VRB Power Announces Progress With Sorne Hill Project and Hires Kieran O’Brien to Assist in Developing Energy Storage Adoption in Irish Market
RICHMOND, BC, July 8 /PRNewswire-FirstCall/ — VRB Power Systems Inc. (TSX-V: VRB), a world leader in innovative energy storage solutions, is pleased to announce recent developments regarding the pending sales contract for a large scale VRB Energy Storage System (VRB-ESS(TM)) at the Sorne Hill Wind farm, located in Buncrana, Ireland (“Sorne”). In addition, VRB Power has contracted Mr. Kieran O’Brien, a previous Managing Director of Ireland’s Energy Supply Board (ESB), to assist the company in its storage adoption objectives within the Irish market.
Several developments have occurred within the Sorne wind farm project. Primary amongst these have been the internal ownership restructuring within Tapbury management, advancements in planning approvals and quantifications of value streams. Several additional steps are in progress including conclusion of licence applications for the VRB-ESS, final building design and trading license. Construction of the 6MW wind farm is complete to foundation stage. Wind turbine delivery is expected in the next three months. VRB Power continues to work closely with Tapbury Management and Sustainable Energy Ireland to complete the requirements necessary to finalize the pending contract.
VRB Power has also recently contracted Mr. Kieran O’Brien to assist the company in its storage adoption objectives within the Irish market.
“We believe that the economics of energy supply in Ireland and the political realities of the EU emission reduction targets will require energy storage of several hundred MW in order to allow wind penetration levels to reach 20% or more,” states Tim Hennessy, CEO of VRB Power, “There are several potential value streams and monetising them requires considerable local knowledge and credibility. Mr O’Brien will be involved in determining a strategy to address any issues on the adoption of storage for VRB Power’s energy storage products and assessment of infrastructure the company should establish in Ireland such as services and project management capabilities including tertiary institution involvement for value engineering” concludes Hennessy.
Mr. O’Brien retired three years ago from his position as Managing Director of ESB National Grid, Ireland’s independent transmission system operator. He served as a member of the Executive Management Group of ESB (Ireland’s Electricity Supply Board) for more than 15 years and worked for the company for more than 30 years. During his time as MD, ESB National Grid, Ireland deregulated its electricity industry and commenced a major programme of renewables investment, mainly in wind power.
In 1998 he oversaw the establishment of ESBI Alberta, a company formed to provide transmission administration services for the province for a period of five years. Mr. O’Brien chaired the board for this period. Mr. O’Brien has also served two three year terms as a member of the Officer’s Council of the World Energy Council (WEC).
Until ten years ago, Ireland was self-sufficient in gas from its Kinsale gas complex. As output declined and demand exceeded supply, it was inter-connected with the UK and now imports more than 90% of its gas through the UK gas inter-connectors. The UK’s North Sea gas production is now also in rapid decline, so Irish gas imports must be sourced as far away as Norway and Siberia. Winter 2008 spot gas price is (euro)13 per GJ at which the “fuel-only” cost of Ireland’s most efficient power plants will be higher than the feed-in tariff paid for wind energy. Ireland’s policy to integrate as much wind energy as possible thus makes economic and strategic as well as environmental sense.
The extreme variability of wind power output can be managed at low rates of penetration but as wind penetration increases, Ireland’s fossil fleet is ill suited to balance the stochastic variability imposed by wind power. Completely new balancing plant is needed that can deliver rapid downward and upward regulation.
VRB can deliver this without consuming fossil fuel, thus preventing the need for curtailment of wind power or the use of inefficient and polluting gas turbines or diesel engines.
Another large potential market within Ireland involves the unique concept of “Autoproduction” – distributed small scale wind and storage which is additional to large scale wind farm and storage integration. This concept applies to small commercial companies or industries where it is economically attractive to install a single medium scale wind turbine (600 to 900kW) with a medium scale modular VRB-ESS in order to shave daytime peak loads for the business entity using wind power generated at night. The spread over many installations of this type will reduce maximum demands on the grid, reduce capacity constraints on distribution feeders and of course contribute to overall emission reduction targets.
By being “modular”, VRB Power intends to develop its energy storage systems as a standard pre-approved concept that can be easily permitted throughout Ireland. The value proposition is simple, clear and is an activity which lends itself to large scale rollout and financial engineering (BOO/T) leveraging efficient tax structures in Ireland.
VRB Power’s strategic approach will be in developing one value stream at a time, which the company believes is the key to energy storage adoption. The value streams include; spinning reserve, ancillary services and market arbitrage (day ahead forecasting). Values from issues such as grid firming/ capital deferral, wind curtailment and emissions reduction (macro policy) are additional considerations which need to be monetised.
About VRB Power
Headquartered in Richmond, Canada, VRB Power Systems Inc. is an energy storage technology developer which is marketing, selling and manufacturing products utilizing the patented VRB Energy Storage System (“VRB-ESS(TM)”). The VRB-ESS is an advanced flow battery technology that can economically store and supply large amounts of electricity on demand and is focused on stationary applications. It is a long life, cost effective, low maintenance, efficient technology that allows for the scalability of power and storage capacity independently. The VRB-ESS is particularly beneficial to renewable energy providers, utilities and end users through its ability to “inventory” electricity, allowing for the optimal match of supply and demand.
Caution regarding forward-looking statements: VRB Power’s press releases may contain forward-looking statements. These statements are based on management’s current expectations and beliefs which are subject to a number of known and unknown risks and uncertainties (including, but not limited to, the risk factors described in VRB Power’s Annual Information Form filed with the British Columbia Securities Commission and available at http://www.sedar.com/) that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. The Company does not assume any obligation to update any forward-looking statements contained in this press release.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Vince Sorace, President
VRB Power Systems Inc.
CONTACT: please contact VRB Power Systems Inc. at (604) 247-3300 orInvestor Relations at (604) 247-5001; Or visit the company’s web site at:http://www.vrbpower.com/