VRB Power Systems Inc is to buy the Regenesys electricity storage technology from RWE npower.
Canadian company VRB Power Systems Inc is to buy the Regenesys electricity storage technology from RWE npower. Under the deal, VRB will gain an exclusive global licence to the intellectual property and acquire all the related physical assets and inventory surrounding Regenesys.
“This acquisition moves VRB Power significantly forward on two fronts,” said 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 programme. 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 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 to 10MW, [the latter corresponding to storage in the 100 MWh range]. VRB Power now has a range of products … providing utility scale solutions using the ‘Electricity Warehouse’ concept developed by Regenesys”.
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.
The acquisition includes Regenesys flow frame designs, state-of-the-art assembly equipment and techniques and a significant inventory of Proton Exchange Membrane. The licence will remain exclusive for the first 5 years with provisions for an extension to the exclusivity based on certain royalty payments. The purchase alone is worth $1.3 million but as part of the deal 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 $2 800 000. 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.