In the context of the national double carbon target policy, the layout of Listed Companies in the field of new energy has pressed the acceleration key. On the evening of February 6, A-share listed company China Tianying Inc(000035) of environmental protection and new energy disclosed the latest announcement that its holding subsidiary atlas renewable LLC (hereinafter referred to as “Atlas”) cooperated with energy vault, Inc., a global advanced developer of gravity energy storage technology, on January 30, 2022. (hereinafter referred to as “EV”) signed the technology license agreement, and ev authorized atlas to exclusively use the licensed technology to build and operate gravity energy storage system facilities in China (including Hong Kong and Macao).
On the same day, Atlas also announced a capital increase of US $50 million to Novus Capital Corporation II (hereinafter referred to as “Novus”), a company listed on the New York Stock Exchange. Previously, Novus has reached a final agreement with EV on business merger, and EV is expected to be listed on the New York Stock Exchange in February this year (listing Code: NYSE: nxu).
On this cooperation, Yan Shengjun, chairman of China Tianying Inc(000035) , said: “Energy storage, a key technology, will provide a solution for China and the world to store the renewable energy that would otherwise be wasted, and will play an increasingly important role. This solution is based on natural gravity and is zero carbon. We have a core strategic agreement with ev to design systems in a sustainable way, recycle waste materials and avoid using them Landfill, which will be a strong advantage of our cooperation. “
He also stressed: “with the vigorous development of China’s green new energy industry, energy vault’s world-class innovative energy storage technology will be launched in China this year. I believe we can help accelerate China’s decarbonization.”
Introducing global advanced technology to build China’s first 100mwh gravity energy storage demonstration project
According to the announcement, according to the technology license agreement, Atlas will pay EV an additional US $50 million exclusive license fee in 2022, and EV’s gravity energy storage technology (“GESS”) can be used and deployed in China (including Hong Kong and Macao) within seven and a half years, Including all intellectual property rights (patents, copyrights, software, know-how and trade secrets worldwide, except trademarks), all technical improvements made by eV or atlas or both parties, and the software operating GESS. If the agreed conditions are met, the agreement will be automatically extended for another seven and a half years.
The dual carbon goal highlights the importance of vigorously developing renewable resources, and accelerating the construction of energy storage has become a general trend. However, pumped storage and electrochemical energy storage, which account for 90% of the market, are facing major problems such as limited scalability, low economy and environmental risks. China Tianying Inc(000035) took the lead in using this technology to build a 100mwh gravity energy storage demonstration project in Rudong County, Jiangsu Province. It is planned to be completed and put into commercial operation in 2022 to help achieve the dual carbon goal.
EV’s gravity based solution is based on the proven core energy storage technology of pumped storage power generation, and adopts a modular, flexible and simplified architectural design that is not limited by the same geological conditions of pumped storage power stations. EV’s eVx product platform and energy vault resilience Center (EVRC) solution apply the basic principles of gravity and potential energy, combine advanced material science and proprietary machine vision software, and independently coordinate charging, storage and discharge in grid scale applications.
To achieve this goal, ev integrates the technologies of four mature industries: Crane / elevator, shipping, motor / generator and materials science. Combined with potential energy and kinetic energy cycle, ev system is automated through advanced computer control and machine vision software to create a gravity energy storage innovation, which aims to meet the market demand for 2-12 hour storage duration. EV’s eVx product platform and EVRC system are designed to economically provide 2-4 hours of ancillary services for higher power / shorter duration applications, while being scalable to meet medium (4-10 hours) and long-term (10 hours or more) requirements.
China Tianying Inc(000035) join hands with ev to strengthen the alliance and complement each other’s advantages
EV company has advanced energy storage technology, which mainly realizes energy storage and release by using lifting concrete composite energy storage blocks. Its proprietary energy management system software and gravity energy storage technology are designed to help power stations, independent power producers and large industrial energy users reduce standardized energy costs, At the same time, improve the reliability of power system, especially renewable energy power.
Neil bush, chairman of global consulting firm Neil Bush and chairman of atlas, said: “we see that EV’s unique gravity energy storage and power generation system has a wide range of application prospects. EV’s innovative scheme uses excess power from photoelectric, wind power or other power generation facilities to lift large mobile modules and use gravity release to generate power when needed most.”
China Tianying Inc(000035) as a large international environmental protection and new energy listed company that adheres to promoting enterprise development with scientific and technological innovation, it has accelerated the pace of transformation around the implementation of the national “double carbon” strategy in recent years. At present, it has formed a strategic layout driven by “environmental protection + NEW energy”. With the finalization of technical cooperation and capital increase with EV company, China Tianying Inc(000035) has another important son on the new energy territory.
China Tianying Inc(000035) introduce and promote EV’s advanced energy storage technology, use its innovative storage mode and energy management platform to improve the power generation and use quality of its own renewable energy, realize the high-quality utilization of renewable energy, contribute to the sustainable development of global green, low-carbon and circular economy, and contribute to China’s early realization of the “30-60” goal.
Reinvestment in overseas assets to demonstrate capital operation ability
According to the announcement, Atlas signed the share subscription agreement with Novus on January 30, 2022. Atlas plans to subscribe for five million class A shares newly issued by Novus at the price of US $10 / share, with a total investment of US $50 million.
It is understood that Novus was listed on the New York Stock Exchange in March 2021 and raised 28.75 million shares from the public at an IPO price of $10 / share. In addition, according to the previous merger agreement, private equity financing (pipe) of US $150 million will be conducted at the same time of the formal commercial merger between Novus and EV in February this year, and the price of this round of pipe financing is also US $10 / share.
This also means that the share price of China Tianying Inc(000035) this time is the fair price. China Tianying Inc(000035) said that the capital increase will further lay a solid foundation for broader cooperation between the two sides in the future, and the subsequent performance can be expected.
