During the period of 1st May 2019-31st Aug 2019 GRZ Technologies SA undertook a complete feasibility study on its MHS technology – a Metal Hydrides Hydrogen Storage system. The challenges it intends to address, in particular of worldwide regulatory framework and trends was elaborated. During Phase 1, GRZ also was able to prepare a comparative benchmark with battery technology systems, which are the most compelling computing solutions for the target market: the power-to-power segment. It was able to project and demonstrate that DASH possess the lowest cost of electricity over its lifetime. DASH is not only the commercially most attractive solution vs. batteries but also the safest and most affordable one, when compared with conventional hydrogen storage (pressurized and liquefied). This means for GRZ that both the power-to-power market and the hydrogen storage and infrastructure market are the next potential key market applications for DASH.
When it comes to the final phase of the product development of DASH, GRZ was able to analyse and elaborate the next steps. It is clear that the priorities within the next 2 years are:
1. Installation of the DASH prototype for P2P application (1 MWh scale) in September/October 2019;
2. Then, in Q1/Q2 of 2020, starting a more complex pilot project with any other potential customer for whom it will develop, install and commission DASH based system on a larger scale of (5 MWh). The system consisting of 5 units of DASH (1 MWh) will be integrated with smart energy management software to be developed. The objective of the technology upscale will be also to reduce the material costs by 15% which is essential for commercial viability. To realize such project 2-3 years earlier than it could because of its capital and cash flow limitations, GRZ wants to apply for a funding from Horizon 2020 to co-finance it;
3. The complex DASH P2P system will be validated during an extended period of time to prove its applicability for peak shaving and energy storage. GRZ believes that the further collaboration in form of such pilot project represents the best technical feasibility due to the customers vicinity (crucial for project manpower and material resources) and with the optimal exploitation potential on the Swiss market (leading local utility company with substantial influence but not too big i.e. no global bargaining power).
Then, GRZ has to raise a funding of 5 million CHF to proceed with the industrialization. It will enable further scale up of the company building on the successful results of the Phase 2 project. GRZ will need additional capital to establish its manufacturing, develop further its supplier network, hire production employees and develop other important organizational functions (R&D, marketing and business development, HR/admin, etc.). GRZ was able to secure 50% of this investment from Hyundai and plans to secure the other half until end of 2019. The semi-automated production wil provide economies of scale and the growth of customer base/revenues will provide opportunity to re-negotiate supplier agreements. As a result, a further 56% reduction of the material costs per unit is envisioned within the first 2 years of commercialization
During Phase 1, GRZ performed also a comprehensive market research for its target markets: Switzerland, Germany and the Netherlands. Taking its encouraging results, late August, it started to discuss with two German utility companies the possibility to perform pilot projects.
During Phase 1, GRZ also elaborated its plans on business scale-up, organizational development and financial projections for the next 5 years. Overall, it concluded that DASH is technical and commercially a highly viable product that has to finish its product development as soon as possible before other competitors can achieve the same. GRZ can rely on its unique know-how/IP, talented team and its business strategy to achieve this within the next 18-20 months. In summary, the Phase 1 convinced GRZ to pursue the project, and eventually co-finance it with the Phase 2 of the SME Instrument.
