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Zinc8 Energy Solutions Inc
Symbol ZAIR
Shares Issued 87,385,700
Close 2021-05-31 C$ 0.52
Recent Sedar Documents

Zinc8 has working capital of $15.5-million at Q1 end

2021-05-31 18:16 ET - News Release

Mr. Ron MacDonald reports

ZINC8 ENERGY SOLUTIONS FIRST QUARTER 2021 FINANCIAL RESULTS

Zinc8 Energy Solutions Inc. has filed its financial results for the first quarter ended March 31, 2021. For further information on these results, please see the Zinc8 condensed consolidated financial statements and management's discussion and analysis as filed on SEDAR.

First quarter highlights include:

  • Ended the quarter ended March 31, 2021, with a working capital balance of over $15.5-million;
  • In February, closed a private placement offering of 28.75 million common shares at a price of 54 cents per share for gross proceeds of $15,525,000.

Subsequent to March 31, 2021:

  • Signed a host site agreement with the New York Power Authority (NYPA) and the University at Buffalo, the State University of New York (UB); the selection of the site allows for the demonstration of a 100-kilowatt/one-megawatt-hour zinc-air battery energy storage system in Buffalo, N.Y., to level out peaks in electricity consumption, increase campus resiliency and assist in training campus utility staff with new energy storage technology;
  • Signed a $200,000 (U.S.) contract with one of the leading cloud providers to demonstrate its patented zinc-air energy storage system (ZESS) and to validate and assess the zinc-air long-duration energy storage technology; Zinc8's technology will be tested for resilient backup application; the 10-hour-kilowatt/80-kilowatt-hour unit will undergo required assessment tests agreed upon by the cloud provider to address its unique use cases in data centres;
  • Leased a new 16,000-square-foot testing and assembly facility to build and run the required tests to complete the certification of the various system levels of the battery.

"As a result of the successful financing in the first quarter, we have been able to drive a number of initiatives that get us steps closer to commercial production," said Ron MacDonald, president and chief executive officer of Zinc8 Energy Solutions. "As evidenced by the subsequent events to the quarter, we have new customers, an accelerated build program going on for several batteries at the new facility and additional business development opportunities on the horizon. We have specific plans and timelines to certify and test zinc-air energy storage systems over the course of this year with additional catalysts and related milestones we expect to announce along the way.

"We have a strong balance sheet and understand that we are in the early innings for the transformation of the energy market," added Mr. MacDonald. "We believe that long-duration energy storage solutions will play a significant role during this transformation, and that fact has been reinforced by the growing demand in the energy storage market. It has taken our dedicated team years to get the technology to this point and believe we have the right solution for the customers and markets we have identified that are looking to reduce their carbon footprint."

The market outlook

The outlook for long-duration energy storage remains robust as the energy transition continues and demand for reliable power grids remains in the spotlight. In the United States, the storage sector has grown significantly over the past few years, and the Energy Storage Association has said the United States needs 100 gigawatts of storage by the end of the decade to support the power sector's clean energy transition.

According to consultancy Wood Mackenzie, the global energy storage market exceeded 15 gigawatts/27-gigawatt-hours last year, and is expected to grow 27 times by the end of the decade, adding 70 gigawatt-hours of storage capacity a year to surpass a total of 729 gigawatt-hours in 2030. The consultancy anticipates global spending to reach $86-billion (U.S.) by the middle of the decade. Research firm IHS Markit points to 2021 as not only a record year of growth in battery storage, building off the record of over 2.2 gigawatt-hours of non-residential capacity installed in the fourth quarter of 2020, but also the start of a period of sustained growth through 2030 with larger, longer-duration utility-scale projects gaining momentum.

In addition, President Biden's $1.7-trillion (U.S.) infrastructure spending proposal includes a policy that would make stand-alone energy storage projects eligible for the federal investment tax credit, which many believe could promote and accelerate private-sector investment and help monetize the value of energy storage technology. California's governor has recently proposed $350-million (U.S.) in funding to support precommercial long-duration energy storage projects.

About Zinc8 Energy Solutions Inc.

Zinc8 has assembled an experienced team to execute the development and commercialization of a dependable low-cost zinc-air battery. This mass storage system offers both environmental and efficiency benefits. Zinc8 strives to meet the growing need for secure and reliable power.

We seek Safe Harbor.

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