TIDMGELN
RNS Number : 2892J
Gelion PLC
15 August 2023
15 August 2023
Gelion plc
("Gelion" or the "Company")
Trading update and new agreements for progressing Zinc-based
Energy Storage solution
Agreements signed with The University of Sydney and Professor
Yuan Chen
Gelion (AIM: GELN), the Anglo-Australian battery innovator,
today provides an update on the Group's trading for the year ended
30 June 2023 and announces the signing of two agreements with The
University of Sydney and Professor Yuan Chen for Gelion's Advanced
Cathode Project, accelerating progress towards its Zinc-based
Energy Storage Solution. The agreements are to utilise Gelion's
recent zinc anode performance breakthroughs leading to Gelion's
next generation of energy solutions - Gelion's Gen 5 Zinc Hybrid
Cell.
Gelion's advanced Zinc technology offers not only a low cost,
safe and robust chemistry, but by deploying it in a novel
bromine-free hybrid cell format it also offers an inherently
non-toxic improved power capability (higher currents) and cycle
life performance. Initially, it is expected to be highly
competitive against lead acid batteries in applications such as
Stand-Alone Power Systems (SAPs), Voltage Regulation, Telecom, and
home Uninterrupted Power Supplies (UPS), with market size estimated
to be over US$7 billion. Following additional later development,
Long Duration Energy Storage (LDES) applications will be targeted
as well.
Trading Update
Unaudited financial results for the year ended 30 June 2023 are
expected to be ahead of current guidance:
-- Revenues for the year are expected to be GBP2.0m ahead
of current guidance of GBP1.7m.
-- Adjusted EBITDA loss* expected to be approximately GBP6.0m,
lower than guidance of GBP6.4m.
-- Net cash at 30 June 2023 was GBP7.3m, marginally higher
than the current guidance of GBP7.1m. The balance at
30 June 2023 is post the GBP3.0m cash used to acquire
the Johnson Matthey Intellectual Property (IP) portfolio
in March 2023.
-- Since March 2023, the Company has been focused on reducing
costs and has taken steps to reduce cash consumption
by c. GBP1.0m on an annualised basis.
*Adjusted EBITDA loss (defined as the Earnings Before Interest,
Tax, Depreciation, Amortisation, & other non-recurring
items)
Highlights of a greements with the University of Sydney to
accelerate progress of Gen 5 Zinc Hybrid Cell
-- Signed two agreements with The University of Sydney,
centered on Professor Yuan Chen and his Laboratory for
Advanced Carbon Research. Gelion's Advanced Cathode Project
will work to jointly progress an advanced cathode for
its Gen 5 Zinc Hybrid Cell. These research streams are
expected to generate commercially relevant prototypes
by the end of 2023.
-- This programme leverages the learnings from the manufacture
of 1,200 Zinc Bromide (ZnBr2) batteries at the pilot
manufacturing facility in February 2023 and the Battery
Management Systems (BMS) development since then, as part
of the R&D pathway to commercialisation.
-- Professor Chen will act as a consultant to Gelion, providing
his guidance and experience to accelerate progress in
both technical and commercial aspects of the Gen 5 Zinc
Hybrid Cell development.
-- Any IP developed during the project will be retained
by Gelion.
The two agreements follow the announcement on 6 July 2023,
regarding the achievement of significantly improved zinc plating
behaviour that reduces cell maintenance requirements. This
breakthrough resulted from the 12--month ZnBr(2) research programme
(R&D Programme) launched earlier this year to achieve all three
key objectives in the one design simultaneously, i.e. safety,
energy density, and cost.
Due to this zinc technology innovation, Gelion was able to
identify and migrate to a zinc-based energy storage solution that
is bromine-free, i.e. a Zinc Hybrid Cell. It will continue to
validate this technology for the remainder of 2023, consistent with
the timelines communicated for Gelion's R&D Programme earlier
this year.
Commenting on the update, John Wood, CEO said: "Zinc is
positioned to be a very important battery element due to its
abundance and low cost. We have now modified the direction of our
Gelion Zinc cell activities toward a hybrid cell that is designed
to both be readily scalable because of its safety, cost, and the
materials chosen, while delivering features important to the market
including robustness, a wide temperature tolerance, the ability to
use a wide range of charge and be stored and transported in a
discharged state.
"We are very fortunate to be able to work with Professor Yuan
Chen to incorporate his research, understanding, and experience to
move both quickly and directly towards our goals. We are conducting
an accelerated validation until the end of this year before setting
out our zinc commercialisation plan and will update soon after. We
are very confident this is a key positive inflection point in our
zinc activities.
"I am also very pleased with the progress we have made so far,
be it the strategic Lithium Sulfur IP acquisition, plans to expand
the Lithium Sulfur R&D facility, pivoting from Zinc Bromine to
Gelion's Gen 5 Zinc Hybrid Cell, or securing the collaboration with
The University of Sydney. These are all a result of focused efforts
on product refinement to reduce costs to market, improve processes
and speed to market. I am also delighted to report that we have
slowed down our cash consumption considerably and will provide an
update on the cost saving measures and the 12-month plan at the
time of announcing our final results."
Professor Chen commented: "I am excited to be part of this
programme as all my research aims to develop efficient,
cost-effective, and reliable energy storage solutions. It is a
perfect fit, underpinning Gelion's commercialisation in a highly
prospective space."
Background
On 6 July 2023, the Company announced that it had identified a
Zinc Energy Storage Solution which will comprise a zinc cell with
an alternate cathode technology to progress beyond challenges that
had been identified with dendritic growth and Bromine sequestration
that were resulting in higher costs and safety issues under forcing
conditions.
Continuing with its progress on the R&D programme, the new
Advanced Cathode Project will aim to develop an advanced cathode
for Gelion's Gen 5 Zinc Hybrid Cell with key research on
carbon-based cathode materials, current collectors, and
advancements in electrolyte formulations that will directly
contribute to increased safety, higher energy density, and cost
improvements.
Professor Chen has a PhD from Yale University and is a Fellow of
The Royal Society for Chemistry (UK), the Royal Australian Chemical
Institute, and the Institution of Chemical Engineers. He also
serves as editor for a highly regarded scientific journal Carbon
(Elsevier) and has over 20 years of experience in researching
energy storage related materials, including zinc-based systems.
The collaboration will initially run for up to two years as part
of an intensive commissioned R&D project including the initial
validation of the technology in 2023 followed by ongoing
development work to progress to commercialisation. This project
will have combined teams from The University of Sydney and Gelion's
experienced zinc cell research team as well as strong involvement
from Gelion's Founder and Principal Technology Advisor, Professor
Thomas Maschmeyer. Importantly, the new system will leverage the
progress achieved with Gelion's zinc anode, prismatic cell design,
and systems, and intellectual property rights relating to key
deliverables of the advanced cathode project will be retained by
Gelion.
CONTACTS
Gelion plc via Alma PR
John Wood, CEO
Amit Gupta, CFO
Thomas Maschmeyer, Founder and Principal Technology
Advisor
finnCap Ltd (Nominated Adviser and Sole Broker) +44 207 220 0500
Corporate Finance
Christopher Raggett
Seamus Fricker
Fergus Sullivan
ECM
Barney Hayward
Alma PR (Financial PR Adviser) +44 20 3405 0205
Justine James gelion@almapr.co.uk
Hannah Campbell
Will Ellis Hancock
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