A Clean Energy Budget
By Tim Harris, Redflow CEO and Managing Director
This week the Australian Government released the 2024/25 Federal Budget, which will provide a significant boost to the renewable energy sector in Australia through the ‘Future Made in Australia’ policy.
The initiative provides for a range of policies and funding measures to incentivise the development, manufacture and utilisation of battery technology in Australia. The policy includes funding programs directly applicable to Redflow, including $500 million for battery manufacturing and $3.2 billion for the commercialisation of technologies.
These new initiatives from the Federal Government will be the foundation, as they look to develop a clean energy economy in Australia. Importantly, the budget recognises the critical significance of battery storage in firming up the national grid as renewable energy replaces the existing fossil fuel generation fleet and national energy storage capability, to ensure energy security.
Redflow continues to develop our profile in the global long-duration energy storage industry and has announced over 60 MWh in new projects over the past 11 months (totalling approximately 6000 batteries), including recent projects with Horizon Power, funded by ARENA, and a second project with the US Department of Defense.
These projects, with world class counterparties, endorse the benefits of our technology and validate our strategic focus of scaling our solutions to larger MWh systems for commercial and industrial and utility customers. It is the long-duration and large MWh systems that will be required to adequately firm up Australia’s national grid and allow for solar and wind generated energy to be utilised by consumers on a 24-hour cycle.
The Federal Budget announcements strongly reflect our consultations with ministers and the Federal Government over the last few months. This set of initiatives will complement existing state-based initiatives including the $570m Queensland Battery Strategy announced in March, and the Queensland Critical Minerals and Battery Technology Fund (QCMBTF) which is providing Redflow $1.12m for the development and construction of a large-scale zinc-bromine flow battery prototype and a feasibility study for the establishment of a large-scale zinc-bromine flow battery manufacturing facility in Queensland.
Redflow continues to advance engagements with a number of state and federal government funding agencies for support to underpin our scale-up plans, including an Australian based manufacturing facility. Based on current discussions, we are optimistic that these will progress to term-sheet in the second half of 2024.
Our proven technology, quality customers, increasing government funding and a growing demand from governments and the commercial sector for larger non-lithium storage solutions, will assist Redflow to continue on a pathway to commercial success and the generation of substantial shareholder returns.
As a result of the recent developments within the Federal Budget, Redflow will be extending the closing date for its entitlement announced on 15 April 2024 for a period of seven (7) days to allow extra time for eligible shareholders to take up their entitlement.
The funds from the Entitlement Offer will be utilised for the delivery of announced projects, key engineering developments, scale-up of the Thailand manufacturing facility and conversion of pipeline opportunities and provide Redflow with greater capital flexibility as we progress debt and Government Grant funding discussions.
These are exciting times for Australia and Redflow.
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