Ener1 and JSC Mobile GTES Sign Strategic, Five-Year Framework Agreement
NEW YORK and ST. PETERSBURG, Russia, June 16, 2011
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.
(Logo: http://photos.prnewswire.com/prnh/20080312/CLW018LOGO )
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 thenumber 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
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
SOURCE Ener1, Inc.
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