Invinity Energy Systems (IES) , a global manufacturer of utility-grade energy storage, announced the first order for its next-generation battery product code-named "Mistral". The Taiwanese customer and Invinity partner Everdura Technology, altered its initial 15 MWh order, to opt for the next-gen Mistral battery instead.
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.
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. In addition to the Mistral order, the two companies have signed a non-binding Memorandum of Understanding (MoU), which proposes they enter into a manufacturing partnership for Invinity products in Taiwan.
View from Vox
A fairly large order to kick off sales of Invinity's next-generation Mistral flow battery, building on the grid energy storage provider's growing relationship with Everdura. Once operational in H2 2024, the project is expected to be the largest of its kind in Taiwan, and the first time a flow battery has provided regulation services for the Taiwanese grid. Markets welcomed the news, driving IES shares 3.8% higher.
As Everdura already had an equivalently sized order for Invinity's older product, the latter's current revenue backlog will remain broadly unchanged. However, as the order will now be fulfilled by the Mistral product, Invinity expects the sale to achieve a greater gross margin than previously anticipated.
Invinity and Everdura also aim to develop a manufacturing partnership in Taiwan. Earlier in March, Everdura's parent company made a £2.5m investment in Invinity as part of a placing that raised £23m for the battery manufacturer. Everdura currently operates as Invinity's reseller in Taiwan, and has a 3-year agreement in place for the deployment of a further 255 MWh of Invinity batteries into the region.
The two companies expect to convert their MoU into a binding commitment, leading to a significant expansion of Invinity's manufacturing capacity and greater access to the Asian energy storage market.
Mistral is the next in Invinity's line of VFB batteries. Flow batteries have significant advantages for grid storage compared to more commonly known lithium-based chemistries (of which LiFePO4 is typically used for grid storage) in that they are very easily scalable, have longer discharge times, and can be fully discharged and recharged with no detrimental effects. Flow batteries also offer practically unlimited cycle life without capacity degradation. This all comes at the cost of greatly reduced energy density compared to Li-Ion batteries, however, this is not particularly important for grid storage.
With their distinct advantages, flow batteries are expected to play an important role in the future of large-scale grid energy storage. The technology is rapidly growing in East Asia, and Invinity is well-positioned through its developing partnership with Everdura to meet the demand of the Taiwanese and broader APAC markets.
Follow News & Updates from Invinity Energy Systems: