(Sharecast News) - Energy storage specialist Invinity Energy Systems announced its inaugural customer order for its next-generation product, 'Mistral', on Thursday.
The AIM-traded firm said the order came from its strategic partner in Taiwan, Everdura Technology Company, which placed an order for 15 MWh last December.
However, it has since modified its initial order, requesting it to be filled using Invinity's next-generation product instead.
Everdura was planning to install a 14.4 MWh vanadium flow battery (VFB), consisting of a Mistral array, in central Taiwan.
The installation was intended to stabilise Taiwan's electrical grid by offering enhanced dynamic regulation (E-dReg) services.
Invinity projected the shipment of the order by the end of 2024.
Once functional, the project was poised to be the largest of its type in Taiwan and would mark the first instance where a vanadium flow battery offered regulation services for the Taiwanese grid.
Financially, the adjustment to the order would entitle Invinity to an additional payment, which would be channelled towards procuring components with a longer lead time, kickstarting the manufacturing process.
Although the current revenue backlog of Invinity remained unaffected by the order's modification, using the Mistral product was likely to garner a higher gross margin than initially predicted.
In addition to the change, Everdura and Invinity had penned a non-binding memorandum of understanding for a prospective strategic manufacturing collaboration in Taiwan.
Both Everdura and Invinity expected the preliminary agreement to evolve into a definitive commitment, which could amplify Invinity's worldwide manufacturing capacity and facilitate a broader reach into Asian energy storage markets for both enterprises.
Everdura's parent company, Everbrite Technology, invested £2.5m into Invinity on 15 March.
The investment was part of Invinity's oversubscribed placing and open offer, raising approximately £23m.
As a part of a three-year deal, Everdura, functioning as Invinity's reseller in Taiwan, was looking to introduce an additional 255 MWh of Invinity batteries to the region.
"Mistral represents the future of grid-connected energy storage with market-leading scalability and economics," said chief executive officer Larry Zulch.
"Getting a first order for a new generation of product is always an important milestone, and having it come from Everdura, our trusted partner in Taiwan, is a demonstration of our deep relationship.
"Our long-standing connection is further supported by announcing our intention to enter into a strategic manufacturing relationship with Everdura to address the large and growing energy storage demand in Taiwan and greater Asia."
At 1317 BST, shares in Invinity Energy Systems were up 2.5% at 41p.
Reporting by Josh White for Sharecast.com.
Invinity Energy (IES)