VSA Capital Market Movers – Invinity Energy Systems

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VSA Morning Transitional Energy Comment, 07/10/20

Invinity Energy Systems (LON:IES)

Invinity Energy Systems (Invinity) , the leading developer and manufacturer of Vanadium Flow Batteries (VFBs), which is seeking to achieve scale in battery storage markets for utilities, grid service providers, off grid, commercial and industrial applications has today announced its participation in four separate energy storage projects funded by the California Energy Commission (CEC).

The CEC, in January 2020, outlined a grant funding opportunity to promote “…innovative longer-duration non-lithium ion energy storage…” Invinity collaborated with four partners to submit independent proposals. Of the 23 submissions received by the CEC, eight awards were proposed, including all four Invinity submissions.

The RNS today outlines that Invinity is working to conclude final contracts with its project partners towards a 2021 delivery of the combined 7.8 MWh of Invinity’s VFBs. Once contractual terms are agreed, we can expect Invinity to provide a further update.

VSA Comment

This is good news and validation of the Invinity VFB technology as an alternative to Lithium Ion in the rapidly growing energy storage markets. In June this year the Company announced a 1.7MHh order worth GBP1.1m for a U.S. based utility, global retailer and Asia based developer of energy storage projects.

Recent H1 2020 results highlighted 204 Vanadium Flow Battery (VFB) units on order, 390 units at final stage of contract negotiation and identified upside of 996 units which the Company sees as a strong opportunity to close near term. This in support of our estimated unit volume of 1,250 in 2021 and revenue of GBP21.2m.

Today’s announcement, absent of commercial terms for now, highlights real interest in the Company’s battery technology – this in California at the heart of the global energy transition to renewable energy generation.

We reiterate our Buy recommendation and target price of 269p/sh.

#Indicates VSA house stock.

All disclosures and supporting charts can be found in the PDF version.

Phil Smith, Equity Analyst, Alternative Energy | T: +44 (0)20 3617 5187 | E: [email protected]

VSA Capital Research | T: +44 (0)20 3005 5000 | E: [email protected]

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