12 FEBRUARY 2024
Redflow receives notice to proceed for microgrid project in US
Faraday Microgrids provides Redflow approval to begin manufacturing 15 MWh of long-duration energy storage solution at their Thailand factory
Redflow Limited (ASX: RFX), Redflow Limited (ASX: RFX), a global leader in clean energy storage, announces today that it has received formal notice to proceed (NTP) to manufacture batteries for a California Energy Commission (CEC)-funded project in California.
The NTP, issued by project developer Faraday Microgrids, gives Redflow binding contractual approval to begin manufacturing 15 MWh of energy storage for the project.
This phase of the project includes 15 MWh of Redflow’s Energy Pods and non-recurring engineering work, representing revenue of approximately USD $9.23 million (excluding duties and US sales tax).
Redflow expects the total revenue to be recognised in FY2025 with initial invoicing of approximately USD $4.18 million (excluding duties and US sales tax) now underway. Additional revenue for the project will be recognised in future financial years with the inclusion in the agreement of a five-year extended warranty.
Redflow CEO and Managing Director Tim Harris said, “We are thrilled to be moving forward into the manufacturing phase of this project with Faraday and the California Energy Commission. This represents a major milestone for Redflow’s growth in North America and is an exciting time for us as we begin production of the batteries for our largest project to date”.
As defined in the California SB-100 Joint Agency Report, California has identified a recognized need for 19.5 GW of energy storage by 2035 and 52 GW by 2045 to support the state’s energy transition. Current state estimates include a minimum of ten percent of those goals being met by long-duration energy storage. The California Energy Commission views the development of a diverse portfolio of non-lithium energy storage systems as critical to providing the state the diversification of energy storage solutions needed to meet future Clean Energy goals.
The state awarded the CEC USD $330M in funding over last two fiscal years to provide funding for projects like this one with Redflow. Overall, this program is expected to demonstrate how long durations energy storage technologies can support implementing the state goal of clean, zero carbon electricity by 2045 as defined in the state law--SB-100.
Subject to schedule finalization with project delivery partner Faraday Microgrids, Redflow expects shipment of the batteries to occur in late CY 2024, with installation and commissioning occurring in early CY 2025.
This announcement was authorised for release by the Chairman of the Board of Redflow Limited.
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