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(Alliance News) - Invinity Energy Systems PLC on Friday said it will not be able to recognise revenue on projects in Canada and Australia for a brief period, despite meeting production goals this year.
Invinity is a London-based utility-grade energy storage manufacturer that produces batteries for the large-scale requirements of business networks.
Chief Executive Officer Larry Zulch celebrated production achievements in both countries but said "external factors" prevented the realisation of revenue for 2022.
At the year's end, Invinity said it had manufactured and shipped a total of 19 VS3 batteries from its manufacturing facility in Vancouver, Canada, as planned, to a holding facility awaiting delivery to site.
The remaining 19 VS3 batteries are either already in transit or awaiting pickup from Invinity's Vancouver factory early in the new year.
At the request of the customer, however, Invinity has now signed a variation to the sales contract, agreeing to allow the customer to delay delivery of all the VS3 batteries to site until no later than March 31, 2023, in order to allow further construction work to be completed.
The customer has agreed to accelerate milestone payments to address the request for a delay in delivery.
Invinity noted that the delay will give the company time to assess the impact of Canada's recently announced clean technology investment tax credit.
It said that both parties anticipate that the ITC will significantly strengthen the business case for energy storage in Canada, potentially leading to the expansion of existing projects and accelerating the sales cycle for future follow-on projects.
Meanwhile, Invinity also manufactured and shipped 14 VS3 batteries from its manufacturing facility in China to Australia.
This shipment is currently awaiting customs clearance before delivery to site, and is now expected in January 2023.
The remaining 27 VS3 batteries are due to be shipped from Invinity's manufacturing facility in China and delivered to the site in the first quarter of 2023, in line with customer-defined timescales for commissioning.
Looking ahead, Invinity said it expects revenue from the Canadian and Australian projects to be recognised in early 2023.
Based on the 30 megawatt hours of new business announced during the last quarter of 2022, added to the deferred revenue, the company now expects revenue in 2023 significantly ahead of its previous guidance.
Invinity shares closed 14% higher at 43.00 pence each in London on Friday.
By Holly Beveridge; Alliance News reporter
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