Experts are asking whether project portfolio sell-offs by Amber Kinetics and Powin Energy represent a new trend.
Last month, Flywheel maker Amber Kinetics said it was giving up on a 20-megawatt project, Energy Nuevo, for Pacific Gas and Electric in California.
“The company’s new five-year strategic plan calls for an acceleration of equipment deployment and a de-emphasis on project development,” said Amber Kinetics in a press release.
Ed Chiao, co-founder and CEO, said the money earmarked for project development would now be spent on commercializing a new product, the 40-kilowatt, 160-kilowatt-hour M160, which is due for testing in the first quarter of 2018.
“Energy Nuevo would have required almost $10 million in security deposits and development costs,” Chiao said in the statement. “When we compared investing a similar amount in bringing the M160 to market on schedule, and focusing on generating greater near-term revenue, we chose to prioritize commercialization over project development.”
Portland, Oregon-based Powin Energy has since revealed it is selling its entire project portfolio, comprising around 100 megawatt-hours of energy storage assets, as a precursor to refinancing and refocusing on product development.
“We will be looking to strengthen our finances once we’ve moved these assets,” said Jan Jacobson, vice president of business development, in an interview. “We’re selling everything.”
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