Small cap Zinc8 Energy Solutions (CSE:MGXR; FSE:0E9; OTCMRKTS:MGXRF) gave an important corporate update that noted the first private sector deployment agreement signed with Digital Energy Corporation to install a 100kW/1.5MWh Zinc-Air Energy Storage System in Brooklyn with the C$2.5 million project development being financially supported by the New York State Energy Research and Development Authority (NYSERDA).
While most investor attention this week was focused on the Coronavirus and plunging oil prices, small cap Zinc8 Energy Solutions (CSE:MGXR; FSE:0E9; OTCMRKTS:MGXRF) gave an important corporate update that noted the first private sector deployment agreement signed with Digital Energy Corporation to install a 100kW/1.5MWh Zinc-Air Energy Storage System (ESS) in Brooklyn with the C$2.5 million project development being financially supported by the New York State Energy Research and Development Authority (NYSERDA).
Digital Energy Corp is a New York based private sector developer of Combined Heat and Power (CHP) plants, solar systems and microgrids while NYSERDA was established in 1975 as a New York State public-benefit corporation that promotes energy efficiency and the use of renewable energy sources.
The Zinc8 Energy Storage System will support and enhance the economics of a CHP system currently operating at Brooklyn. NYSERDA is financially supporting this project deployment of CAD $2.5 Million, with a CAD $600,000 contribution as the result of a call for proposals. In addition, NYSERDA has chosen Digital Energy Corp and Zinc8 as the Energy Storage System manufacturer to demonstrate the economics and reliability of Zinc8’s patented zinc-air battery technology for low-cost long-duration storage in a behind-the-meter application.
This is the second major installation announcement within 7 weeks for Zinc8 Energy Solutions. On January 17th, 2020 The New York Power Authority (NYPA) selected the Company as a winner of the Innovation Challenge, which will see the installation of a 100kW/1.5MWh Zinc-Air Energy Storage System in New York State.
Within weeks of announcing the collaboration with NYPA (the largest public power organization in the Unites States), Zinc8 Energy Solutions is also announcing a second project with Digital Energy Corp (a private sector developer) who has a pipeline of over 100 potential projects. This underscores our belief at Zinc8 Energy Solutions that our technology could be transformative in significantly improving the economics of long-duration energy storage.
Under the Deployment Agreement with Digital Energy, not only will Zinc8 Energy Solutions and Digital work together on the Brooklyn project, but Digital and Zinc8 will try to refer other projects to each other for joint proposals. As compensation for referring the Brooklyn project, Zinc8 will grant to Digital options and will make certain payments to Digital in Zinc8 shares on achieving milestones for the Brooklyn project.
Zinc8 Energy Solutions’ President and CEO Ron MacDonald commented:
“This deployment marks a major milestone in Zinc8 Energy Solutions’ path to full commercialization and underscores the growing demand for low-cost reliable long-duration energy storage. We are very pleased to be working with the well-respected US interconnect company Digital Energy Corp. who believes, as we do, that this new technology will open up a huge global opportunity for behind-the-meter, microgrid and utility-scale long-duration energy storage.”
Digital Energy Corp’s President and CEO William Cristofaro added:
“Digital Energy and Integrated Energy Concepts are excited about working with Zinc8 Energy on the development and deployment of the Zinc8 Energy Storage system. The Zinc8 system addresses several critical needs of on-site electric energy storage: Price point economics, system robustness under real-world use, and safety. We see the Zinc8 system as very promising for integration into our existing and developing customer base of over 100 on-site power plants, solar systems, and microgrids.”
Note that Zinc8 Energy Solutions’ Zinc-Air Battery ESS is a modular energy storage system that is designed to deliver power in the range of 120kWh - 1GWh with a capacity of 8 hours of storage duration or higher.
With the advantage of rechargeable zinc-air flow battery technology, the system can be configured to support a wide range of long-duration applications for microgrids and utilities. Since the energy storage capacity of the system is determined only by the size of the zinc storage tank, a very cost-effective and scalable solution now exists as an alternative to the fixed power/energy ratio of the lithium ion battery.
The Zinc8 ESS is based upon unique patented zinc-air battery technology where energy is stored in the form of zinc particles that are similar in size to grains of sand. When the system is delivering power, the zinc particles are combined with oxygen drawn from the surrounding air. When the system is recharging, zinc particles are regenerated and oxygen is returned to the surrounding air.
The flexibility of the Zinc8 ESS enables it to service a wide range of applications:
-- Smoothing energy derived from renewable sources such as wind and solar.
-- Commercial/Industrial backup replacing diesel generators.
-- Industrial and grid scale, on-demand power for peak shaving and standby reserves.
-- Grid-scale services such as alleviating grid congestion, deferring transmission/distribution upgrades, energy trading and arbitrage, and increasing renewable energy penetration.
However, renewables offer the biggest opportunity with the Company motto being:
The sun doesn´t shine all the time. The wind doesn´t blow all the time. Zinc8 mass storage batteries for the rest of the time.
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Jim Robertson is a paid contributor of the SmallCap Network. Jim Robertson´s personal holdings should be disclosed above. You can also view SmallCap Network´s complete Disclaimer and SEC Rule 17b Disclosure.
Rockstone Disclaimer: Rockstone Research, Zinc8 Energy Solutions Inc. / MGX Renewables Inc. and Zimtu Capital Corp. caution investors that any forward-looking information provided herein is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Zinc8 Energy Solutions Inc. / MGX Renewables Inc.´s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through their profiles on SEDAR at www.sedar.com. Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. Zinc8 Energy Solutions Inc. / MGX Renewables Inc. pays Zimtu Capital Corp. to provide reports and other investor awareness services.The author, Stephan Bogner, holds a long position in Zinc8 Energy Solutions Inc. / MGX Renewables Inc. and is being paid by Zimtu Capital Corp. for the preparation and distribution of reports and other services, whereas Zimtu Capital Corp. also holds a long position in Zinc8 Energy Solutions Inc. / MGX Renewables Inc.