USA: US PV module supplier, Solyndra, announced yesterday that it had shut its manufacturing facility and will file for bankruptcy, the third to do so in a month. The seemingly overnight decision, and the failure of the business, should really come as no surprise and is a warning to all other PV module start-ups according to IMS Research.
Solyndra began commercially shipping its innovative PV module solution, featuring cylindrical modules mounted in frames, in 2008. The product offered a unique solution and some compelling advantages, but ultimately PV is an investment and the price has to be right.
“Despite Solyndra operating its 110MW facility close to full capacity in recent months, we estimate that its manufacturing costs still far exceeded the price at which it had to sell its modules at. In order to make an investment case for its customers,” commented senior research analyst, Sam Wilkinson. “It was losing money fast, and for that reason the closure really comes as no surprise. Whether further capacity expansion, increased production and a few more years of technical advancements could have changed the situation is debatable, but now we will never know.”
IMS Research recently announced that its latest round of quarterly research reveals that Chinese module suppliers have strengthened their position in the market, that the market is showing signs of consolidation, and that competition is only going to get more intense. The PV module industry has recently suffered from a huge oversupply, which has led to fierce price competition with average prices dropping by around 20 percent in a single quarter. Of course, this will not have helped Solyndra in its bid to compete, and was cited as one of the reasons for its closure.
The company’s failure will come as a warning to the vast number of other thin film startups that have recently emerged. “Whilst Solyndra’s product was different so that it cannot be simply considered alongside other CIGS modules, it demonstrates the need for smaller companies to reach scale and volume quickly in order to compete,” added Wilkinson.
“All PV module manufacturing, and CIGS in particular, relies on scale to reach attractive cost levels, and any supplier currently producing in relatively small volumes is at an instant disadvantage compared to the GW-scale manufacturers that are currently dominating the market,” continued Wilkinson.
This was highlighted in fellow thin film innovator, Uni-Solar’s recent announcement that its manufacturing cost more than doubled to $3.40/W in Q2’11, when it temporarily reduced production of its flexible modules by almost 80 percent. This cost is most likely more than double its average selling price for the quarter according to IMS Research.
Whilst Solyndra’s failure will shock some in the PV industry, it will certainly have political consequences. The company had been awarded a US Department of Energy loan guarantee amounting to over half a billion dollars, which was already considered controversial after it closed its first fab and cut jobs in 2010, provoking some investigation into the loan approval process. This sum can now be added to the US government’s huge debt.
Thursday, September 1, 2011
Bosch solar modules certified in compliance with Conto Energia IV standards
ARNSTADT, GERMANY: Under Conto Energia IV, Italy‘s renewable energy law in force since June, the Italian government has implemented several measures which will provide an additional incentive for investors in solar energy systems.
The certification services provider TÜV Rheinland has developed a certificate in cooperation with the Italian energy agency GSE which verifies by means of regular inspections that at least 60 percent of a module or its system components are manufactured in Europe.
This means that Italian investors can now expect ten percent higher feed-in tariff payments in accordance with Conto Energia IV if they use Bosch Solar Energy solar modules. After inspecting production sites, TÜV Rheinland attested in a Certificate of Origin that module components were manufactured and assembled in Arnstadt. Since then, the certificate for modules produced in the Thuringian town states that they are “Made in Europe”.
Bosch also provides the modules produced in Arnstadt with a 10-year product warranty and a 25-year performance warranty. The products have also been certified as extremely weather resistant in a salt spray test performed by TÜV Rheinland.
Compliance with Conto Energia IV standards is further proof of the quality in Bosch Solar Energy modules. “With its primary plant in Arnstadt, Bosch Solar Energy has shown a clear commitment to production in Europe. Our customers benefit from high quality and rapid response times. The fact that the Italian government also rewards value creation in Europe pleases not only us – our clients will also benefit," states Peter Schneidewind, Chief Sales Officer.
The certification services provider TÜV Rheinland has developed a certificate in cooperation with the Italian energy agency GSE which verifies by means of regular inspections that at least 60 percent of a module or its system components are manufactured in Europe.
This means that Italian investors can now expect ten percent higher feed-in tariff payments in accordance with Conto Energia IV if they use Bosch Solar Energy solar modules. After inspecting production sites, TÜV Rheinland attested in a Certificate of Origin that module components were manufactured and assembled in Arnstadt. Since then, the certificate for modules produced in the Thuringian town states that they are “Made in Europe”.
Bosch also provides the modules produced in Arnstadt with a 10-year product warranty and a 25-year performance warranty. The products have also been certified as extremely weather resistant in a salt spray test performed by TÜV Rheinland.
Compliance with Conto Energia IV standards is further proof of the quality in Bosch Solar Energy modules. “With its primary plant in Arnstadt, Bosch Solar Energy has shown a clear commitment to production in Europe. Our customers benefit from high quality and rapid response times. The fact that the Italian government also rewards value creation in Europe pleases not only us – our clients will also benefit," states Peter Schneidewind, Chief Sales Officer.
Suntech launches new HiPerforma product line in Europe
SCHAFFHAUSEN, SWITZERLAND: Suntech Power Holdings Co. Ltd, the world's largest producer of solar panels, has launched its new generation high-efficiency HiPerforma product line with the introduction of HiPerforma Pluto Vdm-295 and HiPerforma Wdm-245 in Europe. Both products, which are immediately available, utilize Suntech's advanced Pluto cell processing technology that allows cells to absorb more sunlight and generate more electricity.
The new HiPerforma Pluto Vdm-295, a 295W panel utilizing 72 6-inch multicrystalline cells, is ideal for both commercial rooftop and utility-scale electricity generation. The new HiPerforma Pluto Wdm-245, a 245W panel utilizing 60 6-inch polycrystalline cells, is a universal product which is ideal for various applications. HiPerforma Pluto Ade-200 is the optimum choice for small residential roofs. HiPerforma Ade-200, the 5 inch mono 72-cell variant with a conversion efficiency of up to 15.7 percent, was introduced to the market earlier. The new modules extend the product portfolio with polycrystalline products.
"Our advanced Pluto cell technology represents a major step forward in our mission to drive down the cost of solar electricity generation, and make solar energy accessible to everyone, everywhere," said Dr. Zhengrong Shi, Suntech's CEO and Founder. "The Pluto advanced cell processing technology was designed specifically to work well with different grades of silicon wafers, giving Suntech the flexibility to develop competitive products for all major markets."
The high performance and quality of Suntech solar panels is testament to the efforts of its R&D team that includes 450 professionals globally. In 2010, Suntech invested $40 million in R&D initiatives.
HiPerforma Pluto Vdm-295 and HiPerforma Pluto Wdm-245
* HiPerforma Pluto Vdm-295 has a conversion efficiency of up to 15.2 percent, which is ideal for large-scale installations that are focused on achieving superior cost per kWh.
* HiPerforma Pluto Wdm-245 has a conversion efficiency of up to 14.8 percent. Its universal format combined with an excellent temperature behaviour makes it suitable for a wide variety of applications.
* HiPerforma modules benefits not only are higher efficiency than industry standard cells but lower temperature coefficients and higher power output per watt installed due to an improved spectral response. This results in up to 12 percent higher power output based on same nameplate power.
The new HiPerforma Pluto Vdm-295, a 295W panel utilizing 72 6-inch multicrystalline cells, is ideal for both commercial rooftop and utility-scale electricity generation. The new HiPerforma Pluto Wdm-245, a 245W panel utilizing 60 6-inch polycrystalline cells, is a universal product which is ideal for various applications. HiPerforma Pluto Ade-200 is the optimum choice for small residential roofs. HiPerforma Ade-200, the 5 inch mono 72-cell variant with a conversion efficiency of up to 15.7 percent, was introduced to the market earlier. The new modules extend the product portfolio with polycrystalline products.
"Our advanced Pluto cell technology represents a major step forward in our mission to drive down the cost of solar electricity generation, and make solar energy accessible to everyone, everywhere," said Dr. Zhengrong Shi, Suntech's CEO and Founder. "The Pluto advanced cell processing technology was designed specifically to work well with different grades of silicon wafers, giving Suntech the flexibility to develop competitive products for all major markets."
The high performance and quality of Suntech solar panels is testament to the efforts of its R&D team that includes 450 professionals globally. In 2010, Suntech invested $40 million in R&D initiatives.
HiPerforma Pluto Vdm-295 and HiPerforma Pluto Wdm-245
* HiPerforma Pluto Vdm-295 has a conversion efficiency of up to 15.2 percent, which is ideal for large-scale installations that are focused on achieving superior cost per kWh.
* HiPerforma Pluto Wdm-245 has a conversion efficiency of up to 14.8 percent. Its universal format combined with an excellent temperature behaviour makes it suitable for a wide variety of applications.
* HiPerforma modules benefits not only are higher efficiency than industry standard cells but lower temperature coefficients and higher power output per watt installed due to an improved spectral response. This results in up to 12 percent higher power output based on same nameplate power.
Chinese PV module suppliers on top in Q2 as consolidation continues
ENGLAND: The three largest suppliers of PV modules in Q2’11 were all Chinese according to the latest industry report from IMS Research. Suntech, Yingli and Trina Solar collectively grew their shipments by almost 20 percent over the previous quarter despite difficult market conditions, increasing their market share and furthering China’s growing dominance in this market.
IMS Research’s latest quarterly report reveals that because of the oversupply of PV modules, some leading suppliers have been able to capitalize on their strong brands and competitive pricing to increase their market share. Although the industry experienced a very difficult quarter in Q2’11, eight of the 10 largest module suppliers in fact increased their shipments over Q1, and the ten largest suppliers accounted for over half of the global market.
Q2’11 saw Suntech ship more PV modules than any other supplier for the fifth consecutive quarter. Yingli became the second largest supplier, increasing it’s shipments by 36 percent and becoming the second supplier to have shipped more than 400 MW of modules in a quarter. Trina Solar remained the third largest supplier in the quarter. First Solar and Sharp, which held the second and third place positions in 2010, fell to fourth and sixth place respectively in the second quarter.
“Exceptionally high demand throughout 2010 resulted in tier-1 suppliers remaining sold out throughout the year, and many tier-2 suppliers were able to capitalize and quickly grow their shipments and market shares,” commented Senior Research Analyst, Sam Wilkinson. “Rapid capacity expansions coincided with a slow-down in demand and supply now far exceeds demand in 2011; With preferred tier-1 products easily available and at lower prices, it seems that customers are now shunning lower tier products and going back to the tier-1 suppliers. The market has begun to show signs of consolidation and the largest suppliers are increasing their share of the global market.”
Although many suppliers were able to maintain or even increase their PV module shipments in Q2’11, fierce competition led to rapid price reductions from all suppliers throughout the quarter. As a result, IMS Research estimates that industry revenues, profits and margins all declined over the previous quarter.
After a difficult first half of 2011 for the PV module industry, IMS Research forecasts that shipments will recover in the second half of the year and reach over 22 GW in total for the full year. However, oversupply is likely to continue affecting the industry with annual PV module capacity predicted to reach over twice this amount by the end of the year, making 2011 a record year for capacity additions.
IMS Research’s latest quarterly report reveals that because of the oversupply of PV modules, some leading suppliers have been able to capitalize on their strong brands and competitive pricing to increase their market share. Although the industry experienced a very difficult quarter in Q2’11, eight of the 10 largest module suppliers in fact increased their shipments over Q1, and the ten largest suppliers accounted for over half of the global market.
Q2’11 saw Suntech ship more PV modules than any other supplier for the fifth consecutive quarter. Yingli became the second largest supplier, increasing it’s shipments by 36 percent and becoming the second supplier to have shipped more than 400 MW of modules in a quarter. Trina Solar remained the third largest supplier in the quarter. First Solar and Sharp, which held the second and third place positions in 2010, fell to fourth and sixth place respectively in the second quarter.
“Exceptionally high demand throughout 2010 resulted in tier-1 suppliers remaining sold out throughout the year, and many tier-2 suppliers were able to capitalize and quickly grow their shipments and market shares,” commented Senior Research Analyst, Sam Wilkinson. “Rapid capacity expansions coincided with a slow-down in demand and supply now far exceeds demand in 2011; With preferred tier-1 products easily available and at lower prices, it seems that customers are now shunning lower tier products and going back to the tier-1 suppliers. The market has begun to show signs of consolidation and the largest suppliers are increasing their share of the global market.”
Although many suppliers were able to maintain or even increase their PV module shipments in Q2’11, fierce competition led to rapid price reductions from all suppliers throughout the quarter. As a result, IMS Research estimates that industry revenues, profits and margins all declined over the previous quarter.
After a difficult first half of 2011 for the PV module industry, IMS Research forecasts that shipments will recover in the second half of the year and reach over 22 GW in total for the full year. However, oversupply is likely to continue affecting the industry with annual PV module capacity predicted to reach over twice this amount by the end of the year, making 2011 a record year for capacity additions.
Saint-Gobain to enhance solar tracking systems at EU PVSEC
GERMANY: SOLGLIDE T and SOLGLIDE M families of bearings, launched by Saint-Gobain Solar, reduce the costs of initial investment, operations and maintenance for solar tracking systems in solar power plants. The bearings will be showcased at the European Photovoltaic Solar Energy Conference and Exhibition (26th EU PVSEC), 5-8 September, in Hamburg, Germany, Booth B7/B42.
Both types of bearings reduce friction and wear by 50 percent compared to other models on the market, maintaining the tracking performance of actuating systems over the lifespan of the bearing. Besides offering enhanced performance and cost and labour savings, the SOLGLIDE T and SOLGLIDE M bearings enable solar companies to reduce their carbon footprint by locally sourcing components from one of Saint-Gobain’s production facilities in their region.
Friction at the pivot point of the actuators can impair the accuracy and efficiency of solar tracking systems. Saint-Gobain’s SOLGLIDE T and SOLGLIDE M contain non-corrosive, durable materials, which help minimise the higher levels of friction that can occur over the lifetime of the bearing. Without the build-up of friction, the motion of the actuators is not limited, ensuring higher levels of accuracy in tracking and less manual labour required to adjust the actuators to counter-act additional resistance.
Free of perfluorooctanoic acid (PFOA) and heavy metals, SOLGLIDE T and SOLGLIDE M bearings are designed with a unique fluoropolymer to be chemically resistant and self-lubricating. One-hundred percent weather-proof, they perform under a wide temperature range (between -200°C and 260°C) and exhibit no corrosion or loss of integrity under ultraviolet (UV) light.
“In setting out to design a long-lasting, non-corrosive and more sustainable bearing for solar applications, we took into consideration the other pain points of solar plant maintenance,” said Janaki Weiden, SOLGLIDE manager, Saint-Gobain Solar. “These were issues such as labour and costs that can result from long-term wear and we equipped the SOLGLIDE T and the SOLGLIDE M to tackle these issues in different ways.”
What differentiates the SOLGLIDE T from the SOLGLIDE M bearings are their uses and other material components. The SOLGLIDE M family of bearings comes standard at 1.57 mm thick with all stainless steel backings, providing an economical and sustainable solution for applications requiring long-time durability and load requirements in challenging environments.
The stainless steel material provides superior corrosion resistance and load capability, enabling Engineering, Procurement and Construction (EPC) contractors to construct the actuator with a smaller shaft to save on material costs.
SOLGLIDE T bearings are available with a 1.5 mm thick steel backing, in which the sliding layer is a proprietary polytetrafluoroethylene (PTFE) based compound.
The SOLGLIDE T model is also available with a 3 mm thick aluminium backing, offering an easy “drop in” solution as well as superior structure capability when paired with aluminium frames. This prevents the challenges presented by bearings composed of other, less compatible materials which can react with the aluminium to speed corrosion or require changes in the actuator design to account for different coefficients of thermal expansion.
Dimensions of the bearings are customisable and Saint-Gobain experts will work with manufacturers to determine which sizes work best for their particular applications. Saint-Gobain Solar also offers product testing capabilities to ensure that the bearings will function flawlessly in the given application.
Both types of bearings reduce friction and wear by 50 percent compared to other models on the market, maintaining the tracking performance of actuating systems over the lifespan of the bearing. Besides offering enhanced performance and cost and labour savings, the SOLGLIDE T and SOLGLIDE M bearings enable solar companies to reduce their carbon footprint by locally sourcing components from one of Saint-Gobain’s production facilities in their region.
Friction at the pivot point of the actuators can impair the accuracy and efficiency of solar tracking systems. Saint-Gobain’s SOLGLIDE T and SOLGLIDE M contain non-corrosive, durable materials, which help minimise the higher levels of friction that can occur over the lifetime of the bearing. Without the build-up of friction, the motion of the actuators is not limited, ensuring higher levels of accuracy in tracking and less manual labour required to adjust the actuators to counter-act additional resistance.
Free of perfluorooctanoic acid (PFOA) and heavy metals, SOLGLIDE T and SOLGLIDE M bearings are designed with a unique fluoropolymer to be chemically resistant and self-lubricating. One-hundred percent weather-proof, they perform under a wide temperature range (between -200°C and 260°C) and exhibit no corrosion or loss of integrity under ultraviolet (UV) light.
“In setting out to design a long-lasting, non-corrosive and more sustainable bearing for solar applications, we took into consideration the other pain points of solar plant maintenance,” said Janaki Weiden, SOLGLIDE manager, Saint-Gobain Solar. “These were issues such as labour and costs that can result from long-term wear and we equipped the SOLGLIDE T and the SOLGLIDE M to tackle these issues in different ways.”
What differentiates the SOLGLIDE T from the SOLGLIDE M bearings are their uses and other material components. The SOLGLIDE M family of bearings comes standard at 1.57 mm thick with all stainless steel backings, providing an economical and sustainable solution for applications requiring long-time durability and load requirements in challenging environments.
The stainless steel material provides superior corrosion resistance and load capability, enabling Engineering, Procurement and Construction (EPC) contractors to construct the actuator with a smaller shaft to save on material costs.
SOLGLIDE T bearings are available with a 1.5 mm thick steel backing, in which the sliding layer is a proprietary polytetrafluoroethylene (PTFE) based compound.
The SOLGLIDE T model is also available with a 3 mm thick aluminium backing, offering an easy “drop in” solution as well as superior structure capability when paired with aluminium frames. This prevents the challenges presented by bearings composed of other, less compatible materials which can react with the aluminium to speed corrosion or require changes in the actuator design to account for different coefficients of thermal expansion.
Dimensions of the bearings are customisable and Saint-Gobain experts will work with manufacturers to determine which sizes work best for their particular applications. Saint-Gobain Solar also offers product testing capabilities to ensure that the bearings will function flawlessly in the given application.
Dow intros ENLIGHT DC-8300 coolant for Diamond wire ingot squaring
MIDLAND, USA: The Dow Chemical Co. has introduced a diamond wire ingot squaring coolant that improves photovoltaic (PV) wafer manufacturing efficiency while also improving the sustainability of the production process. ENLIGHT DC-8300 Coolant, which will be officially unveiled at the 26th European Photovoltaic Solar Energy Conference (26th EU PVSEC), is the latest innovation from Dow that can help improve performance and/or lower the total system costs of PV applications.
Next-generation diamond wire saws are designed to reduce overall PV manufacturing costs by using a higher cut speed and fixed abrasive technology instead of loose abrasive slurry for cutting. ENLIGHTTM DC-8300 Coolant is designed to address common challenges associated with diamond wire cutting processes. The product offers:
• High Cutting Precision and Efficiency: Because of its excellent suspension and dispersion capability, as well as other attributes, the percentage of bricks with high thickness variables (TV) can be reduced with ENLIGHT DC-8300 Coolant. In addition, ENLIGHTTM DC-8300 Coolant can sustain multiple rounds of cutting, thus helping to improve customers’ production efficiency.
• Easy Cleaning: With its remarkable properties, ENLIGHT DC-8300 Coolant helps to greatly reduce stickiness issues on the guide roller and on the machine interior parts. It also reduces the silicon sedimentation in the tank.
• Good Environmental Profile: Water-based ENLIGHT DC-8300 Coolant offers a better environmental profile than glycol-based coolants in the marketplace. In addition, it enables easier silicon powder separation, thus offering higher potential for waste silicon recycling.
Driven by its company-wide focus on delivering sustainable solutions to address some of the world’s most crucial challenges – including the need for clean energy – Dow continues to invest in products and manufacturing capabilities to help PV manufacturers to improve efficiency and lower their total system costs.
Next-generation diamond wire saws are designed to reduce overall PV manufacturing costs by using a higher cut speed and fixed abrasive technology instead of loose abrasive slurry for cutting. ENLIGHTTM DC-8300 Coolant is designed to address common challenges associated with diamond wire cutting processes. The product offers:
• High Cutting Precision and Efficiency: Because of its excellent suspension and dispersion capability, as well as other attributes, the percentage of bricks with high thickness variables (TV) can be reduced with ENLIGHT DC-8300 Coolant. In addition, ENLIGHTTM DC-8300 Coolant can sustain multiple rounds of cutting, thus helping to improve customers’ production efficiency.
• Easy Cleaning: With its remarkable properties, ENLIGHT DC-8300 Coolant helps to greatly reduce stickiness issues on the guide roller and on the machine interior parts. It also reduces the silicon sedimentation in the tank.
• Good Environmental Profile: Water-based ENLIGHT DC-8300 Coolant offers a better environmental profile than glycol-based coolants in the marketplace. In addition, it enables easier silicon powder separation, thus offering higher potential for waste silicon recycling.
Driven by its company-wide focus on delivering sustainable solutions to address some of the world’s most crucial challenges – including the need for clean energy – Dow continues to invest in products and manufacturing capabilities to help PV manufacturers to improve efficiency and lower their total system costs.
ZBB Energy forms JVC to enter China's energy storage market
MILWAUKEE, USA: ZBB Energy Corp., the leading developer of intelligent, renewable energy power platforms, has entered into agreements for establishment of a joint venture company that will initially assemble and ultimately manufacture ZBB products for sale in the power management industry on an exclusive basis in mainland China and on a non-exclusive basis in Hong Kong and Taiwan.
The new company will build a new state-of-the-art manufacturing center in WuHu City, Anhui Province that will begin operations in early 2012.
The joint venture partners comprising the China JV Company (Chinese name registration pending) include, ZBB PowerSav Holdings Limited, AnHui Xinlong Electrical Company (Xinlong Electrical) and WuHu Huarui Power Transmission & Transformation Engineering Company (WuHu Huarui).
ZBB and PowerSav have been working together since November 2010 to identify an optimal path and partnerships to enter the China market. More than 75 potential joint venture partners and 25 cities and governments were diligently screened to determine the ideal joint venture partners and a city and government very supportive of providing a location for "new energy" technology. Xinlong Electrical and WuHu Huarui met every criteria established for the joint venture partners, and the city and government of WuHu demonstrated their strong support by way of providing a host of incentives to locate in their city.
This joint venture enables ZBB to take its products into China's high growth market with exceptionally strong partners, and represents a core component of ZBB's global partnership strategy to offer the lowest cost, intelligent power management storage products available in emerging markets that offer significant growth opportunities.
Eric Apfelbach, CEO of ZBB Energy, said: "The opportunity and demand in China for our products is tremendous. Our joint venture with these three partners will enable the penetration of both our flow battery and power electronics products by giving us channel access to China's grid companies."
Key terms of the joint venture include cash and technology capital investments of approximately $13.4 million. ZBB's capital contributions to the joint venture will be a contribution of technology to the China JV Company via a license agreement valued at approximately $4 million. ZBB's indirect equity interest in the China JV Company will equal approximately 33 percent. ZBB will maintain control over the joint venture through its Board of Directors positions.
The China JVC will have an exclusive, royalty-free license to manufacture and sell ZBB's ZESS Zinc Bromide flow battery, version three (V3) battery (50kW) and ZESS POWR PECC (up to 250kW) in mainland China and a non-exclusive royalty-free license to manufacture and distribute the products in Hong Kong and Taiwan in the power management industry.
Additionally, ZBB and the China JVC will enter into supply agreements under which the China JV Company will purchase certain manufactured products from ZBB and ZBB may purchase certain manufactured products from the China JVC.
The new company will build a new state-of-the-art manufacturing center in WuHu City, Anhui Province that will begin operations in early 2012.
The joint venture partners comprising the China JV Company (Chinese name registration pending) include, ZBB PowerSav Holdings Limited, AnHui Xinlong Electrical Company (Xinlong Electrical) and WuHu Huarui Power Transmission & Transformation Engineering Company (WuHu Huarui).
ZBB and PowerSav have been working together since November 2010 to identify an optimal path and partnerships to enter the China market. More than 75 potential joint venture partners and 25 cities and governments were diligently screened to determine the ideal joint venture partners and a city and government very supportive of providing a location for "new energy" technology. Xinlong Electrical and WuHu Huarui met every criteria established for the joint venture partners, and the city and government of WuHu demonstrated their strong support by way of providing a host of incentives to locate in their city.
This joint venture enables ZBB to take its products into China's high growth market with exceptionally strong partners, and represents a core component of ZBB's global partnership strategy to offer the lowest cost, intelligent power management storage products available in emerging markets that offer significant growth opportunities.
Eric Apfelbach, CEO of ZBB Energy, said: "The opportunity and demand in China for our products is tremendous. Our joint venture with these three partners will enable the penetration of both our flow battery and power electronics products by giving us channel access to China's grid companies."
Key terms of the joint venture include cash and technology capital investments of approximately $13.4 million. ZBB's capital contributions to the joint venture will be a contribution of technology to the China JV Company via a license agreement valued at approximately $4 million. ZBB's indirect equity interest in the China JV Company will equal approximately 33 percent. ZBB will maintain control over the joint venture through its Board of Directors positions.
The China JVC will have an exclusive, royalty-free license to manufacture and sell ZBB's ZESS Zinc Bromide flow battery, version three (V3) battery (50kW) and ZESS POWR PECC (up to 250kW) in mainland China and a non-exclusive royalty-free license to manufacture and distribute the products in Hong Kong and Taiwan in the power management industry.
Additionally, ZBB and the China JVC will enter into supply agreements under which the China JV Company will purchase certain manufactured products from ZBB and ZBB may purchase certain manufactured products from the China JVC.
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