Energy Storage Co. Uncovers Excellent Growth Opportunity in AI-Driven Energy Demand

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1. Disclosure for the quote from the John Newell article published on September 26, 2025

1. For the quoted article (published on September 26, 2025), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,000.
2. Author Certification and Compensation: John Newell of John Newell and Associates was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Newell holds a Chartered Investment Management (CIM) designation (2015) and a  U.S. Portfolio Manager designation (2015). The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed. 

2. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

John Newell Disclaimer

As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it's advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.

Eguana Technologies Inc. (EGT:TSX.V; EGTYF:OTC) announced that it has reached an agreement with ITOCHU Corp. to extend the maturity date of the ITOCHU unsecured Convertible Debenture to March 13, 2026, according to a February 4 release.

This extension provides additional time for the partners to negotiate a longer-term solution. The extension also includes all past interest, which was previously extended to the debenture's maturity date.

"As we continue managing through tight liquidity conditions created by the significant downturn in residential renewable markets over the last few years, and further compounded by the lack of payments from a prior U.S. customer, ITOCHU has remained a valuable and supportive partner to the company, bringing solutions to the table support our utility channel transition," said Eguana Chief Executive Officer Justin Holland. "We now have over a megawatt fleet in operation in Western Canada for power grid feeder improvement, along with additional fleets in operation in California, Vermont, Hawaii, and Nova Scotia. This simply would not have been possible without the support from our many partners, including ITOCHU."

Eguana also confirmed its Energy Innovation Challenge-funded project in Medicine Hat, Alberta, where Eguana was selected as an award recipient to expand and demonstrate utility-oriented functions in the Eguana Edge™ Distributed Energy Resource Management System on a single feeder remains on track. Hardware installation of nine EVOLVETM LFP BESS was completed in December 2025, and the third phase of software development has begun.

During this period, Eguana said it has been engaging with utilities to gain insight into operations requirements and to optimize the performance of the product. Eguana encourages interested utilities to reach out to schedule a demonstration and discussion with Eguana's development team to create the tools to support the energy transition at the grid edge.

The history of ITOCHU Corp. dates back to 1858, when the company's founder, Chubei Itoh, began linen trading operations. Since then, ITOCHU has evolved and grown over 150 years. With approximately 110 bases in 63 countries, ITOCHU, one of the leading sogo shosha, engages in domestic trading, import/export, and overseas trading of various products such as textiles, machinery, metals, minerals, energy, chemicals, food, general products, realty, information and communications technology, and finance, as well as business investment in Japan and overseas.

Company Announces Revenue Growth

In December 2025, Eguana shared its financial results for the third quarter ending September 30, 2025. The company reported that its revenue for the year to date reached CA$2.06 million, marking a 310% increase compared to the same period in 2024. Revenue for the third quarter was CA$132,000, an 8.3% rise from the corresponding quarter in September 2024.

"We are very excited to continue our fleet expansion as we enter the winter peak season in British Columbia," Holland said at the time. "Through this season, we will continue demonstrating the performance and capability of Eguana's feeder support solutions, clearing a path for expanded deployments in B.C. along with other utility partners across North America."

The announcement highlighted that the gross margin for the year improved to 42%, up from a negative 66% the previous year, primarily due to acquiring discounted finished goods from a former partner in 2024. The gross margin for Q3 2025 was negative 16%, compared to negative 139% in September 2024, influenced by the usual quarterly warranty provision and low sales volume. Excluding the warranty accrual, the adjusted gross margin was 31%.

The rapid shift to renewable energy, particularly with the onset of Electrification 2.0, is changing how utilities plan and manage the grid, according to a recent blog post by Nick Tumilowicz, Director of Product Management for Itron, and Brent Harris, Founder and Chief Operating Officer of Eguana. The companies are collaborating to meet the demands of this accelerated energy transition. As electrification expands to include vehicles, heating, and industrial processes, utilities are experiencing load growth rates not seen in decades.

"The challenge now is to extract more capacity from existing infrastructure without overbuilding," they explained. "Deploying demand-side management (DSM) at scale, along with reliable Distributed Energy Resources (DERs), is crucial to the success of these efforts. This also requires smarter orchestration of grid-edge assets through modern operations equipped with real-time visibility, forecasting, and control — capabilities now made possible through scalable, utility-grade platforms like Itron's Grid Edge Intelligence portfolio."

As the grid faces unprecedented pressure from Electrification 2.0, the role of DERs must evolve. It's no longer sufficient to reduce demand during peak hours; customer-sited resources must now interact with utility operational systems in real time, ensuring reliable performance, verifiability, and cybersecurity. "Unlike thermostats, managed EV charging, and other deferrable loads, distributed energy storage is the only behind-the-meter asset currently capable of both absorbing and delivering power on demand," the blog stated. "This makes it uniquely suited to support real-time DER coordination, local capacity relief, and grid-edge optimization."

Expert: Co. Plays Crucial Role in Energy Shift

¹In an analysis dated September 26, 2025, John Newell of John Newell & Associates highlighted that Eguana has already deployed thousands of its unique systems across North America, Australia, and Europe, positioning itself as a significant player in the rapidly changing energy landscape. By merging advanced storage technology with virtual power plant (VPP) fleet management software, Eguana is focusing on both large-scale distributed resource aggregation and consumer backup markets. By delivering on-site energy capacity precisely where it is most needed, Eguana connects consumers, contractors, and utilities, providing vital solutions as electricity demand grows in the electrification era.

Eguana's business strategy addresses one of the most urgent challenges utilities face today: handling the rising electricity demand from the electrification of vehicles, heating, and industrial systems without resorting to expensive centralized infrastructure expansion. Its distributed energy storage systems can absorb and supply power as needed, creating adaptable grid-edge capacity that aids real-time load balancing, local resilience, and the integration of renewable energy sources. The company's systems extend beyond consumer backup products; they are engineered for utility-grade reliability, supporting applications such as local capacity relief, rapid frequency response, and integration with virtual power plants.

Eguana has proven its technology through alliances with global leaders like Mercedes-Benz, BC Hydro, and Itron. The partnership with Itron effectively integrates Eguana's storage solutions directly into AI-driven smart meters using open standards. "This interoperability allows utilities to control distributed resources with greater visibility and security, opening the door to scaled adoption," Newell wrote. "With a production capacity of over 24,000 systems annually and relationships with major North American utilities, Eguana is positioned to scale into a utility-driven market projected to exceed +US$100 billion by 2030."

With fundamentals aligned to a market opportunity surpassing US$100 billion and strong momentum from the energy transition, Eguana Technologies Inc. received a Speculative Buy rating from Newell.

The Catalyst: AI Is Transforming the Nation's Energy Demand

After years of relatively stable electricity usage, the United States is now experiencing a phase of rapidly increasing consumption, as highlighted in a report by Sunny Park for BloombergNEF on January 9. The emergence of AI-driven data centers, electric vehicles, and distributed generation and storage is reshaping the country's energy demand profile at an unprecedented pace. Warmer summers are leading to higher air conditioning usage, while the initial stages of industrial electrification are adding pressure to an already stressed grid system.

The transportation sector is also undergoing significant changes, with global electric vehicle sales reaching new heights in 2025, and two- and three-wheeled electric vehicles gaining popularity, especially in developing countries. In the United States, however, the growth in electric vehicle sales has been more gradual, as the industry faces substantial new policy challenges from Washington.

Artificial intelligence has advanced rapidly in recent years, with tech companies investing billions into data centers to support the training and operation of AI models, according to a report by Erica Leppert for the Pew Research Center on October 24, 2025. The expansion of these facilities has raised concerns about their potential impact on energy consumption and the environment, as the United States seeks to gain an edge in the global AI race. In some states, lawmakers and utility companies are under pressure to protect residents from power outages and rising electricity costs as data centers expand, Leppert wrote.

Utilities often need to make costly upgrades to power grids to accommodate the increased energy demands from new data centers. These expenses are frequently passed on to smaller businesses and households unless protections for ratepayers are established. For example, in the PJM electricity market, which stretches from Illinois to North Carolina, data centers contributed to an estimated US$9.3 billion increase in the 2025-26 "capacity market" (the total electricity supply commitment in the region), according to the report.

As a result, the average residential bill is projected to rise by US$18 a month in western Maryland and US$16 a month in Ohio. Americans might face more widespread price increases in the coming years.

A study from Carnegie Mellon University suggests that data centers and cryptocurrency mining could lead to an 8% rise in the average U.S. electricity bill by 2030, potentially exceeding 25% in high-demand areas like central and northern Virginia, Leppert said. Nationwide, electricity rates have already increased for consumers in recent years, partly due to utility companies upgrading aging infrastructure to protect against extreme weather and cyber threats. For instance, the typical U.S. household paid US$142 per month for electricity in 2024, according to the U.S. Energy Information Administration, a 25% increase from US$114 per month in 2014, the article noted.

Ownership and Share Structure¹

Approximately 3% of the company is owned by management and insiders, while 15.16% is held by the Japanese ITOCHU Corp.

The company's market cap is CA$4.52 million, with a 52-week range of CA$0.06 to CA$0.23.