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Technology Stocks : Vanteck (vrb-cdnx, vttcf)

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From: thaidiamond1/7/2008 8:40:25 PM
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Here's a couple of salient excepts from the recent research report put out by Research Capital...

TECHNOLOGY – ALTERNATIVE ENERGY – JON HYKAWY
VRB POWER SYSTEMS IN C . (VR B - TSX V: C$ 0 .1 9 - BUY ; TARGET: C$ 1 .40)

- Irish 2007 study highlights wind as the largest potential market for the VRB battery: The greatest advantage of the VRB
approach over a standard technology such as lead-acid batteries is reliability; where a 5 kW/20 kWh lead-acid battery stack for backing up a cellular telephony tower may last four or five years in the field, the 5 kW/20 kWh VRB-ESS unit should function for 15years, resulting in a far lower lifetime costs with comparable initial capital costs. VRB-ESS is also scalable, and can be used tostore excess energy generated by a wind farm. The correct scale for this backup has been determined by a third-party study from Sustainable Energy Ireland to be 1 MW of VRB-ESS for each 4 MW of wind turbine nameplate capacity. This scale of use desired
by the Irish government through 2015 provides for a revenue potential opportunity worth in excess of $2 billion to VRB.

- Pipeline of business is finally filling up: With various announcements made, the stock has traded as high as $0.69, but on a lack of news, the stock has languished and has traded as low as $0.12 recently. We believe that with $20 million in quotes issued on large-scale systems, and likely at least an additional $20 million of interest for small-scale systems, 2008 will see much more news flow and a much healthier interest in the stock.

- A pressing need and no credible alternatives: Storage of electrical energy remains problematic. The two most cost-effective solutions, pumped hydro and compressed air energy storage, both depend on having geography and the power grid to overlap in the correct fashion – a rare occurrence. Lead-acid batteries have been tried by utilities, and have not passed muster. The only comparable solution to that produced by VRB is a flow battery that utilizes sodium and sulfur, but the technology is not amenable to being combined with wind turbines and we expect it will suffer as a result.
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