Zinc8 Energy Solutions, the Canadian company that has been planning to build a $68 million manufacturing plant at iPark 87 in Kingston, has raised the possibility that it may be forced to go out of business. In a public document, Zinc8 revealed that “the company does not generate revenue, and its ability to continue as a going concern is dependent on the company being able to secure debt or equity financing in short order.”
IPark 87 is being developed by Greenwich-based National Resources. Zinc8 had signed a letter of intent to go into iPark 87 that was announced during an event in January that was attended by Gov. Kathy Hochul and numerous other elected officials and dignitaries.
Zinc8 also said, “The company needs additional funding to finance its operations and its ability to continue as a going concern is at risk.”
Zinc8 has been developing battery technology to store large amounts of electricity using a zinc-air system rather than lithium-ion battery technology. Zinc8 said that Ron MacDonald has resigned as the chairman, CEO and a director of Zinc8. It said that another director, Gurcharn Deol has resigned. The company said that Simon Fan, the company’s chief technology officer and executive vice-president will be leading the company until the board of directors selects a new CEO.
The company did not directly address the planned manufacturing plant at iPark 87, but said it may not open a manufacturing facility and raised the possibility that federal funding in the U.S. it had been hoping to receive may not be available on favorable terms or at all.
iPark 87 formerly was known as Tech City and before that had been IBM’s Ulster County campus. Zinc8Â had committed to creating up to 500 jobs at the site.
“Creating good jobs that will lead to a greener, more sustainable New York for our children and grandchildren is not only beneficial to our economy, it’s the right thing to do for our planet,” Hochul said. “Zinc8’s cutting edge, clean energy storage technology is another tool that will allow us to achieve our bold climate agenda and continue to make New York state a leader in advancing the green economy.”
“Zinc8 Energy Solutions Inc. is evaluating its options to continue its business and the advancement and deployment of its technology,” the company said. “In addition to continuing to explore opportunities for sales of its long duration energy storage technology products, it is also exploring opportunities for licensing and monetization strategies for the technology, potential M&A (merger and acquisition) opportunities and possible divestitures of its assets.”
