Energy Innovation Challenge awards three new innovators in second intake

Medicine Hat – The City of Medicine Hat and Decentralised Energy Canada have selected Take Energy Inc., Aqua-Cell Energy Inc., and Eguana Technologies as the final award recipients in the Energy Innovation Challenge. They join Arcus Power and Edgecom Energy, whose projects are already underway.

Calgary-based TAKEnergy Inc. will install its TERVEX expander, which captures energy usually lost during natural gas pressure reduction and converts it into reliable, carbon-free electricity. Unlike intermittent renewables, this power operates like baseload generation as long as gas flows. The system will be sited at a west-side gas let-down station next to Aqua-Cell’s prototype battery storage facility.

“Building on the success of our first TERVEX pilot, this project will show how seamlessly our technology can scale. With five times the output of our initial pilot, we’ll deliver reliable, zero-carbon power to the grid, and help utilities balance demands,” said James Cleland, President of TAKEnergy Inc.

Aqua-Cell Energy Inc., based in Edmonton, builds large saltwater flow batteries that store renewable or off-peak energy for use during peak demand or outages. The modular batteries, packaged in shipping containers, use ion-exchange membranes adapted from water treatment and can be relocated as needed.

“Our flow battery is a decentralized technology that increases renewable energy use, strengthens grid reliability, and lowers costs by aligning electricity supply with demand,” said Ellsworth Bell, Co-Founder of Aqua-Cell. “The Energy Innovation Challenge provides valuable early-stage pilot opportunities for Canadian technologies like ours.”

Eguana Technologies, a global energy storage company headquartered in Calgary, will deploy nine EVOLVE™ lithium iron-phosphate battery systems at three City facilities. The project will expand utility-focused functions of its EDGE™ Distributed Energy Resource Management System, enabling operators to manage voltage, circuit and feeder loading, balance phases, losses, and resiliency.

“Behind-the-meter batteries are often seen as backup, but their real value comes from operating as a fleet to deliver grid services,” said Brent Harris, Founder and COO. “This project lets us advance our platform, demonstrate in new environments, and expand applications.”

Raymond Chokelal, Senior Engineer with the City’s Utility Distribution Systems, said the Energy Innovation Challenge introduced new possibilities to extend the life of Medicine Hat’s electricity distribution assets, as well as providing opportunities to improve power quality and system stability.

“Each kilowatt we can generate and integrate through renewable or decentralised solutions makes our system more efficient. We’re proud to test and refine these innovations on their way to market,” said Chokelal.

Anouk Kendall, President of Decentralised Energy Canada added, “The Energy Innovation Challenge is fast-tracking Alberta’s innovation ecosystem and driving real diversification of the energy economy. A defining feature of our program is the way it sparks transformative synergies— Aqua-Cell is using Arcus’ data analytics to strategically deploy its batteries, which will store energy generated by TAKEnergy.”

For more information about the Energy Innovation Challenge, visit https://www.deassociation.ca/innovation-challenge.

Decentralised Energy Canada is a national industry association committed to advancing decentralised energy solutions, promoting innovation, and contributing to a resilient and affordable energy future.

The City of Medicine Hat is a progressive municipality committed to sustainable energy practices, community development, and diversified economic growth. Established in 1883 and incorporated as a City in 1906, the municipality is uniquely known for owning its own natural gas and electric utilities, benefitting local residents for more than a century.

- 30 -

For media inquiries, please contact:

Backgrounder:

Energy Innovation Challenge

About the Program:

The Energy Innovation Challenge (the Challenge) is a groundbreaking three-year program aimed at empowering small and medium-sized Canadian businesses to overcome commercialization obstacles and bring their decentralised energy innovations to market. The program is a collaboration between Decentralised Energy Canada (DEC) and the City of Medicine Hat.

Decentralised energy is energy that is both produced and consumed locally, bringing energy generation and supply closer to the end user. Decentralised energy increases energy efficiency and reliability while also reducing costs. This program, which aims to accelerate Canada’s decentralised energy sector, is a one-of-a-kind collaboration between a national industry association and an Alberta municipality. Its purpose is to advance Decentralised Energy (DE) systems, microgrids, and Distributed Energy Resources (DERs).

The challenge has two main objectives:

• To pilot innovations that address grid congestion issues, and
• To leverage government investment and private capital to strengthen the economy.

The unique outcomes of this collaboration include a value chain map, deployment of innovative demonstration projects, and increased investment into Canadian DE innovators.

The program comprises three main activities:

1. Innovation Challenge: Communicate current energy system challenges facing communities and invite small businesses to participate in the program by identifying how their innovative products or services address energy challenges faced by the City of Medicine Hat.
2. Community Demonstration: Fund product demonstrations for up to six projects from the innovation challenge - including emissions quantification and lessons learned reporting - to accelerate the adoption of promising innovations.
3. Investment Challenge: Engage potential investors to stimulate access to capital for early and growth stage SMEs who presented qualifying decentralised energy technologies in the Innovation Challenge.

Key Facts and Statistics:
Cost: $2.4 million
Timelines: May 2024 to May 2027

Funders: Decentralised Energy Canada, Prairies Economic Development Canada, Emissions Reduction Alberta, Natural Resources Canada, the City of Medicine Hat, Valhalla Private Capital, and APEX Alberta. PrairiesCan, the federal department that supports economic growth and diversification in the Prairie provinces, contributed $1.2M through its Regional Innovation Ecosystem (RIE) Program.

Program Benefits:

• Quantified emissions reductions of the City of Medicine Hat’s electricity supply mix
• Energy efficiency gains on the distribution network
• Operations and maintenance savings to existing energy generation assets
• Reduced cost of delivered energy to customers
• Increased reliability during extreme weather events
• Job creation
• Reduced commercialization obstacles for Canadian innovators

Application Guidelines:

For more information about the Energy Innovation Challenge, visit https://www.deassociation.ca/innovation-challenge.