Battery’s attractive economics highlighted in Energy Strategies Group White Paper

Columbia Falls, MT – October 29, 2014 – ViZn Energy Systems, Inc., a pioneer in large-scale energy storage technology, has announced that its zinc redox flow battery technology has been highlighted as a viable substitute for many simple cycle peaking power plants in a white paper by Energy Strategies Group (ESG), a specialist consultancy in grid-scale energy storage technologies.

ESG’s white paper titled, “Guide to Procurement of Flexible Peaking Capacity: Energy Storage or Combustion Turbines?” looks at the efficacy and economics of substituting advanced energy storage for simple cycle combustion turbine peaker plants. In its paper, ESG highlights the economics of ViZn Energy’s flow battery for peak power substitution.

Every power grid must have extra electrical capacity to handle peak power demand. Simple cycle gas-fired combustion turbines (CTs) have historically provided much of the nation’s electrical peaking capacity. The cost of energy storage from flow batteries is now converging with the cost of combustion turbines when four hours or less of peaking capacity is required. This represents a large new market for multi-hour flow battery energy storage.

As stated by Chet Lyons, ESG principal and author of the white paper: “ViZn Energy’s flow battery is an economically attractive substitute for many simple cycle gas-fired combustion turbine peaking plants, especially when deployed on a distributed basis and owned and operated by the electric utility.” He specifically noted the following: “Using ViZn Energy’s zinc/iron flow battery, the CapEx for a substitute 4-hour storage-based peaker plant is projected to be $1,390 per kW by 2017, or $348 per kWh of installed capacity.” He added, “At that price point, storage will be directly competitive with some conventional simple cycle CTs. For CTs at the higher end of the CT cost range, ViZn Energy’s 4-hour storage will be a clear winner by 2017.”

Lyons also noted: “By 2018 the CapEx of ViZn Energy’s 4-hour flow battery storage solution, which ESG uses as a proxy for the lowest cost flow battery technologies now being commercialized, is projected to be $974 per kW, or $244 per (installed) kWh, essentially the same as a conventional simple cycle CT. Storage will be a disruptive winner against simple cycle gas-fired CTs at that point, assuming a typical mid-range cost for competing fossil-based CT generation resources.”

Ron Van Dell, CEO of ViZn Energy Systems, commented: “The regulatory landscape for energy storage is undergoing rapid and exciting change. As an example, Arizona Public Service and the Residential Utility Consumer Office recently filed a joint proposal to require that at least 10 percent of any new peaker capacity currently being planned as simple cycle combustion turbines instead be switched to energy storage as long as storage can meet the cost effectiveness and reliability criteria of a simple-cycle combustion turbine. That’s exactly what ViZn Energy Systems’ technology can do.”

Van Dell continued, “ESG’s comprehensive white paper is further validation of ViZn’s safe, effective and innovative technology and provides an excellent analysis of where we see our products fitting into the energy storage space in the next five years.”

ESG’s white paper concludes that utility planners should make cost-benefit analysis of energy storage for peaker plants mandatory practice in all parts of the United States.

ViZn has exhibited impressive tenacity in designing a first-of-its-kind solution in the energy storage market and breaking the stranglehold of acid-based flow batteries

MOUNTAIN VIEW, Calif. — Sept 4, 2014 — Based on its recent analysis of the energy storage market, Frost & Sullivan recognizes ViZn Energy with the 2014 North America Frost & Sullivan Entrepreneurial Company of the Year Award. Acknowledging the growing demand for an efficient, safe, and reliable energy storage battery in the renewable energy space, ViZn developed the world’s first cost-effective, alkaline-based flow battery. Its patented technology ensures the optimum storage of energy and guarantees a lifespan of more than 20 years. The battery’s high scalability to hundreds of megawatts; use of abundantly available non-toxic, nonflammable, and low-cost materials such as zinc and iron; and compliance with environmental regulations places ViZn at the forefront of technological innovation.

ViZn has leveraged years of R&D expertise in designing the Z20 160-kWh Zinc Redox Flow Battery that enables efficient energy storage for the fast-growing micro-grid market. The battery has been designed with a water-based, two-phase flow system that consists of a zinc electrode and an iron redox counter electrode. This advanced electrode pair design aids steady and safe operation, thereby lowering operational risks.

ViZn’s Z20 is efficient in renewable firming and power regulation. The technology is designed to withstand frequent temperature fluctuations and facilitates multiple discharge cycles per day, enabling the micro-grid to satisfy energy requirements during peak demands in the mornings and evenings. It claims an ability to supply 10,000 cycles throughout its lifespan.

“Impressively, the Z20 has a distinct capability to de-energize the battery in as fast as 15 seconds in the event of a disaster,” said Frost & Sullivan Research Manager Vishal Sapru. “Additionally, the innovative battery stack design has been able to overcome shunt issues that have been hindering the smooth operation of flow batteries for years.”

Apart from designing innovative solutions, ViZn has demonstrated a keen desire to provide customers with unparalleled service experience, so much so that it treats its customers as partners and provides them with solutions that positively impact their bottom line.

To provide customers with a turnkey experience, each battery cell has an internal feedback loop that is IP addressed. This allows the company’s service center personnel and design engineering staff to assist them when troubleshooting, without affecting their smooth operations, and minimizing wait times. This unique capability also makes it possible to forecast the customer’s energy requirements.

The Z20’s initial cost per kWh is comparatively lower than that offered by other systems. This strategy of developing a product that ensures environmental safety while keeping the price low has given the company a clear advantage in the market.

Furthermore, the company has demonstrated great vision in investing in R&D and outsourcing the manufacturing to experts in the field. This asset-light model cuts down costs while ensuring enhanced product value. ViZn also entered into partnerships with logistic companies to guarantee swift and efficient service.

In addition to providing a reliable solution backed by efficient service, the company is focusing on strong market penetration to increase its customer base. The company is planning to establish footprints in Germany, Hawaii and India to address their growing demand for renewables.

“Recognizing the role played by the Z20 in ensuring ViZn’s success in the energy storage domain, the company secured a patent for it to strengthen its market position,” noted Sapru. “Its expertise in designing an exciting, all-encompassing, yet low-cost solution while ensuring unparalleled customer experience has set ViZn up for greater growth in the future.”

Each year, Frost & Sullivan presents this award to the company that has demonstrated excellence in devising a strong growth strategy and robustly implementing it. The recipient has shown strength in terms of innovation in products and technologies, leadership in customer value, as well as speed in response to market needs. In short, the award looks at the emerging market players in the industry and recognizes their best practices that are positioned for future growth excellence.

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis and extensive secondary research to identify best practices in the industry.