REG - CAP-XX Limited - Contract Win

CAP-XXAnnouncement

16/10/2024 07:00

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RNS Number : 3903I  CAP-XX Limited  16 October 2024

16 October 2024

CAP-XX Limited

("CAP-XX" or "the Company")

Contract win

The Board of CAP-XX Limited, a world leader in the design and manufacture of
thin, prismatic supercapacitors and energy management systems, is pleased to
announce that the Company has signed a contract (the "Contract") with a new
customer in the smart meter sector in South Africa (the "Customer"). CAP-XX
was selected by the Customer for the Contract following a successful design-in
project.

The Customer will incorporate CAP-XX's supercapacitors in their smart meter
products which will then be distributed to the Customer's end customers to
measure their gas and electricity usage. The Contract is for an initial 12
month period, with the majority of revenue from the Contract being expected to
be recognised in the current financial year, being the year ending 30 June
2025. The Company anticipates that the Contract will lead to further orders
from this Customer over the coming years as additional smart meter products
are required for general maintenance of the product and from an increase in
the number of end use customers.

The role of supercapacitors in the smart meter industry

The global smart meter market is experiencing significant growth, driven by
the need for efficient energy management, government initiatives promoting
smart grids, and the global transition to sustainable energy solutions. Smart
meters, which monitor electricity, gas and water consumption in real time,
enable both consumers and utilities to optimise energy use, reduce
inefficiencies and improve overall grid reliability. This growth in smart
metering systems is creating opportunities for advanced energy storage
technologies using supercapacitors.

Supercapacitors, known for their high-power density, rapid charge-discharge
capabilities and long operational lifetimes, are increasingly being integrated
into smart meters to enhance performance and reliability. Their primary role
in smart meters is to provide backup power during short outages or grid
fluctuations. This ensures continuous data transmission and uninterrupted
functionality, which is crucial for accurate monitoring and billing in smart
grids. Supercapacitors also outperform traditional batteries in terms of
longevity, with the ability to withstand a much larger number of
charge-discharge cycles, making them a durable and efficient solution for the
smart meter industry((1)(2)).

Supercapacitors with higher energy densities offer additional advantages in
high-demand applications, such as real-time data communication and emergency
backup systems. By ensuring that smart meters continue to operate during power
interruptions, supercapacitors support seamless data collection and storage
until the grid is restored ((3)). Their ability to function in a wide range of
temperatures also makes them ideal for smart meters installed in diverse
environmental conditions.

The market for supercapacitors in smart meters is expanding alongside the
growth of smart grid infrastructure. As utilities increasingly focus on
improving grid reliability and energy efficiency, the integration of
supercapacitors in smart meters should become more prevalent, contributing to
the broader adoption of smart metering systems worldwide.

Market size and growth

According to market research, the global supercapacitor market was valued at
approximately USD 4.2 billion in 2022 and is projected to grow at a compound
annual growth rate (CAGR) of approximately 23% from 2023 to 2030((4)).
Although smart meters represent a niche within this larger market, the demand
for supercapacitors in this segment is rising due to increased investment in
smart grid technologies, especially in North America and Europe, where energy
infrastructure modernisation is a key focus((5)).

The global smart meter market, which is expected to reach USD 19.98 billion by
2025, will likely see growing integration of supercapacitors as utilities and
governments prioritise the development of efficient, resilient energy
management system((6)). This trend highlights the crucial role of
supercapacitors and ultracapacitors in supporting the future of smart energy
infrastructure.

References:

(1)           Yadav, P., & Sonawane, M. (2020). "Application of
Supercapacitors in Smart Metering System for Uninterrupted Power Supply."
International Journal of Engineering Research & Technology (IJERT).

(2)           Market Research Future (MRFR). "Supercapacitors Market
Research Report - Global Forecast 2023."

(3)           Samura, R. (2021). "The Role of Ultracapacitors in
Smart Meters and Smart Grid Technology." Energy Storage News.

(4)           Grand View Research. (2023). "Supercapacitors Market
Size, Share & Trends Analysis Report By Product, By Application, By
Region, And Segment Forecasts, 2023 - 2030."

(5)           Mordor Intelligence. (2023). "Smart Meter Market -
Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)."

(6)           Research and Markets. (2022). "Global Smart Meter
Market - Forecast to 2025."

For further information contact:

CAP-XX Limited

Pat Elliott
(Chairman)
+61 (2) 9157 0000

Lars Stegmann (Chief Executive Officer)

 

Allenby Capital (Nominated Adviser and Joint Broker)

David Hart / Piers Shimwell (Corporate Finance)
                               +44 (0) 20 3328
5656

Tony Quirke / Stefano Aquilino (Sales and Corporate Broking)

 

Notes to Editors:

About CAP-XX

CAP-XX (LSE: CPX) is a leader in the design and manufacture of thin, flat
supercapacitors and energy management systems used in portable and small-scale
electronic devices, and to an increasing extent, in larger applications such
as automotive and renewable energy. The unique feature of CAP-XX
supercapacitors is their very high-power density and high energy storage
capacity in a space-efficient prismatic package. These attributes are
essential in power-hungry consumer and industrial electronics and deliver
similar benefits in automotive and other transportation applications.

For more information about CAP-XX, visit www.cap-xx.com
(http://www.cap-xx.com)

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