VANADIUM POWER SOLUTIONS “VPS” FAQs
Q What makes the VPS venture good for MKBY?
A. The
VPS venture fits perfectly into several segments of MKBY’s
business strategies.
1.
By joining forces with T/J Technologies, MKBY has locked up Vanadium
supply rights for new energy storage applications designed by a group of
research scientists widely recognized as leaders of scientific research for
Vanadium oriented energy storage technologies.
2.
MKBY is seeking contracts for supply of high purity Vanadium to
accommodate financing requirements for the building of a C$360 million mine,
refinery and manufacturing facility at the Lac Doré
Vanadium deposit near
3.
Our Dermond subsidiary and affiliate
Ptarmigan Off-Grid Power complement T/J’s electricity storage inventions
nicely. Ptarmigan participant Envitech specializes in
the integration of electricity storage technologies with traditional and
alternative power sources such as wind turbines. Ptarmigan has identified
specific energy storage applications that are without solutions. Ptarmigan is
developing a unique marketing strategy for in-grid and off-grid power quality,
cost and UPS electricity solutions and Dermond’s
Vertical Axis Wind Turbine. VPS will develop specific products for these
applications using T/J’s technologies.
4.
As part owner of VPS, one must realize that the T/J alliance allows
MKBY to participate in the development of a new industry “the storage of
energy”. MKBY is now able to participate in any downstream values created by
VPS activities. Also as an owner of VPS, MKBY opens up new horizons for
strategic alliances with stakeholders in the electric storage industry
expanding MKBY’s foothold in a new industry.
5.
In summary: T/J has the invention; Ptarmigan has the ability to develop
an integration device to make the invention function, identify market
applications and support product marketing; and Lac Doré
has the ability to provide massive quantities of high purity Vanadium oxides
inexpensively.
Q. What is EnergySpan?
A. EnergySpan is a new product combining ultracapacitor and battery technologies designed for specific markets. The Uninterruptible Power Supply “UPS” market was targeted because there isn’t a solution available today for applications requiring high power bursts over five to twenty seconds. EnergySpan can fill a critical need for industrial UPS demand.
Q.
What is an ultracapacitor?
A. An ultracapacitor is a hybrid combination of a battery and a capacitor. Conventional capacitors have high power densities but low energy storage, discharging in a few microseconds. Batteries have high-energy storage capability but perform poorly when delivering short high power pulses (density). Ultracapacitors store high levels of energy in a small volume and then release that energy in great power bursts. Ultracapacitors fill a niche by bridging the “energy vs. storage” gap between batteries and traditional capacitors.
Q. Are there any other potential applications for EnergySpan?
A. Yes, Off-Grid power generation devices like diesel, wind and solar are unable to provide continuous power. MKBY’s expectations of EnergySpan’s capabilities leads us to believe the device may be an excellent solution for these applications. Other applications could include telecommunications, cell phones, computers and electric vehicles. Further research must be performed to determine the viability of these applications.
Q. How is the motor vehicle industry being targeted for EnergySpan technology or any other technology identified by T/J?
A. Ultracapacitors, working in
conjunction with batteries and other systems found in electric and hybrid
vehicles, have tremendous potential. Again, additional research and development
projects are required.
Q. How does EnergySpan
differ from the Vanadium Redox Battery “VRB”?
A. A VRB is a bulk energy storage battery capable of supplying
huge quantities of electricity over several hours. EnergySpan stores
much smaller quantities of electricity and is capable of supplying great power
bursts for a few seconds. EnergySpan is more suitable
for short duration UPS makets.
Q. What markets are suitable for EnergySpan and VRBs?
A. VRBs are ideal when there is a need
to store and supply vast amounts of electricity over great periods of time such
as load-leveling or power storage and distribution applications. EnergySpan is much more suitable for UPS applications and
those applications where short-term power bursts are needed when power sags,
blips and surges occur.
Q. What is the growth potential for UPS markets?
A. Enormous. Demand for power quality increases every year as
businesses require continuous power for more and more electronic devices. In
the last 20 years, consumption of electricity in the
Q. How does VPS plan to market EnergySpan?
A. VPS will seek to market EnergySpan
through strategic alliances with industry leaders specializing in sales and
service of products to targeted user applications. Ptarmigan will have a role
in marketing through its efforts to market products for the Off-Grid
applications.
Q. Have there been any discussions with potential marketing partners?
A. Yes, the company that introduced T/J to MKBY is recognized as
a leader in sales and service for the telecommunication industry with strong
ties to the computer and auto industries. This company has expressed a serious
interest in joining VPS and discussions are ongoing.
Q. Is there any special marketing strategy for EnergySpan?
A. Yes, MKBY’s affiliate company,
Ptarmigan Off-Grid Energy, has determined that EnergySpan
has tremendous potential when used within its Electricity Management System “
MKBY will also promote the same
marketing strategy for EnergySpan as it is
contemplating for other Vanadium-based energy products placing strong emphasis
towards product leasing. Leasing eases a new product into the market by
reducing the technology risk for the end user and deferring large costs at the
time a product in purchased. For MKBY, leasing can create significant
downstream values for our shareholders. VPS intends to pursue leasing or rental
of EnergySpan units for larger units required for
industrial applications. Outright sales are contemplated for other
applications.
Q. What do you expect Vanadium Carbide demand to be for EnergySpan?
A. Until final engineering of the EnergySpan product is completed, one can only hazard a guess. However, if EnergySpan were to use the same amount of Vanadium Carbide as T/J’s ultracapacitor, a two second, 100 kW, unit for industrial applications would require about 2.2 pounds or 1,000 grams. Larger or smaller units for longer or shorter power bursts would require proportionately more or less Vanadium. The annual demand would likely be millions of pounds per year.
Q. What is the expected gross annual revenue from the sale of Vanadium Carbide for EnergySpan units?
A. A final selling price has not yet been determined and
engineering of a commercial EnergySpan product has
not been completed. But, say for instance, if the Lac Doré
Vanadium product selling price were to be US$20 per pound and demand was 10
million pounds, gross revenue would be US$200 million annually. Additionally,
MKBY would receive its share of VPS revenues from the sale or lease of EnergySpan units. Lac Doré is
capable of producing massive quantities, reducing the selling price to a
fraction of current prices (US$93/pound).
Q.
When do you think the first EnergySpan unit
will be sold?
A.
Most likely some units will be pre-sold as early as sometime next year
in anticipation of successful completion of Phase I & II described below.
However, commercial installation of these units won’t start until sometime in
early 2004. It will be easier to
forecast once development Phase I is completed.
Q.
How do you plan to supply Vanadium for sales before Lac Doré begins production?
A. MKBY is planning to begin a pilot operation for the production of various Vanadium oxides early next year using small quantities of Vanadium from test recovery of Lac Doré ore and Vanadium supplied by other producers. Although production quantities would be much smaller than Lac Doré, sufficient Vanadium supplies could be provided to address start-up demand for EnergySpan units at very attractive prices competitive with current producers.
Q. What is the development schedule?
A. Current planned phased VPS development schedule and timeline
is as follows:
I. Engineering design work for
Uninterrupted Power Supply “UPS” applications – three months
II.
Build working EnergySpan units and obtain UL
and CSA approvals in preparation for commercialization – twelve to eighteen months
post Phase I
III.
Commercialize and market EnergySpan UPS
applications – coincidentally with I and II above
IV.
Research, engineer and commercialize other EnergySpan
applications – post or coincidentally with I, II and III
V.
Research, engineer and commercialize other T/J identified Vanadium
electricity storage technologies for other market applications – post or
coincidentally with I, II, III and IV
Q. How do plan to fund the development schedule?
A. Phase I is funded by MKBY’s cash
contribution on the formation of VPS. Strategic partner(s) who join VPS will be
responsible for funding all other Phases.