|By Marketwire .||
|July 24, 2012 08:30 AM EDT||
MILWAUKEE, WI -- (Marketwire) -- 07/24/12 -- ZBB Energy Corporation (NYSE MKT: ZBB), a leading developer of intelligent, renewable energy power platforms, announced today that the final milestone in the Joint Development Agreement ("JDA") with Honam Petrochemical has been achieved, resulting in the final JDA payment to ZBB. This first phase of the collaboration spanned from April 2011 to June 2012 and culminated with shipment of a ZBB EnerStore to Honam in June 2012. The two companies extended the first phase to September 30th, 2012 and are currently discussing manufacturing ramp and joint marketing entry plans.
Honam Petrochemical Company, a multi-billion dollar, diversified producer of petrochemicals and advanced synthetic resins, has identified energy storage as a strategic priority business. Honam's due diligence search for a leader in the field of energy storage led them to ZBB Energy and its zinc-bromide technology, which is recognized as the leading commercially available flow battery.
ZBB benefited from the relationship through cost savings and performance achievements in the ZBB EnerStore product, which has been in development since January 2010 and began shipping in early 2012.
Specifically, Honam and ZBB worked together to refine the materials and manufacturing process for the ZBB EnerStore battery in module sizes from 50kWh to 500kWh. With Honam's position in the plastics supply chain and their strong research capability, the two companies expect to be able to quickly reach global scale production. During the collaboration, prototype systems were shipped and tested at the Smart Grid test center at Jeju Island, and the Honam development labs in Korea. Jeju Island has been designated as a small-scale test area for a national 2.75 trillion won (USD $2.4 billion) Smart Grid project. In Korea's Smart Grid model, the distribution of electricity from the main power grid gives way to the more efficient management of a micro-grid system where each home would have either a wind turbine, or photovoltaic ("PV") panels installed while being connected to the grid. Honam plans to establish a beta site to demonstrate the ZBB EnerSystem as a critical component of the Korean Smart Grid Project.
"Honam Petrochemical has identified energy storage as a priority business, so we looked to ZBB Energy to form a strategic partnership, as they are the leader in zinc-bromide flow battery technology. Together, we are working to establish flow battery technology as the best energy storage solution for Smart Grid applications," said Honam. "We expect the joint development effort with ZBB to play a very significant role in supporting Honam's growth targets in the chemical flow battery ("CFB") business in Korea and Asia."
"Our collaboration with Honam will enable global scale production and accelerate market penetration of our zinc-bromide flow battery by giving us access to critical supply chains, strong R&D, and a powerful channel partner," said Eric Apfelbach, CEO of ZBB Energy. "Honam and ZBB share the vision that energy storage is a 'Megatrend' opportunity as solar and wind energy reach grid parity and global scale."
Under terms of the agreement, Honam paid ZBB USD $3 million over a four-quarter period and gained non-exclusive rights to sell the ZBB EnerStore product in Japan, Thailand, Taiwan, Malaysia, Vietnam and Singapore. Honam will have exclusive rights to manufacture and sell the ZBB EnerStore product within Korea.
About ZBB Energy Corporation
ZBB Energy Corporation (NYSE MKT: ZBB) designs, develops, and manufactures advanced energy storage, power electronic systems, and engineered custom and semi-custom products targeted at the growing global need for distributed renewable energy, energy efficiency, power quality, and grid modernization. ZBB and its power electronics subsidiary, Tier Electronics, LLC have developed a portfolio of integrated power management platforms that combine advanced power and energy controls plus energy storage to optimize renewable energy sources and conventional power inputs whether connected to the grid or not. Tier Electronics participates in the energy efficiency markets through their hybrid vehicle control systems, and power quality markets with their line of regulation solutions. Together, these platforms solve a wide range of electrical system challenges in global markets for utility, governmental, commercial, industrial and residential end customers. Founded in 1986, ZBB's platforms ensure optimal efficiencies today, while offering the flexibility to adapt and scale to future requirements. ZBB's corporate offices and production facilities are located in Menomonee Falls, WI, USA with offices also located in Perth, Western Australia. For more information, visit: http://www.zbbenergy.com
About Honam Petrochemical Company
Honam Petrochemical Company is a multi-billion dollar chemical manufacturer headquartered in Seoul, South Korea. Honam manufactures a variety of petrochemical products including synthetic resins, synthetic industrial materials including ethylene glycol and ethylene oxide for making polyester, automobile antifreeze solutions, methyl methacrylate, benzene, propylene and ethylene. A subsidiary of Lotte, Honam is one of the largest industrial conglomerates in Korea, with operations throughout Asia. Lotte's business lines include hotels, tourism, department stores, heavy industry, distribution and electronics. For more information on Honam, visit www.hpc.co.kr.
Certain statements made in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended that are intended to be covered by the "safe harbor" created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "could," "seek," "intend," "plan," "estimate," "anticipate" or other comparable terms. Forward-looking statements in this press release may address the following subjects among others: statements regarding the sufficiency of our capital resources, expected operating losses, expected revenues, expected expenses and our expectations concerning our business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our most recently filed Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Lewis W. Kreps
Three Part Advisors, LLC
Three Part Advisors, LLC