Dominovas Energy (OTC:DNRG) emerged as a publicly traded
entity only 18 months ago, formed through the absorption of Western Standard
Energy. Since then the company’s mandate has been enormous, with management
wrangling everything from public trading regulatory requirements and
market-facing investor transparency, to the continuation of an ongoing sales
effort that stretches back to the earliest days of Dominovas as a private
company. The procedural development of key OEM partnerships, vital to
logistical throughput for the company’s RUBICON™ SOFC (solid oxide fuel cell)
system, has also been secured.
This last point is key, as Dominovas is currently preparing
for Q4 2016 deployment of its revolutionary SOFC clean energy solution, as per
the multi-year, guaranteed power provider agreement with the Democratic
Republic of the Congo (DRC), facilitated by Dominovas being a Power Africa
initiative (USAID) partner. Power Africa looks to bring 60 million new
connections and 30,000 megawatts of advanced, cleaner energy technologies
online in order to power the continent and increase overall access to power.
The initiative has a whopping $20 billion in private sector commitments behind
it from over 100 partners, leveraged by $7 billion from the U.S., as well as $9
billion from other entities such as the World Bank Group.
With 4,100 MW expected from already closed transactions,
Power Africa is the tip of the spear in brining next-gen energy tech to Africa,
and Dominovas is on the line to provide 206 MW of the overall target to the DRC
using its proprietary RUBICON fuel cell technology. Able to operate from a wide
variety of fuel types, which can range from hydrocarbon fuels, to bio-derived
fuels and even pure hydrogen (the most efficient source), RUBICON also does internal
reforming of hydrocarbons, helping to avoid coking and sulfur poisoning
problems. And because the high temperatures of RUBICON SOFC technology also
offers premium kinetics with nonprecious materials like nickel, there is
abundant high-quality waste heat for co-gen.
With the abundance of remote locations throughout Africa in
need of power, such efficient, fuel-flexible, modular and scalable systems as
the RUBICON will continue to find fast favor among local governments and
private sector operators. Especially considering the unit’s ability to be
dropped in right next to the end-user(s) and thus eliminate high-cost
infrastructure such as transmission lines and transformers, as well as
drastically reducing associated security risks to such remote infrastructure.
Add to these significant benefits the unit’s ability to do co-generation and
you have an extremely approachable solution that is directly accessible via
Power Africa for multiple other regions across the continent.
The company’s recent tour of sub-Saharan Africa – where key
personnel discussed ongoing and prospective RUBICON deployments, meeting and
shaking hands across the DRC, Mozambique and South Africa – was a huge success,
with the auspices of Power Africa opening many doors for Dominovas. Management
was quite taken with just how receptive and motivated key private and public
sector entities were when it came to embracing the RUBICION technology. With
everyone from top sector operators to local government officials showing
extraordinary enthusiasm when it came to getting their hands on such advanced
fuel cell technology, in order to meet the growing needs of underlying
populations. Dominovas also met with top Power Africa financial institution
partners during the trip, discussing the best ways to ensure financing
requirements are met when it comes to rolling out this technology across the
continent as quickly as possible.
According to the company’s August 13 conference call, the
current plan for the RUBICON is for the systems to be built in Michigan, in
collaboration with Delphi Automotive subsidiary, Delphi Automotive Systems,
where the capacity and expertise exists to easily ramp up for longer-term
objectives and growth prospects. Demand could escalate very quickly after the
initial deployments and thus, Dominovas has also secured an engagement with
Pyrenees Investments, to act as the company’s investment bank and placement
agent for the preparation of a $10 million private placement of common stock.
This private placement is designed to facilitate the company’s transition into
a full-fledged manufacturing and deployment operator, as well as compensate for
the sheer demand that exists when it comes to scalable, cost-effective fuel
cell technology like the RUBICON.
The DRC deployment is designed to provide power for around
200,000 homes, but with so many more people across Africa still in dire need of
power, fuel-flexible and eminently scalable RUBICON systems could see rapid
deployment anywhere and everywhere adequate fuel sources are, or to which fuel
can be easily transported. The 206 MW project for DRC, which astonishingly
represents roughly 10 percent of all the fuel cells that have ever been built,
is just the beginning of the story for Dominovas, and in order to meet the
potential demand it will be vital for Dominovas to maintain a close working
relationship with proven automotive manufacturer Delphi. Delphi has the
capacity, combined with DNRG’s own fuel cell division, to meet not only the 206
MW required by the DRC, but many megawatts of subsequent demand to come from
other governments in Africa, and around the world.
It is a monumental time for the fuel cell sector and
Dominovas’ assemblage of the capacity to deliver multi-megawatt deployments, a
virtual industry first, as well as the company’s quickly established footprint
in Africa, should give investors a moment of pause to reflect on what may be in
store for not only Dominovas, but the energy sector as a whole. The company’s
fuel cell tech and Distributed Energy Power System (DEPS) approach could
transform established power markets dominated by utilities, with the same
disruptive force as emerging energy markets like Africa, offering a scalable,
modular alternative that can be tailored to both location and fuel sources.
For more information visit www.dominovasenergy.com
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