Zinc8 Energy Solutions Inc (CVE:ZAIR) (OTCPINK:MGXRF) (FRA:0E9) has announced that 2021 will be an “anchor year” as it advances its Zinc-air Energy Storage System toward commercialization.
The company recently raised $15 million in funding and has leased a 16,000 square-foot testing and assembly facility. It intends to build five Zinc-air batteries to complete the certification process and advance the production schedule by establishing pilot production capability.
“2021 will be the anchor year as the company aims to be in small-scale production in 18-24 months,” Zinc8 said in a statement.
READ: Zinc8 Energy Solutions announces the planned deployment of its Zinc-air Energy Storage System at the University at Buffalo
“Not only will we be testing the various system levels for certification, but we anticipate designing and running multiple demonstration projects, with each project having its own specific use case. With the assistance of accelerator program members, we are targeting a production range of between 3-10MW to begin in Q4 2022,” the company added.
Zinc8 plans to deploy its Zinc-air battery system at the University at Buffalo (UB). This collaboration with the New York Power Authority (NYPA) marks the first long-duration use in New York State -- a development that will support further integration of renewable power sources into the state grid. The state has an energy storage goal of 3GW (gigawatts) by 2030 and supports a nation-leading commitment of 100% electricity from zero-carbon emission sources by 2040.
"Zinc8's energy storage technology has attracted the attention of influential organizations committed to having a positive impact on climate change," said CEO Ron MacDonald.
Looking ahead, for the first 12 months of production starting in 4Q 2022 and based on a 3MW to 10MW (megawatt) production range, the company said the potential revenue impact could be $6 million to $20 million, assuming $200 per kWh (kilowatt).
“Using New York City as the initial target market, this equates to a penetration range of 75 to 250 buildings, or approximately 0.4% of the 58,000 buildings in this market,” Zinc8 said.
“As production ramps up in the second 12 months of production, a projected production range of 40 to 80MW could impact revenue by as much as $80 million to $160 million, with New York City market penetration of less than 3.4% (between 1,000 and 2,000 buildings). The third 12-month period of production could produce over 80MW of batteries and have an impact on revenue of up to $160+ million. During that period, over 2,000 buildings (over 3.4% market share) would have the Zinc8 ESS installed and operating in New York City.”
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