ENERGY STORAGE

Invinity raises £56 million via share placing and subscription

May 2, 2024

Vanadium flow battery manufacturer Invinity Energy Systems has raised £56 million via a share placing and subscription.

It follows the company raising gross proceeds of £28 million through an oversubscribed placing of 121,739,130 new ordinary shares at the issue price of 23 pence per new ordinary share.

This follows the subscription with UK Infrastructure Bank (£25 million) and Korea Investment Partners (£3 million) conditionally raised gross proceeds of £28 million through the subscription of 121,739,130 new ordinary shares at the issue price. The result being that the placing and subscription conditionally raised, in aggregate, £56 million before expenses. Canaccord Genuity and VSA Capital acted as joint bookrunners in respect of the placing.

“Invinity’s vanadium flow batteries are a crucial form of long duration energy storage – unlocking the power of renewables by filling in the ‘missing hours’ when the wind does not blow and the sun does not shine,” a statement said.

As a result of this investment, Invinity will “deploy significant capital into nearly 100 MWh of UK LDES projects, to accelerate the journey to net zero,” the statement added. In addition, the company will “accelerate the manufacturing of almost 100 MWh of Invinity’s next-generation product (code-named Mistral’) with first deliveries expected to start in late 2024.”

The investment will also allow the company to rapidly scale manufacturing capacity to “meet the more than 6 GWh of global demand for Invinity’s vanadium flow batteries”. The company will also expand its manufacturing footprint in Scotland by “more than five times”.

Invinity has 75 MWh of batteries either deployed or contracted for delivery across 82 projects in 15 countries on five continents. The company has operations in the UK, Canada, USA, Australia and China.

Larry Zulch, CEO at Invinity said: “We believe that long duration energy storage has an essential role to play in the global transition to a sustainable electricity system. This investment provides Invinity with the opportunity to scale up to help meet the significant global demand for batteries with the characteristics that make our vanadium flow battery unique: high performance, long asset life, compelling total ownership economics, and no propensity to catch fire.”

John Flint, CEO at UK Infrastructure Bank added: “Electricity storage technologies have a crucial role to play in balancing the energy system in response to volatility in supply and demand as the UK transitions to net zero. However, the market of investors in more nascent longer-duration technologies like vanadium flow has developed more slowly than for lithium-ion batteries. Our cornerstone investment has helped Invinity to mobilise the additional private investment needed to scale their manufacturing, supporting the development of a promising new longer-duration technology.”