Heramba Electric Signs $26 Million e-Mobility Contract With Seattle, Washington Area

Rhea-AI Summary

Heramba Electric plc (NASDAQ: PITA) has announced that its subsidiary, Kiepe Electric, has secured a $26 million contract with King County Metro in Seattle for a battery upgrade program. This three-year agreement will enhance In Motion Charging (IMC®) capabilities for electric trolley buses, providing upgraded battery packs with triple the capacity of the original energy storage systems.

The company has signed $75 million in North American orders year-to-date, including a recent contract with Chicago Transit Authority. The upgraded battery packs will allow electric buses to travel over seven miles between overhead wire connections, improving efficiency and supporting King County Metro's commitment to eco-friendly public transportation.

Positive

• Secured a $26 million contract with King County Metro in Seattle
• Signed $75 million in North American orders year-to-date
• Upgraded battery packs will triple the capacity of original energy storage systems
• Enhanced In Motion Charging (IMC®) technology allows buses to travel over 7 miles between overhead wire connections
• Provides on-site service support for up to five years, starting in 2024

Negative

• None.

Insights

Financial Analyst

Heramba Electric's recent $26 million contract with King County Metro in Seattle is a significant win, bringing their year-to-date North American orders to $75 million. This demonstrates strong market traction and potential for growth in the U.S. e-mobility sector. The contract's focus on upgrading battery capacity by approximately three times shows a clear demand for improved electric bus performance.

The additional five-year service support agreement provides a steady revenue stream and strengthens customer relationships. With the U.S. pushing for greener public transport, Heramba is well-positioned to capitalize on this trend. However, investors should monitor the company's ability to deliver on these contracts profitably and on time, as execution will be key to maintaining momentum and securing future deals.

Tech Expert

Heramba's In Motion Charging (IMC®) technology represents a clever solution to the range limitations of electric buses. By allowing buses to charge while connected to overhead wires, it extends their off-wire range to over seven miles. This hybrid approach offers flexibility in route planning and reduces infrastructure costs compared to full electrification.

The battery upgrade from KIEPE is particularly noteworthy, tripling the energy storage capacity of existing buses. This not only improves performance but also extends the lifespan of the current fleet, offering a cost-effective path to better e-mobility. The focus on lifecycle management and upgrading older vehicles shows foresight in product development, potentially opening up a valuable market for retrofitting existing electric bus fleets worldwide.

Market Research Analyst

The e-mobility market in North America is showing strong growth potential, as evidenced by Heramba Electric's recent contract wins. The $75 million in year-to-date orders indicates a robust demand for electric bus technologies. This aligns with the broader trend of cities investing in sustainable public transportation to meet environmental goals.

Heramba's strategy of combining German engineering with U.S. manufacturing ("made in USA products") could be a significant competitive advantage, appealing to both quality-conscious buyers and those prioritizing domestic production. The company's focus on upgrading existing fleets also taps into a potentially large market segment, as many cities look to improve their current electric bus systems rather than completely replace them. This approach could lead to faster adoption and market penetration for Heramba's technologies.

Has signed $75 million in year-to-date North American orders, following recent contract win announcement with Chicago Transit Authority

DÜSSELDORF, Germany and ATLANTA, Aug. 27, 2024 /PRNewswire/ -- Heramba Electric plc (NASDAQ: PITA) ("Heramba Electric" or the "Company"), a global technology company focused on decarbonization of public and commercial transportation, announced that its wholly-owned subsidiary Kiepe Electric ("KIEPE") has been awarded a $26 million battery upgrade program by King County Metro in Seattle, Washington for enhanced In Motion Charging (IMC®) on its electric trolley buses.

The three-year agreement will ensure enhanced in-motion charging capability for electric trolley buses and provide King County with upgraded battery packs that will deliver approximately three times the capacity of the original energy storage system (ESS). As a result, following deliveries in late-2024, the county will operate a more efficient e-mobility network, reducing carbon emissions and improving public transportation for the region.

KIEPE will also provide on-site service support for up to five years, starting in 2024.

KIEPE's recent program win in Chicago with Chicago Transit Authority (CTA) and this latest agreement in Seattle with King County Metro further underline the strong market position of the business in North America. Combined these two projects alone represent new US order intake of more than $75 million for 2024 year-to-date.

"These recent transactions reflect our continued focus to deliver made in USA products, leveraging high-quality German engineering expertise, to address a significant opportunity to decarbonize urban America," said Michele Molinari, Chief Executive Officer at Heramba Electric. "We are in the early stages of executing against our growth plan in the region but are well-positioned to benefit from the strong commercial opportunities for high power charging stations and other state-of-the-art systems in our product portfolio."

"Seattle and King County are considered to be one of the eco-friendlier regions in United States and we are proud to contribute to this quality of life with our IMC® technology as part of our long-standing partnership with New Flyer and King County Metro. The extensive battery upgrade is in line with KIEPE's goal of reducing emissions as part of long-term lifecycle management and improving public transportation with state-of-the-art technology," said Alexander Ketterl, CEO of KIEPE Group.

KIEPE has developed an upgraded battery pack for 174 electric trolley buses delivered to King County Metro between 2014 and 2017 (KCM XT40 and XT60). The IMC® technology allows these electric buses to travel over seven miles between overhead wire connections, relying on space-saving batteries that charge during short sections of overhead line operation. This extended range and efficiency will support King County Metro's commitment to provide eco-friendly public transportation and the city's broader environmental goals. By closely collaborating with King County Metro on this innovative project, KIEPE is enhancing the energy efficiency and performance of the county's electric trolley buses while reducing infrastructure maintenance and service expansion costs.

As electrification becomes more complex, Kiepe Electric is being globally recognized for providing comprehensive support throughout the entire product lifecycle, delivering smart solutions, including for older vehicles.

About Heramba Electric plc 

Heramba Electric plc is a growth-oriented, global technology company, dedicated to accelerating the decarbonization of public and commercial transportation. We are committed to driving organic and inorganic growth strategies, supported by the significant public company experience of our Board of Directors and more than 500 employees globally. For more information on Heramba Electric plc, visit www.herambaelectric.com.

Our principal subsidiary, Kiepe Electric, was formed in 1906. It is known worldwide for its efficient and ecologically sustainable electric equipment and solutions for streetcars, subway trains, regional trains and electric buses with In Motion Charging (IMC) and High-Power Charging (HPC). Recent innovations include the new, modular HPC platform for 12-, 18- and 24-meter e-buses and high-power charging infrastructure solutions for e-buses up to 800kW inclusive battery storage systems. To learn more, visit www.kiepe.knorr-bremse.com/en/de/.

View original content:https://www.prnewswire.com/news-releases/heramba-electric-signs-26-million-e-mobility-contract-with-seattle-washington-area-302231422.html

SOURCE Heramba Electric

FAQ

What is the value of Heramba Electric's contract with King County Metro in Seattle?

Heramba Electric's subsidiary, Kiepe Electric, has been awarded a $26 million battery upgrade program contract with King County Metro in Seattle, Washington.

How much has Heramba Electric (PITA) signed in North American orders for 2024?

Heramba Electric (PITA) has signed $75 million in North American orders year-to-date for 2024, including recent contracts with King County Metro and Chicago Transit Authority.

What improvement will the battery upgrade provide for King County Metro's electric trolley buses?

The battery upgrade will provide King County Metro with battery packs that deliver approximately three times the capacity of the original energy storage system, allowing buses to travel over seven miles between overhead wire connections.

When will Heramba Electric (PITA) start delivering the upgraded battery packs to King County Metro?

Heramba Electric (PITA) will start delivering the upgraded battery packs to King County Metro in late-2024.