Hillcrest Energy Technologies Ltd (CSE:HEAT, OTCQB:HLRTF) told investors that 2023 marks a transitional year in its story, with the focus shifting to the application of its core ZVS inverter technology into new products and end uses.
Providing an update on Hillcrest’s anticipated development and commercialization targets for 2023, the company said it starts 2023 in a strong position established by last month's completion of its first commercial prototype, an 800-volt, 250-kilowatt traction inverter for the EV market.
“We are expanding our focus to include grid-tied applications while maintaining and growing relationships in the automotive sector," CEO Don Currie said.
"Our near-term objective is to engage up to two additional EV customers and ramp up new customer agreements for our grid-tied renewable energy generation and Energy Storage System (ESS) segments,” he added.
READ: Hillcrest Energy Technologies highlights 2022 technology and commercialization milestones
The company explained that the prototype validates its zero voltage switching (ZVS) inverter technology and serves as the foundation upon which the company can now accelerate the pace of its building-block approach to product development.
With the groundwork now complete, it said it expects to deliver substantial advancements on several new applications in the coming year.
Anticipated technology development milestones for 2023 include:
- Completion of proof-of-concept testing for a grid-tied inverter;
- Proof-of-concept testing for an Enhanced Powertrain Solution; and
- Proof-of-concept testing for a novel multi-level inverter technology.
In 2023, Hillcrest said it expects to see substantial growth and maturation in its diversified intellectual property (IP) portfolio. The company noted that its technical team possesses decades of experience that translates directly into capabilities and know-how beyond most companies at a similar stage.
Combined with its proprietary firmware and patent portfolio, consisting of four hardware patent applications, Hillcrest said it has established a robust IP foundation that will continue to expand over the coming year. It expects its growing IP portfolio to have a noticeable impact on perceived market value and its maturing business strategy.
"Our ZVS inverter technology is setting a new standard of expected performance and efficiency for the next era of power conversion technologies," said Hillcrest CTO Ari Berger. "We believe the industry-leading advancements we've achieved with our core ZVS inverter technology can provide significant, cost-effective efficiency and performance improvements for the rapidly expanding markets for zero-emission vehicles and renewable energy generation and storage systems.”
Customer-centric development process
The company said continued engagement with potential customers across multiple sectors will ensure all technologies and products continue to rely upon Hillcrest's customer-centric development process to address the needs and resolve the specific pain points identified by each partner and customer.
"Combined, we believe these development and “commercialization activities will position us well to secure commitments for commercial revenues by the end of the year,” Currie added.
Hillcrest said its focus on both the zero-emission vehicle and renewable energy markets allows it to de-risk and diversify its revenue streams and potentially accelerate the path to commercial revenues.
It noted that recent projections suggest the global zero-emission vehicle inverter market will reach US$ 11.5 billion by 2027, implying a compound annual growth rate (CAGR) of 23% with the total global inverter market expected to reach US$95 billion by 2028 (5% CAGR).
Zero-emission vehicles
Latest market reports suggest even stronger growth than previously anticipated, with a recent BloombergNEF report suggesting market penetration and growth for zero-emissions vehicles is moving faster than previously expected, the company added.
With zero-emission vehicles now expected to make up 42% of the 2040 global fleet and more governments at the state, local, and federal levels committing to rapid and large-scale adoption of electric vehicles, Hillcrest said its market opportunity continues to increase alongside this demand.
The latest IEA global renewable energy capacity projections have been revised upward by nearly 30%. Renewables are now expected to become the largest global source of electricity by 2025.
"From EV to grid, IP progress to customer engagements, Hillcrest is looking forward to a promising 2023," Currie concluded. "The incredible efforts of our world-class technical team will continue to build momentum and bring meaningful contributions to lowering global emissions in the market segments that matter most.”
Hillcrest is a clean technology company developing transformative power conversion technologies and control system solutions for next-generation electrical systems.
Contact the author at stephen.gunnion@proactiveinvestors.com