Small Cap Strategist is published by Crystal Equity Research an independent research resource on small capitalization stocks. Follow along as we discuss the most recent trends in the small-cap sector, investigate interesting companies and pan a few not-so-promising stocks.
July 2013, Sumitomo Electric
Industries Ltd. (SMTOF:OTC),
a subsidiary of Japan’s industrial powerhouse Sumitomo Corp. (SSUMF:OTC) , announced the sale of a special battery to
Hokkaido Electric Power Company.The battery,
rated at 60,000 kilowatts, is a vanadium redox flow battery.These batteries are unique in that the
electrolyte is held in external tanks.Pumps supply the electrolyte to a ‘flow’ cell where electricity is
charges and discharged.Sumitomo’s
batteries are additionally unique by using vanadium for both electrode and cathode.The electric reaction is accomplished simply
by changing the valence of vanadium ions.
configuration of the vanadium ‘redox’ battery makes for some interesting economies.These batteries have a long charge/discharged
cycle.The life of the electrolyte is
not restricted to the deep discharge problems of conventional batteries. What is more the electrolyte is not subject to
using Sumitomo’s storage solution, Hokkaido Electric will be able to receive as
much as 10% more electricity from a solar power facility as well as smooth out
the day-to-night fluctuations in the solar power source.Installation is slated for 2014 and will take
place over three years.
be certain, the vanadium redox batteries are a very small part of Sumitomo’s
overall business.Indeed, the corporate
web site for Sumitomo Electric Industries does not even mention the redox
batteries.The only mention of Sumitomo’s
redox flow battery system is a small illustration entitled the ‘smart energy
system’ that is tucked away in the company’s corporate brochure.
Sumitomo might be a more substantial company, a position in the stock is not a
stake in large-scale power storage.The majority of its revenue is generated
through the sale of wire and cable insulation.That said, the company has been investing heavily in research and development
in environment as well as infrastructure products.
Neither the author
of the Small
Cap Strategist web log, Crystal Equity
Research nor its affiliates have a beneficial interest in the companies