Metallic Power Receives Funding From Hydro-Quebec Capitech and Minnesota Power -- Company Gains Another $4 Million in Venture Capital Funding --
15 March 2000
Metallic Power Receives Funding From Hydro-Quebec Capitech and Minnesota Power -- Company Gains Another $4 Million in Venture Capital Funding --
SAN DIEGO--March 15, 2000--Metallic Power, the leading developer of rapidly refuelable zinc/air fuel cells, announced today that it has closed its second round of venture capital funding, with $4 million in new investments and two new corporate investors. Hydro-Quebec Capitech and Minnesota Power join current investors Nth Power and Arete Corporation, each investing $1 million in Metallic Power."Adding Hydro-Quebec Capitech and Minnesota Power to our growing list of investors will give Metallic Power the resources it needs to take the technology to the next level," said Dr. Jeff Colborn, CEO and president of Metallic Power. "This support enables us to rapidly move our product development forward and prepare us for the testing of 50 customer evaluation units at the end of this year."
"Metallic Power's zinc/air fuel cell technology is in line with Capitech's mission of investing in enterprises offering energy-related technologies and allowing our shareholder, Hydro-Quebec, one of the world's largest electric utilities, to become commercially more efficient," said Denis Levesque, director of investments for Capitech. "We look forward to being an integral part of Metallic Power's growth and development."
"New technologies will play a major role in the nation's future energy supply," said Bob Edwards, executive vice president of Minnesota Power. "Fuel cell technology has significant potential benefits for shareholders and consumers."
In its first round of venture capital funding, Metallic Power received $1 million from both Nth Power and Arete Corporation.
Metallic Power's zinc/air fuel cell system consists of zinc air fuel cells and a zinc recycling unit. The fuel cell generates electricity when it combines zinc pellets (1mm diameter) with oxygen from the air in the presence of an electrolyte, forming zinc oxide, a safe white powder commonly used in skin creams and sunblock. The recycling unit uses wall electricity to convert the zinc oxide back into fresh zinc, which is then recombined with the electrolyte to be reused as fresh `fuel.' In a backup power application, the two components can be packaged together to form one complete power and regeneration system.
Compared to lead/acid battery powered equipment, Metallic Power's zinc/air fuel cell system can reduce operating costs dramatically. Zinc is one of the earth's most common elements, and offers up to ten times the energy per weight and ten times the energy per volume of traditional batteries. Compared to internal combustion engines, zinc/air fuel cells are zero emission and quiet. Overall cost of ownership is comparable to that of gasoline powered equipment.
Hydro-Quebec CapiTech, the wholly owned venture capital arm of Hydro-Quebec, was formed in 1997, as a way to ensure access to energy related products and services and to capitalize on the opportunities created by the deregulation of the energy industry. CapiTech invests with strategic intent in companies that can create demand for, and increase the performance of Hydro-Quebec's business units.
Minnesota Power, Inc. is a multi-services company with corporate headquarters in Duluth, Minnesota. Minnesota Power holdings include the second largest wholesale automobile auction network in North America; the leading provider of independent auto dealer inventory financing; the largest investor-owned water utilities in Florida and North Carolina; significant real estate holdings in Florida and a low-cost electric utility that serves some of the largest industrial customers in the United States. For more information, visit http://www.mnpower.com.
Metallic Power Inc., founded in 1995 and based in Carlsbad, CA, near San Diego, is the leader in developing rapidly refuelable electric power sources that reuse zinc -- creating a new economical clean fuel for electric vehicles and power systems. For more information, visit http://www.metallicpower.com.