First Commercial Mistral Order

Invinity Energy Systems PLC

14 September 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").

14 September 2023

Invinity Energy Systems plc

("Invinity" or the "Company")

First Customer Order for Invinity's Next-Generation Vanadium Flow Battery

MoU signed to develop strategic sourcing and manufacturing in Taiwan

Invinity Energy Systems plc (AIM: IES) (AQSE: IES) (OTCQX: IESVF), a leading global manufacturer of utility-grade energy storage, is pleased to announce that the Company has received the first customer order for its next-generation product, code-named "Mistral".

Invinity's customer is the Company's Taiwanese strategic partner, Everdura Technology Company ("Everdura"), who have decided to vary the terms of their initial 15 MWh order, previously announced 1 December 2022, specifying that it be fulfilled by Invinity's next-generation product.

A 14.4 MWh vanadium flow battery ("VFB"), comprising a single Mistral array, will now be installed by Everdura at a site in central Taiwan and used to balance the island's electric grid through the provision of Enhanced Dynamic Regulation (E-dReg) services. Invinity expects to ship the order in late 2024. Once operational, the project is expected to be the largest of its kind in Taiwan and the first time a vanadium flow battery has provided regulation services for the Taiwanese grid.

Under the terms of the agreement, Invinity is now due a further payment which will be used to purchase long-lead-time components and allow the manufacturing phase to commence. The Company's current revenue backlog remains materially unchanged by the variation of this order. However, as the order will now be fulfilled by Invinity's Mistral product, the Company expects that the sale will achieve a greater gross margin than previously anticipated.

In addition to this order variation, the companies have signed a non-binding Memorandum of Understanding (the "MoU") which proposes Everdura and Invinity enter into a strategic manufacturing partnership for Invinity products in Taiwan. Everdura and Invinity expect to convert this MoU into a definitive, binding commitment, leading to a significant expansion of Invinity's total global manufacturing capacity and greater access to Asian energy storage markets for both companies in the future. Further updates will be provided in due course.

Picture: Invinity and Everdura held a formal signing ceremony at Invinity's booth during the RE+ Conference in Las Vegas, USA

On 15 March 2023, Everbrite Technology Co., Ltd. Everdura's parent company, made a £2.5m strategic investment into Invinity as part of the Company's oversubscribed placing and open offer which raised gross proceeds of c.£23m. Everdura operates as Invinity's reseller in Taiwan and has a three-year agreement in place targeting the deployment of a further 255 MWh of Invinity batteries into the region.

Everdura Technology Co., Ltd. was established in July 2022 as a joint venture between Everbrite Technology Co., Ltd. and Pronergy Technology Co., Ltd. The Taiwan-based company was created to focus on construction, system integration and technology distribution within the fields of energy, smart buildings and public EV charging infrastructure.

Darren Yen, Chairman at Everdura said:

"We are pleased to be the first launch customer for Mistral, Invinity's next-generation product. The need for large-scale, non-lithium energy storage in Taiwan and the broader Asian region has never been clearer. Our confidence in Invinity's products to meet the requirements of this growing market is demonstrated by our intention to develop a manufacturing partnership with them. We are looking forward to great success with Mistral and a growing and prosperous relationship with Invinity."

Larry Zulch, Chief Executive Officer at Invinity said:

"Mistral represents the future of grid-connected energy storage with market-leading scalability and economics. 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."

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Enquiries:

Invinity Energy Systems plc	[phone]
Jonathan Marren, Chief Development Officer and Interim CFO Joe Worthington, Director of Communications
Canaccord Genuity (Nominated Adviser and Joint Broker)	[phone]
Henry Fitzgerald-O'Connor / Harry Pardoe / Gordon Hamilton
VSA Capital (Financial Adviser and Joint Broker)	[phone]
Andrew Monk / Simon Barton
Tavistock (Financial PR Advisor)	[phone]
Simon Hudson / Charles Baister	[e-mail]

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, sign up to our monthly Investor Newsletter here or contact Investor Relations on via [phone] or [e-mail] 

 

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