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© yuri arcurs dreamstime.com Electronics Production | December 15, 2018

Kraken secures battery order and $5M advance payments

Ocean Infinity has issued a USD 6.5 million purchase order to Kraken Robotic Systems Inc. for deep sea batteries. Kraken anticipates follow-on orders

Under a USD 9 million deep-sea battery contract (which the company announced on August 1, 2018), Ocean Infinity issued an initial USD 2.5 million purchase order with the next USD 6.5 million purchase order expected in Q1 2019. Ocean Infinity has accelerated the delivery schedule, with all battery shipments now planned to start at the end of 2018 and finishing in Q3 2019, a press release states. This is an acceleration of approximately six months from the previous schedule. In order to help facilitate the delivery schedule and Kraken’s working capital requirements as it scales battery production, Kraken will invoice Ocean Infinity in November and January for advance payments of approximately USD 5 million. Oliver Plunkett, Ocean Infinity President & CEO, said, “At Ocean Infinity, we own and operate the world’s most technologically advanced seabed data acquisition assets, capable of operating to extreme depths of up to 6,000 metres. In our drive to add value for our clients we are constantly striving to push the boundaries of what can be achieved with technology. Maximising underwater endurance is a critical aspect of our operational model. Using Kraken’s pressure tolerant gel encapsulation battery technology, we can increase our energy capacity by over 50% in the same physical form factor as our existing conventional batteries. From an operational perspective, this gives us considerable flexibility to optimise mission plans, increase area coverage, manage weather impact and ultimately increase value for our customersin even the most remote portions of the world’s oceans.” Karl Kenny, Kraken’s President and CEO, adds, “Kraken Power’s unique pressure tolerant gel encapsulation technology for lithium polymer batteries provides an attractively priced, eco-friendly and superior alternative to oil compensated batteries currently used for subsea battery applications. We are very pleased to support Ocean Infinity’s AUV fleet battery upgrade. In simple terms, within the existing battery compartment footprint, our drop-in, field swappable batteries allow Ocean Infinity’s AUVs to increase underwater mission time from 50-55 hours to 80-85 hours.” Kraken will deliver batteries for five new Kongsberg Hugin Autonomous Underwater Vehicles (AUVs) recently purchased by Ocean Infinity, for integration at the manufacturer’s facility in Norway. With the change in scheduling, these new vehicles will take some of the delivery slots initially intended for replacement of existing AUV fleet batteries. As such, Kraken expects a follow-on order from Ocean Infinity in the second half of 2019 for additional batteries and spares, beyond the initial USD 9 million contract. The batteries for Ocean Infinity will be built by Kraken Power GmbH, an entity in which Kraken currently holds a 19.9% interest. Kraken intends to increase its ownership position in Kraken Power to 75% by the end of 2018.
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December 12 2019 10:59 am V14.8.5-1