Exro Technologies Inc. (TSX: EXRO), a leading clean-technology company specializing in proprietary propulsion and battery control technologies, has announced a strategic agreement with a premier North American ‘Energy as a Service’ (EaaS) partner for commercial businesses with repeatable footprints. This agreement marks a significant milestone for Exro’s new division, Cellex Energy Inc. (‘Cellex’), and its EaaS partner.
The agreement encompasses a binding purchase order for 10 of Exro’s Cell Driver™ pilot units, with plans to deploy these units in key US energy markets, specifically focusing on California and New England. This strategic partnership is crucial for both parties. Cellex’s new EaaS partner specializes in providing comprehensive energy management solutions to a diverse portfolio of commercial clients across the USA. Their expertise lies in leveraging unique tools, innovative vendor relationships, and expert skills to support clients in reducing energy consumption, enhancing sustainability, and driving their businesses towards net-zero emissions.
The EaaS partner will assume ownership and operation of the Cell Driver™ energy storage systems, with installers already identified and currently undergoing training on the technology. These units are slated for deployment in key energy markets, prioritizing customers in California and New England. Host sites have been meticulously qualified, and equipment specifications are being finalized for these locations, ensuring a smooth integration process.
John Meekison, General Manager of Cellex, expressed his enthusiasm about the agreement, stating, “This Agreement represents an exciting launch for Cellex, coming directly after achieving ETL certification to UL standard 9540. We are eager to see our Cell Driver™ units in action and the resulting benefits for both our clients and shareholder value. This partnership presents the first of many opportunities for future customer growth and further solidifies our commitment to advancing sustainable energy solutions.”
Beyond geographical reach, these projects will showcase the versatility of the Cell Driver™ by demonstrating its operation in various modes, including stand-alone backup power, solar-assisted backup power, and grid-tied features such as demand charge management, solar self-consumption, and net-zero export. The systems will actively participate in local demand response programs, functioning as part of a virtual power plant (VPP). Several sites are planned to feature multiple Cell Driver™ energy storage systems, highlighting the technology’s scalability and effectiveness.
As part of this agreement, 10 Cell Driver™ units will be purchased for deployment during a 12-month pilot phase. The manufacturing of these units will be scheduled as project sites are selected and timelines are confirmed. Payment terms include six invoicing milestones starting from the time of site selection up to two years from delivery. Exro will maintain a security interest against the Cell Driver™ units sold until all payments are fulfilled. Following the successful completion of the pilot phase, the parties will collaboratively evaluate plans for future Cell Driver™ rollouts.
The 90kW / 192kWh Cell Driver™ is Cellex Energy’s inaugural product offering for the Commercial and Industrial (‘C&I’) energy storage market. While still in its early stages, the global C&I market size was valued at US$221.8 Billion in 2023 and is projected to reach US$435.7 Billion by the end of 2030, with a CAGR of 9% during the forecast period of 2024-2030 (Source: Verified Market reports – August 2024). In the US, Wood McKenzie forecasts the installation of 2.6GW of energy storage capacity over 2024 to 2028 (Source: Wood McKenzie, US Energy Storage Monitor, June 2024). Typical end users in this market segment include restaurants, telecommunication equipment facilities, machine shops, EV charging stations, and others where managing energy use economics and minimizing power disruptions are essential for business operations.
Cell Driver’s distinctive patented technology introduces a new paradigm in battery management, operating at the cell level. Individual cells can be managed, turned off or on, and isolated from other cells. This capability enhances safety, provides visibility into and management of battery health, and extends ‘up time’ during maintenance and repair cycles. Integrated with Cellex’s state-of-the-art energy management system (‘EMS’), Cell Driver is ideally suited for managing a user’s complete energy needs, encompassing grid-delivered power, solar, wind, hydrogen, or any combination of these energy sources.
The Cell Driver Pilot program represents a crucial step in validating the technology’s utility and value proposition for end users as Cellex expands its marketing and sales initiatives.
Exro Technologies Inc., now expanded through the strategic acquisition of SEA Electric, is a leading clean technology company that has developed cutting-edge power control electronics. Its innovative suite of solutions, including Coil Driver™, Cell Driver™, and SEA-Drive®, enhance the capabilities of electric motors and batteries, offering OEMs a comprehensive e-propulsion solution that delivers unmatched performance and efficiency. Exro recently established Cellex Energy Inc., a wholly owned subsidiary of Exro, with the goal of launching Exro’s energy storage product lines. Together, Exro and Cellex are revolutionizing global energy consumption, accelerating the adoption of a circular electrified economy by achieving more with less – minimizing energy consumption for maximizing results.
For more information, please visit Exro’s website at www.exro.com. To view their Corporate Presentation, visit www.exro.com/investors. Follow Exro on social media @exrotech.
