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Message: Scandinavia's First Lithium Battery Electric Car Ferry Completes Six Months

http://www.electrovaya.com/pdf/PR/2014/PR20140402.pdf

Scandinavia's First Lithium Battery Electric Car Ferry Completes Six Months of Winter Operations in the Norwegian Fjords

MISSISSAUGA, Ontario, April 2, 2014 -- Electrovaya Inc. (EFL.TO) is pleased to announce that the KF Hisaroey electric cable ferry has now been sailing between Mjanes and Hisaroey in Norway daily for six months, with flawless operation over the wintery seas in Norway. The ferry's new propulsion power system consists of a complete rechargeable battery system from Electrovaya in cooperation with Solund Verft, HAFS Elektro & Roer AS and Electrovaya's subsidiary Miljobil Grenland AS in Norway.

The 100 kWh new prototype battery system is based on Electrovaya's new generation SuperPolymer(R)2.0 technology. Electrovaya's SuperPolymer(R)2.0 battery system provides excellent performance and reliability with an exceptionally small on-board footprint. The battery system is an important step forward for the global maritime industry and a major step towards replacing diesel generators with a greener, toxic--free alternative form of energy. The owner of the vessel is Wergeland AS and Gulen Skyssbatservice operates the ferry.

The battery electric ferry can save up to approximately 180,750 liters of fuel consumption over its expected lifetime. That has a potential to save about 500 tonnes of emissions;480 tonnes of CO2, 9 tonnes of particulate matter and volatile organic compounds, 2 tonnes of carbon monoxide and 2 tonnes of other type of emissions. The Electrovaya lithium ion battery also eliminates all fuel exhaust including the usual carcinogens from diesel exhaust.

The Cable Ferry is operating approximately 10 round-trips per day between the mainland and the Hisaroey Island, a round trip distance of about 1.6 kilometers. The Cable Ferry is driven by two winches on-board and Electrovaya's on-board Lithium Ion battery system is recharged on the mainland between the round trips and over-night. KF Hisaroey is built to carry 49 passengers and 6 cars.

According to a study by Zero, "Mapping of the potential for battery operation of ferries in Norway," 47 of a total of 125 ferry connections are relevant for battery operation now, with 34 relevant for battery operation in the future. The Norwegian maritime market is expected to be a key driver of battery electrification. By avoiding the use of fossil fuels and instead relying on Norway's hydroelectric power production, there will be a significant reduction of CO2 and NOX emissions into the atmosphere. In addition there will be no noise from the diesel engines and no carcinogens from diesel exhaust. Recent studies by the World Health Organization outlined the large quantity of carcinogenic gases produced by diesel exhausts and elimination of diesel exhaust is of major interest worldwide.

"Solund Verft, Electrovaya, Miljobil and its Norwegian partners are very well suited for additional maritime opportunities" said Hans Wergeland, the owner of KF Hisaroey. "This market is expected to grow to substantially over the coming years, as the demand for environmentally friendly, zero carbon foot-print energy solutions increases. There is growing pressure from the International Maritime Organization and government agencies around the world to move away from fossil-fuel propulsion and hoteling energy solutions."

"We are delighted to be working with Electrovaya and Miljobil Grenland." says Svein-Tore Eide, General Manager of Solund Verft AS, the ship building company responsible for the project. "This will be the first battery electric cable and road ferry in Norway and there are also other ferry projects under discussion." Mr Eide continues "Our customer Wergeland AS also currently operates a diesel driven cable ferry between Duesundoey and Masfjordnes and this ferry is targeted for conversion to electric in the near future." Mr. Eide says "We selected Electrovaya due to its in-depth understanding of the energy storage system market, its high level of assistance during the design phase and its leading-edge technology." Mr. Eide concludes "We are excited about the opportunity to partner with Electrovaya and Miljobil on future opportunities in Norway and elsewhere."

"Electrovaya is pleased to participate in the development of this maritime battery." says Paul Hart, Chief Financial Officer of Electrovaya. "Electrovaya's break-through energy technology addresses the Global problems of Climate Change, the reduction of Greenhouse and carcinogenic gases and demonstrates Norwegian leadership in replacing diesel-driven motors. This project enables us to investigate the technical challenges of such systems and positions Electrovaya as a leader in this emerging industry."

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