24 JUNE 2021
Redflow undertakes capital raising to support growth
Redflow MD & CEO Tim Harris
Following a series of recent achievements over the last 12 months that have demonstrated ongoing market progress, Redflow has experienced a significantly increased level of customer interest in its unique zinc bromine flow battery technology and its ability to support large scale deployments including large scale MWh projects.
At the same time, market recognition of the need for medium to longer storage duration and the role of flow batteries in the energy ecosystem has materially increased.
Redflow is therefore raising funds to capitalise on its growing set of sales opportunities and market momentum.
When Redflow last raised capital from shareholders in July 2020, the Company was well positioned to accelerate key engineering projects to deliver a more cost competitive product through the Gen3 Battery and also develop enhanced battery features. Redflow also noted that it would progress strategic growth opportunities, progress supplier cost reduction discussions and continue discussions with potential strategic investors and partners in Australia and overseas.
Since the prior raising, Redflow has executed on its strategic objectives and achieved a number of important milestones, including:
Redflow’s Thailand manufacturing facility is now scaling up to meet battery orders with a confirmed backlog of orders of over 350 batteries as of 21 June 2021.
Having developed a strong order book and growing pipeline, Redflow is well positioned to execute on current and future opportunities in key growth markets, supported by the Gen3 battery planned to be introduced into the production environment at the end of this calendar year. Target markets continue to include telecommunications, commercial and industrial and remote/community systems.
Following the significant interest generated from the announcement of the 2 MWh sale with Anaergia in California on 9 March 2021, Redflow is now engaged across a number of promising sales opportunities in the US market which would have a material positive impact on the Company.
In the US, 3.5 GWh of new energy storage went online in the US in 2020, more than was deployed in the six years between 2013 and 2019, when a total of 3.1 GWh was installed. Leading the charge is California, which has one of the one of the country’s most aggressive decarbonisation targets: 100% zero-carbon electricity by 2045. Significant growth is therefore expected in medium to longer duration energy storage in California and other US markets. The new administration of President Biden is expected to accelerate the transition to a green economy and the Secretary of Energy, Jennifer M. Granholm, has explicitly recognised the role of flow batteries in the future US energy ecosystem.
Redflow believes that the US energy storage market provides a substantial opportunity that warrants significant further focus and investment. This will be a key focus of Redflow’s activity and expenditure over the next 12 months. Planned initiatives include business development resourcing and activities, battery certification (including UL certification for Gen3), operational support and opportunities for local sourcing of materials.
The current round of funding will ensure that Redflow is capitalised to execute on its current contracts, can progress value enhancing engineering developments and can pursue business development opportunities across its key global markets and verticals, with the aim of converting current and future opportunities into sales and revenue.
The proceeds from this capital raising will support:
Click here to read the full version of this Redflow announcement, which includes details of the Capital Raising.
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