Project Delivery Update
Source: RNS
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").
30 December 2022
Invinity Energy Systems plc
("Invinity" or the "Company")
Project Delivery Update
Invinity Energy Systems plc (AIM: IES) (AQSE: IES) (OTCQX: IESVF), a leading global manufacturer of utility-grade energy storage, provides the following update on contracted projects currently being delivered.
8.4 MWh Solar + Storage Project, Alberta, Canada
Invinity has manufactured and shipped a total of 19 VS3 batteries from its manufacturing facility in Vancouver, Canada, as planned, to a holding facility awaiting delivery to site. The remaining 19 VS3 batteries are either already in transit or awaiting pickup from Invinity's Vancouver factory early in the new year.
At the request of the customer, Invinity has now signed a variation to the sales contract, agreeing to allow the customer to delay delivery of all the VS3 batteries to site until no later than 31 March 2023 in order to allow further construction work to be completed. The customer has agreed to accelerate milestone payments to address their request for a delay in delivery.
This variation also allows Invinity and the customer time to assess the impact of Canada's recently announced clean technology Investment Tax Credit ("ITC"). Both parties anticipate the ITC will significantly strengthen the business case for energy storage in Alberta in particular and Canada more broadly, potentially leading to the expansion of existing projects and accelerating the sales cycle for future follow-on projects.
8 MWh Solar + Storage Project, South Australia, Australia
Invinity has manufactured and shipped 14 VS3 batteries from its manufacturing facility in China to Australia. This shipment is currently awaiting customs clearance before delivery to site, now expected in January 2023. The remaining 27 VS3 batteries are due to be shipped from Invinity's manufacturing facility in China and delivered to site within Q1 2023, in line with customer-defined timescales for commissioning.
2.2 MWh Delivery to Resale Partner, Taiwan
Further to Invinity's announcement on 21 November 2022, the Company is pleased to note that in line with its operating plans, the first battery has now shipped to Bei Ying in Taiwan. As previously disclosed, the remaining 9 batteries will be shipped during 2023.
Revenue Guidance
The Company has completed deliveries of more than 4.3 MWh of products to customer sites across Europe, North America and Asia in 2022.
In accordance with Invinity's revenue recognition policy, revenue from the Canadian and Australian projects will most likely be recognised in early 2023.
The 30 MWh of new business announced during Q4 2022, plus the deferred revenue relating to the above projects, combined with a significant number of further sales opportunities advancing positively towards close, has led the Company to now anticipate revenues in 2023 significantly ahead of its previous expectations.
Larry Zulch, Chief Executive Officer at Invinity said:
"I'm pleased Invinity was able to meet production goals for important projects in Canada and Australia. External factors now mean that we will not recognise revenue on these projects for a short time, unfortunately crossing a year's end. Still, we have continued to enjoy positive relationships with our customers and greatly appreciate their support, both in respect of current project delivery and in identifying future opportunities to work together.
"The prospects for our battery systems have never been more positive, buoyed by external developments including multiple global energy crises, challenges with lithium-ion battery performance and supply, government support for energy storage, and internal achievements such as our expanded manufacturing capability and the excellent performance of our delivered systems, particularly our projects in the UK which continue to unlock renewable energy on-demand and provide vital support to the UK electricity network during unseasonably cold weather.
"We are now able to project a very exciting 2023 with revenue greater than originally expected and announcements pertaining to the on-going development of our next-generation system with a strong and supportive partner."
Enquiries:
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Invinity Energy Systems plc |
+44 (0)204 551 0361 |
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Jonathan Marren, Chief Development Officer and Interim CFO Joe Worthington, Director of Communications |
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Canaccord Genuity (Nominated Adviser and Joint Broker) |
+44 (0)20 7523 8000 |
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Henry Fitzgerald-O'Connor / Gordon Hamilton |
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VSA Capital (Financial Adviser and Joint Broker) |
+44 (0)20 3005 5000 |
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Andrew Monk / Simon Barton |
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EAS Advisors LLC (US Corporate Advisor) |
+1 (646) 495 2225 |
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Matthew Bonner / Chris Chesworth |
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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 33 MWh of systems deployed to date across more than 50 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 on the AIM Market of the London Stock Exchange and on the Aquis Stock Exchange (AQSE). The Company trades in the USA on OTCQX Best Market under the symbol "IESVF".
To find out more, visit invinity.com or call Investor Relations on +44 (0)204 551 0361.
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