What We Do
Eguana Technologies (TSX: EGT.V) designs and manufactures high performance power electronics for residential and commercial energy storage systems. Eguana has more than 15 years experience delivering grid edge power electronics for fuel cell, photovoltaic and battery applications and delivers proven, durable, high quality solutions from its high capacity manufacturing facilities in Europe and North America.
With thousands of its proprietary energy storage inverters deployed in the European and North American markets, Eguana is the leading supplier of power controls for solar self-consumption, grid services and demand charge applications at the grid edge.
Our mission is to bridge the gap between electricity supply and demand by making distributed energy storage more economic, flexible and reliable to enable the highest penetration of renewable energy sources into the grid.
Our vision is to become the world leading supplier of intelligent power electronics for grid tied residential storage applications.
Eguana is the leading supplier of power controls for solar self-consumption, grid services and demand charge applications at the grid edge.
Contact: 6143 4th Street SE, Unit 3 Calgary, AB T2H 2H9, Canada
Eguana Skunks Tesla
Aug 16, 2016
Between 2014 and 2024 solar/wind power systems or Distributed Energy Storage Systems (DESS) are predicted to increase some sixty-fold from 200MW to greater than 12,000MW according to research firm Navigant. That would put the market for DESS at $16.5 billion. Elon Musk plans on cashing in on the demand for this new technology with his Powerwall 2.0home battery to be produced in his $5 billion "Gigafactory” in Nevada spanning 135 acres for the building alone.
A tiny Canadian technology company based in Calgary has already skunked Tesla with an award winning battery/power converter that is more powerful, more portable and easier to install than the Tesla equivalent. The average home installation would need two of the Tesla Powerwall devices but Eguana Technologies(EGT-V) can provide the same storage capacity with one unit.
A DESS unit is composed of three different elements. You have a power source that can be solar, wind or even the grid itself during non-peak hours. You also have an inverter/power control unit that converts the input power for passing on either to the user or to a storage unit, some form of battery for later use. The power control unit also has to be able to pass higher voltage power back to the grid when necessary or desirable. The third part of the triangle is a battery or storage unit.
Ambrose Evans-Pritchard of The Telegraph just wrote an interesting article about the technology of batteries for DESS in the last week. In the piece he quotes another industry expert, the consulting group Mckinsey, as saying they estimate the total market as $90 billion by 2025.
Evans-Pritchard begins the article suggesting the next energy revolution is no more than five to ten years away. It will be led by battery technology as costs are decreasing far faster than either solar or wind power inputs. Batteries for storage are literally the missing link but costs are plummeting. Between 2011 and 2014, prices for storage dropped 50%. Elon Musk believes he can lower the cost of DESS to $100 per kWh by 2020 at which point solar becomes competitive with carbon based power generation.
Storage for energy is the missing link, the holy grail of renewable energy. Solar cells and wind turbines have been around for yonks even if hardly economic. But the wind doesn’t always blow and the sun doesn’t always shine. An affordable way to store excess energy for use when it is most needed or to pass back into the grid makes renewable energy possible. At some price it even will surpass the value of carbon-based energy with all its attendant problems. An inexpensive battery/storage system makes the entire concept viable.
Eguana Tech is a fifteen-year-old company that is brand new. The company spent those years and $30 million developing the technology for the power control units that sandwich between the solar panels and the battery storage units. They simply have the best inverters/power control units in the market being 4-12% more efficient than the competition in power conversion.
The company has installed units in over 5,000 storage systems. It is a 3rd generation platform with 35+ MW operational. They have a variety of patents protecting their technology with both a low cost and high performance advantage over other companies.
I said the company was fifteen-years old but is brand new. With the decreased costs of both solar cells and battery/storage units, a year ago the company made the decision to transition from design to market penetration intending to ride the wave of commercialization as lower costs drive demand higher by 45% per year.
Eguana has cash flow now with revenue trending at a $6 million per year run rate. With the 18 design wins over the past twelve months in the USA, Europe, Australia and Japan, it’s time to convert design into sales on a massive scale. By my figures, with their penetration in the California, Hawaii, Australian and German market, the company could achieve sales of $60 million per year in the next 18 months. Gross margins should be in the 25% to 35% range.
Automobile manufacturers are starting to enter the residential DESS marketplace with Daimler and Nissan indicating an interest and participation. In June of 2016 Eguana announced delivery to an unnamed German carmaker of their Power Control Solution (PCS) for integration in a European designed DESS.
Currently potential and actual customers are battery manufacturers, distributors of solar or wind power systems, and electric utilities. Eguana’s competitive advantage is in their software technology that optimizes storage performance and power conversion both in and out of the storage unit with a 4-12% advantage over other manufacturers.
The race is not to the swift nor the battle to the brave but that is the way to bet. What the market is going to reward now will be the ability to pivot on a dime. The DESS market is fluid but giant in potential. It will be as important for a company to be able to change direction as to have a technological advantage. Every jurisdiction has different legal and technical requirements. Eguana is targeting the most attractive and economically potential markets first without betting the farm on any particular market.
Elon Musk is bringing a lot of attention to both the automobile and the battery storage market with his $5 billion dollar investment in the future. In one way, he is actually doing the marketing and customer education for Eguana. With the size and penetration of the batteries from the Gigafactory into the market, Tesla will be naturally slower to pivot because of their mass. Eguana can modify products to fit changes in demand in a far shorter time frame. So they get the benefit of his marketing yet retain the flexibility of a small company.
In his speech at the Tesla annual meeting on May 31st 2016, Elon Musk said that the production of batteries could be a bigger business for Tesla than the manufacture of electric vehicles. Tesla believes their DESS business could grow from $160 million per year now to over a billion dollars in a couple of years.
For the next fifteen years, renewable energy is going to be “The Next Big Thing” as the decreasing cost of solar, wind power and battery storage solutions make renewable energy competitive with carbon based power generation. Eguana is perfectly positioned to ride that wave of economic opportunity. They have income now with experience in the market place and are aiming at a major push into serious revenue increases in the next year.
Eguana is just entering the most interesting and highest potential growth phase of what everyone believes will be an enormous market. Their ability to change and manage curvilinear growth will be the key to their success and potential down the road. I’ve talked to management at length about their plans and how they see themselves growing with the market. This is a management issue. The demand exists and will continue to expand. The only question is can Eguana expand with the market.
I believe they can and as a result I bought shares in the open market based on my belief they have both the technology and the management bandwidth to transition from a tiny Canadian junior to a major player in a big market.
Eguana shares were as low at $.08 in January before starting a climb to a high of $.39 a share in June. The share price has made a perfectly normal correction down to $.25 this month and has just broken out higher. I expect them to be making a new yearly high shortly. Eguana did a $7 million dollar private placement that closed in early July and is well cashed up for the next year and a half.
With Eguana you are buying blue sky. The company has a market cap of about $60 million Canadian. Based on their prior sales and projections for the future, that would seem perfectly reasonable. But I think investors have to take into account the growth rate of the industry and the potential for Eguana to execute.
Rather than look at a $60 million per year run rate, I think you have to think about a company doing $60 million a year but increasing at an annual growth rate of 45%. If you plug that into a spreadsheet, the numbers get big in a hurry. And the 45% is the average of all companies, not one that is a technical leader in their own niche. I really do believe Eguana has skunked Tesla.
Eguana is an advertiser and as such I am naturally biased. I own shares bought on the open market. Their website is a little too technical for my tastes but it will be easy to follow their financials which will reflect the success or lack of success of their business plan. Do your own due diligence.
June 13, 2016 09:14 ET
Zero-energy homes? Southern California tries them out
FONTANA, San Bernardino County — At first glance, Anthony and Vanessa Genau’s home in a subdivision beneath the San Gabriel Mountains is like any other gracious new suburban dwelling, with open-plan living space, granite countertops and stainless steel appliances.
But, along with 19 other cream, taupe and rust stucco houses that cradle the landscaped playgrounds here, it is actually something else: a large-scale testing ground for an energy system of the very near future.
With a combination of rooftop solar panels, smart thermostats, advanced water heaters and other high-efficiency features, the homes are all built with a similar goal: to make at least as much energy as they use over a year.
It’s a concept known as zero net energy, and the cluster of homes represents one of the nation’s largest experiments to see if zero net energy can be put into wider use.
“It’s not that it cannot be done,” said Ram Narayanamurthy, technical executive at the Electric Power Research Institute, a nonprofit utility-funded group that is conducting the study. “The question that we’re trying to answer is, ‘Can it be done for everyone?’”
That question has particular urgency in California, whose goal is that all new homes be net-zero or the equivalent by 2020. But as the price of installing and operating once-rarefied technologies has plummeted, builders across the country are increasingly offering homes with the promise of comfort along with low — or almost no — electric bills.
Since 2013, the Energy Department has certified about 700 homes as “zero-energy ready,” meaning that the addition of a renewable energy system, generally solar, would offset most or all of its annual energy consumption.
With thousands more in the pipeline, said Sam Rashkin, chief architect of the building technologies office, the department expects to certify roughly 1,000 this year and 3,000 in 2017.
The proliferation of zero-energy homes comes as the power industry and its regulators struggle to adapt an old power system — in which large, centralized power plants distribute energy to thousands of homes — to new approaches and technologies. The explosive growth of rooftop solar in states like Hawaii, Arizona and California has upended not only utility business models but also patterns of supply and demand.
Solar power, by its nature, is intermittent, which places strain on utilities and grid operators that need to meet homeowners’ energy demands at night when the sun is not shining, while also taking in the excess energy rooftop solar systems produce during daylight.
Although the proportion of homes with solar is not high enough in most markets to cause major problems, industry executives and analysts say it is important to begin studying how that and other technologies affect the nation’s power grid now.
“We know very little about how all these devices interact — we have so much to learn,” said Mark Duvall, director of energy utilization at the Electric Power Research Institute. “Hopefully, at the end of the day, we can contribute to a greater understanding of how these technologies work together and what it really means going forward.”
To do that, Narayanamurthy said, it was important to conduct the study, in partnership with the California Public Utilities Commission and its program manager, Itron, in real homes with people using them the way they normally would.
But they also needed to have groups of homes clustered on individual transformers to allow them to compare the results with the traditional method of providing power. With that information, they can determine the value for homeowners and grid system operators of adding features like solar panels, heat pumps and, in some cases, battery storage.
They found a willing collaborator in Meritage, a leading builder of energy-efficient homes, and are expanding the test program to additional subdivisions in Southern California, the Central Valley and the Bay Area.
For buyers, part of the appeal of a home built to be zero-energy is that they do not have to change their behavior to save energy.
At Meritage, the company insulates every house with spray foam, sharply reducing the amount of heating and cooling needed, and allowing smaller or fewer units to be installed. Making the homes even more efficient are dual-pane windows that help retain or keep out heat (depending on the need), LED lighting and advanced water heaters that work by funneling heat from the ambient air into the water.
All of the test homes have SunPower rooftop solar systems, which are among the most efficient on the market. And because they were designed along with the houses, the arrays can be oriented for maximum production.
Half of the test homes also have energy storage systems with LG batteries and Eguana inverters, which help manage the flow of electricity between the solar installation, home and grid, to allow researchers to test and compare how much value they add. The houses come equipped with A.O. Smith water heaters that can be remotely controlled and Trane smart thermostats that can manage all the equipment and can connect to cameras and security systems.
If homeowners feel any effect, it is in the pocketbook, at least initially. The houses, all with three or four bedrooms, cost more than the $373,990 to $476,990 standard for the subdivision about 20 minutes west of San Bernardino. But because the cost is wrapped into the mortgage and paid over an extended period, it is more easily affordable, and the larger payments are generally offset by the savings on energy bills.
“With this stuff thrown in, you can afford a lot more house, and you get a lot more value,” Anthony Genau, 31, said.
Back in the East, where the Genaus’ previous house had a big foyer, their energy bills could go as high as $500 a month. “I’d rather be cold sometimes than see the bill,” Vanessa Genau, 29, said. “It was ridiculous.”
Their energy bill now? About $10.
Eguana Delivers First Units to German Automotive Partner
CALGARY, ALBERTA--(Marketwired - June 13, 2016) - Eguana Technologies Inc. (TSX VENTURE:EGT)(OTCQB:EGTYF) is pleased to announce that it has delivered first units of the power control solution (PCS) developed for its German automotive customer. The units have passed all functional testing detailed in the specification of the previously announced development contract entered in to in March 2016:
Eguana Executes Development Contract With German Automotive Subsidiary
The completed PCS is on schedule for certification and on target for general availability through our partner in late 2016. Volume order negotiations have begun and the Company expects orders to begin shipping in the fall.
"With a general product availability target within 2016 the development teams were under significant pressure to deliver a custom product in less than 90 days," commented Justin Holland, CEO of Eguana. "Through a very tight collaboration this goal was achieved, functional testing was a success and the product will now be certified through the regulatory process and available this calendar year."
The identity of the battery manufacturer cannot be released at this time in order to maintain customer confidentiality and for strategic reasons.
Eguana Announces $6.0 Million Offering of Common Shares
Calgary, AB – (June 9, 2016) – Eguana Technologies Inc. (TSX-V: EGT) ("Eguana" or the "Corporation") is pleased to announce that it has filed a preliminary short form prospectus in connection with a proposed offering of common shares in the capital of Eguana at a price of $0.22 per Common Share for aggregate gross proceeds of up to $6,000,000 (the "Offering") on a best efforts basis. The Offering will be led by Mackie Research Capital Corporation (the "Agent") acting as lead agent and sole book runner in connection with the Offering. Further, BayFront Capital Partners Ltd. has been appointed as a selling group member.
In connection with the Offering, the Corporation has agreed to grant the Agent an over-allotment option, exercisable in whole or in part at any time until the date that is 30 days after the closing of the Offering, to purchase up to an additional 15% of the number of Common Shares sold pursuant to the Offering on the same terms as the Common Shares sold under the Offering to cover over-allotments, if any, and for market stabilization purposes.
The Agent will receive a cash commission equal to 7.5% of the gross proceeds raised under the Offering and will be granted non-transferable compensation options equal to 7.5% of the number of Common Shares sold under the Offering. Each compensation option will be exercisable into one Common Share for a period of 24 months from the closing of the Offering at a price of $0.22 per Common Share.
Eguana intends to use the net proceeds of the Offering to, among other things, improve the Corporation's balance sheet, increase working capital to provide greater supply chain flexibility, and expand product development and customer service capabilities to meet growing demand, in addition to general corporate purposes.
The Offering is being made pursuant to a short form prospectus filed in each of the provinces of Alberta, British Columbia, Ontario and Nova Scotia. A copy of the preliminary short form prospectus is available under Eguana's profile on SEDAR at www.sedar.com.
The Offering is expected to close on or about June 29, 2016 and is subject to certain customary conditions and regulatory approvals, including the approval of the TSX Venture Exchange and the entering into by the Corporation and the Agent of an agency agreement.
This press release does not constitute an offer of securities for sale in the United States or to "U.S. persons" ("U.S. persons"), as such term is defined in Regulation S promulgated under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"). The securities being offered have not been, nor will be, registered under the U.S. Securities Act or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from such registration requirements.
About The AC Battery:
The Eguana AC BatteryTM is a certified, grid ready power control solution pre-integrated with industry leading Li-Ion batteries. Our solution can be seamlessly integrated with a local energy management system or a distributed fleet control network using open communication protocols to provide a fully functional energy storage installation. The AC Battery provides maximum flexibility for system aggregators which want to deploy it as a standalone product, as part of new solar storage installations, or as a retrofit to solar PV installations already in place.
Mar 11, 2016
Eguana Executes Development Contract with German Automotive Subsidiary
CALGARY, ALBERTA--(Marketwired - March 11, 2016) - Eguana Technologies Inc. (TSX VENTURE:EGT)(OTC PINK:EGTYF) a technology leader in power conversion and control systems for distributed energy storage is pleased to announce that it has entered into a development contract with the battery manufacturing subsidiary of a leading German automotive manufacturer.
"The entrance of automotive manufacturers into the stationary storage market signals a transition from the early integrators toward mainstream suppliers," said Martin Duerr, Director of Business Development at Eguana Technologies. "The collaboration is underway, and it is already apparent that the outcome will set a new standard for energy storage products," added Duerr.
"Europe has been a strategic focus over the past several months and we are proud to have been selected by one of the leading brands in the global automotive sector to lend our expertise and deliver our patented technology. The automotive entrants have global reach so they can take full advantage of our globally certified platform," commented Justin Holland, CEO at Eguana Technologies.
Under the terms of the agreement the partner will assume all prototyping costs and the Companies have agreed to complete a commercial contract for product distribution upon customer acceptance of initial prototypes in May.
The identity of the battery manufacturer cannot be released at this time in order to maintain customer confidentiality and for competitive reasons.