Ener1 and JSC Mobile GTES Sign Strategic, Five-Year Framework Agreement
NEW YORK and ST. PETERSBURG, Russia, June 16, 2011 /PRNewswire/ -- Ener1, Inc. (NASDAQ: HEV) and Russia's JSC Mobile GTES (MGTES), a whole-owned subsidiary of the Federal Grid Company (FGC) of Unified Energy System (MICEX: FEES), today announced that they have signed a strategic framework agreement to contemplate the manufacture of lithium-ion-based uninterruptible power supply (UPS) systems as part of a five-year engineering and framework agreement. The proposed UPS systems -- which the companies anticipate will have an initial total capacity of 27.8 MW -- will provide back-up power for internal substation needs for one hour, including switchgear, lighting, communications and other needs. FGC believes this lithium-ion solution will have expanded capabilities beyond the company's current lead acid solution, which is only able to back-up the switchgear for a short duration and does not provide back-up power for any other internal substation needs.
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Ener1 and MGTES previously signed a $40-million energy storage supply contract in November 2010. This new framework agreement follows a new Memorandum of Understanding (MOU) signed by both companies in March 2011. The purpose of the framework agreement is to set forth the parameters of what is contemplated to be a five-year supply arrangement. The effectiveness of the agreement is contingent upon specific conditions, including the parties negotiating and determining the number of units to be supplied, unit pricing, services to be provided, completion of a feasibility study, board of director approval by both companies, and finalization of other technical specifications.
The contemplated UPS systems are intended to provide near-instantaneous power back-up for FGC's substation equipment to enable a more reliable bulk power transmission system. Coupled with Ener1's battery management system, the UPS systems constitute a crucial element of FGC's 'smart' grid, which will enable electric power production, transmission and consumption to be controlled and optimized in real-time with a view toward ensuring maximum performance. MGTES would handle the on-site delivery, installation and subsequent operation of the UPS systems.
“We are planning to deploy 45 units over two years from western Russia to the country’s Far East,” stated Oleg Bragin, general director, Mobile GTES. “This is a genuinely innovative project that will bring the level of development of the Russian energy industry, as a whole, to a qualitatively new level.”
"We're pleased to be working with FGC and MGTES to provide grid energy storage solutions that we believe offer a quick and highly cost-effective way to address some of the power quality challenges on the company's electric grid," stated Ener1 Chairman and CEO Charles Gassenheimer. "Russia, and other emerging markets, has the opportunity to surpass technologies used elsewhere, because their need to innovate is so essential and their networks are already stretched thin. With more than 800 substations being proposed to receive UPS system upgrades, we believe leveraging the advantages of advanced, lithium-ion batteries for grid energy storage could make smart business sense."
The strategic framework agreement between the two companies was signed during the fifteenth-annual St. Petersburg International Economic Forum, which is one of the world's leading events to bring together prominent government leaders and officials, corporate executives and industry experts to deliberate on key issues of the global economy.
About Ener1, Inc.
Ener1, Inc. is a publicly traded (NASDAQ:HEV) energy storage technology company that develops compact, lithium-ion-powered battery solutions for the transportation, utility grid and industrial electronics markets. Headquartered in New York City, the company has more than 700 employees with manufacturing locations in the United States and Korea. Ener1 also develops commercial fuel cell products and nanotechnology-based materials. For more information, visit Ener1's web site at www.ener1.com.
About Federal Grid Company
Open Joint-Stock Company Federal Grid Company of the Unified Energy System provides unified national electric grid management to the power industry in the Russian Federation. It offers energy transmission services; technical connection services, including services for electric power consumption (delivery), as well as providing actual connection of consumers' electric devices to the electric grid facilities to legal entities and individuals; and technical maintenance and repair of facilities in the unified national electric grid system. The company also invests in and develops the unified energy system.
About Mobile GTES
Joint-stock company Mobile GTES is a wholly owned subsidiary of Federal Grid Company. It was established in 2006 to deploy and operate mobile gas turbine power stations with a view to maintaining the reliability of the Moscow region's power grid at peak hours in the most effective, safe and ecologically pure manner. Mobile GTES was also created to be able to promptly relocate such power plants to remote regions of Russia with inadequate electricity supplies. The company possesses vast experience in commissioning and operating mobile gas turbine power plants and selling capacity and power on the wholesale market.
Safe Harbor Statement
Certain statements made in this press release constitute forward-looking statements that are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. All forward-looking statements speak only as of the date of this press release and the company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
Media Contacts:
Ener1, Inc.
Brian Sinderson
+1 212.920.3500 X117
[email protected]
SOURCE Ener1, Inc.
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