Questions & Answers

Gempacs FAQ – Comprehensive Database (77 Questions) –

1. Vision & Strategy

Q1 What do you stand for?

Our mission is to create a world where going out at sea is safer, healthier, environmentally sustainable and financially affordable, to the extent that we aim to help the poorest coastal communities to lift up out of the cycle of poverty. By empowering coastal communities with clean energy solutions, we help break the cycle of poverty, improve public health, and reduce environmental harm. Our impact spans 8+ UN SDGs.

Q2 What value do you bring to your customers/clients?

We give professional users the opportunity to transition to new, reliable and environmentally friendly electric systems, with no upfront payment. We partner with governments and financial institutions to offer grant- and loan-backed solutions, letting owners repay from fuel savings alone. Beyond financial gains, we improve their health by eliminating pollutants linked to cancer, cardiovascular disease, and hearing loss.

Q3 What is your Competitive Advantage?

Our full-stack business model, combined with third-party tech integration and subsidized financing, makes marine electrification accessible. Being asset-light and tech-agnostic, we outmaneuver incumbents (using ICE technology) and competitors alike. By targeting blue ocean markets, we create high-entry barriers, while our flexible supply chain ensures uninterrupted scalability.

Q4 What is your USP (Unique Selling Proposition)?

Gempacs empowers coastal communities by increasing boat owners net income 30%-250%, eliminating reliance on volatile fuel markets, and protecting livelihoods from shrinking fuel quotas. Our asset-light, tech-agnostic model ensures scalability, while subsidized financing makes clean energy accessible.

Q5 Where is your innovation?

We innovate through business, not risky and unproven tech. Our edge lies in our business and operating models, bundling fully financed solutions for commercial boat owners. As technology integrators, we stay asset-light, using proven, off-the-shelf tech while leveraging our expertise to enhance it at the source.

2. Technology, IP & Hardware

Q6 Is there a technological risk in your business?

The technological risk is minimal. We use proven third-party technology, ensuring reliability from the start. Our prototypes have been operating successfully in Indonesian waters for years. While no technology is entirely risk-free, our experience in integration, financing and partnerships helps mitigate challenges.

Q7 There is no proof of concept/prototype vessel… so no IP that underpins the business plan?

We’ve built multiple electric boat prototypes and sold various electric boats in Indonesia (water taxis, tourist boats, fishing boats) using new electric outboards, converted ICE motors, and retrofits. The technology exists, but implementation is complex. Our IP lies in expertise, access to strategic patents, and deep local connections. We remain the only credible player in Indonesia’s marine electric mobility sector.

Q8 What are the patentable technologies that are being developed in-house?

Our edge comes from know-how, integration expertise, charging infrastructure and financing models—not just patents. While individual technologies (e.g., battery systems, retractable hydrofoils, propeller configurations and future 3D-printed thermoplastics) could be patented, the full system itself cannot. We focus on continuous innovation and strategic barriers to entry.

Q9 Please provide an overview of Gempacs Industrial Properties

Charging & Service Management:

- - Smart & Demand Adapting Charging (Protected by Copyright).
  - Power Control & Arbitration of Onboard Energy Resources (Protected by Copyright).
  - Use of LORA wireless system for safety (Protected by Copyright).
  - Management/billing of Marine Recharging Network (Protected by Copyright).

Outboard Retrofit:

- - Precise Power Control of BLDC Electric Motors (Protected by Copyright).
  - Retrofit mounting/shaft coupling (Protected by possible patenting).
  - Dual Contra Propellers for efficiency (Protected by possible patenting).

Electric Motors:

- Innovative BLDC Motor (RADAXIAL Flux) (Protected by Copyright/Possible Patenting).

Q9a Overview of Gempacs Industrial Properties (Cont’d)

Boat Retrofit:

- Hydrofoil kit coupling for lower energy consumption (Protected by possible patenting).

New 3D Printed Hulls:

- - Use of Large Volume 3D Printing (<12 meters) with reinforced Thermoplastic (Protected by know-how).
  - Variable Size & Profile Extruder Nozzles.
  - AI for prediction of Warpage, Shrinkage, and Fiber orientation.

Q10 How strong is your technological moat? Where does R&D funding go?

Our edge is the full-stack model (conversions, charging, finance, SaaS/IoT). Key barriers include know-how/IP, infrastructure ownership (removing bottlenecks), and local ecosystem agreements (7,000+ boats). R&D focuses on: 1. Testing new battery chemistries. 2. Testing external solutions (Dual contra propellers, Hydrofoils) to improve efficiency.

Q11 What is your unique IP in detail?

Power Distribution Panel: Proprietary design enabling simultaneous propulsion and solar battery recharging (“secret sauce”).
Retractable Hydrofoils: Validated via CAD to minimize drag and increase efficiency by up to 50% (Patentable).
IoT Tracking System: Integration of Meshtastic system with unique firmware.
10 kW Axial Flux BLDC Motor: Co-developing with BRIN (Indonesian National Research Center).
Battery-Swap Boat: Validated for dense fishing ports.

Q12 Who will be the end user of the SaaS/IoT software?

Most fishers and water taxi operators already use smartphones. Our SaaS/IoT systems for charging, PV roofs, motors and navigation are easier to use than combustion outboards. We provide hands-on training upon delivery.

Q13 Size of boats capable of being retrofitted?

- - Outboard target engines: 5-40 HP; 6-12m hulls (retrofitted with 2-20 kW E-Motors).
  - Inboard target engines: 20-60 HP; 8-18m hulls (retrofitted with 10-40 kW E-Motors).
  - Long-tail target engines: 5-20 HP; 6-12m hulls (retrofitted with 2-15 kW E-Motors).

Q14 Size and weight of roof integration?

Battery weight is the main limitation, but current tech allows 60% of Indonesian boats to be converted. Max roof size depends on hull size (e.g., 2 kWp for an 8m hull). We plan to use frameless bi-facial cells with methacrylate, reducing weight from 0.05 kg/Wp to 0.024 kg/Wp.

3. Batteries, Charging & Range

Q15 Battery capacities and expected operating ranges?

There is no synthetic answer as it depends on chemistries, hull size, and weight. However, near-shore fishing is viable. We can implement “Solar Charge on the Run” and hybridize battery chemistries. We are developing a Hydrofoil retrofit kit capable of doubling the range of boats under 12 meters.

Q16 Can Gempacs invention be used for long trips?

For multi-day journeys, electric propulsion is not yet suitable due to storage limitations. However, for the 1M+ boats in Indonesia using motors <40HP for hours-long trips, our solution is ideal. For long distances, hydrogen may be the future (5+ years away).

Q17 Is it feasible to be fully reliant on solar PV for charging?

Solar on the boat itself: No (except for very tiny motors). However, floating PV panels in ports coupled with storage systems could cover the port’s energy requirements almost entirely. We can make entirely renewable-powered ports.

Q18 Opportunity for using removable battery with land-based or floating solar PV?

We advocate for swappable batteries, keeping single pack weight below 20kg (<3kWh). For a near-shore fishing cruise (20 kWh), 7+ packs can be accommodated. We have designs for Waterproof Battery Packs (LFP/LTO) and Marine Swap Stations.

4. Operations & Maintenance

Q19 Operational/maintenance terms vs ICE engines?

The Gempacs system has virtually no maintenance. Retrofitted outboards need annual gear oil replacement. Electrical parts need only cleaning. Our LFP batteries have a cycle life >3,000 cycles (10+ years), unlike competitors’ NMC batteries (1,000 cycles). BLDC motors last 10-25+ years.

Q20 The engines used by fishermen are proven… what will make them change?

ICE reliability is actually an issue (break often, require oil/lubricants). Electric motors are much more reliable (an electric car has 300 pieces vs 3,000 in ICE). The combination of higher reliability and lower operating costs will be a magnet for users.

Q21 Design life of equipment?

- - Batteries (LFP): 10-12 years.
  - Electronics: 25+ years.
  - Heavy duty E-Motors: 30+ years.

We aim for a lifecycle turnaround of 12-15 years. Future thermoplastic hulls will be recyclable (circular economy).

5. Environmental Impact

Q22 What is the environmental impact of one boat’s emissions?

1lt of gasoline emits ~2.3kg of CO2. An average 2-stroke outboard emits over 14 tons/year of CO2 (60% more than a car) and over 5t/year of NOx/HC (20+ times more than a car). They also discharge millions of tons of unburnt hydrocarbons into the sea.

Q23 Is the CO2 saved gross or net (considering coal-fired charging)?

A 40HP Gasoline Outboard produces ~134 kg CO2/hour. An equivalent electric outboard produces ~22.4 kg/hour if energy comes from coal, ~10 kg/hour from Natural Gas, and 0 kg/hour from renewables. Even with coal, the reduction is massive.

6. Financials & Unit Economics

Q24 How much will the boats cost?

Conversion cost avg: $15,000. Retrofit range: $4,000-$40,000. New boat range: $7,000-$50,000. Prices are higher than ICE, but subsidized finance makes them accessible.

Q25 Can you elaborate on the unit economics (Gas vs Electric)?

CAPEX for electric is higher ($10-35k) vs ICE ($5-18k). However:

- - Fuel savings: Electricity costs are 80-90% lower (e.g., $7/trip down to $1).
  - Payback: Typically 2-5 years from savings alone.
  - Margins: We target 35-45% gross, 17-22% EBITDA.

Q26 How difficult is it to build a retrofit kit? Cost?

Straightforward with know-how (CNC machining, controller installation). Proprietary advantage is software calibration. Cost for us (motors only): 2-5kW systems ($800-$1,200); 10kW systems ($1,200-$2,400).

Q27 Why would fishermen change if they run on “smell of an oily rag”?

We work with co-ops to drive change. The model requires no upfront cost (repaid from fuel savings). A fuel crisis is coming with shrinking subsidies. Real-world proof: A water taxi operator cut fuel costs from $7 to $1 per trip.

Q28 Fishers are poor, how can they afford an electric boat?

Collaborative financing (Government/Rural Banks) allows access to loans with no upfront payment. Immediate financial benefits from fuel savings increase disposable income from day one.

Q29 Financing details (Banks vs Case-by-case)?

Arranged case-by-case but not ad hoc. Options: Government-backed KKP 6% loans; Cooperative guarantees; Cross-collateralization. Upside from carbon credits can share revenue to cut repayment time.

Q30 Can boat owners really pay back the loan?

Yes. Fuel cost is ~$0.69/lt vs electricity equivalent of ~$0.08/lt. A water taxi co-op president confirmed a return trip cost dropped from $7 (fuel) to $1 (electricity), doing 3-5 trips daily.

Q31 What is the payback period?

Retrofit kit: 36-48 months. New electric boat: 36-60 months. After payback, owners enjoy nearly free operation for 10-12 years, increasing income by 250-300%.

Q32 Confusion about fuel prices paid by fishermen?

Official subsidized price is ~$0.41-$0.61 USD/liter. However, due to scarcity and middlemen, fishermen often pay “street prices” closer to non-subsidized rates ($0.74-$0.85 USD). This discrepancy causes debt and reduced fishing activity.

Q33 Process of generating/selling carbon offset credits?

1. Accreditation (Verra/Gold Standard). 2. Data Collection (via our IoT mesh network). 3. Revenue Generation (selling credits to corps/govs). 4. Revenue Sharing (part of revenue goes to boat owners to reduce loan burden).

7. Infrastructure

Q34 Why concentrate on charging infrastructure (waste of resources)?

We provide a full-stack solution. Energy security is critical; relying on 3rd parties is a risk. Owning the network creates a barrier to entry, allows financing integration, and guarantees low-cost energy.

Q35 Do Gempacs products meet the need? Why full stack?

Full stack allows control of operations. Reliance on 3rd parties causes misalignment. Benefits: Business model flexibility, Job creation, Proven demand (9 boats sold), Vertical integration efficiency.

Q36 How much can charging infrastructure for a port cost?

Between $80,000 and $100,000 for up to 100 boats. Modular approach available.

Q37 How do you amortize the cost of charging infrastructure?

Cost is incorporated pro-quota in the boat conversion cost (usage fee). Since electricity resale margins are low due to regulations, infrastructure is amortized via the boat sales/rentals rather than energy sales profit.

8. Business Model & Supply Chain

Q38 Can Gempacs produce and deliver on an economic basis?

Yes. Supply chain is in place. Local assembly lowers costs/tariffs. Partnership model for manufacturing lets us focus on R&D/Sales. Revenue comes from hardware, energy, carbon credits, and services.

Q39 How reliant is the business model on subsidized activities?

Subsidies accelerate adoption but are not mandatory. 100% LTV loans at 6% make switching viable without grants. Alternative financing (CSR, Fish processing companies) also exists.

Q40 Is government funding/subsidy guaranteed?

Subsidies are real and backing is in motion (Prabowo government). Indonesia spends $30B annually on fuel subsidies, creating motivation to switch. KKP already offers 6% loans. We have MoUs with MEMR and support from Islamic Finance organizations (NU/Muhammadiyah).

Q41 Why should the government offer grants to boat owners?

To stop money vanishing into pollution via fuel subsidies. Electrification cuts long-term costs, strengthens energy security, and aligns with global climate commitments (attracting World Bank/IMF funding).

Q42 Status with microfinance providers?

Gov-backed KKP loans (6% interest) are currently superior to Microfinance (double-digit rates). However, we engage with microfinance for non-fishers or areas where gov loans are hard to access.

Q43 Is default risk shared with Gempacs?

No. Financing is between owner and lender. Risks are mitigated by: Collateral, Cooperative backing, Cross-collateralization (groups of 6-8 boats), and Geolocation for repossession.

Q44 How creditworthy are boat owners?

We use the Grameen Bank model (cross-collateralized groups), reducing default rates to 1-2%. Cooperatives act as guarantors. Social pressure within groups ensures repayment.

9. Market, Sales & Competition

Q45 Is the need a “must have” vs “nice to have”?

It is a “must have” due to economic necessity (fuel is biggest cost), regulatory pressure (emissions targets), and fuel scarcity.

Q46 What objections do you get from customers?

Common questions: “Powerful enough?”, “Range?”, “Where to recharge?”, “Repair locally?”. We address these with demos showing 90% savings and remote engineering support.

Q47 Are there specific government goals addressed?

Yes: Phase-out of ICE boats, reducing subsidy burdens ($30B/year), achieving Net-Zero by 2060, and supporting the Blue Economy.

Q48 Margins for conversion vs new boat?

We apply 60-80% mark-up to cover OH&P. Gross Margin ~35-45%, EBITDA ~17-22% per boat.

Q49 Market price legacy boats vs electric?

Legacy 8m boat + 15HP ICE: ~$10,000. Gempacs Electric ($15k-$35k). Gov grants reduce upfront costs, and TCO is dramatically lower.

Q50 Can Gempacs find/sell to customers cost effectively?

Yes, via local agents/koperasi and Gov programs. Pipeline includes ~25 interested parties (NGOs, CSR, State enterprises).

Q51 Timeframe to convert a boat?

Conversion: ~Half a day (2 people). New boat build: <1 day (2 people). Initially centralized in Batam, then rolling out local teams.

Q52 Is there a return potential on this investment?

$3M seed round projected to lead to $60M sales in 5 years (3,500 boats). IRR projected >30%.

Q53 What is the impact (Environmental/Financial)?

Environmental: Eliminates massive CO2/pollutant emissions. Financial: Increases fishers’ disposable income. National: Reduces subsidy burden.

Q54 Target customer and Go-to-Market strategy?

B2B/B2G model. Initial focus on institutional/government buyers to accelerate adoption, then shifting to B2B2C (Co-ops and individuals).

Q55 Other institutional buyers?

KKP (Ministry of Fisheries), Ministries of Finance/Bappenas, Corporate CSR, Foreign Direct Investment grants.

Q56 Current engagement with buyers?

Engaged with 20+ prospective buyers (Institutional & Commercial) regarding deals for hundreds of boats.

Q57 Fragmentation of fleets/GTM Strategy?

Market is fragmented. Strategy prioritizes Cooperatives (Koperasi) as entry points (grouping hundreds of boats). We have pilots with 2 koperasi representing 7,000 boats.

Q58 Why target professional users not leisure?

Professional users clock 1,000+ hours/year vs leisure’s few dozen. The impact and savings are exponentially higher, making the economic case undeniable.

Q59 Size of Market (TAM, SAM, SOM)?

- - TAM: Global electric outboard market ~$12B by 2040. Total ecosystem ~$100B.
  - SAM: Indonesia marine sector ~$15B (1M+ boats).
  - SOM: ~$1B (Targeting 75,000 vessels in 5 years).

Q60 Is market opportunity attractive enough? Assumptions?

Indonesia has 1.1M+ registered boats (real number higher). Fuel costs are unsustainable (30-50% of income). Global marine sector is one of the last to decarbonize.

Q61 Is the timing right?

Yes. Tech maturing (battery costs down 80%), Gov support growing (Net Zero 2060), Fossil subsidies decreasing, Consumer awareness rising.

Q62 Competitors?

No dominant players in Indonesia yet. 5 small companies exist but lack full-stack model. Large players (Yamaha/Torqeedo) focus on high-end/leisure. We have deep industry expertise and integrated model.

Q63 Sales cycle length?

Institutional: Several months but yields bulk orders. Individual: Initial cycle long, but shortens as financing framework establishes.

Q64 Will energy sales be a substantial revenue part?

Less than 1% initially due to price restrictions. However, it is strategic for controlling the ecosystem and blocking competitors.

Q65 Does the business model make sense/make money?

Yes. High margins on hardware, recurring revenue (Maintenance, SaaS, Carbon credits). Users break even in 2-4 years.

Q66 Can the business scale?

Designed for scalability: Indonesia first, then ASEAN/Global. Modular technology allows application to millions of boats.

Q67 Difficulty to scale up?

We scale via third-party manufacturers (Asset light). Standardized components allow global supply chain. Local content will increase over time.

Q68 Local partners status?

Not yet signed contracts (need higher volumes for best deals). Partner S&H s.r.l. (Italy) brings 15+ years expertise. Currently supplying LFP batteries from Tier-2 Chinese manufacturers.

Q69 Subcontractors signed?

Not yet signed. Plan to subcontract: Battery packs, BMS electronics, Solar PV, New hulls, Charging infra (initially via partner/investor).

Q70 Future funding rounds?

Series A ($10m-$20m) anticipated ~12 months after current fundraise to expand Indonesia reach and enter Philippines.

Q71 Team size at ports?

Small teams (pair of people) per port leveraging existing mechanics/koperasi. Flying squads of engineers for installation/training.

10. Team & Future

Q72 Why are you the best team?

200+ years combined experience. CEO/CTO based in Indonesia. Strong team of Indonesian nationals. No internal politics, just shared mission.

Q73 Team experiences?

Corrado Accardi (CEO): 25+ years renewables/property.

Enrico Carlin (CTO): 45 years experience (HP, Telecoms, EV).

Giuseppe Guerra (Chief Eng): 30+ years automotive (Ducati/Yamaha).

Alberto Crivellaro (AI): 15+ years (Ferrari/CERN).

Agoes Santoso (Naval Arch): 25+ years, 100+ projects.

Wanda Wyporska (SDG): 20+ years in Diversity/Inclusion (Oxford PhD).

Q74 What does success look like?

Tangible positive impact on the world. Contributing to 8+ UN SDGs. Scaling to millions of boats globally. True success is when electric marine mobility is the norm.

Q75 Expectation for next 12-18 months?

Completion of Seed round. Scaling marketing/sales. Expanding to more ports. Raising Series A.

Q76 Most likely exit?

Strategic acquisition (Energy/Auto/Maritime companies). IPO. Private Equity. Examples: Yamaha acquiring Torqeedo.

Q77 Accelerators attended?

Yes. Cambridge Inst. of Sustainability Leadership (Dec 2022). BISA (UNDP/British Embassy, March 2025). Narwhale VC IN-BLUE (May-Nov 2025).