Monday, June 29, 2015

Dominovas Energy’s (DNRG) Trail Leads to Partnership with U.S. Government

Dominovas Energy’s stock had an impressive run earlier this week after the fuel cell technology company announced a “historic” partnership with the U.S. Government. Shares soared nearly 3000% on the news, hitting an intra-week high of $0.33; the stock trades in a 52-week range of $0.0035-$0.60. A federal partnership is obviously a big deal and warrants a look at how this micro-cap company got its name on the books.

More than ever before, consumers are spending their money on “green” alternatives, tuning into global concerns about climate change, energy security, and air pollution. Dominovas Energy looks at these issues on a global scale, as it seeks to implement its fuel cell technology in emerging countries, where reliable electricity is intermittent, scarce, or non-existent.

Focusing on this global concern, Dominovas Energy is committed to creating a virtually silent solution with near-zero NOX emissions and minimal carbon footprint, all while producing reliable and clean energy for local communities, industry, and nations. To this accord, Dominovas Energy is championing its RUBICON™ Solid Oxide Fuel Cell (SOFC) system as a leading, viable, global energy solution.

Fuel cell power generation is an efficient, combustion-less, reliable and virtually pollution-free emitting device that provides electricity to power a wide array of applications, ranging from buildings, primary power for grid integration, automobiles, emergency back-up systems, and base load grid power. By electrochemically combining oxygen with hydrogen extracted from a hydrocarbon-based fuel supply to produce electricity, emitting only water, minimal pollution, and excess heat as by-products, fuel cells function much like a battery, but without the need for recharging. Fuel cells produce electricity as long as there is a constant fuel source and are rapidly gaining traction as an ideal solution for a variety of portable, on-board, and stationary electric power generation applications.

Dominovas Energy has identified marketing and sales opportunities for fuel cells in emerging-market countries, where electricity supply is frequently unreliable, antiquated, and expensive compared to the cost of electricity and the production, as found in the United States. Consequently, the Company’s primary focus at this time is on Africa, where it has established active projects and works with each nation’s government. And further with the support of Delphi Automotive Systems to jointly develop the technology and methodologies necessary to facilitate the commercial nature, manufacture, assembly, and deployment of the RUBICON™ system, this partnership fully supports Dominovas Energy’s continued deployment of clean energy solutions on a multi-megawatt (MW) scale.

As detailed in an historic announcement in June, Dominovas Energy was accepted as a private sector partner of the “Power Africa Initiative” launched by President Barack Obama in June 2013. A multi-year guaranteed power provider agreement (PPA) announced earlier this month shows how Dominovas Energy jumped into action in Africa.

At the beginning of June, Dominovas Energy reported that it signed a 3MW PPA to utilize the RUBICON™ system to provide clean electricity to the City of David in the Democratic Republic of the Congo (DRC). Expected to be “the first of many efforts the governor of the State of Katanga in the Democratic Republic of Congo is pursuing across his state to increase the availability of affordable housing and social facilities,” the Project will represent the largest single deployment of fuel cell technology on the continent of Africa.

Slated for the fourth quarter of 2016, the physical deployment of the RUBICON™ will trigger the annual production of more than 25.5 million kWh of clean, efficient and reliable electricity and will yield more than US$100 million in guaranteed revenue to Dominovas Energy over the course of the agreement.

A week after the City of David announcement, Dominovas Energy signed another 3MW multi-year PPA. This time the agreement concerned Dominovas providing electricity to the privately held Somico Mine in the DRC. Somico has several mining operations in the DRC; and with the vast reserves of natural resources in Africa, the mining sector represents a tremendous opportunity for Dominovas Energy’s continued expansion across diverse applications of the RUBICON™. The mining sector in Africa singularly represents a multibillion dollar industry, and offers Dominovas Energy the potential to deploy more than 250 MW of power to mining operations and their communities.

Now fast-forward to date – and take a look at how Dominovas Energy pivoted from the PPAs to its deal with the U.S. government.

By deploying its RUBICON™ systems, Dominovas Energy is the first-and-only fuel cell company selected as a private sector partner to the Power Africa Initiative, which is comprised of private sector participants, the United States government and governments of several African countries. These partners represent the foundation for building the regulatory, economic, and policy framework needed to meet Africa’s increasing demand for, and access to, electricity.

As a Power Africa member company, Dominovas Energy will benefit from interagency efforts, leveraging Power Africa’s tools such as technical expertise and financing. Dominovas said that over the next several years, it intends to support and advance Power Africa goals by providing access to clean, reliable energy; partnering with specific universities in Africa to train and hire local citizens as engineers and technicians, as necessary for the installation, service, and ongoing maintenance of the RUBICON™; and providing Power Africa countries with access to distributed, off-grid electricity on a multi-megawatt scale.

According to the Company’s news release, deployments of the RUBICON™ are expected to increase the quantity of power available to over 100 million people by 2021, directly benefitting citizens, households, and businesses by producing clean, reliable and continuous energy.

When you look at the broader Dominovas Energy picture, take into consideration that financials are not typically stellar at the sub-penny level DNRG was trading at last week; but deals like the ones mentioned above, solid operations, and a powerful management team are what give small companies a tangible base from which to realize its strong potential and validate its place on the map.

Neal Allen is chairman, president and CEO of Dominovas Energy. He previously served in the same capacity with Dominovas Energy, LLC. Prior to Dominovas Energy, LLC he served as the Principal Shareholder of a private Family Office, which specialized in the development and implementation of proprietary revenue models as a force multiplier ensuring optimal deployment, utilization, and management of financial resources. Under Allen’s watch, the Family Office’s endeavors included the ownership of a “major brand” automobile dealership, several healthcare companies, waste management and disposal enterprises, land acquisition and development, and natural resource development enterprises.

Allen is joined by Emilio De Jesus, board member and president of the Africa Division for Dominovas, where he is integral in assisting in the creating of strategies that best bring to fruition the deployment of the RUBICON™ to emerging markets in Africa.

De Jesus specializes in intelligence pertaining to each country’s barriers of entry, political climate and most suitable partners. As the Country Advisor, De Jesus visits potential countries to research their state of the energy production industry, interview potential partners, and meet with political officials. He also negotiates favorable PPAs, liaising with local partners, as well as with potential “Off Takers.”

De Jesus, for over 15 years, previously managed telecommunications projects for a fortune 500 company, and has gained extensive experience in the deployment of new technologies within Continental USA.

Piece by piece, the Dominovas Energy story makes sense – portraying the Company’s momentum as it achieves its commitment to emerging markets and solidifies its position in the United States as a viable ally to Africa and its long-term power needs. The Company has a keen ability to recognize and take advantage of the incredible growth and profit opportunities of the green and alternative energy markets, advancing the deployment of its green energy solutions where it matters most.

For more information visit www.dominovasenergy.com

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