EEStor signs Memorandum of Understanding with Power Symmetry Inc. for Utility Grid Applications license worth in excess of $20 million
CEDAR PARK, Texas, Nov. 21, 2013 /PRNewswire/ -- EEStor, Inc. ("EEStor") and Power Symmetry Inc. ("Power Symmetry") of Toronto, Canada are pleased to announce the signing of a Memorandum of Understanding ("MOU") toward an exclusive license for Utility Grid Applications in Canada and Africa. The license, if all milestone payments are reached, would result in EEStor collecting more than $20 million in license fees. Power Symmetry has paid for the first two milestones and now enters into an exclusive negotiation with EEStor to produce the definitive agreements necessary for implementation of the license.
The MOU also outlines a manufacturing joint venture ("JV") and supply agreement between EEStor and Power Symmetry, whereby the JV will produce EEStor's proprietary and patented Electrical Energy Storage Units ("EESUs") configured for Power Symmetry and their customers.
Power Symmetry will provide the necessary capital funding (to a maximum of $100 million) to construct the production facility in Canada. EEStor will provide the technology and the designs for the production facility, including a commitment for continual upgrades for the facility in terms of product energy density and efficiencies. The production facility, when fully operational, will produce between a minimum of 1000 Megawatt hours ("MWh") and a maximum of 5000 MWh of energy storage capacity on an annual basis. Power Symmetry will have a right of first refusal to purchase all the energy storage production from the JV at a price of no more than $200 per kilowatt hour. EEStor and Power Symmetry will share in the profitability of the JV. Power Symmetry alone will earn revenues from distributing and/or using energy storage capacity purchased from the JV.
The immediate next step is to conclude negotiations and sign definitive agreements based on the details in the MOU. Milestones in the license will include meeting the initial technological specifications, which include a minimum energy density of the dielectric layer used in the EESU, a maximum leakage amount over 12 hours, and cycle-ability measures. Further milestones include delivery by EEStor of energy storage components (multilayer preproduction units) for verification testing and scale units for field testing verification. These and other milestones will trigger further payments by Power Symmetry to EEStor.
A typical usage of energy storage would see Power Symmetry (alone or with partners) buying power from producers, or from electrical grids, using the solid-state energy storage solutions produced by the JV to store purchased electricity and then resell the electric power to the electrical grid and/or power users at a later time. Electrical power would be purchased and stored at night when wholesale electricity prices are relatively low and resold at daytime prices when wholesale electrical prices are generally higher. The efficiency of the solid-state electrical storage devices (loss through leakage will be under 15% over such a time period) provides daily profit opportunities, while the solid-state construction of the electrical storage devices means a significantly longer installation life when compared to chemical battery storage solutions, which lose efficiency on every charge/discharge cycle and ultimately require replacement. Power Symmetry may also sell configured electrical energy storage solutions to commercial, corporate and residential power users to implement the same power cost management activity for themselves, with their own on-site electrical storage.
Mr. Kevin Spall, Founder and CEO of Power Symmetry Inc. said "Our group has identified the fundamental production and lifecycle cost advantages of the EEStor solid-state energy storage solution. We look forward to working with EEStor in delivering an extremely price competitive power buffering and storage solution first into the Canadian electricity market and longer term, into Africa."
Mr. Richard Weir, President of EEStor, Inc. said "Our proprietary and patented solid-state energy storage technology has many applications in many different markets. This Memorandum of Understanding is an effective model for us to acquire the capital needed to implement our expansion. Partnering with Power Symmetry will also provide implementation knowledge that will be critical for EEStor in entering the global grid balancing markets and our other markets in the future."
This press release contains "forward-looking statements," including statements related to potential new customers, investments, and revenues. These statements are subject to a number of risks and uncertainties, including the risk of development or production delays, the risk that the technology or devices may not perform as expected, component or raw materials delays or shortages, the ability to effectively manage operating expenses and manufacturing operations and the ability to maintain or raise sufficient capital to fund current development and production goals. EEStor's actual results may differ materially from the expected results in this release. Terms of this agreement are not final and may change. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made. EEStor does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this press release, or to reflect the occurrence of unanticipated events.
For more information, please contact:
Mr. Richard Weir, Founder, President and CEO of EEStor Inc.
Mr. Kevin Spall, Founder and CEO of Power Symmetry Inc.
SOURCE EEStor, Inc.