ZBB Energy Corporation Ships ZBB EnerSystem(TM) to U.S. Navy Microgrid Project

ZBB Ships Order Valued at Over $1 Million to Provide 1000kWh Energy Storage System to San Nicolas Island, California


MILWAUKEE, WI--(Marketwire - Dec 18, 2012) - ZBB Energy Corporation (NYSE MKT: ZBB), a leading developer of intelligent, renewable energy power platforms, announced today it has shipped an order from the U.S. Navy Fleet and Industrial Supply Center, San Diego (FISCSD). ZBB has provided a 1000kWh / 500kW-rated energy storage system for use in a microgrid application at the San Nicolas Island Naval Facility, located in the Catalina Island group, just west of Los Angeles, California. The system utilizes ZBB's EnerSystem™ technologies, comprised of ZBB's EnerSection™ Power & Energy Control Center and 20 ZBB EnerStore™ Zinc Bromide flow battery modules.

The previously-awarded contract to supply equipment and services for the work has been supported by the Office of Naval Research-Technology Insertion Program for Savings (ONR-TIPS), with the major purpose of accelerating transitions of new technology. During the next two years, ZBB's EnerSystem will be tested and certified to maintain power quality and perform load management for off-peak power produced from the wind turbine and diesel electric power delivery system at the Navy facility on San Nicolas Island. This will be the first time that an advanced energy storage system is tested by the Navy with large-scale renewable sources, in conjunction with actual load management and generator plant control schemes in a microgrid application in North America. Successful tests and certification will make available transition of this technology to more wide spread Navy use.

In the Navy's October 16, 2012 press release, Roger Natsuhara, Acting Assistant Secretary of the Navy for Energy, Installations, and Environment asked, "How do we integrate all these different technologies and find the right balance? The Navy has some unique bases that are really very different than other services," he said, pointing to remote, isolated locations like Diego Garcia, Guantanamo Bay and San Nicolas Island. "These are not wartime bases. We have to be more efficient."

"Several facilities around the globe have the capacity to generate large amounts of renewable energy," Natsuhara said, "but don't necessarily use it efficiently. Without options for storing generated energy, much of it goes to waste."

"Storage is a game-changer," said Chris Parry, Naval Facilities Engineering Command Southwest (NAVFAC SW) energy manager.

"Whoever can develop affordable, effective storage for renewable energy, that's the next Bill Gates," agreed Capt. Cliff Maurer, commanding officer of NAVFAC SW.

The ZBB EnerSystem will be used continuously in an ongoing operational mode to minimize diesel gen set runtime in favor of power generated from wind turbines and future photovoltaic (PV) arrays on the island. The base's overall system will focus on the power control for microgrid stability, quality, and load leveling needs on the base. "We look forward to working with the Navy to showcase the capabilities of ZBB's EnerStore flow battery storage and integrated power electronics. This application is a great example of how cost-effective power electronics and storage will deliver key integration, management and fuel saving benefits to the Department of Defense (DoD)," said Eric Apfelbach, President & CEO of ZBB Energy.

ZBB's EnerSection power electronics control center will be used to interconnect the flow battery modules and future renewable inputs to the existing base micro-grid and recently installed wind turbines. The ZBB EnerStore flow battery is designed to serve as an advanced electrical energy storage device, constructed from environmentally-friendly materials that provide a long service life and advanced performance when compared with traditional chemical batteries, particularly in challenging environmental and operational applications like military base microgrids.

ZBB has worked closely with the Navy in Port Hueneme, CA and the project's design and installation civilian contractor to define operational standards for advanced energy storage systems on microgrids such as this project and for use at future naval facilities.

About ZBB Energy Corporation

ZBB Energy Corporation (NYSE MKT: ZBB) designs, develops, and manufactures advanced energy storage, power electronic systems, and engineered custom and semi-custom products targeted at the growing global need for distributed renewable energy, energy efficiency, power quality, and grid modernization. ZBB and its power electronics subsidiary, Tier Electronics, LLC, have developed a portfolio of integrated power management platforms that combine advanced power and energy controls plus energy storage to optimize renewable energy sources and conventional power inputs whether connected to the grid or not. Tier Electronics participates in the energy efficiency markets through their hybrid vehicle control systems, and power quality markets with their line of regulation solutions. Together, these platforms solve a wide range of electrical system challenges in global markets for utility, governmental, commercial, industrial and residential end customers. Founded in 1986, ZBB's platforms ensure optimal efficiencies today, while offering the flexibility to adapt and scale to future requirements. ZBB's corporate offices and production facilities are located in Menomonee Falls, WI, USA with offices also located in Perth, Western Australia. For more information, visit: www.zbbenergy.com.

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Investor Relations

Lewis W. Kreps
Three Part Advisors, LLC


David Mossberg
Three Part Advisors, LLC
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