Borqs Subsidiary Signs Agreement to Provide Solar + Energy Storage Systems to Commercial and Residential Property in Hawaii 

Rhea-AI Summary

Borqs Technologies, Inc. (Nasdaq: BRQS) announced its solar energy storage subsidiary, Holu Hou Energy LLC (HHE), has signed a power purchase agreement with Kapolei Diversified Properties for the Luhauola mixed-use development in Hawaii. The project includes 200KW of solar PV and 500KWh of energy storage, valued at several million dollars, set for completion in 2023. Additionally, HHE's recent agreements, including a $20 million deal to support Honokea Villages' ecological facility, contribute to a total of $49.8 million in signed contracts in 2022. Hawaii's reliance on petroleum raises electricity costs significantly.

Positive

• Holu Hou Energy signed a power purchase agreement with Kapolei Diversified Properties for a mixed-use development in Hawaii.
• The project includes 200KW of solar PV and 500KWh of energy storage, adding to $49.8 million in signed contracts for 2022.
• A separate $20 million agreement with Honokea Villages for a renewable energy system supports long-term growth.

Negative

• Hawaii has the highest electricity costs in the U.S., with residential rates historically high at around $0.50/kWh.
• The state's reliance on petroleum for two-thirds of its power generation poses risks to energy stability and costs.

• U.S. Energy Information Administration data shows oil generated about two-thirds of Hawaii’s electricity in 2021. That makes Hawaii the most petroleum-dependent state.

• HHE adds on to $49.8 million of signed contracts in 2022 for its HoluPower Residential Energy Storage System

SANTA CLARA, Calif., Sept. 20, 2022 (GLOBE NEWSWIRE) -- Borqs Technologies, Inc. (Nasdaq: BRQS, “Borqs”, or the “Company”), a global provider of 5G wireless, Internet of Things (IoT) solutions, and innovative clean energy, today announced its solar energy storage subsidiary, Holu Hou Energy LLC (HHE), a company that offers state-of-the-art renewable energy and energy storage systems to the Single-Family Residential, Multi-Dwelling Unit Residential and Commercial building markets, has signed a power purchase agreement (PPA) with Kapolei Diversified Properties, LLC to deliver energy to Luhauola, a new mixed-use development in Kapolei, on the island of Oahu, Hawaii.
The property includes 10,000 square feet of commercial space, plus outdoor dining for local food establishments. The residential portion of the property includes 29 workforce housing rental apartments.

Luhauola Artist Rendering

Holu Hou Energy will construct the Solar + Energy Storage system utilizing its market leading HoluPower Residential Energy Storage System, combined with the Residential and Commercial scale solar generation. The contract is valued at several million dollars and includes 200KW of PV and 500KWh of energy storage. The system will be placed into service in 2023.

“Our products and services are improving the lives of customers every day by delivering cheaper, cleaner and more reliable electricity, including to those living in Multi-Dwelling Unit residential housing,” stated Brad Hansen, CEO of Holu Hou Energy. “We look forward to building on our Hawaii leadership position and bringing this same energy independence to markets like California in the near future. The cost of utility electricity in Hawaii has risen by about 60% over the last 18-months, with residential rates being at a historical high of around $0.50/kWh. Reliance on fuel oil for a significant part of Hawaii’s power generation means that these unprecedented rates are not likely to abate soon. HHE brings the most safe and productive solar and energy storage solutions to customers, including to those in income brackets not historically able to have their energy needs met by renewables.”

U.S. Energy Information Administration data shows oil generated about two-thirds of Hawaii’s electricity in 2021. That makes Hawaii the most petroleum-dependent state.

“In July of this year, HHE signed agreement with Honokea Villages to deliver a major renewable energy generation and storage system to Honokea’s planned ecological sports training and Hawaiian Cultural facility in their “ahupua’a”, or local community. The development will have Olympic calibre training facilities for surfing, sport climbing, kayaking, beach volleyball, and more, and will serve as tool to celebrate athletics in Hawaii. The renewable energy system will feature over 3 MW of PV generation and over 4 MWh of energy storage, enough to power 100% of the operations of the facility, and will be financed under a 20-year power purchase agreement, or PPA. The system provided by HHE will begin construction in 2023 and its value is estimated at nearly $20M. This project is included in the $49.8 million of Q2 2022 signed contracts announced earlier this month,” stated Pat Chan, CEO of Borqs Technologies, “ESG is becoming increasingly imperative in this global energy crisis. Global warming and dependence on fossil fuel continue to affect the economy and people’s everyday life. Our Holu Hou Energy subsidiary is on track to executing an exciting business plan to grow its market share in Hawaii, one of the states with the highest electricity prices in the U.S., and is actively in discussions with potential customers in California, which is expected to be more than 30 times bigger than the market in Hawaii merely based on residential electricity usage.”

About Borqs Technologies, Inc.
Borqs Technologies is a global leader in software and products for the IoT, providing customizable, differentiated and scalable Android-based smart connected devices and cloud service solutions. Borqs has achieved leadership and customer recognition as an innovative end-to-end IoT solutions provider leveraging its strategic chipset partner relationships as well as its broad software and IP portfolio. Borqs’ unique strengths include its Android and Android Wear Licenses which enabled the Company to develop a software IP library covering chipset software, Android enhancements, domain specific usage and system performance optimization, suitable for large and low volume customized products, and is also currently in development of 5G products for phones and hotspots. The Company acquired controlling shares of the solar energy storage system entity, Holu Hou Energy LLC, in October 2021.

About Holu Hou Energy, LLC
Holu Hou Energy, LLC, a Delaware Corporation, brings state-of-the-art renewable energy and energy storage systems to the Single-Family Residential, Multi-Dwelling Unit Residential and Commercial building markets. With operations in California, Hawaii, Wisconsin and Shanghai, HHE engineers proprietary storage system and control platform solutions, including a breakthrough “HHE Energy Share” technology that is key to development of the Multi-Dwelling Unit Residential housing market. HHE is a vital partner for investors and asset owners that are seeking ESG solutions. For more information, visit www.holuhou.com.

Forward-Looking Statements and Additional Information
This press release includes “forward-looking statements” that involve risks and uncertainties that could cause actual results to differ materially from what is expected. Words such as “forecasts”, “expects”, “believes”, “anticipates”, “intends”, “estimates”, “predicts”, “seeks”, “may”, “might”, “plan”, “possible”, “should”, “estimates” and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Such forward-looking statements relate to future events or future results, based on currently available information and reflect our management’s current beliefs. Many factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements, including the possibility that the positive financial results from business activities as described herein may not be reached or at all, and the negative impact of the COVID-19 pandemic on the Company’s supply chain, revenues and overall results of operations, so the reader is advised to refer to the Risk Factors sections of the Company’s filings with the Securities and Exchange Commission for additional information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements. Except as expressly required by applicable securities law, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contact:

Sandra Dou
Vice President of Corporate Finance
Borqs Technologies, Inc.
sandra.dou@borqs.net   
www.borqs.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/626c9ab7-b53f-44da-a236-5a79159085fb

FAQ

What is the recent power purchase agreement signed by Borqs Technologies?

Borqs Technologies' subsidiary, Holu Hou Energy, signed a power purchase agreement to provide energy for the Luhauola mixed-use development in Kapolei, Hawaii.

What is the value of the contract for the Luhauola project?

The Luhauola project contract is valued at several million dollars.

How much total contract value did Borqs Technologies sign in 2022?

Borqs Technologies has signed contracts totaling $49.8 million in 2022.

What challenges does Hawaii face regarding electricity costs?

Hawaii faces high electricity costs due to its reliance on petroleum, with residential rates around $0.50/kWh.

What is the estimated value of the agreement with Honokea Villages?

The agreement with Honokea Villages for renewable energy generation and storage is valued at nearly $20 million.