06:02:21 EDT Thu 28 Sep 2023
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Zinc8 Energy Solutions Inc
Symbol ZAIR
Shares Issued 149,934,610
Close 2022-08-31 C$ 0.31
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Zinc8 to build its first production facility in U.S.

2022-09-01 09:48 ET - News Release

Mr. Ron MacDonald reports


Zinc8 Energy Solutions Inc.'s inaugural commercial production facility will be based in the United States. Based upon comprehensive analysis done by the company, the recently announced Inflation Reduction Act's (IRA) manufacturing production credits contained within Section 45X provide distinct and direct benefits to Zinc8 and its production plans in the United States.

"Senate Majority Leader Chuck Schumer was instrumental in drafting the IRA, which is a historic measure taken by the United States to reach ambitious goals of carbon neutrality, while inspiring other countries around the world," said Ron MacDonald, president and chief executive officer, Zinc8 Energy Solutions.

In July, 2022, Senator Schumer personally called the chief executive officer of Zinc8, Mr. MacDonald, to urge the company to expand its operations in New York State and particularly to Ulster County. The company said the support of the senator would play a major role in its decision of where to locate its first major production facility. "Zinc8 is the jolt of electricity the Hudson Valley needs, and is proof positive that when you invest in fighting climate change you are investing in creating good-paying jobs, new economic growth and a brighter future for our communities," said Senator Schumer in a press release.

In addition, Senator Schumer has worked relentlessly to increase federal incentives to bring manufacturing back from overseas, including in tech and clean energy industries, shepherded the IRA to passage in the Senate, the largest climate package to every pass the chamber at $369-billion, and fought to include targeted incentives to help clean battery companies like Zinc8 reach commercialization by expanding its manufacturing operations in the United States. The legislation was signed into law by President Joe Biden on Aug. 16, 2022.

Zinc8 Energy Solutions makes a zinc-air battery that can store and discharge energy durations from four to 100 hours, scalability and higher capacity is achieved with an increase in the size of storage tanks that hold zinc particles. The technology will be trialed at a New York housing complex by the New York State Energy Research and Development Agency (NYSERDA) where a 100,00-watt-per-1.5 megawatt-hour (MWh) zinc BESS is combined with on-site CHP generation.

The Section 45X Advanced Manufacturing Tax Credit included in the IRA provides incentives to battery manufacturers as well as to critical mineral processing companies. Every eligible battery cell will receive a $35 (U.S.) credit, scaling with the capacity of the battery, with incentives to last at their initial level until 2029, before phasing down from 2030 to a phase out stage beginning in 2032.

Specific to Zinc8, eligible components include electrode active materials, battery cells and battery modules. Electrode-active materials include cathode materials, anode materials, anode foils and electrochemically active materials, including solvents, additives and electrolyte salts that contribute to the electrochemical processes necessary for energy storage. With respect to the production of these materials, the United States taxpayer producing these materials would be eligible for a credit amount of 10 per cent of the costs incurred.

There is also $10-billion support available for construction of clean energy tech factories, or for retrofitting existing factories with tools and production lines to make clean energy equipment and components. President Biden's bipartisan infrastructure law includes $6-billion (U.S.) of incentives to support R&D (research and development), and production of batteries in the U.S., as well as supporting the creation of a domestic supply chain.

"This represents some direct and beneficial credit opportunities for Zinc8," adds Mr. MacDonald. "It is abundantly clear that with the introduction of the IRA, U.S. policymakers, led by Senator Schumer, are taking real action by introducing incentives that benefit both the climate and the economy. We have received tremendous support both at the federal and state level as we continue to analyze possible sites for our first manufacturing facility."

Zinc8 Energy Solutions focuses on developing and commercializing its low-cost, long-duration ZESS for utilities, microgrid, and commercial and industrial markets. By using the patented ZESS as a stand-alone or an enabling technology, it allows opportunities for peak demand reduction, time-of-use arbitrage and participation in both the value stacking programs and the distributed long-duration energy storage space, all in conjunction with the opportunity for a significant reduction in carbon footprint. The long duration (eight-to-over-100-hour) ZESS has no fire and explosion risk, and no capacity fade over extensive lifetime, and offers complete charge operational flexibility.

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.

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