While global solar and wind power generating capacity is expected to double within the next 5 years, low-cost and long-lasting mass energy storage solutions are required to effectively store all the energy that is generated.
Today, MGX Minerals Inc. announced that its wholly owned subsidiary ZincNyx Energy Solution Inc. has received the first shipmemt of components for its 20 kW output / 120 kWh storage zinc-air fuel cell battery. The design for mass production of these components, using high volume injection molding, was completed at the end of June and the transititon to tooling and production has proceeded smoothly. MGX also provided an update on the proposed spin-out of ZincNyx into a publicly traded company and the dividend payment in kind of ZincNyx shares to MGX shareholders. The financial audit of ZincNyx has been completed and filing of the preliminary prospectus is expected shortly.
The new design of the regenerator and fuel cell parts will provide 4 times the capacity of earlier models, a landmark achievement which comes at a perfect time when other mass storage battery-type manufacturers are facing supply constraints and production delays, with the conserquence of long waiting times for end-users.
USA Today recently reported that Tesla´s Powerwall currently has a 6-9 month wait time while Tesla´s Solar Roof has a installation date date of 2019 or beyond. With the current delay on Powerwall and Solar Roof, Tesla may have lost “first mover advantage” after creating interest in such categories, says Dylan Miller, solar research analyst with Ibis World. “People will gravitate to whoever has product if the savings are there to be had now.”
ZincNyx has developed a patented regenerative zinc-air flow battery that efficiently stores energy in the form of zinc particles and contains none of the traditional high cost battery commodities such as lithium, vanadium, or cobalt. Since both regeneration and fuel cell modules are constructed from a number of identical cells, they constitute ideal candidates for manufacture by volume production methods such as injection molding, die casting and extrusion. These methods require stringent design rules to be followed to ensure efficient and reliable parts production. ZincNyx has now completed the design and tooling process for the highest volume parts with the active participation of its chosen suppliers.
According to Bloomberg, the world has recently accomplished the landmark figure of 1 TW (terawatt; equals 1,000 GW/gigawatt) of wind and solar/photovoltaic (PV) power generating capacity: "Looking back on the first terawatt of wind and solar reveals just how far these two sectors have come. Total installed capacity has grown 65-fold since the year 2000, and more than quadrupled since 2010... Wind still represents the majority of the installed base at 54%, but is likely to relinquish this lead soon."
Most interestingly, Bloomberg estimates that the second terawatt of wind and solar capacity will be reached by mid-2023 and will cost 46% less than the first terawatt which required approximately $2.3 trillion of capital expenditures to deploy.
In another report, Bloomberg stated: "Typical utility-scale PV systems were about 25% cheaper per megawatt last year than they were two years earlier. Solar investment globally amounted to $160.8 billion in 2017, up 18% on the previous year despite these cost reductions."
In its latest forecast, Bloomberg´s GREMO ("Global Renewable Energy Market Outlook") revised its estimates for wind (BLUE) and solar/photovoltaic (yellow) power generation in 2018, including a sharp increase in utility-scale PV power generation as this sector "has exceeded our expectations". At the end of this year, utility-scale PV will be the largest provider of energy, accounting for nearly 33% of the total. Bloomberg is not the only one underestimating the exceptional growth speed of utility-scale PV. Private and institutional investors are also missing out on a booming subsector, probably due to the lack of a direct exposure being publicly listed. ZincNyx may become one of the very few pure-play battery stocks targeting, amongst others, the utility-scale wind and solar industries which Bloomberg estimates to invest $1.23 trillion within the next 4 years to double capacities to 2 TW.
Photovoltaic and wind power are a cornerstone to remote and distributed energy solutions. Solar, combined with a mass storage system such as that currently under production by ZincNyx, serve to replace or augment diesel generators, have broad applications in energy storage for residential and commercial grid load balancing and backup, and provide primary as well as backup power for industrial sites, telecommunications, large scale computer server arrays (e.g. bitcoin mining) and military bases.
“Solar is going to be the key...” ZincNyx CEO Suresh Singh told Business in Vancouver. He expects the energy grid is going to change fundamentally in the coming years after companies spent years focusing on solar energy solutions. Because the price of solar has fallen so significantly recently, Singh said the focus is now being directed toward storing all the energy that is generated. Energy storage solutions have increasingly become a holy grail of sorts for tech companies.
According to TechnologyReview:
"But there’s a problem with this rosy scenario. These [lithium-ion] batteries are far too expensive and don’t last nearly long enough, limiting the role they can play on the grid, experts say. If we plan to rely on them for massive amounts of storage as more renewables come online...we could be headed down a dangerously unaffordable path. Not only is lithium-ion technology too expensive for this role, but limited battery life means it’s not well suited to filling gaps during the days, weeks, and even months when wind and solar generation flags. This problem is particularly acute in California, where both wind and solar fall off precipitously during the fall and winter months. This leads to a critical problem: when renewables reach high levels on the grid, you need far, far more wind and solar plants to crank out enough excess power during peak times to keep the grid operating through those long seasonal dips, says Jesse Jenkins, a coauthor of the study and an energy systems researcher. That, in turn, requires banks upon banks of batteries that can store it all away until it’s needed. And that ends up being astronomically expensive...And that´s assuming lithium-ion batteries will cost roughly a third what they do now."
The decoupling of ZincNyx´s storage and the power generation is key in driving the cost of storage way down, i.e. additional storage is very cheap to add.
ZincNyx´s patented zinc-air battery technology allows for low cost mass storage of energy and can be deployed into a wide range of applications. Unlike conventional batteries, which have a fixed energy/power ratio, ZincNyx’s technology uses a fuel tank system that offers flexible energy/power ratios and scalability. The storage capacity is directly tied to the size of the fuel tank and the quantity of recharged zinc fuel, making scalability a major advantage of the flow battery system. In addition, a further major advantage of the zinc-air flow battery is the ability to charge and discharge simultaneously and at different maximum charge or discharge rates since each of the charge and discharge circuits is separate and independent. Other types of standard and flow batteries are limited to a maximum charge and discharge by the total number of cells as there is no separation of the charge, discharge and storage components.
The ZincNyx mission is to provide the lowest cost, longest duration and most reliable energy storage system for markets involving renewables firming, peak shaving, diesel generator replacement, telecom facility back-up, electrification of ferries and tug boats and electric vehicle charging support.
With a portfolio of 20 granted patents and an experienced management team, ZincNyx is now ready to start commercialization of the product.
Full version / The new design of the regenerator and fuel cell parts has resulted in a new 20 kW output / 120 kWh storage zinc-air fuel cell battery, which will provide 4 times the capacity of the above shown earlier model, a 5 kW system.
Update on Spin-Off of ZincNyx to MGX Shareholders
MGX today also provided an update on the proposed spin out of its wholly owned subsidiary ZincNyx into a publicly traded company (the “Transaction”) and the dividend payment in kind of ZincNyx shares to MGX shareholders of record (the “Proposed Distribution”). The financial audit of ZincNyx has been completed and filing of the preliminary prospectus is expected shortly. The proposed Transaction is being structured of which 66.6% of outstanding shares will be owned by MGX and 33.3% will be paid as a dividend to MGX shareholders of record at June 29, 2018.
Further to the Prior Release (see press release dated April 3, 2018), MGX intends for ZincNyx to become a standalone company following the spin out by way of a dividend in kind of ZincNyx shares by MGX. The Proposed Distribution is expected to be made by way of ZincNyx filing a prospectus (the “Prospectus”) with securities regulatory authorities in the jurisdictions where MGX is a reporting issuer (the “Securities Regulators”) in order to qualify the Proposed Distribution of ZincNyx Shares to MGX Shareholders such that the ZincNyx shares to be delivered under the Proposed Distribution are not expected to be subject to any statutory hold periods. The Proposed Distribution will not occur unless or until a receipt for the final Prospectus is obtained from the Securities Regulators.
The Company has not yet made any application to list the ZincNyx Shares for trading on an exchange, no market currently exists for the ZincNyx Shares, and the Prior Release is qualified in its entirety by this news release.
The Prospectus will constitute a public offering of the ZincNyx Shares only in those jurisdictions where they may be lawfully offered for sale and therein only by persons permitted to sell such securities. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The ZincNyx Shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold in the United States, unless pursuant to an exemption from such laws.
Updated Chart (15 min. delayed): XMG.CA - MGX Minerals Inc.
Shares Issued & Outstanding: 122,655,926
Canadian Symbol (CSE): XMGCurrent Price: $0.85 CAD (08/08/2018)Market Capitalization: $104 Million CAD
German Symbol / WKN (Tradegate): 1MG / A12E3PCurrent Price: €0.556 EUR (08/08/2018)Market Capitalization: €68 Million EUR
Report #72 “MGX Moves to the Big Time, Acquires Chilean Lithium Brine Projects"
Report #71 “MGX provides Update on Deployment of Several Plants for Rapid Lithium Extraction and Wastewater Treatment in Alberta“
Report #70 “The Drills are Turning at MGX-Belmont‘s Kibby Basin Lithium Joint Venture in Nevada“
Report #69 “MGX Engages Hatch Engineering for Scale-Up of its Rapid Lithium Extraction Plant in the Western United States“
Report #68 “MGX and Belmont to Start Drilling at Kibby Basin Lithium Project in Nevada on Saturday“
Report #67 “MGX Expands to Argentina, Home to One of the Largest and Richest Lithium Resources in the World“
Report #66 “MGX and Belmont Form Nevada Lithium Joint Venture at Kibby Basin“
Report #65 “MGX-Highbury Expand Work to Gasify Petcoke into a Synthetic Crude Oil Equivalent“
Report #64 “MGX Delivers Update on Commercial Deployment of its Wastewater Treatment and Lithium Extraction Systems“
Report #63 “MGX is Drilling for Solar Grade Silicon Metal in British Columbia“
Report #62 “MGX-ZincNyx Now Ready To Start Commercialization Of Battery Systems For Mass Storage Of Energy“
Report #61 “MGX Minerals Raises $15,5 Million in an Oversubscribed Financing to Speed Up Lithium and Advanced Material Projects“
Report #60 “Sneak Preview of Big Oil Entering the Business of Big Batteries“
Report #59 “MGX Wins Industry Leadership Award from S&P Global Platts“
Report #58 “MGX Nears Commercial Deployment of 4 Petrolithium and Water Treatment Systems in Alberta“
Report #57 “MGX Announces Quadrupling of Power Output of Zinc-Air Fuel Cell Battery“
Report #56 “MGX Sets The Record Date For Its First Dividend“
Report #55 “The First ZincNyx Energy Storage Plant to be Deployed in New York City“
Report #54 “MGX in Final Stages of Commercial Deployment, Second Petrolithium Contract Already in the Making“
Report #53 “MGX-Highbury Accomplish Almost Complete Gasification of Petcoke, Produce High-Grade Vanadium Concentrate“
Report #52 “MGX Set to Alter Lithium Landscape, Partners with Investment Bank Heavyweight Capstone Headwaters“
Report #51 “Congratulations! MGX Nominated in 2 Categories as a Finalist for the S&P Global Platts Metals Awards“
Report #50 “MGX Gets Serious About Magnesium, Engages Hatch for Magnesium Metal Scoping Study“
Report #49 “MGX to Acquire and Commercialize Clean Technology for Extraction of Lithium and Aluminum from Spodumene“
Report #48 “MGX Minerals Issues PEA for a World-Class Magnesium Project in British Columbia“
Report #47 “High-Grade Battery Metals From Dirty Petcoke“
Report #46 “Big Times Ahead For Several Joint Ventures from MGX Minerals“
Report #45 “MGX Partner Broadcasting on US Television“
Report #44 “The Big Rethinking Begins: Multiple Lithium Projects in Chile Test the Rapid Lithium Extraction Technology from MGX“
Report #43 “Global Lithium Dominance? MGX Doubles Performance of Lithium Extraction Filters“
Report #42 “Scores of Tail Winds for MGX becoming a Leader in the New Energy Economy“
Report #41 “MGX Goes Big, Develops Utility-Scale Battery Storage System“
Report #40 “Positioned to Profit from Transition to New Energy Economy“
Report #39 “MGX Assembles Dream Team For California Lithium Strategy“
Report #38 “MGX: The Next GreenTech Energy Giant“
Report #37 “MGX Partners with Highbury Energy to make Petroleum Coke more Clean“
Report #36 “Technological Breakthrough in the Mass Energy Storage Industry“
Report #35 “Eureka! MGX Starts Developing Silica Projects after Acquisition of Mass Storage Battery Technology“
Report #34 “MGX Going Big on Petrolithium: The first large-scale integrated petroleum and lithium project ever developed“
Report #33 “Driving into the Realms of Tesla & Co: MGX Acquires Mass Storage Battery Technology from Teck Resources“
Report #32 “Backed by Private and Institutional Heavyweights: MGX cashes up for Lithium Extraction and Exploration“
Report #31 “MGX Revolutionizes the Lithium World - Commissions First Rapid Lithium Extraction System“
Report #30 “Full Steam Ahead: MGX Engages Senator Polanco (Ret.) to Head California Lithium Brine Strategy“
Report #29 “MGX to Target Geothermal Market for Extraction of Lithium and Gold“
Report #28 “MGX Minerals Commences Development of the World‘s First Petrolithium Field“
Report #27 “Canadian Government Backs MGX Minerals‘ Petrolithium Cleantech“
Report #26 “MGX Minerals Solves the Magnesium Problem of the Lithium Industry“
Report #25 “Hard-Rock Lithium Exposure for MGX“
Report #24 “One of the Largest Initial Oil Estimates in US History“
Report #23 “MGX starts Petrolithium pilot plant to deliver hard facts for strategic partners“
Report #22 “Time to bet: Sprott takes a position in MGX“
Report #21 “Petrolithium: First Come First Served“
Report #20 “Successful Independent Verification of the MGX Lithium Extraction Technology“
Report #19 “MGX to Drill the World‘s First PetroLithium Well in Utah“
Report #18 “MGX Reports Upgrading of Lithium Brine from 67 to 1600 ppm Lithium“
Report #17 “MGX technology nominated for prestigious Katerva Award, the Nobel Prize of Sustainability“
Report #16 “Unconventional oil play legend Marc Bruner to take MGX and PetroLithium to the next level“
Report #15 “Total Conviction: MGX forms PetroLithium Corp. to expand into the US oilfield brine markets“
Report #14: “MGX Extracts Lithium from Oil Wastewater - Begins Monumental Integration with Big Oil“
Report #13 "MGX Partners with Oil Major on Lithium Brine, New Energy Industry Facing Fundamental Shift“
Report #12 "Game Changing Potential: MGX Minerals‘ Pilot Plant for Rapid Production of Lithium Nears Completion“
Report #11 "MGX assays 34 g/t gold from surface sampling in British Columbia“
Report #10 “Official: MGX owns magnesium worth multi-billions of dollars and starts pilot plant shortly“
Report #9 “One of the world‘s largest lithium resources on the horizon?“
Report #8 “Ready for significant lithium brine work in Alberta“
Report #7 “At the forefront of Alberta‘s lithium brine riches“
Report #6 “Pioneering Lithium in Alberta: MGX Minerals Teams Up“
Report #5 “Time to Put a Lithium Production Process in Place“
Report #4 “MGX Minerals Taps Into Canada‘s Potentially Largest High-Grade Lithium Resources“
Report #3 “MGX Minerals Receives Mining Lease for 20 years (in British Columbia!)“
Report #2 “MGX Minerals Accelerates Towards Production“
Report #1 “MGX Minerals Plans To Enter The Magnesium Market“
Disclaimer: This report contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. Rockstone Research and MGX Minerals Inc. cautions investors that any forward-looking information provided herein is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the MGX´s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the MGX´s profile on SEDAR at www.sedar.com. Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds a long position in MGX Minerals Inc. and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in MGX Minerals Inc. Note that neither MGX Minerals Inc. nor Zimtu Capital Corp. have reviewed all of the content prior to publication and may not agree with statememts made herein.
Disclosure: I am/we are long MGXMF.