteries, state of the art, are massive installations. They are used for district heating, such as the example for Polar Night, which heats an Olympic-sized swimming pool as well as 100 homes.
And then, in the middle at the bottom of the page, is in North Carolina State University that has several of their dormitories heated by a thermal battery. But if you look at the size of these, they don't really lend themselves to being in the basement, crawl space, or attic of a home to replace your furnace. Our patent is, in fact, based on figuring out how to do that, how to take that basic principle of storing electricity as heat for 24-hour use and getting it into a footprint that would fit into an attic, basement, or crawl space. Our thermal battery is approximately the same footprint as a water tank and about half the height of a water tank. It's shipped empty.
The steel vessel, which is made out of 3/8 plate steel, is installed, and then it is filled with the aggregate, which is the heat sink, and that allows us to install it in the appropriate locations. So inside, this is a simplified schematic. This actually just connects to your existing furnace plenum system. So where your cold air return comes into your basement or wherever, that now goes into the number one arrow on here and comes into the bottom of the unit where it passes up through a series of patented baffles and exits through number five. In between, we bring in fresh air to modulate the heat and to introduce fresh air into a home that typically, with new construction, is very well insulated and almost airtight and is always challenged to get sufficient fresh air. So we're always introducing fresh air.
By the way, there are no moving parts. It relies on the existing fan that's in your furnace system to push the air through it, and it also relies on passive heat as heat rises. So I talked about a number of the benefits here. A few more that I would bring up that we haven't mentioned yet. One is there's no carbon monoxide risk. There's opportunity for emergency heat in the event of a power failure. You're going to have heat for up to three days. It also can be completely off the grid, connected to a solar panel system on your roof. You require six hours of sunlight every three days to maintain continuous heat.
We recommend that you have electricity as standby in the event that some places can get four or five days in a row of cloudy weather, but when you do have sunlight, you only need six hours every three days in order to power this. What have we accomplished so far? Well, the company was formed in March of last year by our founder, Derek Welsh. He's not here, and the Evsan name comes from his son, Everett, and sand.
Derek wanted to have a legacy for his son, and it was, frankly, just one of those aha moments where he recognized on a walk through the woods that the sand floor of the forest was radiating heat on a cool evening, and he took that home and put some sand in a Dutch oven, heated it up in his oven in the kitchen to approximately 500 degrees Fahrenheit, and used it to heat his basement for 24 hours. We've had, obviously, some significant development since then. We're now on prototype number three, which is now heating a surrogate home. It's one of our partners that is a staging company for realtors, so they have a house full of furniture with no people, but we're currently heating it. We filed a patent in January of this year.
We're doing very well with that patent application, and we're hoping to have that issued as early as next month, but more likely in the early part of 2025. We've also signed agreements with a manufacturing partner. We decided to give up a few points of margin so we wouldn't have to build out our own fabricating facility. So we have a partner that can build enough units to generate approximately $1 million a month of revenue before we need to increase scale. And we've been partnering with HVAC distributors, real estate owners, and construction companies to get installations lined up for 2025. We remain a pre-revenue company. We remain a private company. We have expectations to be in revenue in Q1 of 2025 and also are planning to go public by the end of 2025. We're seeking $2.5 million to scale the company.
Currently, we're looking for $1 million to do the work to actually commercialize. We need to do some design for manufacturing work and build some units and get some final certifications. And when we achieve certain milestones that we've articulated, we would be going after an additional raise concurrent with going public. At the same time, we're applying for non-dilutive funding for grants. We have the advantage that each one of our units generates a carbon credit. We also have significant green claims, so we've been applying for green energy grants, carbon credit grants, as well as the traditional creating employment grants, all of which are available for us. And with that, I've saved myself some time for questions. Yes. What kind of maintenance does this require? That's a good question.
First of all, the actual vessel itself is made out of 3/8 plate steel that's welded. It will last for generations. It's powder-coated. It's not going to corrode unless your basement floods, which would be a different problem completely. The only wear part are the actual heating coils, and we've designed that so that a handy homeowner could change them themselves. We expect a life of those between five and seven years. We've repurposed the heating coils from the oil and gas industry where they last for approximately five years in use. So that's the only wear part. Yes.
What's the BOM? What's the bill of materials? I mean, you said you're still in design for manufacturing, so I realize it hasn't been finalized yet. Right. Where's that coming out?
The total cost? We're currently around CAD 750. That's for materials? Yeah.
And that's being manufactured where?
Just outside of Toronto in a town called Dundas, and we hope to get those costs down because, for example, we're buying our control panel complete from someone else. We would eventually bring that in-house. We have a control panel that is smartphone compatible. It has Bluetooth, so you can hook it up to your Nest thermostat, etc. It also has the intelligence to take a look at what is the current temperature of the battery and what are the current power rates, so the operating temperature of it is between 800 and 1,000 degrees Celsius. When it gets down to 600 degrees, the software says, "What's the current price of electricity? Is it low?" If the answer is yes, it charges it back up. If it isn't, it waits, and at 400 degrees, it asks the question again.
Eventually, it'll just power it even if you're not in an off-cycle period. Again, in Ontario, Canada, electricity during the day is CAD 0.24 per kilowatt-hour. Overnight, it's CAD 0.021. You save 90% by time-shifting that overnight electricity to 24-hour use. Other jurisdictions aren't quite that good, and some jurisdictions have no time shift of electricity at all. It depends on how much baseload you have in nuclear and hydroelectric and other difficult-to-shut-off power systems. A jurisdiction that's entirely on coal-fired plants typically does not have time-of-use pricing because they just shut down some of their boilers overnight and generate less electricity. Depending on the actual infrastructure by jurisdiction, it changes what our opportunity is. Yeah.
What's the distribution of light?
We currently are pre-revenue, but our plan is to work through the existing HVAC distribution network.
Eventually, you need a guy, a person, a technician in the home installing this, and we're not going to do that. That is already a well-established. We just plan to take market share from the existing furnaces and heat pumps that are out there through that distribution network.
You still need to establish those?
Correct. We're in discussions with a couple of very large HVAC companies in the Toronto area to become a supplier to them. You had your hand up.
Yeah. Can you just speak a little bit more about the proprietary nature of this and the benefit you're awaiting?
The question is around the proprietary nature of it. The key part to the patent was how you get this scaled down so that it fits where we're putting it because the large batteries that I showed you before are generally filled with concrete.
An item that size filled with concrete isn't going in your basement, and so it seems simple, but the patent office has agreed that it's not obvious. Don't put concrete in it. Fill it with something after it's in situ. We ship the empty container and fill it with sand. That's part of the patent. The other part of the patent is not disclosed in the illustration I showed you, but how that actual baffling works inside for the air circulation to ensure that we get the heat out of the sand efficiently and effectively and provide steady and consistent heat during the demands,
so it's the circulation.
Correct, and I guess the last part would be a major part would be the actual blender box where we use fresh air to modulate the temperature because you don't want 800-degree air coming out of your floor vents.
What we're able to do is modulate that so that whatever temperature you set it at, let's say 72 degrees Fahrenheit, you have 72-degree air circulating all the time, unlike a gas furnace where the thermostat waits until it gets below a set point and comes on and then comes on and goes past your set point until it goes off. So your room is at 72 degrees for a few minutes, but it's either at 68 degrees or 78 degrees, depending on which end of the cycle you're at. We have constant air temperature the whole time because there is no fire. It's always hot.
Can you talk about maybe how a competitor might see this product and enter the market?
Yeah. How would a competitor see this and might enter the market? Well, patents are always there to be challenged, correct, and so could someone else challenge it?
Potentially, they could. One of the things that we're counting on is they are so deeply invested in their gas-fired models and the cost structure they have from that that they wouldn't want to go into. This is more expensive to build than a traditional furnace,
but the savings will come back.
Correct. Yes.
What did you say about the cost savings for homeowners?
Well, what are the cost savings for homeowners? That varies by where you are, so for someone in Toronto that does this, they're going to see their electricity cost go from CAD 0.24 per kilowatt-hour to CAD 0.021 for whatever they heat overnight, so there's going to have significant savings.
If you're currently on gas and you move to this, if you're in a jurisdiction that has a carbon tax, and if you think that California knows how to tax its population, you need to go and look at Canada. We have a carbon tax where the tax actually exceeds the cost of the energy that's being delivered before tax. So by moving to electricity, you avoid the carbon tax. So the savings for someone going from gas, oil, or propane to electricity, they avoid the carbon tax. Now, that's not universally true, but it's true, at least for our Canadian customers, it's true. In the United States, the opportunity remains time-shifting for the 32 states that have time-of-use electricity and the ability to store solar or wind for 24-hour use if you want it to be off-grid. Yes.
You did mention that the device gets very warm on the inside and it's steel-plated, so I would imagine that the outside also can touch it and burn yourself.
Yeah. The outside doesn't get that. The outside is the same temperature as a gas-fired furnace. It's around 102 degrees Fahrenheit. And that's part of the patent as well is how do we do that? Yes.
Patents are filed in the U.S.?
Yeah. Canada? U.S. only.
And you've had your office action?
No.
But you think it's going to be issued next month?
We are fast-tracked. Yeah. We were thinking next month, but we're now thinking it's going to be Q1 of 2025.
Can you talk about the terms of the financing?
Right now, we're looking for $1 million against a $3 million valuation. And we're offering a unit would be a share and a warrant, subject to negotiation. Okay.
Great question. Is that all right? Thanks, everybody. Really appreciate it. And if.