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Redefining long-duration storage.
Investors Presentation
92-0008-V42
(CSE: ZAIR – OTC: MGXRF – FSE: 0E9)
26/Ago/2020
This presentation contains forward-looking information that involves various risks and uncertainties regarding future events. Suchforward-looking information can include without limitation statements based on current expectations involving a number of risksand uncertainties and are not guarantees of future performance of the Company, such as final development of a commercialproduct(s), successful trial or pilot of company technologies, no assurance that commercial sales of any kind actually materialize;no assurance the Company will have sufficient funds to complete product development. There are numerous risks anduncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed inthe forward-looking information, including: (i) adverse market conditions; (ii) risks regarding protection of proprietary technology;(iii) the ability of the Company to complete financings; (v) the ability of the Company to develop and market its future product;and (vi) risks regarding government regulation, managing and maintaining growth, the effect of adverse publicity, litigation,competition and other factors which may be identified from time to time in the Company's public announcements and filings.There is no assurance that the DTCR business will provide any benefit to the Company, and no assurance that any proposed newproducts will be built or proceed. There is no assurance that existing “patent pending” technologies licensed by the Company willreceive patent status by regulatory authorities. The Company is not currently selling commercial Energy Storage systems. Actualresults and future events could differ materially from those anticipated in such information. These and all subsequent written andoral forward-looking information are based on estimates and opinions of management on the dates they are made and areexpressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update theseforward-looking statements.
Forward-looking statement
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• Patented energy storage technology that decouples the link between energy and
power
• Zinc8 is a leader in Cost per kWh for long-duration energy storage (8+ hours)
• Technology scales for projects with increasing storage duration requirements
• Unique approach with abundant, low-cost raw materials that are safe,
environmentally friendly
• Largest public electric utility in the U.S. (New York Power Authority) one of three
Zinc8 projects underway
• Potential market for commercial deployments is enormous with Zinc8 technology
dovetailing with global energy transition
Investment Highlights
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Disruptive technologies are emerging in the power sector
Hybrid Flow Battery True Flow BatteryReactant on two electrodes plates Reactant on one electrode plate Reactant on no electrode plates
Secondary Cell
1-4 hours 4-8 hours 8 hours and above
C o u p l e d
Energy
D e c o u p l e d
Power
Li-ion Lead-AcidZinc-Bromide Iron Redox
Sodium-Sulfur Zinc-IronVanadium Redox
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Types of batteries
Energy-Power
C o u p l e d
Energy-Power
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o High energy densityo High efficiencyo Low maintenanceo Can provide very high current
o Expensiveo Highly flammable (thermal runaway)o Power and energy capacity directly coupled
(expensive to scale)
o Almost unlimited energy capacityo No capacity degradation over timeo Electrolyte is inherently safe and non-flammable
o Low energy density (large footprint)o Scarce and expensive components (vanadium
pentoxide)o 70% of the value of the battery relies on the
electrolyte
Short-duration: Lithium-ion
Long-duration: Vanadium Redox
Existing battery technologies
$72M CADsince 2002
20 US patents+ 4 pending
+280,000 man-hours in R&D
Zinc-air technology is developed in Carlsbad, California.
Further developed behind-the-curtain by mining-giant Teck Resources under the name Zincnyx Energy Solutions
New R&D facility started operations in Vancouver, BC.
The company went public on the Canadian Stock Exchange (CSE)
Rebranded as Zinc8 Energy Solutions
1997
2004
2013
2019
2020
TODAY3 demo projects
announced
Zinc8 Energy Solutions at a glance
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The Zinc-Air Flow Battery (ZAFB) system from Zinc8 EnergySolutions is an energy storage solution designed to serve a widerange of long-duration applications for microgrids and utilities.
Our patented design and robust chemistry makes our system themost cost-effective, safest, and most flexible long-durationstorage solution. The ZAFB system has a modular architecture thatcan be sized from 20 kW to the order of megawatts.
Introduction to Zinc8’s technology
3. Whenever power is needed, the zinc particles are delivered
to the Power Stack, recombining them with oxygen togenerate electricity. The zinc oxide (ZnO) by-product isreturned to the storage tank for later regeneration.
1. Power from the grid or renewable source is used to
generate zinc particles in the Zinc Regenerator. Oxygen isreleased to the atmosphere as a by-product.
2. The zinc particles are flowed to the Storage Tank andmaintained in potassium hydroxide (KOH) electrolyte untilrequired.
1 2 3
The Zinc-Air Flow Battery (ZAFB) system from Zinc8 Energy Solutions is an energy storage
solution designed to serve a wide range of long-duration applications for microgrids and utilities.
How it works
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Durable. Zero capacity fade over extensive lifetime
Robust. Full discharge cycles. Same performance.
Low cost. The longer the duration requirements, the lower the cost per kWh
Safe. Non-flammable and non-toxic
Sustainable growth. Stable supply chains for mass manufacturing
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The how behind the lowest cost for long-duration storage
Technology advantages
11References:[1] Tyson, Madeline, Charlie Bloch. Breakthrough Batteries: Powering the Era of Clean Electrification. Rocky Mountain Institute, 2019.
The how behind the lowest cost for long-duration storage
$51
$125
0
20
40
60
80
100
120
140
Zinc8 Lithium-ion VanadiumRedox
Ch
emic
al C
ost
of S
tora
ge (
$/kW
h)
Cost of raw materials ($/kWh)
4-hour system 24-hour system
Fuel tank size + electrolyte
Energy-Power Decoupling
Lithium-ion
4-hour system
New Li-ion stacks
24-hour system
Comparison of different technologies for a 100-kilowatt battery system
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By decoupling the linkage between
power and energy, and using low-cost,
abundant materials, our system is
capable of reducing its capital cost
dramatically for longer-duration
applications.$0
$100
$200
$300
$400
$500
$600
$700
$800
2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50
Storage Duration (hours)
Vanadium Redox
We strategically have chosen to target the 8-hour-plus market
$250/kWh
8 hours
20 hours30 hours 40 hours
$127/kWh$100/kWh $86/kWh
Li-ion
References:[1] Viswanathan, V. et all. 2012. Cost and performance model for redox flow batteries. Journal of Power Sources. Pacific Northwest National Laboratory, Richland, WA.
[2] Zhang, M.; Watson, J.; Moore, M.; Counce, R. 2012. Capital Cost Sensitivity Analysis of an All-Vanadium Redox-Flow Battery. Journal of the Electrochemical Society.
[2] Fu, Ran, Timothy Remo, and Robert Margolis. 2018. 2018 U.S. Utility-Scale Photovoltaics-Plus-Energy Storage System Costs Benchmark. Golden, CO: National Renewable Energy Laboratory.
[3] Cole, Wesley, and A. Will Frazier. 2019. Cost Projections for Utility-Scale Battery Storage. Golden, CO: National Renewable Energy Laboratory. NREL/TP-6A20-73222.
Capital cost per installed kWh
High Range
Low Range
Improved OperationsHelp optimize operations of diesel or natural gas gensets, reducing wear-and-tear and operating costs.
Peak Demand ManagementReduce grid capacity needs during peak periods.
Load ShiftingBuy and store electricity at off-peak price to sell at peak price.
Curtailment avoidanceAvoid output curtailment at peak generation times and prevent loss of energy production.
Non-Spinning ReserveProvide fast ramp-rate to meet grid requirement for online dispatch within a short delay of operating reserve.
Back-UpMaintain grid resilience in the event of an outage.
Renewable Energy DispatchControl renewable energy generation according to market needs or at request of power grid operators.
Increase Penetration of RenewablesStore renewable energy production for peak and base load consumption.
Generation Distribution Transmission Microgrid
Utilities
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✓ ✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓ ✓
✓
✓
✓
Solutions
Utilities
Commercial & Industrial
Remote Microgrids
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Peaking plants replacement(US)
T&D investment deferral(Globally by 2050)
Long-duration storage market
Peak Demand Management+ Backup Power(US)
Renewable energy baseload (Globally by 2030)
Battery duration portfolio for increasing renewable penetration
Conclusion: The market needs a low-cost, long-duration energy storage system
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In the US alone, more than 200
cities and counties, 11 states (incl. New York State, California), Washington DC, and Puerto Rico, have mandated 100% renewable energy sources by 2050 or earlier
0%
20%
40%
60%
80%
100%
2018 2030 2040 2050
Ren
ewab
le E
nerg
y Pe
netr
atio
n
Long-duration storage: why is it important?
2-12 hours: Intraday Balancing
12-24 hours: Interday Balancing
24+ hours: Seasonal Balancing
Surrey, BC
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75.9 House by Omer ArbelWorld Architecture Festival Winner
New YorkBrooklyn, NY
Winner of the NYPA’s Innovation Challenge
✓ DE operates 100+ CHP sites for future pipeline in New York and California
✓ Recognized developer within the industry
System size: 100kW / 1.5MWh(15-hour duration)
System size: 40kW / 160kWh(4-hour duration)
System size: 100kW / 1MWh(10-hour duration)
See press release See press release See press release
✓ Largest state public utility in the US✓ Leads the state in accelerating new
technologies✓ Access to an exclusive network
Path to commercialization: demonstration projects
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Shares outstanding 78,635,700 (125,738,681 fully diluted)
Warrants outstanding
3,856,300 @ $0.35, expiry Nov 30/2020
7,258,330 @ $0.08, expiry Sep 11/2021
28,512,400 @ $0.16, expiry Feb 10/2023
Options outstanding4,688,000 @ $0.21, expiry Sep 12/2024
2,787,951 @ $0.32, expiry Feb 18/2025
Market capitalization $17.3 million (@ $0.22 per share)
Long-Term Debt $nil
Insider ownership 7%
Institutional ownership n/a
Tickers CSE: AIR, OTC: MGXRF, FSE: 0E9
Capital structure
John McLeod – COO▪ Senior manager at several high technology companies
▪ Experience in managing a diverse set of technologies
▪ Background in product development, product introduction and quality systems
▪ Member of the Institution of Engineering and Technology (MIET) and a Chartered Engineer (C.Eng)
Dr. Simon Fan – CTO & VP of Product Management
▪ Over 16 years of experience in R&D, particularly in electrochemical characterization and metal air electrochemical system
▪ Responsible for the NYPA's deployment & directing product
development
▪ Holds M. Eng. in Engineering Management and a Ph.D. from the University of British Columbia and is registered as a Professional Engineer (P.Eng)
Ron MacDonald – CEO
▪ 35 years of both public and private sector experience
▪ Previously Canadian Parliamentary Secretary of International Trade
▪ Former President and CEO of the Council of Forest Industries from 1997-2002
▪ President of NRStor Remote Communities and Mines
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Management team
Tristan Sloan – VP of Engineering
▪ Over 10 years of experience in R&D, product development and product manufacturing.
▪ Extensive experience in hydrogen and metal air fuel cell technologies.
▪ holds a B.Eng. in Mechanical Engineering, a M.Sc. in Sustainable Energy Systems from Chalmers University of Technology, and an MBA from the Beedie School of Business
▪ Registered as a Professional Engineer (P.Eng)
Ron MacDonald – Executive Chairman
▪ 35 years of both public and private sector experience
▪ Previously Canadian Parliamentary Secretary of International Trade
▪ Former President and CEO of the Council of Forest Industries from 1997-2002
▪ President of NRStor Remote Communities and Mines
Michael Reimann – Director▪ Over 45 years of experience in senior corporate management roles for both public and private
companies
▪ Graduated in Engineering Physics from Royal Military College of Canada
▪ Obtained Ph.D. in Physics from University of British Columbia
David Hodge – Director
▪ President & Director of Zimtu Capital Corp.
▪ Over 25 years of experience in the management and financing of publicly-traded companies
▪ Board member of Commerce Resources Corp.
▪ Director of mining exploration companies since 199619
Board of Directors
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Contact Information:
zinc8energy.com
Thank you
Kristian Schneck/Eric NegraeffIncite Capital Markets
P: (604) [email protected]
