VRB Power Acquires Regenesys Electricity Storage Technology & Announces USD $2.8 Million Financing with RWE npower PLC
Friday September 24, 1:17 pm ET
VANCOUVER, Sept. 24 /CNW/ - VRB Power Systems Inc. (TSX-V: VRB - News) is pleased to announce the completion of a transaction with RWE npower PLC, a leading integrated UK energy business and subsidiary of German based parent company RWE AG, whereby VRB Power will purchase an exclusive global license to the intellectual property and acquire all the related physical assets and inventory surrounding the Regenesys electricity storage technology.
ADVERTISEMENT
"This acquisition moves VRB Power significantly forward on two fronts," states Timothy Hennessy, CEO of VRB Power. "First, some of Regenesys' key design features and intellectual property, including the most advanced, low- cost methods of manufacturing and assembly of cell stacks in the world today, will be incorporated into our own VRB Energy Storage System and cell stack development program. This will provide VRB Power with innovative cell stack manufacturing capabilities which have been through years of development utilizing industry recognized expertise and intellectual property. The benefits of this technology acquisition also extend to VRB Power's strategic relationships with NORAM Engineering and Magnetek Inc., enhancing VRB Power's ability to deliver reliable, low cost VRB Energy Storage Systems to the market."
"Secondly, there are significant synergies between the VRB and Regenesys technologies, both being flow batteries. The Regenesys technology will be easily integrated into VRB Power's current business plan and approach to the energy storage markets, and will allow VRB Power to expand into market segments for very large energy storage applications. The VRB technology is best suited for applications from 5kW's up to 10MW's (100 MW hours). With the addition of the Regenesys technology, VRB Power now has an effective range of products that can store energy from tens of kilowatt hours through hundreds of Megawatt hours providing utility scale solutions using the "Electricity Warehouse(TM)" concept developed by Regenesys" concludes Hennessy.
"We are pleased to take the progress of the past ten years and position it with a company like VRB Power which has the skill set to succeed", said David Threlfall, CEO of npower Retail and former Managing Director of the Regenesys project for RWE npower.
RWE npower announced earlier this year that the ongoing funding of the Regenesys project was no longer part of its core strategy, which is to focus on electricity generation, electricity supply and renewable energy.
"Large scale electricity storage products and markets are ultimately viable and we look forward to a promising future for the technology and for the adopters of these innovative products" said Threlfall.
Details of the acquisition include an exclusive world wide license to all the Regenesys technology patents and know-how, Regenesys technology flow frame designs, state of the art assembly equipment and techniques and a significant inventory of Proton Exchange Membrane for USD $1.3 million. The license will remain exclusive for the first 5 years with provisions for extension to the exclusivity based on certain royalty payments.
VRB Power is also pleased to announce, subject to regulatory acceptance, that Regenesys Holdings Ltd. (a wholly owned subsidiary of RWE npower) will be purchasing 3,610,927 common shares of VRB Power at $.99 CAD per share for gross proceeds of $2,800,000 USD. In addition to the usual regulatory hold period of 4 months, the shares will be subject to a contractual 1 year hold period and released 25% quarterly thereafter. RWE npower will become a significant shareholder in VRB Power with a long-term interest in the future success of the Regenesys and VRB technologies.
About RWE npower PLC
RWE npower is a leading integrated UK energy business. It generates electricity and supplies gas and electricity through its retail business npower. RWE npower operates and manages a flexible portfolio of power stations and is a market leader in renewable energy development. Website: www.rwenpower.com.
About VRB Power
Based in Vancouver, B.C. Canada, VRB Power Systems Inc. is an electrochemical energy storage company that has commercialized the patented Vanadium Redox Battery Energy Storage System ("VRB-ESS"). The VRB-ESS is a new enabling technology that can effectively store electricity on demand. The VRB- ESS can provide direct economic benefits to utilities and end users in terms of improved power quality, reliability and energy efficiency. The VRB-ESS is particularly well suited to load levelling (peak shaving), electrical power arbitrage, grid stability enhancements, capital deferment and Remote Area Power Supply (RAPS) applications. It is primarily focused on stationary power sources such as utility substations, commercial buildings, production facilities, telecommunication operations, cellular radio sites, and renewable resource generation such as wind farms - creating the ability to provide "firm" capacity. As a "green" technology, the VRB is characterized by the lowest ecological impact of all energy storage technologies and is unlike most other conventional energy storage systems that rely on toxic substances such as lead, zinc or cadmium. VRB Power is publicly listed on the TSX Venture Exchange ("VRB") and the OTC Pinksheets ("VRBPF").
Warning: The Company relies upon litigation protection for
"forward-looking statements"
"The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release"
Vince Sorace
President, VRB Power Systems Inc.
For further information please contact:
VRB Power Systems Inc. at 604-697-8820.
Or visit the company's web site at: www.vrbpower.com
biz.yahoo.com |
