Kraken Scoops $9 Mln Deep-Sea Battery Contract
Canadian headquartered marine technology company Kraken Robotics Inc. said it has reached a deal with Ocean Infinity to supply $9 million worth of deep-sea batteries for the U.S. based ocean survey and exploration company for delivery from Q4 2018 to Q4 2019.
Kraken will arrange for these batteries to be built by Kraken Power GmbH, an entity in which Kraken currently holds a 19.9 percent interest. The first purchase order has been issued for $2.5 million and the subsequent purchase order of $6.5 million is expected in early Q1 2019.
Karl Kenny, Kraken’s President and CEO, said, “We are very pleased to receive this large battery order from Ocean Infinity to provide pressure tolerant battery technology to their AUVs. Kraken added this battery technology to our product portfolio through an investment in Kraken Power GmbH in Q2 2017, pursuant to which we acquired our current 19.9 percent ownership position. Under the terms of our agreement with Kraken Power, we can increase our ownership to 75 percent from 19.9 percent by exercising the conversion option on our convertible note and paying an additional €200,000. Since May 2017, Kraken Robotics has introduced Kraken Power to several new military and commercial customers and Kraken Power has successfully delivered initial orders. 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. Given the success of this relationship to date, Kraken expects to exercise its right to acquire the additional 55.1 percent ownership interest in Kraken Power at some point prior to the end of Q4 2018.”
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 meters. In our drive to add value for our clients we are constantly striving to push the boundaries of what can be achieved with technology. Maximizing underwater endurance is a critical aspect of our operational model. We invested considerable effort in understanding the current state of development in deep sea battery technology. Kraken’s pressure tolerant gel encapsulation process is simply brilliant. Using their technology, we can increase our energy capacity by over 50 percent in the same physical form factor as our existing conventional batteries. From an operational perspective this gives us considerable flexibility to optimize mission plans, increase area coverage, manage weather impact and ultimately increase value for our customers.”