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Redflow (ASX:RFX) shares soar on $18.4 million California battery storage project

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ASX:RFX      MCAP $24.89M
01 June 2023 15:30 (AEST)

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Clean energy storage company, Redflow (RFX) will soon see its “flow” batteries used in one of the largest zinc-based battery projects globally, supplying energy to a Native American nation in California.

The US$12 million (A$18.4 million) solar and storage project, known as the Paskenta Racheria Microgrid, is being funded by the California Energy Commission (CEC), and will provide energy to the Paskenta Band of Nomlaki Indians in Northern California.

The project will combine a 20 Megawatt-hour (MWh) long-duration energy storage system with a five MW solar installation.

The company said this 20 MWh system will be one of the largest zinc-based battery projects globally, and will be Redflow’s largest single sale and deployment of batteries to date.

Under the project, Redflow will supply and oversee the installation of 2000 of the “world’s smallest commercially available zinc-bromine flow” batteries, dubbed ZBM3, which will be housed in 200 kWh modular energy pods.

The batteries are expected to be shipped between late 2023 and the first half of 2024.

The company said payments for the project will be made progressively at different milestones until completion.

Tim Harris, Redflow’s CEO and Managing Director, said this project is “one of several large-scale opportunities” in the pipeline.

“The market for long-duration energy storage solutions is rapidly accelerating, and this project will firmly establish Redflow’s presence in California, which is leading the development and support of non-lithium technologies to achieve its net-zero goals,” he said.

“For this project, Redflow’s battery system is designed to charge from solar and discharge throughout the remainder of the day, reducing grid demand and boosting the energy security and sovereignty of the Paskenta Racheria.

“We’re proud to be working with our partners in California to deliver our proven zinc-bromine flow battery technology and meet California’s need for longer-duration and scalable, firesafe energy storage solutions.”

The project is expected to kick off after the formalisation of project agreements and is expected to be finalised by Q1 FY25.

RFX shares were up 43.2 per cent, trading at 26.5 cents at 3:25 pm AEST.

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