Completion of first commercial Australian VRB energy storage system for Hydro Tasmania

VANCOUVER, Nov. 21, 2003 — VRB Power Systems Inc. announces that its 66 percent owned subsidiary, Pinnacle VRB Ltd., has reported the following:

The commissioning of the King Island Vanadium Redox Battery Energy Storage System (VRB/ESS) is now completed. A Practical Completion Certificate was issued by Hydro Tasmania on Nov. 14, 2003.

King Island, a small remote location off the south coast of Australia supports and operates 5 wind turbines ranging from 250 – 850kW and Four Diesel generators at 1.5MW each that act as a remote grid to supply power to the local residents. Pinnacle’s 200 kW x 4-hour (800 kWh) VRB/ESS installation has been integrated with the wind turbines and diesel generators to form a 3-way hybrid system.

This new facility forms part of Hydro Tasmania’s King Island Renewable Energy Expansion Project and will improve power supply and quality to the community of King Island. The Australian Greenhouse office is also a stakeholder in the project.

Forming an integral part of the King Island’s power system, the VRB/ESS is used to smooth the short term output variations in the wind generators and the customer loads whilst providing frequency and voltage control and to implement a system of “load shifting”, ensuring optimum performance of the diesel and wind generation hybrid system.

The presence of the VRB/ESS has raised the level of deliverable power and has allowed for the ability to provide “firm capacity” from the existing wind generation. The newly integrated system reduces the required use of the diesel generators thereby reducing fuel costs and emissions of diesel exhaust into the environment.

The successful installation of Pinnacle’s VRB/ESS for Hydro Tasmania and the Australian Greenhouse Office is a key milestone in the development and commercialization of Pinnacle’s Vanadium Redox Battery Energy Storage technology. The demand for a reliable and versatile Energy Storage System is becoming increasingly evidenced worldwide and in a number of markets including the industrial and commercial sectors that are not adequately serviced by existing battery technologies.

Design flexibilities, low life cycle costs, durability and simultaneous applicable “value streams” available within the VRB technology will allow for expansion into markets typically controlled by conventional storage technologies such as lead acid batteries.

Based in Vancouver, B.C., VRB Power is an alternative electrochemical energy storage company that has commercialized the patented Vanadium Redox Battery Energy Storage System. (VRB/ESS). The VRB/ESS is a technology that effectively stores and delivers electricity on demand, improves power reliability, power quality and reduces costs associated with applications for load levelling, peak shaving, and the supply of essential Uninterruptible Power Systems.

Characterized by low ecological impact, the VRB technology uses conducting plastic electrodes and contains no heavy metals. The VRB/ESS has mobile design capabilities, allowing the unit to be relocated as may be needed in the future. VRB Power is listed on the TSX Venture Exchange (VRB), the OTC Pink Sheets (VRBPF) and on the Frankfurt Exchange (VNK).