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Zinc8 Energy Solutions Inc
Symbol ZAIR
Shares Issued 87,385,700
Close 2021-08-30 C$ 0.265
Recent Sedar Documents

Zinc8 has working capital of $13.5-million at Q2 end

2021-08-30 18:29 ET - News Release

Mr. Ron MacDonald reports

ZINC8 ENERGY SOLUTIONS ANNOUNCES SECOND QUARTER 2021 FINANCIAL RESULTS AND STRATEGIC ADDITIONS TO MANAGEMENT

Zinc8 Energy Solutions Inc. has released its financial results for the second quarter ended June 30, 2021. For further information on these results, please see Zinc8's condensed consolidated financial statements and management's discussion and analysis as filed on SEDAR.

Second quarter highlights include:

  • The company ended the second quarter of June 30, 2021, with a working capital balance of $13.5-million.
  • On April 8, 2021, the company announced the planned deployment of the Zinc-Air system at the University of Buffalo, in collaboration with the New York Power Authority (NYPA). The site will allow for the demonstration of a 100-kilowatt/one-megawatt-hour Zinc-Air system to facilitate the wider use of renewable resources.
  • On April 23, 2021, the company announced it had signed a $200,000 (U.S.) contract with a cloud data centre provider to demonstrate its 10-kilowatt/80-kilowatt-hour Zinc-Air system for resilient backup application. The unit will undergo assessment tests to address unique use cases in data centres and represents an expansion into broader new markets for the company's Zinc-Air system. Zinc8 will provide a demonstration of its Zinc-Air system, combined with an uninterruptible power supply (UPS), to be compared with the performance of a traditional generator set. The demonstration consisted of the Zinc-Air system connected to a UPS and operated in standby and black started into discharge. The successful completion of the pilot demonstration will validate a low-cost, long-duration (eight to 100 hours) and sustainable energy storage technology, which can provide megawatt-scale standby power solutions.

"We're in a strong financial position and executing on our stated plan towards commercial production in the fourth quarter of 2022," commented Ron MacDonald, president and chief executive officer of Zinc8 Energy Solutions. "We have expanded our engineering team on our path to production and moved into a new dedicated facility. This new facility will house multiple test batteries for systems-level evaluation and UL certification, each with their own unique requirements and results for data collection and analysis, some of which are for commercial demonstration projects under way.

"Our ability to attract talented and experienced individuals to our team reflects the strength of our organization, our technology, the fast-paced development culture we're cultivating at Zinc8 and the scale of opportunity we're pursuing. We believe our Zinc-Air energy storage system (or ZESS) is a viable and practical long-duration energy storage solution. The addition of senior members to our management team is strategic, and their experience and knowledge will be an asset as we move towards commercialization.

"The topic of long-duration energy storage remains deeply seated in the minds of investors. Wind and solar capacity will need to greatly increase if we are going to achieve our net-zero carbon emission targets by 2050, and energy storage is an essential piece of the puzzle. We are acutely aware of the breadth of technologies and investments in this industry, which we believe validates the importance of our achieving success in commercializing our technology. It is an exciting time for our company and our industry, and we look forward to advancing our corporate and product development."

Facility update

The company has moved key members of its engineering team to its new upgraded facility in Richmond, B.C., which will allow for parallel testing to be conducted for certification of final product specifications. As a result, the company expects to be on track for the initial production of a 40-kilowatt battery in the fourth quarter of 2022.

Strategic management additions

Zinc8 Energy Solutions has made senior management hires, which will assist the company as it transitions from a pure research and development company and expands into the precommercialization phase. The company also announces the addition of three senior management members: Dr. Graham Duck, Dr. Kemal Ozgur and Dr. Babak Rezania.

Dr. Graham Duck, BEng, PhD, PEng, MBA, is a mechanical engineer with over 20 years of experience in research and development, product development, and operations. Dr. Duck has leadership experience in telecommunications, process automation and consumer product industries in both growth-stage and multinational-sized organizations. As the director of engineering products, he is responsible for managing continuing prototype development projects and implementing system engineering methods throughout the product development process.

Dr. Kemal Ozgur, PhD, PEng, is a mechanical engineer with over two decades of experience managing and delivering projects to customers. Dr. Ozgur's experience, which includes developing hydrogen fuel cells and flow battery stacks, power generation, and energy storage systems, gives him the necessary background to lead the productization of the company's novel electrochemical stacks in the role of senior stack engineer.

Dr. Babak Rezania, PhD, PEng, is a chemical engineer with over 15 years of process engineering and technology development experience for the cleantech and water industries. A recipient of the NSERC innovation challenge award, Dr. Rezania has a strong background in electrochemistry and multidisciplinary full-scale projects that make him a valuable addition to the team. As the senior chemical process engineer, he will be responsible for developing a scalable fuel management system to ensure the chemical processes within the company's product operate efficiently and reliably.

The market outlook

As industry and government embark on aggressive decarbonization targets and transition to clean energy, the outlook for long-duration battery storage technology continues to remain compelling. According to the U.S. Energy Information Association (EIA), installed battery storage capacity reached 1,650 megawatts by the end of 2020, a relatively modest 35-per-cent increase from just over 1,200 megawatts at year-end 2019 compared with the tenfold increase the association is forecasting by 2024. According to the EIA, more than 12 gigawatts of battery storage power capacity additions are anticipated between 2021 and 2024, which implies exceptional growth ahead.

Battery storage ventures continue to attract meaningful investment, as financing remains extremely active and supportive of a variety of technologies and applications. Almost $10-billion (U.S.) in corporate financing was raised by companies in the battery storage industry in the first half of 2021 through 41 transactions, according to research firm Mercom Capital Group's most recent quarterly update.

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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