REG - Invinity Energy Sys - Project Delivery Update

Invinity Energy SystemsAnnouncement

30/12/2022 07:00

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RNS Number : 2539L  Invinity Energy Systems PLC  30 December 2022

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:

 

 Invinity Energy Systems plc                                 +44 (0)204 551 0361
 Jonathan Marren, Chief Development Officer and Interim CFO

 Joe Worthington, Director of Communications

 Canaccord Genuity (Nominated Adviser and Joint Broker)      +44 (0)20 7523 8000
 Henry Fitzgerald-O'Connor / Gordon Hamilton

 VSA Capital (Financial Adviser and Joint Broker)            +44 (0)20 3005 5000
 Andrew Monk / Simon Barton

 EAS Advisors LLC (US Corporate Advisor)                     +1 (646) 495 2225
 Matthew Bonner / Chris Chesworth

 

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 (https://invinity.com/?utm_source=rns) or
call Investor Relations on +44 (0)204 551 0361.

 

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