Swiss company Leclanché secures USD 28.9 million purchase order and USD 6.0 million credit export insurance for landmark Canadian energy storage project
YVERDON-LES-BAINS, Switzerland, April 19, 2016 /PRNewswire/ -- Leclanché S.A. (SIX Swiss Exchange: LECN), the fully vertically integrated, battery energy storage solution provider, has formally received a USD 28.9 million (CHF 27.9 million) purchase order to deliver one of the world's largest stationary storage systems to Independent Electricity System Operator (IESO) in Ontario. This purchase order, covering the primary battery and power conversion equipment for the project, is part of the previously announced USD 45.0 million project construction scope to be managed by Leclanché.
The company also received a USD 6.0 million (CHF 5.8 million) revolver credit insurance policy from Swiss Export Risk Insurance (SERV), the Swiss government sponsored insurance company, which has already worked with Leclanché on its Graciosa Island project. The revolver facility provides additional working capital, which brings another positive impact on the growth cash needs of the Company. This new agreement demonstrates continuous support from SERV with the assignment of the insurance policy for the Ontario Battery Storage System (BSS) supply.
The IESO order represents Leclanché's first major project in North America where the Company is positioning itself to become a leader in the fast-growing North American energy storage market. When installed, the 53 MWh Ontario project, to be distributed across six separate sites will be one of the largest battery energy storage projects in operation in the world. Leclanché has partnered with Deltro Energy Inc. which will procure, design and construct the site facilities, balance of plant scope and high voltage connections to the grid. The Company is targeting the completion of the initial phases of the project on schedule in late 3Q 2016, despite a minor fire which occurred earlier this month in part of its factory in Willstaett, Germany.
This single purchase order represents a 53 percent increase to the Company's 2015 turnover. "Our strategy and execution proves that in today's economic environment, Swiss industrial companies can successfully compete globally in high-technology and fast growth markets to deliver value," said Anil Srivastava, CEO, Leclanché. "We continue to win industry landmark projects thanks to our vertically integrated energy storage system offering and world-class turnkey project delivery capabilities."
"The Company is building upon investments already made and scaling up its operation to deliver between 150MWh to 200MWh of industrial grade energy storage systems in 2017, thus firmly putting ourselves on the path to delivering sustainable profitable growth," said Srivastava.
Leclanché is a fully vertically integrated, battery energy storage solution provider. It delivers a wide range of turnkey energy storage solutions for homes, small offices, large industries, electricity grids, as well as hybridization for mass transport systems such as bus fleets and ferries. Established in 1909, Leclanché has been a reliable partner for battery energy storage solutions for over 100 years. Founded in the tradition of Georges Leclanché, the inventor of the dry cell battery, Leclanché today has a rich portfolio of Battery Energy Storage Systems (BESS) that include bespoke battery systems from industry leading lithium-ion solutions. Since 2006, the company moved from a traditional battery producer to become one of the first developers, manufacturers and provided of lithium-ion cells in Europe. Leclanché's BESS are optimized for various applications, in particular for the integration of renewable energy, diesel fuel reduction, electricity grid-connected ancillary services, peak power shaving for heavy industries, as well as for heavy duty transportation in buses, trams, trains or maritime vessels. Leclanché products are characterized by a very high cycle stability (both for cells with titanate and graphite anodes) and industry-leading long service life resulting into reduced total cost of ownership. With its patented separator technology, which is a core element of lithium-ion batteries, Leclanché is able to make cells with very good safety characteristics, under a highly automated production process. Leclanché operates a fully automated plant for the production of large format lithium-ion cells at an annual maximum capacity of up to one million cells and is capable of running multiple chemistries through production for different cell characteristics. In addition, Leclanché offers a number of specialized battery systems through its Portable Business Unit, such as customer-specific energy storage systems for defence and medical applications. Leclanché also distributes primary and secondary batteries and accessories of other producers.
Leclanché is listed on the Swiss stock exchange. SIX Swiss Exchange: ticker symbol LECN | ISIN CH 011 030 311 9
This press release contains certain forward-looking statements relating to Leclanché's business, which can be identified by terminology such as "strategic", "proposes", "to introduce", "will", "planned", "expected", "commitment", "expects", "set", "preparing", "plans", "estimates", "aims", "would", "potential", "awaiting", "estimated", "proposal", or similar expressions, or by expressed or implied discussions regarding the ramp up of Leclanché's production capacity, potential applications for existing products, or regarding potential future revenues from any such products, or potential future sales or earnings of Leclanché or any of its business units.
You should not place undue reliance on these statements. Such forward-looking statements reflect the current views of Leclanché regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no guarantee that Leclanché's products will achieve any particular revenue levels. Nor can there be any guarantee that Leclanché, or any of the business units, will achieve any particular financial results.