SOURCE: ZBB Energy Corporation

ZBB Energy Corporation

May 08, 2014 08:00 ET

ZBB Energy Offers Update on Progress of JV Partner Meineng Energy and Outlook on the China Market

MILWAUKEE, WI--(Marketwired - May 8, 2014) - ZBB Energy Corporation (NYSE MKT: ZBB) (the "Company"), a leading developer of intelligent, renewable energy power platforms and hybrid vehicle control systems, today updated on the progress of their joint venture partner Meineng Energy and offered their outlook on the China market.

"The current primary driver for energy storage in China is the need to improve the performance and reduce the cost of renewable energy systems, and Meineng Energy has deployed several projects to address this need to a variety of customers, including grid operators," said Dan Nordloh, Executive Vice President of ZBB Energy and Meineng Energy Board Member. "The majority of these systems are being technically evaluated for performance characteristics, with anticipated follow-on requests for proposals pending completion of the evaluation of these projects. We continue to make enhancements to our battery to ensure we meet the stringent requirements of the grid operators, in addition to penetrating the developing market for distributed storage and micro-grid infrastructure. More than 70 megawatt hours of a variety of storage technologies were deployed in the China market between 2010 and 2012, driven by the Government's heavy push on energy conservation, emission reduction, and improvement to the grid infrastructure. This effort is only in its nascent stage and will continue for decades. Energy storage is truly an enabling technology for China."

"Based on contracts closed over the past 24 months, we believe Meineng Energy is the market leader for flow batteries in China, and that it has also penetrated more micro-grid labs throughout the country than any other flow battery company," Mr. Nordloh continued. "Meineng is well positioned to capture the volume deployment of energy storage for renewable energy systems. It's leading edge test and development capabilities has also accelerated improvement to ZBB's products and resulted in new applications such as the world's first emergency back-up power truck utilizing flow battery technology. Meineng has done an excellent job of technology transfer, building a supply chain and manufacturing competency that will support high quality with excellent cost performance. Other than stack production, they have completed the transfer of the supply chain to China for the ZBB EnerStore® flow batteries and many of the related power electronics, an essential element to penetrating the China market, accomplished in a manner that well considers the technology interests of ZBB Energy. As the China market grows, we anticipate our JV structure will create substantial returns to ZBB Energy." 

Mr. Nordloh concluded, "ZBB and Meineng continue to work very closely in a number of areas, most notably engineering and supply chain, as we continue to lower product costs and enhance technical performance. In general, ZBB's partner strategy allows us to accomplish milestones more quickly than we likely could on our own, and opens market opportunities in high growth potential markets that might otherwise be difficult to penetrate."

"Meineng Energy has in a relatively short period of time, built a high performing leadership team, most with multinational company experience. This has enabled the company to create a foundation and operation that will drive long term success in the vital China market, in addition to delivering value to ZBB's product and applications development," said Brad Hansen, General Manager of Meineng Energy. "We look forward to continually enhancing the synergy between the two companies to create more opportunities for success and value in the exciting energy storage market."

About ZBB Energy Corporation

ZBB Energy Corporation (NYSE MKT: ZBB) designs, develops, and manufactures advanced energy storage, power electronic systems, and engineered custom and semi-custom products targeted at the growing global need for distributed renewable energy, energy efficiency, power quality, and grid modernization. ZBB and its power electronics subsidiary, Tier Electronics, LLC, have developed a portfolio of integrated power management platforms that combine advanced power and energy controls plus energy storage to optimize renewable energy sources and conventional power inputs whether connected to the grid or not. Tier Electronics participates in the energy efficiency markets through their hybrid vehicle control systems, and power quality markets with their line of regulation solutions. Together, these platforms solve a wide range of electrical system challenges in global markets for utility, governmental, commercial, industrial and residential end customers. Founded in 1986, ZBB's platforms ensure optimal efficiencies today, while offering the flexibility to adapt and scale to future requirements. ZBB's corporate offices, engineering and development, and production facilities are located in Menomonee Falls, WI, USA with a research facility also located in Perth, Western Australia. ZBB has a joint venture with Meineng Energy, a provider of leading-edge energy storage systems and solutions to the greater China market. For more information, visit: www.zbbenergy.com.

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