Galenfeha, Inc. (GLFH) Proven, Robust, Scalable & Safe LFP Battery Tech Could Emerge as Major Player in Increasingly Hot “Powerwall” Market

Galenfeha, which was recently in the news for their acquisition of DayLight Pump, the manufacturer of an extremely accurate chemical injection pump for the $1 billion plus domestic oil and gas production market, has been receiving increasing attention in the investment community of late thanks to their advanced lithium iron phosphate (LiFePO4, or LFP) battery technology. The announcement by electric car maker Tesla of a new company division focused on developing home-based and business-based backup batteries, amid a growing push to develop gigawatt-hour, utility scale systems, has sent analysts scrambling for battery solutions that have improved overall performance. In what is now seen as a potentially disruptive niche market, with Tesla’s Powerwall having become sold-out within the first week after its debut (through mid-2016), the hunt is on for solutions that could compete with or replace Tesla’s existing lithium-ion array technology, which is based on cheap, off-the-shelf lithium cobalt oxide batteries, combined with proprietary internal connection and cooling systems.

A company like Galenfeha, which has an established reputation throughout the demanding oil and gas industry for their robust DLP-P (pneumatic), DLP-S (solar powered) and state-of-the-art, SCADA compliant iWAV chemical injection pumps, as well as their rock-solid oilfield battery solutions, is a natural play here with their durable, long-lasting LFP battery solutions. Given that an oilfield battery must often withstand extreme heat, shock and vibration, and that its enclosure must be rugged enough to stand up to punishing weather, yet also be compact enough that its form factor/footprint can be easily positioned within an already confined tool space, the move to prosumer grade battery systems is a no-brainer. Having already cut its teeth in the challenging oilfield battery backup space, Galenfeha’s LFP systems are a shoe-in for creating arrays for either the home/business or large-scale utility markets.

The potential for home-based battery systems in particular, which would buy electricity off the grid when it is cheapest, or which would collect and store electricity from solar and other alternative energy sources, could completely transform the existing utility company energy paradigm, which is dominated by centralized production and distribution. A distributed energy solution using backup batteries for homes and businesses is quite attractive for a variety of reasons. But this approach could be revolutionary for countries like India, which has a long history of overloaded national grid failures and a sprawling population that covers huge physical territories, making a distributed energy solution based on localized production and backup storage a handy fix. Even if the existing grid weren’t molded into a localized production paradigm, backup battery systems for the home and grid could resolve the underlying problems handily, while also helping to offset the need to create additional pollutive energy production facilities in regional markets.

As promising as this distributed energy model is, the standard off-the-shelf lithium cobalt oxide (LiCoO2) batteries Tesla uses in their cars, whilst having a high energy density (or the amount of energy per cell), are not as safe as LFP batteries, which are inherently safer due to the thermal stability of the iron cathode. Moreover, LFP batteries have a longer shelf life, with better power density (or the rate at which energy can be drawn from them) and even rival standard lithium cobalt oxide batteries when it comes to energy density over their lifetime, due to a much slower rate of capacity loss. These factors make LFP technology ideally suited for backup battery systems aimed at the home and business markets, where the thought of a fire or even just prematurely dissipated charge could be hurdles for getting mass market consumers to sign on the dotted line. Given the response to Tesla’s Powerwall however, a relatively boutique solution at $3k for a single 7kWh unit, the potential for the broader consumer market in such systems seems obvious. Whoever builds a better, cheaper mousetrap for this emerging space could become one of the hottest companies of the 21st century, especially if the model really takes off globally.

It is currently quite difficult to hook up rooftop solar to a home’s internal wiring, but the emergence of backup battery systems could act as a go-between, with the internal workings of such backup systems effectively bridging the gap, putting rooftop solar and other small-scale alternative energy solutions within striking distance for the average consumer. The capacity of such systems to stockpile cheap energy and then use it during peak hours to run the home or business could change the way we think about electricity forever. Galenfeha’s LFP technology, already established in the oilfield industry, has also already earned its spurs in the $524 million plus domestic golf cart/NEV (neighborhood electric vehicle) market, where the company’s batteries, like their 40AH and “powerhouse” 120AH 12V units, have fast found favor. The company’s success in these markets has been due in large part to their battery’s extremely long shelf life, environmentally friendly design, enhanced ease of maintenance and re-charge characteristics, as well as the ability to leave them sit for extended periods of inactivity without the fear of substantial discharge. The reduction of demand on the motor is also a big advantage here, as with around 25 percent lower requirements, the motor enjoys a longer lifespan due to the higher overall efficiency.

Beyond the electrochemistry and design of the company’s LFP batteries is Galenfeha’s proprietary battery management system (BMS), which allows for 10 percent lower discharge rates when the unit is dormant, remote monitoring of the battery status via the same protocol that is used in many cell phone standards (radio communication channel access, or CDMA), protection of the battery’s cells from overcharge or discharge damage, and active cell balancing. The BMS is able to ensure that the product’s lifespan is maximized and that it is always operating in a safe state. Paramount features for any home or business considering moving towards the new and rapidly emerging standard of battery backup, which also confers the obvious advantages of providing an uninterruptable energy supply, something which can be crucial for many industries, like data centers and server farms.

The ability to rival diesel gensets on a cost per kWh basis and eventually pull ahead thanks to logistical and technical factors, could make chargeable battery backup systems targeting the home and business markets a serious play for investors who are looking to get in at the ground floor of a rapidly emerging sector. Galenfeha could become one of the key players thanks to their advanced, proven, and robust LFP battery tech. The company’s advantages are considerable, since their technology is ideal for both small and large applications out of the box, thanks to the ease with which it can be scaled into large arrays safely, without the need to develop proprietary cooling systems or battery-to-battery connection solutions.

To get a closer look, please visit www.galenfeha.com

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