Invinity Secures Approval for Landmark LODES Energy Storage Project
Why we think this is very good
This RNS announcement represents a significant positive development for Invinity Energy Systems. The company has secured approval to proceed with the LODES project, a large-scale vanadium flow battery energy storage system that will be one of the first of its kind in the UK. The project is expected to generate substantial grant income and ongoing revenue for Invinity, with low execution risk and a positive impact on the company's earnings. While some financial details remain unquantified, the overall opportunity presented by this contract win is highly compelling.
Key Points
- Invinity has secured approval to proceed with the LODES project, a large-scale vanadium flow battery energy storage system in the UK
- The total project cost is up to £20m, with £7m-£10m funded by a government grant that will be recognized as income this year
- Once operational in 2026, the project is expected to contribute positive cashflow and revenue to Invinity on an ongoing basis
- Invinity has commenced manufacturing of the batteries for the project and believes the execution risk is low
Summary
Invinity Energy Systems has reached an agreement to proceed with the LODES project, which will see the company develop, build, own and operate an up to 20.7 MWh vanadium flow battery system. The total project cost is expected to be up to £20m, of which £7m-£10m will be funded by a government grant that will be recognized as income by Invinity in the current year. Once operational in 2026, the project is expected to contribute positive cashflow and revenue to the business on an ongoing basis. The company has already commenced manufacturing of the batteries for the project and believes the execution risk is relatively low.