Rap Brochure March 2006 (hr)

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The wind doesn’t always blow when you need it. How does the VRB-ESS work? The VRB-ESS is an electrical energy storage system based on the patented vanadium-based redox regenerative fuel cell that converts chemical energy into electrical energy. Energy is stored chemically in different ionic forms of vanadium in a dilute sulphuric acid electrolyte. The electrolyte is pumped from separate plastic storage tanks into flow cells where one form of electrolyte is electrochemically oxidized and the other is electrochemically reduced. This creates a current that is collected by electrodes and made available to an external circuit. The reaction is reversible allowing the battery to be charged, discharged and recharged.

Why VRB Power Systems? Based in Vancouver, Canada, VRB Power Systems is an energy storage technology developer, manufacturer and systems integrator utilizing the patented VRB-ESS. The technology was developed originally at the University of New South Wales, which patented the technology in 1993. VRB Power’s management has extensive experience in the utility sector. The executive team has an accomplished record of successfully implementing new technologies for major power companies. The VRB-ESS has been extensively tested and fully proven. There are currently two installations in commercial use: Utah Power, a subsidiary of PacifiCorp, operates a VRB-ESS to meet the demands of a

VRB, VRB Power, VRB-ESS and VRB Energy Storage System are trademarks of VRB Power Systems Inc. VRB Power is publicly listed on the TSX Venture Exchange (“VRB”) and the OTC Pinksheets (“VRBPF”).

The VRB-ESS falls into the general class of reduction/oxidation (Redox) flow batteries. This class of battery employs an electrolyte where energy is stored, and a cell stack where energy conversion occurs. Electrolyte tank Electrode

Electrolyte tank Ion-selective membrane

Regenerative fuel cell

Electrolyte

Pump

Power source/load

Electrolyte

Pump

Patented vanadium-based redox regenerative fuel cell converts chemical energy into electrical energy.

growing community in the pristine Castle Valley served by a 209-mile feeder system. The second installation is in use by Hydro Tasmania on King Island, off the coast of Australia, to provide firm capacity from wind generators and optimize diesel genset performance. VRB Power’s strategic relationships with Noram Engineering (based in Vancouver), Magnetek Inc., (Los Angeles, CA), and Highveld Steel and Vanadium Corporation (a South African subsidiary of UK-based conglomerate Anglo American) further enhances the company’s ability to deliver reliable, high value VRB Energy Storage Systems to the market.

Suite 1645 - 701 West Georgia Street Vancouver, B.C. V7Y 1C6 Canada Tel: 604-697-8820 ■ Fax: 604-681-4923 Web: www.vrbpower.com ■ E-mail: [email protected]

With VRB Power Systems, it doesn’t have to. VR-0029

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VRB Power Systems: Capture the wind. Adding wind or other renewable sources of energy to remote area power systems can reduce diesel plant run time and fuel use. But wind variability means there is more supply than needed at some times and none at others. 9,000

Energy storage captures more of the wind.

VRB-ESS outperforms traditional batteries.

VRB-ESS

Lead Acid

Lifetime (discharge cycles)

10,000+

1,500

Range of discharge

15-85%

75-100%

1:1

1:5

70 –75%

45%

None

Significant, especially from remote areas

No Storage

8,000

Causes of Variation

Time Scale of Variation

VRB-ESS resolves the problem

Wind gusts (turbulence) Short term seconds

✓

Normal wind speed variations

Minutes

✓

Inversion layers

Hourly

✓

Diurnal cycle

Daily

✓

Changing (long term) wind patterns

Days

Provides flexibility

The VRB-ESS captures more of the wind and provides stability to the system.

Improve efficiency and reduce emissions. No-load and part-load genset operation is inefficient, consuming precious fuel dollars and creating excessive emissions. A VRB-ESS meets standby and part-load conditions with stored energy, allowing the genset to operate fewer hours and at full load when it operates. This substantially reduces fuel costs and emissions (see Figure 2).

Diesel Run-Time (annual hours)

TM

The VRB Energy Storage System (VRB-ESS ) enables higher penetration of wind on a remote power system (see Figure 1). It stores wind energy that exceeds load and shifts it to periods of higher demand, which means more of the load is met by renewable generation sources and less by costly diesel-fired generation.

2 Wind Turbines

7,000 No Storage

6,000 Short-term Storage

5,000 3 Wind Turbines

4,000

Long-term Storage

Long-term Storage

3,000 2,000 40

45

50

55

60

65

70

75

Historically, lead acid batteries have been used to provide energy storage. The VRB-ESS is the preferred solution over traditional batteries for several reasons. First, the amount of energy it can store is independent of its power rating and is determined by the amount of electrolyte, whereas the energy capacity of lead acid battery systems can only be increased by adding more batteries. Additionally, the VRB-ESS has longer life (15 years), higher efficiency, and greater range of discharge. Its components are also highly recyclable and don’t contribute toxic metals to the environment.

Fuel Savings (% of diesel-only fuel use)

Figure 1: Impact of energy storage on a high penetration wind-diesel village power system. Courtesy NREL National Wind Technology Center.

Spend less on maintenance and downsize the genset. Reducing part-load operation reduces problems like carbon build-up and wet-stacking and their associated maintenance costs. In new installations or system upgrades, the diesel plant can be downsized by an amount equal to the capacity of the storage system.

Improve the reliability and power quality of the power system. The VRB-ESS responds almost instantaneously to load fluctuations and is able to absorb or discharge energy within milliseconds. This provides voltage and frequency stabilization without the need to operate gensets in spinning reserve mode. Additionally, the VRB-ESS uses reactive power compensation to provide power factor control and voltage stability improving the quality of power on the system.

Figure 2: Load following by storage enables optimal genset operation.

Charge to discharge rate Efficiency Maintenance and disposal costs

Environmental Advantages of VRB-ESS ■

Low impact system does not use heavy metals

■

Integrates with renewable energy sources such as solar and wind

■

Indefinite life cycle capability of electrolyte enables complete recycling; has no associated disposal issues

■

Contributes between 7 – 25% of emissions of key environmental impact (CO2, SO2, CO, CH4, NOX) during its life cycle when compared with lead acid batteries