REG - Invinity Energy Sys - LODES Project Secures Approval to Proceed

Invinity Energy SystemsAnnouncement

31/03/2025 07:15

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RNS Number : 8632C  Invinity Energy Systems PLC  31 March 2025

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").

 

 

31 March 2025

Invinity Energy Systems plc

 

("Invinity" or the "Company")

 

LODES Project Secures Approval to Proceed

Up to £10m of grant income to be recognised this year

Project construction to commence H2 2025 ahead of 2026 operation

 

Invinity Energy Systems plc (AIM: IES) (AQSE: IES) (OTCQX: IESVF), a leading
global manufacturer of utility-grade energy storage, today announces that it
has reached an agreement to proceed with the LODES project.

 

Invinity has acquired the rights to develop, build, own and operate an up to
20.7 MWh vanadium flow battery system using the Company's VS3 vanadium flow
batteries on a site in the South East of England ("VFB BESS Project"). The VFB
BESS Project is anticipated to be co-located alongside a solar PV array which
will be developed separately by a third party.

 

The system will be the largest deployed by Invinity to date and would be one
of the first commercial battery projects in the UK to co-locate a long
duration battery energy storage system with on-site renewable generation.
Having full ownership and control of the VFB BESS Project will provide
Invinity with unrestricted access to trading and operating data concerning the
site and enable the Company to fully optimise the battery to showcase its
capabilities as well as receiving ongoing revenue from the system's grid
balancing and energy trading activities. The site is expected to become a
high-profile reference site and an important commercial asset for the Company
at a time of major demand for LDES battery technology in the UK and globally.

 

The total VFB BESS Project cost is expected to be up to £20m including site
acquisition, development costs and contingency, of which between £7m-£10m
will be funded by the Department for Energy Security and Net Zero ("DESNZ")
through the Longer Duration Energy Storage (LODES) Demonstration competition,
as previously announced. This funding will be recognised as grant income by
the Company during the current year. The remainder of the funds will be
derived from cash ringfenced for such purposes on Invinity's balance sheet as
part of the £57.4m fundraising in May 2024 from the National Wealth Fund and
institutional investors. DESNZ has formally confirmed to Invinity that it can
proceed with the project, which is planned to enter construction phase in H2
2025 ahead of operation in 2026.

 

Invinity has acquired a special purpose vehicle which owns a 25-year lease
over the site and which is capable of being extended by 15 years at its
option. The site has an existing approved 5.5 MW grid connection and planning
for a solar array and BESS system. Building the site to include a VFB BESS
Project requires a minor amendment to the planning permission to change from a
lithium-ion to a vanadium flow battery. The development of the VFB BESS
Project is not conditional on the solar array being installed and the
application to amend the planning permission has already been submitted
alongside a letter of support from DESNZ. Given the characteristics of a
Vanadium Flow Battery (notably zero fire risk and lower noise levels than a
lithium battery), the Company believes that such approval will be forthcoming.

 

Invinity has commenced manufacturing of the VS3s for this project at the
Company's facility in Motherwell, Scotland and is currently holding a
significant portion of inventory which can be utilised for the project. The
£7m-£10m grant also covers a portion of existing internal Invinity labour
overheads which is expected to be net margin beneficial to the Company. Once
operational, Invinity expects the project to contribute positive cashflow and
revenue to the business on an ongoing basis, noting that the VFB BESS Project
can be sold on to a third party in the future, if desired.

 

The grant income from the LODES project underpins a material portion of
Invinity's forecasts for 2025.

 

 

Jonathan Marren, Chief Executive Officer at Invinity said:

 

"I am extremely pleased that we can today announce progress on the LODES
project. Moving forward with the project ourselves enables Invinity to retain
the financial value generated from this DESNZ grant and leverage full control
and access to the asset on an ongoing basis to enhance our commercial
activities. Once operational in 2026, the asset should generate revenue and
positive cash flow for the Company and provide important benefits to the UK
grid, allowing more low-cost, low-carbon renewable energy to be utilised,
contributing to lower consumer bills as a result.

 

"With the first application window for the transformational LDES Cap and Floor
scheme opening imminently, this flagship UK project, featuring our certified
"Made in Britain" batteries, will act as an important reference site for
Invinity's prospective customers and partners and generate significant
benefits to the Company both in the short and long term. We're looking forward
to delivering it as soon as possible."

 

 

Stay up to date with news from Invinity. Join the distribution list for the
Company's monthly investor newsletter here
(https://invinity.com/newsletter/?utm_source=iesrns) .

 

Enquiries:

 

 Invinity Energy Systems plc                                               +44 (0)20 4551 0361
 Jonathan Marren, Chief Executive Officer

 Joe Worthington, Senior Director, Corporate Affairs

 Canaccord Genuity (Nominated Adviser and Joint Broker)                    +44 (0)20 7523 8000
 Henry Fitzgerald-O'Connor / Harry Pardoe / Charlie Hammond

 VSA Capital (AQSE Corporate Advisor, Financial Adviser and Joint Broker)  +44 (0)20 3005 5000
 Andrew Monk / Andrew Raca

 

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 more
than 75 MWh of systems already deployed or contracted for delivery across more
than 80 sites in 15 countries, Invinity is active in all major global energy
storage markets and has operations in the UK, Canada, USA and China. Invinity
Energy Systems plc is quoted in the UK on AIM and AQSE and trades in the USA
on OTCQX.

 

To find out more, visit invinity.com (https://invinity.com/?utm_source=rns) ,
sign up to our monthly Investor Newsletter here
(https://invinity.com/newsletter/?utm_source=iesrns) or contact Investor
Relations on via +44 (0)20 4551 0361 or ir@invinity.com
(mailto:ir@invinity.com) .

 

 

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