Redflow

Redflow LogoRedflow’s unique zinc-bromine flow batteries are designed for stationary energy storage applications ranging from its ZCell residential battery to its scalable ZBM2 batteries for industrial, commercial, telecommunications and grid-scale deployment. Redflow Limited, a publicly-listed company (ASX: RFX), produces high energy density batteries that are sold, installed and maintained by an international network of system integrators. Redflow batteries offer unique advantages including 100 per cent depth of discharge, tolerance of ambient temperatures as hot as 50 degrees Celsius and sustained energy storage of 10 kilowatt hours (kWh) throughout its operating life.

Redflow Exchange Chairman and CEO Simon Hackett with ZCellRedflow Executive Chairman and CEO
Simon Hackett with ZCell
Australian battery company Redflow Limited today unveiled an investment package that will raise $14.5 million to target sustainable delivery of its zinc-bromine flow batteries to high demand areas such as telecommunications.

Redflow’s capital-raising follows its May announcement of decisions from a strategic review including:

  • Prioritising sales to supply proven demand areas including mature telecommunications / industrial / commercial, remote/off-grid power and ‘weak-grid’ market segments
  • Transitioning battery production to South East Asia at a more appropriate manufacturing site to leverage proximity to proven markets and reduce supply chain costs
  • Implementing a range of key battery cost-down projects to reduce delivered product manufacturing cost by at least 30 per cent over the next 18 months, and
  • Targeting sustainable cashflow-positive operations by the end of 2018.

Redflow has provided an Investor Presentation containing details of the outcome of its Strategic Review and consequent activities undertaken or planned by the company, plus its new manufacturing partner, Malaysian-based MPTS, a long-term supplier of a core component of Redflow’s battery stack.

Announced to the Australian Securities Exchange (ASX) this morning, Redflow’s equity raising comprises a share placement $10.5 million in two tranches to sophisticated and professional investors and the issue of $4 million worth of shares to Hackett CP Nominees Pty Ltd - an entity associated with Redflow Executive Chairman Simon Hackett - in exchange for already issued convertible notes.

Redflow Executive Chairman and CEO Simon Hackett said the strategic review had determined the best forward operating stance for the company. “We have identified that the telecommunications sector has a strong, proven and ongoing demand for energy storage that fits the ‘sweet spot’ of Redflow’s unique value proposition," he said.

Redflow CEO Simon HackettRedflow CEO Simon HackettAustralian battery company Redflow Limited (ASX:RFX) has praised proposed new regulations that prioritise fire safety for the deployment of lithium-based batteries inside homes. 

Standards Australia has released final draft recommendations that require lithium-ion batteries - which are classified as “fire hazard class 1” - must not be installed inside a domestic dwelling, within a metre of any access or egress area or under any part of a domestic dwelling. There are no current Standards Australia regulations for in-home battery installations.

This draft standard follows Clean Energy Council industry rules issued last year, which state: “Some lithium-based batteries can fail due to internal overheating, in a process known as ‘thermal runaway’. The normal chemical reactions within the battery during charging are exothermic (heat-generating).

“If this heat is not able to dissipate, or the battery is overcharged for a long duration, the rate of chemical reaction can then speed up, which in turn increases the battery temperature further, in an ­increasing cycle until the battery is physically damaged ... Once this happens, there is a risk of fire and/or rupture of the battery, with emission of toxic material.”

Redflow CEO Simon Hackett said the safety-first principle should be a priority for the rapidly growing energy storage industry. “While manufacturers say modern lithium-based batteries are designed not to overheat, it only takes one poorly designed or deployed battery to catch fire at night to cost lives,” he said.

Redflow CEO Simon Hackett with Redflow LSBRedflow CEO Simon Hackett with LSBRedflow CEO Simon Hackett has commended today's announcement that the South Australian Government has awarded a contract to deploy a 129 megawatt hour (MWh) battery farm to help solve the State’s power problems.

Mr Hackett said the ambitious Tesla project demonstrated the growing maturity of energy storage systems. “We believe that batteries have a integral role to play in the successful exploitation of renewable energy sources,” he said.

"Elon Musk’s promise to deploy 129 MWh of batteries for SA in 100 days is a big challenge, even for a US$50 billion company like Tesla. As a far smaller company, Redflow is not yet configured to produce that volume of batteries in that timeframe, so we will continue delivering our ZBM2 and ZCell batteries to telecom and residential customers in Australia and overseas.

"This is not a competition between Tesla and other battery companies, it's about renewables and energy storage demonstrating their capacity to technically and affordably replace fossil fuels. I look forward to seeing a system of that scale running on the South Australian grid as soon as possible.

"This project sets South Australia up as a world leader in the use of battery storage with renewable energy - a true signpost of the future of the world. I'm thrilled about that. The global energy storage market is huge and essentially it is largely untapped. This project will act as a validation point and an accelerant of change.

"Redflow is well positioned to be a part of the solution in markets appropriate to its technology. Every battery manufacturer is likely to be busy for the foreseeable future, all working to their respective technical strengths.”