UK Infrastructure Bank backs VRFB

UK Infrastructure Bank backs VRFB

UK Infrastructure Bank backs VRFB 1024 642 Batteries International

May 3, 2024: The UK Infrastructure Bank announced on May 2, a £25 million ($32 million) direct equity investment into Invinity Energy Systems, a manufacturer of vanadium flow batteries.

This is part of a £56 million ($72 million) fundraising on AIM, London’s alternative investment market to support the commercial development of longer-duration energy storage (LDES). The objective is to accelerate the deployment of Invinity’s existing and next generation vanadium flow battery products on to the UK grid.

“This will accelerate the manufacturing of almost 100MWh of Invinity’s next-generation product (code-named “Mistral”) with first deliveries expected to start in late 2024,” says an Invinity spokesperson.

According to one commentator, speaking to Batteries International: “LDES — typically reckoned to start with at least four hours continuous battery output — is increasingly being seen as the next mountain for energy storage to climb.

“National Grid forecasts show that up to 29GW of total storage could be needed by 2030 and up to 51 GW by 2050. This is a huge increase on the 6GW currently available and means there is a clear need to accelerate deployment of capital and investment in new storage projects.”

Larry Zulch, CEO at Invinity Energy Systems, said: “We’re grateful for the support of existing investors who have enabled us to advance Mistral, our next-generation battery, to near completion, and for the support of new investors, such as Korea Investment Partners, who have embraced our vision of profitably meeting global demand for LDES.”

The investment will support the expansion of Invinity’s footprint in Scotland, in particular the proposed opening of a new manufacturing site, in addition to its existing facility in Bathgate. It will create up to 41 new jobs in the region.

A UKIB spokesperson said: “This is our third direct investment in the battery storage market following its £60 million loan to support Pacific Green in November and a £62.5 million commitment to Pulse Clean Energy in May 2023.

“This is in addition to £200 million commitment into the Equitix UK Electricity Storage Fund and Gresham House Secure Income Renewable Energy & Storage LP (SIRES).”

Invinity’s fundraise, including UKIB’s investment, is subject to the approval of the company’s shareholders at a general meeting to be held later this month.