http://finance.yahoo.com/news/Electrovaya-Partners-on-iw-4273908463.html/print?x=0

TORONTO, ONTARIO--(Marketwire - 02/10/10) - Electrovaya Inc. (TSX:EFL - News) today announced that it is the energy storage partner for a utility demonstration project led by CEATI International Inc., headquartered in Montreal. Other partners include major utilities and universities.

The project has been conditionally approved for partial funding support from the Government of Canada's Clean Energy Fund and final contract negotiations are underway. The total project cost is estimated at approximately $7.5 million.

The large-scale, multi-site, multi-partner initiative will demonstrate the capabilities, versatility and economics of utility-scale electricity storage based on Electrovaya's modular Lithium Ion SuperPolymer® battery technology. The following clean energy challenges will be addressed:

 

-- Electricity storage for intermittent renewable energy generation;
-- Electricity storage for high-density urban applications to meet growing
 new electric loads; and
-- Investigation into repurposing electric vehicle batteries for Smart Grid
 application.

"Energy storage is poised to become a significant element of the electric utility landscape, and a key factor in advancing the growth of renewable and clean energy alternatives that will promote energy efficiency and reduce greenhouse gas emissions", said Alex Mogilevsky, Director of Operations of CEATI International. "We are pleased to take part in this highly innovative and exciting project."

Sankar DasGupta, CEO of Electrovaya added, "We are excited to partner on a very important and strategic challenge: a cleaner electric grid. This is made possible by using advanced batteries to enable more efficient transmission and usage of renewable energy. This project will demonstrate the capabilities, versatility and economics of utility-scale electricity storage using advanced Lithium Ion SuperPolymer® battery technology similar to what we have developed for electric vehicle applications." He continued, "This emerging market holds tremendous opportunity for Electrovaya. According to industry experts, spending on the global energy storage market is expected to exceed $600 billion over the next 10-12 years."