Eguana Technologies Inc. (EGT:TSX.V; EGTYF:OTCQB) just announced the signing of a multiyear master agreement with its German automotive partner to supply AC battery systems for residential storage in a fast-growing region. Eguana designs and manufactures grid interactive energy storage systems based on its proprietary power control technology.
The company noted that the multiyear agreement has a forecasted value of $13 million in the first year alone; the initial product release is valued at $3.2 million. Shipments are expected to begin in May 2018.
Eguana CEO Justin Holland told Streetwise Reports, "The scale of the agreement is a major step forward for the company and represents a forecasted revenue increase of 1,700% over prior year from $700,000 to $13 million."
"This agreement is Eguana's most significant contract to date." Ė Nikhil Thadani, Mackie Research
"We have continued to work with our partner over the past two years, providing power controls expertise through multiple development cycles, technical analysis and field trials," Holland stated.
He noted that "maintaining this important relationship was critical to Eguana's long-term success and our commitment has resulted in a private label agreement for our AC Battery in one of the fastest growing residential storage regions."
Eguana stated, "at the request of our partner, both the German automotive partner's name and initial target jurisdictions will remain confidential at this time."
CleanTechnica reported last July that Navigant Research has estimated that "the global annual capacity additions for the distributed energy storage systems (DESS) sector will grow from 684 MW in 2017 to 19,700 MW by 2026." Alex Eller, research analyst with Navigant, noted, "Worldwide, the energy storage industry continues to gain momentum, with an increasing number of new projects being announced and commissioned."
Last week, Eguana announced that, along with its European distribution partner Tt&M, it has begun accepting preorders for its "All in One" residential energy storage system in Germany.
"The 'All in One' has been custom engineered for the German self-consumption market," the company noted, "and includes end-to-end design integration that delivers breakthrough patented technology advancements in remote diagnostic and recovery features. These features eliminate the need for complex and costly service and support programs and pave the way to scalable, reliable and efficient product installations to better serve customers and installers."
In Germany, about 80,000 households and commercial operations had invested in solar and storage systems, Eguana reported. According to GTAI (Germany Trade and Invest) research, "PV-battery systems could reach an annual installation volume of around 50,000 systems by 2020."
Eguana is also continuing to see growth in Hawaiian sales. On Jan. 10, the company announced that this month it is shipping approximately $1 million worth of AC batteries to the state.
The state mandates 100% renewable energy by 2045. Eguana notes that its "fully integrated and certified AC battery is available today, fully compatible with all PV systems installed or pending installation on the islands, and meet all new U.S. interconnection requirements."
Eguana's head of sales, Brent Harris, stated, "We continue to execute and estimate to have over 40% market share of the CGS (customer grid supply) market in Oahu. CGS+ and Smart Export programs, which require advanced power controls to manage power flow, will be rolled out in early 2018 and should continue to drive volume."
Mackie Research analyst Nikhil Thadani, in a Jan. 29 update, noted that this agreement is the "most significant contract to date" and "signifies a high level of confidence in EGT's AC Battery solution, in our view."
"Today's agreement is very important to EGT's future success and pertains to a fast growing residential storage market. We would not rule out additional geographies, based on uptake in this initial market," Thadani stated.
Eguana has around 167 million shares outstanding, 189 million fully diluted. About 40% are controlled by insiders. The company's market cap is approximately $53 million.
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1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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