e2Companies’ R3Di® System to Improve Power Reliability for Major Grocery Distribution Center in California

January 30, 2023

The R3Di® system will improve power quality and integrate with on-site renewables.

PARAMOUNT, California, January 30, 2023 — e2Companies today announced its collaboration withThe Kroger Company, America’s grocer, with nearly 2,800 grocery stores under a variety of brand names, including Ralphs. Kroger will begin using e2Companies’ R3DiⓇ system (pronounced "Ready") to improve power quality at the Paramount CA distribution center that serves stores across Los Angeles County.

The e2Companies’ patented R3DiⓇ system is an onsite, instantaneous backup energy storage solution,qualified to sustain long duration outages. This system has the flexibility to serve as primary or stand-by back-up power, serving as a foundational building block for many future energy projects. The R3Di®system has received official UL 9540 certification, the safety standard for energy storage systems (ESS), including safety, containment, and environmental performance.

Palm Energy, LLC, a subsidiary of e2Companies, is leading this project and identified the R3DiⓇ solutionfor the ongoing power fluctuations at the distribution center for Ralphs. These disruptions and power quality issues are causing sensitive equipment disruptions, resulting in significant downtime, and impacting operational efficiency. Once the one-megawatt (1MW) R3Di® system is installed, it will provide continuous conditioned power and instantaneous load pick-up to keep the equipment running seamlessly.

“The R3Di® system will integrate with the distribution center’s existing infrastructure, including two diesel generators, on-site solar panels, and the power grid, to solve these intermittent power issues, ”according to Palm Energy President Steve Moffitt.

The R3Di® system will also utilize onsite solar power the center already produces, improving the reliability of its existing renewable energy source.

“Kroger is a true leader in retail innovation, from its operations to its commitment to the communities it serves and to the environment,” Moffitt said. “We’re proud to find the right solution that continues to support Kroger’s commitment to deliver reliable food supply chain for Ralphs’ grocery stores.”

The installation at the Kroger/Ralphs distribution center is expected to be complete by early summer 2023. Once the installation is complete, e2Companies and Palm Energy will continue to monitor and maintain the R3DiⓇ system, ensuring for conditioned, reliable, and resilient on-site power.

About e2Companies and Palm Energy, LLC

e2Companies is the first vertically integrated Virtual Utility® company for power generation, distribution, and energy economics in the marketplace. e2Companies’ innovative technology combined with the expertise of Palm Energy, delivers top notch performance and unprecedented value in the industry.

e2Companies is also an ESG focused organization, committed to helping companies stay ahead in the ever-changing regulatory landscape.

Palm Energy, LLC is a subsidiary of e2Companies and leverages e2 technology and 24x7x365 asset monitoring to deliver superior results for its customers. The Network Operations Center is a critical pillar of this success, delivering immediate demand response and unlocking both energy savings andrevenue opportunities. Palm Energy also provides clients with deep market expertise and industry-leading customer service through a no CapEx Energy Service Agreement (ESA).

To learn more about e2Companies visit www.e2companies.com

Investor Contact

Investors may contact Alexis Khazzam at alexis.khazzam@e2companies.com with inquiries.

Media Contact

Media may contact Neil Cowan at neil.cowan@e2companies.com or call 844-397-2692

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