Electrovaya, Accompanying Prime Minister Harper's Trade Mission to India, Signs Two MOUs for Lithium Ion Batteries for Automotive and Telecom Applications
TORONTO, ONTARIO, Nov 06, 2012 (MARKETWIRE via COMTEX) --
Electrovaya Inc. (TSX: EFL), accompanying Prime Minister Harper's
Trade Mission to India, today announced that it has signed two MOUs
in the fast growing areas of Energy Storage in the Telecom sector
with Environ Energy (Bhaskar Solar), part of a $4 billion Indian
conglomerate, as well as a further expansion in the electric two
wheeler sector with Hero Eco for markets in Europe, North America and
Hero Eco Ltd.
The MOU with Hero Eco Ltd. would further the synergies of both
Electrovaya's and Hero Eco's recent acquisitions. Electrovaya would
work with Hero Eco to implement Lithium Ion powered electric bikes
for Hero's markets in Asia, Europe and North America.
Hero Eco, the umbrella entity that includes Hero Electric, Hero
Exports, Hero Cycles, Mediva, Winn and Hero Ecotech recently expanded
its operations in Europe and North America through its overseas
acquisition. As a result of this acquisition, Hero will now market
Lithium Ion powered electric bikes in less price-sensitive markets of
Europe and North America, expanding its market reach to 22 countries.
Hero's expansion into Europe fits well with Electrovaya's recent
acquisition of Miljobil Grenland in Europe. Miljobil is a Lithium Ion
Battery Pack integrator, which was earlier part of Tata Motors.
Hero is also expecting an increase in sales of Lithium battery
powered Electric two-wheelers in the price-sensitive Indian market as
a result of India's recently announced National EV policy. The Indian
government's recent EV policy calls for a Rs 23,000 crore plan to
promote the production of electric (EV) and hybrid vehicles over the
next eight years, and set a sales target of 6 million units by 2020.
The policy includes aspects such as incentives to customers, charging
infrastructure, research & development funding and creation of EV
A trusted brand name with numerous sales and service outlets across
India, Hero Electric, which falls under the umbrella of Hero Eco, has
recently been developing and testing its products in Europe and North
"We have been targeting a multi-country opportunity for our Clean
Transportation products and this will further enhance our existing
partnership with Electrovaya." says Naveen Munjal, Managing Director
of Hero Electric.
"Hero's global expansion plans demonstrate the need for a Green
alternative to traditional gasoline powered two-wheel modes of
transportation," says Dr. Sankar Das Gupta, CEO of Electrovaya Inc.
"We are delighted to work with leaders such as Hero for these
high-growth Clean Transportation markets."
Environ Energy Corporation India Pvt. Ltd. (also known as "Bhaskar
The MOU with Bhaskar Solar intends to harness Electrovaya's Lithium
Ion Battery technology in making renewables-based telecom towers
possible. Electrovaya would work jointly with Bhaskar Solar to
implement renewable energy management solutions across Bhaskar's
proposed 15,000 telecom tower applications.
According to the Telecom Regulatory Authority of India ("TRAI"),
India currently has over 300,000 tower sites of which over 30,000 are
in off-grid areas. The majority of the Telecom Towers are powered by
diesel generators, whether on-grid or off, due to the intermittent
power supply. The total annual consumption of diesel fuel by these
towers is 2 billion litres, as a result of which 5 megatons of CO2 is
produced annually. TRAI has recently made it mandatory for telecom
companies to use renewable sources of energy for powering their
towers. At least 50% of towers and 20% of the urban towers are to be
powered by hybrid energy sources (renewable and grid) by 2015. In the
second phase, the telecom companies will be required to convert 75%
of the rural towers and 33% of the urban towers to run on hybrid
power. Ministry of New and Renewable Energy ("MNRE") is supporting
off-grid solar telecom applications by providing capital subsidy of
30% to a maximum subsidy of Rs 90 per watt peak. Alternatively, soft
loans at 5% interest rate subsidized by India Renewable Energy
Development Agency (IREDA) are being offered for such projects.
"We have been researching opportunities in the solar industry for
some time and have been awaiting an opportunity that could leverage
the growing recognition by key regulators about the need to replace
diesel generators with clean technology environmentally-friendly
energy storage solutions." says Partha Chatterjee, Head Telecom,
Environ Energy. "The large size of the market, combined with the
growing cost of diesel energy solutions and the financing available
for such projects, makes this a very exciting opportunity." adds
Electrovaya's technology has been commercialized and brought to
market with the support of the Government of Canada through
Sustainable Development Technology Canada (SDTC). "For SDTC, it is a
rewarding to see increased global deployment of Electrovaya's lithium
ion SuperPolymer battery in emerging markets like India in the
critical sectors of clean transportation and energy storage for
telecom applications," said Dr. Vicky Sharpe, President & CEO, SDTC.
Electrovaya Inc. (TSX: EFL) designs, develops and manufactures
proprietary Lithium Ion SuperPolymer(R) batteries, battery systems,
and battery-related products for the clean electric transportation,
Utility Scale Energy Storage and smart grid power, consumer and
healthcare markets. The Company's mission is to accelerate clean
transportation as a commercial reality with its advanced power system
for all classes of zero-emission electric vehicles and plug-in hybrid
electric vehicles. The Company's other mission is to deliver Utility
Scale Energy Storage Systems for the highest efficiency in
electricity storage, whether the electricity is generated from
intermittent wind and solar power or from other sources. Founded in
1996 and headquartered in Ontario, Canada, Electrovaya has production
facilities in Canada, USA and Europe with customers around the globe.
To learn more about how Electrovaya is implementing Clean Energy,
please explore www.electrovaya.com.
HERO Eco Ltd. Is the newly formed umbrella company of the HERO Group
that includes Hero Electric, Hero Exports, Hero Cycles, Mediva, Winn
and Hero Ecotech. Hero Eco plans to invest Rs 450 Crore with the
intention of turning this investment into Rs. 1500 Crore within the
next five years. The Hero Group is one of the world's largest
producers of two wheelers. With a background of extensive research,
HERO Electric entered the Electric vehicle segment with the single
objective of providing eco-friendly, cost-effective mode of
personalized transportation with its range of Electric Two-wheeler
models. Over a short period of time, HERO Electric has been quick to
establish itself as an undisputed leader in the Electric Two-wheeler
segment. To learn more about HERO Eco please visit www.heroeco.com.
Environ Energy (Bhaskar Solar):
Environ Energy Corporation India Pvt. Ltd. (also known as "Bhaskar
Solar") is part of a $4.1 billion Indian conglomerate based in
Kolkata. The group has diverse interests including Clean Renewable
Energy and is a leader in the Telecom Tower power sector.
This press release contains forward-looking statements that involve a
number of risks and uncertainties, including statements that relate
to, among other things, the Company's objectives, goals, strategies,
intentions, plans, beliefs, expectations and estimates, and can
generally be identified by the use of words such as "may", "will",
"could", "should", "would", "likely", "expect", "intend", "estimate",
"anticipate", "believe", "plan", "objective" and "continue" (or the
negative thereof) and words and expressions of similar import.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties, and undue reliance should not be placed on
such statements. Certain material factors or assumptions are applied
in making forward-looking statements, and actual results may differ
materially from those expressed or implied in such statements.
Important factors that could cause actual results to differ
materially from expectations include but are not limited to: general
business and economic conditions (including but not limited to
currency rates and creditworthiness of customers); Company liquidity
and capital resources, including the availability of additional
capital resources to fund its activities; level of competition;
changes in laws and regulations; legal and regulatory proceedings;
the ability to adapt products and services to the changing market;
the ability to attract and retain key executives; and the ability to
execute strategic plans. Additional information about material
factors that could cause actual results to differ materially from
expectations and about material factors or assumptions applied in
making forward-looking statements may be found in the Company's most
recent annual and interim Management's Discussion and Analysis under
"Risk and Uncertainties", as well as in other public disclosure
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Company does not undertake any obligation to update publicly or to
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otherwise, except as required by law.
SOURCE: Electrovaya Inc.
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