Last checked at 12 Apr 2023 07:00
The information contained within this Announcement is deemed by Invinity Energy Systems plc to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").
12 April 2023
Invinity Energy Systems plc
("Invinity" or the "Company")
Invinity Awarded £11m for 30 MWh Flow Battery
Wins UK Government's LODES Competition
Further to the announcement on 18 January 2023, Invinity Energy Systems plc (AIM: IES) (AQSE: IES) (OTCQX: IESVF), a leading global manufacturer of utility-grade energy storage, is pleased to announce that it has been awarded £11m of grant funding from the Department for Energy Security and Net Zero under Phase 2 of the Longer Duration Energy Storage Demonstration ("LODES") Competition. The funding will be used to deploy a 30 MWh vanadium flow battery ("VFB"), the UK's largest flow battery and Invinity's largest delivery to date.
The award is structured as matched-funding and is conditional on the Company executing a sales contract with a project partner, who is expected to provide the balance of funding then develop, own, operate and optimise the battery project. The Company has already signed a heads of terms agreement with its preferred project partner and will provide a further update upon conclusion of definitive contracting. Upon completion of that step the build and commissioning phase of the project will commence subject to necessary planning and connection approvals being received.
The battery, expected to be delivered during 2024, will be a standalone, grid-connected 30 MWh Invinity VFB at a key node on the National Grid. Capable of delivering more than 7 MW of power on demand, the fast-response and high-throughput characteristics of Invinity's battery technology will be utilised to offer a broad range of services to the grid. The battery system will provide important network flexibility and accelerate the UK's transition to low carbon domestic energy sources.
With an energy capacity equivalent to the daily electricity use of more than 3,500 homes, this will be the largest UK-manufactured battery ever deployed. Approximately six times larger than Invinity's battery at the Energy Superhub Oxford, it will also be one of the world's largest flow batteries. Finally, with the ability to deliver full power for a discharge duration of over four hours, this battery is expected to be the largest longer duration battery asset serving the UK grid.
The majority of the income receivable under the project is expected to be recognised by the Company during 2024. This project was included in the Company's Advanced category in its most recent disclosed commercial opportunity pipeline and has now progressed to the Base category following this development.
Minister for Energy Security and Net Zero Graham Stuart said:
"Storing energy for longer periods is vital to build a robust and secure energy system and ensure that renewable energy is used efficiently. Fortunately the UK has a wealth of pioneering businesses that are making their mark on this industry.
"Today we're backing three UK businesses to make their projects a reality, which will go on to play a role in our country's energy security."
Matt Harper, Chief Commercial Officer at Invinity said:
"We appreciate the UK Department of Energy Security and Net Zero Energy's recognition of the importance of longer duration energy storage for grid stability and to making low-cost renewable power available on demand. We are grateful that Invinity was chosen from a very competitive field and look forward to delivering what will be the largest battery ever manufactured in the UK. We are pleased to help improve the UK's energy security, further demonstrate UK leadership in energy technology, and support UK industry and jobs. This award is a critical step in Invinity's journey from development stage to a commercial supplier of batteries critical to the global path to net zero."
Enquiries:
Invinity Energy Systems plc | +44 (0)204 551 0361 |
Jonathan Marren, Chief Development Officer and Interim CFO Joe Worthington, Director of Communications | |
Canaccord Genuity (Nominated Adviser and Joint Broker) | +44 (0)20 7523 8000 |
Henry Fitzgerald-O'Connor / Harry Pardoe / Gordon Hamilton | |
VSA Capital (Financial Adviser and Joint Broker) | +44 (0)20 3005 5000 |
Andrew Monk / Simon Barton | |
EAS Advisors LLC (US Corporate Advisor) | +1 (646) 495 2225 |
Matthew Bonner / Chris Chesworth | |
Notes to Editors
Invinity Energy Systems plc (AIM: IES) (AQSE: IES) (OTCQX: IESVF) manufactures vanadium flow batteries for large-scale, high-throughput energy storage requirements of business, industry and electrical networks.
Invinity's factory-built flow batteries run continually with no degradation for over 25 years, making them suitable for the most demanding applications in renewable energy production. Energy storage systems based on Invinity's batteries are safe, reliable, and economical, and range in size from less than 250 kilowatt-hours to tens of megawatt-hours.
Invinity was created in April 2020 through the merger of two flow battery industry leaders: redT energy plc and Avalon Battery Corporation. With over 65 MWh of systems already deployed or contracted for delivery across over 70 sites in 15 countries, Invinity is active in all major global energy storage markets and has operations in the UK, Canada, USA, China and Australia. Invinity Energy Systems plc is listed in the UK on AIM and AQSE and trades in the USA on OTCQX.
To find out more, visit invinity.com or call Investor Relations on +44 (0)204 551 0361.