CARLSBAD, Calif.–(BUSINESS WIRE)–May 28, 2003–
New Investment to Finance Commercialization of Innovative Zinc Fuel
Cells for Computing, Communications and Control Backup Power Markets
Metallic Power, the leading developer of zinc regenerative fuel cells, today announced that it has closed its fourth round of venture capital funding, with $13.5 million in new investment and two new investors: CDP Capital — Technology Ventures and Norsk Hydro Technology Ventures.
All of the company’s major current investors participated in the round including: Arete Corp.; The Beacon Group Energy Investment Fund II LP; Cinergy Ventures LLC, the venture capital arm of Cinergy Corp.; Teck Cominco Ltd.; Hydro-Quebec CapiTech; MP Investments Inc.; Nth Power; and Perseus LLC.
“Despite a very difficult environment for venture funding, we were able to attract new lead investors and oversubscribe the financing round,” stated Dr. Jeffrey Colborn, CEO and chairman of Metallic Power. “We are also pleased to have attracted CDP Technologies and Norsk Hydro and to have received the continuing vote of confidence from our existing institutional investors, all of whom reinvested in this round.”
Metallic Power will use the new capital to commercialize its zinc regenerative fuel cells. Previously, Metallic Power raised $26.8 million in earlier rounds of venture financing.
About Metallic Power
Metallic Power Inc., founded in 1995 and based in Carlsbad, Calif., near San Diego, is the leader in developing zinc regenerative fuel cell-based products. These power sources use recyclable zinc fuel to provide a cost-effective substitute for lead-acid batteries and a quiet, emission-free alternative to internal combustion engines. The first targeted applications will include extended backup power for computing, communications and control equipment. Future projects include portable power, peak shaving, auxiliary power for trucks, RVs and boats, and primary power for transportation. Compared to other fuel cell technologies, Metallic Power’s zinc fuel cell technology does not require an expensive high pressure or high temperature internal operating environment and it uses zinc, one of the Earth’s most abundant elements. Metallic Power believes that, because of the system’s fundamental simplicity, it will offer a safer, more cost-effective approach to renewable energy. For more information, visit www.metallicpower.com.
Arete Corp. (www.arete-microgen.com) has been managing venture capital funds focused on the needs and interests of the electric and gas utility industries since 1985.
The Beacon Group Energy Investment Fund II LP (www.beacongrp.com), is one of the nation’s largest private equity investors in the energy industry. With offices in New York and Boston, Beacon manages over US$1.6 billion of capital devoted to the energy sector. Beacon has made a number of investments in power technology, including Beacon Power Corp., Capstone Turbine Corp., Powercell Corp., Proton Energy Systems and Soft Switching Technologies.
CDP Capital — Technology Ventures, a member of CDP Capital, invests in innovative companies with promising leading-edge technologies. It also develops partnerships with venture capital funds in Canada, the United States and Europe. Through its portfolios I and II, CDP Capital — Technology Ventures has invested, in 2002, in about 53 companies in biotechnology and life sciences, information technologies and industrial technologies. The market value of the total assets under management by CDP Capital — Technology Ventures is almost CAD$1.0 billion (approx. US$0.74 billion). For more information, visit www.cdpcapital.com/technologyventures.
Cinergy Ventures LLC is the venture investing arm of Cinergy Corp. (www.cinergy.com) headquartered in Cincinnati, and one of the nation’s leading diversified energy companies. Cinergy Ventures’ mission is to invest in companies developing emerging energy technologies that will create both strong financial returns and strategic business opportunities for the existing Cinergy business units. Cinergy Ventures LLC is committed to becoming the leading energy technology investor among integrated utilities. To date, Cinergy Ventures manages a portfolio of US$180 million in direct private investments and funds.
Hydro-Quebec CapiTech (www.hqcapitech.com) is a wholly owned subsidiary of Hydro-Quebec. It was founded in 1998 and is a corporate venture capital company that invests in companies providing energy-related technologies and services. More specifically, Hydro-Quebec CapiTech invests strategically in companies whose products and services are likely to facilitate the development of Hydro-Quebec activities or improve the performance of its divisions.
MP Investments Inc. is the investment subsidiary of Minnesota Power (www.mnpower.com), a division of ALLETE. Minnesota Power provides electricity in a 26,000-square-mile electric service territory located in northeastern Minnesota. Minnesota Power supplies retail electric service to 131,000 customers and wholesale electric service to 16 municipalities.
Norsk Hydro Technology Ventures (www.ntv.hydro.com) is a wholly owned subsidiary of Norsk Hydro ASA (www.hydro.com). It was founded in March 2001, with initial funding of NOK 350 million (approx. US$51 million) to invest in Europe and North America. Norsk Hydro is interested in companies whose technologies are related to its oil and energy operations.
Nth Power LLC is a leading venture capital firm investing in opportunities created by the restructuring of global energy and power markets. Nth Power manages over US$240 million in three funds and is backed by leading institutional and strategic investors from around the world. Nth Power provides energy, vision and capital to entrepreneurs and energy technology start up companies. For more information, visit www.nthpower.com.
Perseus LLC (“Perseus”) is a merchant bank and private equity fund management company with offices in Washington, D.C. and New York City. Since its inception in 1994, Perseus has invested funds in a broad range of transactions from venture capital financing to leveraged buyouts. Perseus has made a number of significant investments in energy technology companies, focusing its efforts on innovative companies addressing the power quality, the power reliability, and the distributed generation markets. Perseus has made investments in such companies as Beacon Power, Proton Energy, Powercell and Nexus Energy. Perseus and its affiliates manage over US$1 billion of capital in five investment funds. In addition, an affiliate of Perseus is the Portfolio Advisor to the Perseus CDO I, Limited, a Collateralized Debt Obligation fund.
Teck Cominco Ltd. (www.teckcominco.com) is a diversified mining and metals company, headquartered in Vancouver, Canada with assets totaling approximately CAD$5 billion (US$3.7 billion). Shares are listed on the Toronto Stock Exchange. The company is a world leader in the production of zinc and metallurgical coal and its mining operations also produce significant quantities of copper and gold.
Metallic Power Investor Contacts:
Arete Corp.
Robert W. Shaw, Jr., President, 603/253-9797
aretecorp@cyberportal.net
The Beacon Group Energy Funds
John J. MacWilliams, Partner, 617/375-7405
john.macwilliams@chasecapital.com
CDP Capital — Technology Ventures
Luc Charron, Senior Partner, 514/847-2831
lcharron@cdpcapital.com
Cinergy Ventures LLC
David Mulder, Manager, Strategy Analysis and Development
513/287-1372
dmulder@cinergy.com
Hydro-Quebec CapiTech
Marie-Helene Nolet, Director, Investments, 514/289-3189
nolet.marie-helene@hydro.qc.ca
MP Investments Inc.
Laura Schauer, Sr. Business Development Analyst
ALLETE Inc.
218/720-6226, ext. 3147
lschauer@allete.com
Norsk Hydro Technology Ventures
Alex Tham, Investment Manager, +47 22 53 2575
alex.tham@hydro.com
Nth Power LLC
Rodrigo Prudencio, Principal, 415/983-9983
rprudencio@nthpower.com
Perseus LLC
Philip Deutch, Partner, 202/452-0101, ext. 604
pdeutch@perseuspur.com
Teck Cominco Ltd.
Paul Kolisnyk, General Manager, Product Technology Centre
905/822-2022, ext. 234
paul.kolisnyk@teckcominco.com
or
Roger Brain, Senior Vice President, Marketing & Refining
604/685-3010
roger.brain@teckcominco.com
