Sustainable Energy Reports 2013 Six Month Financial Results and Provides Shareholder Update
(Marketwire (Canada) Via Acquire Media NewsEdge) CALGARY, ALBERTA--(Marketwired - May 30, 2013) - Sustainable Energy Technologies Ltd (TSX VENTURE:STG) ("Sustainable Energy" or the "Company"), a designer and manufacturer of advanced power electronics for distributed smart grid and micro-grid applications, today announced that it has filed its Consolidated Financial Statements for the Six Months ending March 31, 2013, along with Management's Discussion and Analysis thereof. The Consolidated Financial Statements and the Management Discussion and Analysis thereof are available on SEDAR at www.sedar.com and on the Company's website at www.sustainableenergy.com.
The Company has also filed a Presentation on the Smart Grid Energy Storage Opportunity which outlines the market potential, the power electronics opportunity, and the Company's value proposition and which can be accessed on the Company's website at:
Sustainable Energy is executing on its strategy to position the Company within the solar energy storage market, which is expected to grow to a $19 billion per year industry by 2017, according to London based IHS Research.
-- During the second quarter of 2013, the Company closed an agreement with
Prosol Invest Deutschland GmbH ("Prosol") to supply inverters in power
ratings from 2kW to 15kW for Prosol's market leading Sonnenbatterie
residential energy management system.
On May 1, 2013, Germany implemented a package of financial incentives
for residential solar energy storage and is expected to install 2
Gigawatts by 2017, according to IHS Research.
Prosol supplied approximately 50% of solar energy storage systems in
Germany in 2012, and is forecasting an estimated 40% share of the German
market, based on its product design and strong distribution channels,
including OEM agreements with market leaders: E-On, RWE and Kyocera.
-- During the second quarter of 2013, Sustainable Energy also began
delivering energy storage inverters to a Fortune 500 company for a
micro-grid demonstration using an advanced battery technology.
The value of the Prosol contract to Sustainable Energy is significant:
-- Market values for energy storage inverters and related electronics are
estimated to range from $0.30/watt to more than $0.70/watt depending on
volumes, power ratings, and the level of system complexity.
Conservatively, if Prosol captures only a small part of its projected
40% share of the German market, revenues to Sustainable Energy will be
-- The agreement also validates the unique value of Sustainable Energy's
low voltage technology for a multi-billion dollar market opportunity and
positions the Company to make the platform a market leader in all the
major markets of the world.
Power electronics for low voltage energy storage are proving to be a
more significant technological challenge than expected, requiring
complex multi-component solutions that add cost, impact efficiency and
increase the storage required to serve a basic load. Only a very few
competitive products exist that meet the smart grid controls needed to
access financial incentives, and there have been multiple product
recalls and delayed availability announcements in the past few months.
The Company's proven low voltage platform simplifies system design,
reduces system component count, and eliminates multiple conversions to
reduce system cost, increase system efficiencies, and meets all tough
utility smart grid controls at a fraction of the cost of competitive
-- The Company's target for 2013 is to replicate the Prosol OEM partnership
with one or more partnerships for the Japanese market. Japan is expected
to be an even larger energy storage market than Germany, driven by very
aggressive support for solar and concerns about energy stability due to
a faltering nuclear industry.
-- The Company believes that near term US demand will come from integrators
of micro-grids for military and remote industrial applications -
telecommunications, oil and gas and mining - where solar is being used
to displace diesel fuel. In this application, the energy storage
inverter is used to provide grid stability and load balancing to
optimize the solar and diesel combinations.
In the U.S. the Company's target is to embed its inverter in the product
development process of battery manufacturers and integrators of micro-
grids in the expectation that these relationships will lead to longer
term supply contracts as the U.S. market defines itself.
Sustainable Energy's strategy is to focus its resources on executing a higher value OEM model in each of the major smart grid and micro-grid markets with a view to embedding its platform in multiple product offerings. While this is a higher risk strategy than a conventional branded distribution model, the investment in marketing is much less and the overall return on investment is also much higher.
Sustainable Energy believes that it can neutralize the scale advantages of incumbent inverter companies by combining its technology driven cost and performance advantages with a product that allows its target customer base to create their own proprietary value added products with a simple electronics sub-assembly that provides the core inverter functions.
Unlike the solar power market, where inverters are sold as separate products, and systems are pieced together by local installers, the evidence is that energy storage systems will be sold as fully integrated consumer oriented products, easily installed in basements by mainstream building trades.
Instead of solar installers or distributors, Sustainable Energy's customers will be (i) battery manufactures looking to deliver a value added solution to multiple energy management system integrators and (ii) energy management system integrators like Prosol, looking to build their solutions around a low cost platform that is easily adapted to new battery technologies as they emerge.
Sustainable Energy's OEM model is unique to the industry enabled by the Company's bi-directional low voltage platform which was designed from the outset to be technology agnostic (fuel cells, solar PV and batteries) and is software configurable by the OEM partner for multiple product applications. The result to the OEM partner is lower total system cost, greater reliability and faster speed to market with new product iterations than can be replicated by any other product in the market.
Financial Highlights for the Second Quarter and Six Month Period Ended March 31, 2013
In line with its change in strategic direction, during the second quarter of 2013, the Company focused its resources almost entirely on securing its position in the energy storage sector. At the same time, it continued to improve operating efficiencies to reduce its break-even point. Total operating costs were reduced 18% over the same period last year to $1,743,142.
Product costs continue to be reduced enabling attractive margins under the Prosol contract. Combined with a much lower breakeven point, the Company is poised to achieve profitability and positive cash flow very quickly as product sales ramp in the next Quarter.
About Sustainable Energy:
Sustainable Energy (www.SustainableEnergy.com) designs and manufactures advanced power electronics for distributed smart grid and micro-grid applications. Advanced power electronics are a critical interface between all distributed generation and storage systems devices, ensuring the delivery of high quality alternating current (AC) to the power grid as well as providing utility control over the interconnection and power quality.
Sustainable Energy's bi-directional low voltage energy storage inverter directly connects low voltage batteries to the grid with the power industry's highest round trip (battery charging and discharging) efficiencies. The inverter meets tough utility smart grid standards such as Germany's VDE 4105 which is becoming a global standard and enables full utility control over the battery dispatch and power quality functions.
The inverter's software configurable platform has been designed from the ground up to be easily integrated into power management systems, with the industry's only open industry standard communications software to support a highly cost competitive OEM strategy and allowing rapid development of OEM partner product solutions.
Sustainable Energy's platform is based on patented breakthroughs in power inverter design that enable its platform to convert high current/low voltage DC into high quality AC with conversion efficiencies that are materially higher than anything in the market with an inherently lower cost structure.
Forward Looking Information
The reader is advised that some of the information herein may constitute forward-looking statements within the meaning assigned by National Instruments 51-102 and other relevant securities legislation. In particular, we include: statements concerning the value of future demand for energy storage inverters; statements concerning the efficiency and cost advantages of our energy storage inverters; statements concerning the Sonnenbatterie product and statements concerning Prosol's market share expectations.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof.
Readers are also directed to the Risk Factors section of the Company's current Annual Information Form which may be found on its website or at www.sedar.com. The Company does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Sustainable Energy Technologies Ltd.
Chief Executive Officer
Michael. Carten @sustainableenergy.com
Alliance Advisors, LLC
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Source: Sustainable Energy Technologies Ltd.
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