TIDMIES
RNS Number : 1068X
Invinity Energy Systems PLC
18 December 2023
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").
18 December 2023
Invinity Energy Systems plc
("Invinity" or the "Company")
Year-End Business Update
Invinity Energy Systems plc (AIM: IES) (AQSE: IES) (OTCQX:
IESVF), a leading global manufacturer of utility-grade energy
storage, is pleased to provide an update on current trading and
business activities.
Financial & Corporate
The Company confirms that it expects to recognise a minimum
total income of GBP21.6m for 2023, a 500% increase on the prior
year, and therefore deliver financial results broadly in line with
expectations for the full year.
Invinity continues to see strategic partnerships and investment
as an important pillar of its future corporate growth. The Company
remains extremely encouraged by the level of interest shown and
resources being deployed by potential strategic partners into the
due-diligence process and can confirm that it is currently in
detailed discussions with a number of parties which it would
anticipate concluding during Q1 2024.
The Company continues to manage its cash resources prudently as
it invests in its next-generation product, code-named "Mistral". As
a result of receipts from existing customers and factoring in
forecast receipts from current product deliveries and recent
project wins, including the recently announced Mistral deliveries
scheduled for 2024 and 2025, the Company currently anticipates
having sufficient cash resources into H2 2024.
Next-generation product development
Further to the update provided on 25 September 2023, Invinity
confirms that the development programme for its next-generation
product continues to progress well, in line with the expectations
of both Invinity and development partner Gamesa Electric. The first
Mistral prototype has been assembled and initial validation testing
is in process at the Company's facility in Vancouver, representing
an important development milestone ahead of the anticipated launch
of the product next year. To date, Invinity has announced funding
for almost 100 MWh of orders for Mistral and expects to announce
further orders in due course.
Invinity is also pleased to announce that it has recently been
awarded a CAD $74,700 research grant from the National Research
Council of Canada which will be used to advance the Company's
vanadium electrolyte development programme.
Commercial
The Company's pipeline continues to grow with opportunities to
deploy nearly 6 GWh of Invinity batteries currently in various
stages of commercial discussions.
During the second half of 2023, management has been impressed by
the increase in volume and scale of opportunities which have
entered into the Qualified segment of the Company's pipeline.
While the Company's policy remains to not disclose customer
details until contracts are agreed, Invinity's qualified pipeline
includes multiple new opportunities in the 200 - 500 MWh size range
across North America, Australasia and Europe. In each case, the
developers of these projects have found the Company's technology to
be highly appropriate for their needs following review of existing
Invinity project data or site visits and are now actively engaged
with Invinity's commercial team to scope and specify a
solution.
The increased size of these opportunities naturally leads to a
longer sales cycle than Invinity has previously experienced. While
there can be no guarantee that Invinity will be successful in
securing these projects, the Company views the growth in average
potential order value as a strong positive which supports
Invinity's future corporate projections.
Invinity's current commercial pipeline as at 30 November 2023 is
detailed below. The Company is pleased to note a 25% total increase
across the pipeline since last reported. Many of these
opportunities were generated as a result of the Company's presence
at key industry events in the UK, U.S. and Australia during H2
2023. Material increases have been observed across all categories
of the pipeline apart from Advanced, the reduction in which is
primarily due to the advancement of one large U.S. project into the
Base category and two projects being assigned back to the Qualified
group due to the extension of project timelines.
Date Base (MWh) Advanced (MWh) Qualified Qualified
Near Term (MWh) Further Term
(MWh)
24-May-2023 42.8 73.4 957.1 1,397
(FY22 Results)
----------- --------------- ----------------- --------------
22-Sep-2023 43.1 137.3 1,415.0 3,057.8
(HY23 Results)
----------- --------------- ----------------- --------------
30-Nov-2023 49.8 92.0 1,898.5 3,790.7
(Current Trading)
----------- --------------- ----------------- --------------
% change vs. HY23 +16% -33% +34% +24%
----------- --------------- ----------------- --------------
Update on contracting for grid-scale funded projects in the UK
and U.S.
Invinity continues to make progress towards a final investment
decision with its preferred project partner in respect of the LODES
project which was awarded GBP11m of matched funding by the UK
Government's Department for Energy Security and Net Zero (DESNZ) in
April 2023.
The Company is progressing towards concluding final contracts
for the six projects totalling 84 MWh which were awarded funding
from the U.S. Department of Energy ("DOE") in September 2023.
Invinity has conducted a site visit and formal project kick-off for
the first of those projects and similar steps on the remaining five
projects are scheduled for early 2024.
Operational
The Company is pleased to confirm that it has achieved
manufacturing output in line with its production plan for the year.
Key global production and fulfilment statistics for the year to
date include:
-- 720 cell-stacks manufactured at the Company's facilities in
the UK and Canada;
-- 103 Invinity VS3 batteries assembled, equal to 23.7 MWh of
battery capacity; and
-- More than 28 MWh of batteries shipped in the year to
date.
Invinity's batteries in the field continue to deliver strong
performance for the Company's customers with more than 1.3 GWh of
energy discharged from Invinity's batteries connected to the UK
grid alone in the year to date.
Larry Zulch, Chief Executive Officer at Invinity said:
"COP 28 and the U.S. DOE's recent announcement of funding for
non-lithium long-duration storage development are but the latest
confirmations that global demand for the kind of energy storage
represented best by vanadium flow batteries is undiminished.
Dramatic increases in our qualified sales pipeline for a product
still in development underscores the opportunity. We continue to
advance ever-larger deals for our proven VS3 product as well.
Together, this interest reinforces market demand for our technology
at ever-greater scale although larger projects often take longer
than we wish to close.
"Our challenges are two-fold: get the support of strategic
partners as previously disclosed and complete the development of
Mistral. For the former, we have been in deep discussions with
multiple parties, and though the process is not rapid, particularly
in a difficult market environment, I'm highly confident in our
ability to formalise an appropriate relationship in the next few
months.
"The development of Mistral is on track. I'm very proud of our
product development team and the progress they are making toward a
product that will be transformational for Invinity. I firmly
believe that the official launch of Mistral next year will be the
most significant announcement in the entire stationary energy
storage market in all of 2024.
"I'm pleased with our operational performance having delivered
the largest flow batteries ever deployed in multiple countries.
Invinity has set out to do something that has not been done before:
make flow batteries into a proven, factory-built product that
transforms renewable energy into the kind of dependable resource it
must be to help power the future low-carbon world. Invinity is well
underway in the difficult but promising transition from a
development-stage company, to making significant revenue, to a
profitable company with class-leading products."
Stay up to date with news from Invinity. Join the distribution
list for the Company's monthly investor newsletter here .
Enquiries :
Invinity Energy Systems plc +44 (0)20 4551 0361
Jonathan Marren, Chief Financial Officer and Chief
Development Officer
Joe Worthington, Director of Communications
Canaccord Genuity (Nominated Adviser and Joint Broker) +44 (0) 20 7523 8000
Henry Fitzgerald-O'Connor / Harry Pardoe
VSA Capital (Financial Adviser and Joint Broker) +44 (0)20 3005 5000
Andrew Monk / Andrew Raca
Tavistock (Financial PR Advisor) +44 (0)20 7920 3150
Simon Hudson / Charles Baister invinity@tavistock.co.uk
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 70 MWh of systems already deployed or
contracted for delivery across over 79 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 , sign up to our monthly
Investor Newsletter here or contact Investor Relations on via +44
(0)20 4551 0361 or ir@invinity.com
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END
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