New Hillcrest White Paper Reveals How ZVS Technology Can Deliver Significant Cost Savings and Size Reduction in Power Inductor Design

VANCOUVER, BC — July 17, 2025 — Hillcrest Energy Technologies Ltd. (CSE: HEAT) (OTCQB: HLRTF) (FRA: 7HI), a leader in advanced power conversion technologies, today announced the publication of a technical white paper analyzing the performance characteristics of AC filter inductors in power conversion systems utilizing the Company’s Zero Voltage Switching (ZVS) technology.

The study, available on the Hillcrest website here, addresses a critical component challenge in grid-connected power systems, where AC filter inductors typically represent 15-25% of total system cost and volume in industrial applications. With the global power electronics market projected to exceed $50 billion by 2030 according to Grand View Research, efficiency improvements in core components present substantial commercial opportunities.

Research Methodology and Scope

The analysis examined LC and LCL filter topologies in grid-connected three-phase inverters, comparing conventional designs with ZVS-optimized alternatives in 200 kW power range applications. Both systems were rated at 300 amps and tested against IEEE 519 harmonic standards and grid code requirements.

The analysis focused on systems critical to infrastructure electrification, including electric vehicle charging networks, renewable energy integration, and industrial power conversion. The comparative analysis evaluated cost, performance, and physical parameters across multiple design configurations.

Performance Analysis Results

The study found that ZVS-optimized inductors demonstrated cost reductions of 75% compared to conventional designs, with weight reductions of 4x and volume reductions of 3.3x. Performance measurements indicated 45% lower total inductor losses, with copper losses reduced by 40% and core losses by 2.5x. The ZVS systems achieved 3.8x voltage gain while operating at 4x lower inductance values.

These improvements resulted from higher switching frequencies enabled by Hillcrest’s ZVS technology, which addresses traditional high-frequency switching challenges including switching losses, electromagnetic interference, and thermal management constraints.

Market Applications and Industry Impact

The research has direct applications across multiple sectors experiencing rapid electrification. Electric vehicle charging infrastructure, where system size and installation costs are critical factors, represents one market opportunity. Grid-tied renewable energy systems and energy storage applications also benefit from the reduced component footprint and improved efficiency characteristics.

“This technical study highlights the potentials of our ZVS technology to drive further innovations in power conversion systems,” said Emanuel Serban, VP of Engineering at Hillcrest Energy Technologies. “By enabling higher switching frequencies without the typical penalties of increased losses and EMI, our technology allows for smaller, more efficient, and cost-effective AC filter solutions.”

Technical Background

In grid-connected power conversion systems, AC filter inductors serve as the interface between high-frequency inverter switching and electrical grid requirements. These components must control power flow while attenuating switching harmonics that can cause electromagnetic interference and power quality degradation. Traditional designs face trade-offs between harmonic filtering effectiveness and system penalties including power losses, voltage drop, and physical size.

Hillcrest’s ZVS technology addresses these limitations by eliminating switching losses through zero voltage transitions, reducing electromagnetic interference through lower dv/dt switching characteristics, and improving thermal management through reduced heat generation. The technology enables smaller AC filter inductors by allowing higher switching frequencies without typical performance penalties.

Commercial Development

The white paper supports Hillcrest’s ongoing commercialization efforts as the Company transitions from technology development to commercial deployment. Recent activities include the establishment of specialized Centers of Excellence, with Vancouver designated as the Grid Center of Excellence for renewable energy integration, energy storage, and data center applications, while Systematec GmbH’s German facility serves as the Automotive Center of Excellence for electric vehicle applications.

Key partnership developments include advanced collaboration with Ocean Batteries, where Hillcrest is developing a 200kVA | 800V ZVS inverter prototype for marine shore power applications. This partnership targets the European energy storage market, which is forecasted to grow at over 18% CAGR by 2030, according to Mordor Intelligence. In addition, the Company recently agreed to a research and development collaboration with Canada-based Energy Plug Technologies Corp. (CSE: PLUG). The partnership contemplates the integration of Hillcrest ZVS inverters in aerospace and defense applications for customers identified and secured by Energy Plug.

In the automotive sector, Hillcrest commenced the first phase of a technology evaluation project with a global Tier 1 automotive supplier consistently ranked among the top 15 largest by revenue globally.  This phase will focus on assessing the potential benefits of integrating Hillcrest’s ZVS technology into the supplier’s next-generation electric vehicle inverter applications. Upon successful completion of this phase and subject to mutual agreement to proceed, further phases would involve integration and validation of Hillcrest’s ZVS technology into the supplier’s platform.

The Company completed extensive customer demonstrations in 2024 at automotive manufacturer and supplier facilities, where its ZVS traction inverter prototype achieved up to 99.7% efficiency and demonstrated system-level efficiency gains of up to 6% at various low-power operating points using the Worldwide Harmonized Light Vehicle Test Procedure (WLTP). Power Factor Correction (PFC) prototype demonstrations at Systematec’s facilities in Germany also showed optimization potential for onboard charging systems.

These developments position Hillcrest for accelerated commercialization across automotive and stationary energy applications, with active engagement of system integrators and original equipment manufacturers in both markets.

Ongoing Strategic Efforts

Hillcrest’s strategic planning continues to evolve in response to global market dynamics and customer requirements as the Company advances its commercialization efforts. The technical advantages demonstrated in this white paper reinforce the commercial viability of ZVS technology across key electrification sectors.

Building on strategic initiatives launched earlier in 2025, the Company has adapted its approach to align with emerging market opportunities and secure strategic partners in specific electrification sectors. Hillcrest is exploring arrangements that may include sector-focused exclusivity or comprehensive technology partnerships, responding to increased market interest in proven, differentiated power conversion solutions. The pool of potential strategic partners includes financial entities, Tier 1 suppliers, utility operators, and companies positioned as first movers or exclusive adopters of ZVS technology within particular electrification markets.

These strategic initiatives are designed to accelerate the commercial deployment of ZVS technology and maximize market penetration in response to the rapidly changing global electrification landscape.

Update on Strategic Financing Progress

Hillcrest previously announced the receipt of a subscription agreement from a strategic investor for a CDN $4.25 million private placement at a premium to market price. If completed, this investment would result in the strategic investor holding approximately 19.9% of the Company’s issued and outstanding common shares.

The completion timeline has extended beyond initial expectations as the strategic investor continues their internal processes. The investor has reaffirmed their commitment to complete the investment as originally structured, and Hillcrest remains prepared to finalize this financing upon receiving direction from the investor to proceed to closing.

Concurrent with this strategic financing, the Company is actively pursuing additional funding opportunities, including potential licensing arrangements and other strategic initiatives to monetize its intellectual property portfolio across specific market applications.

The Company will continue to provide updates as advancements occur.