Invinity Energy Systems: the future of energy storage

Invinity Energy Systems (IES)Follow | IES) is regarded as one of the world leaders in the manufacture and supply of vanadium flow batteries. These batteries are needed to store the energy generated by solar and wind, which in turn can be supplied to businesses and national grid networks, and are seen as a superior technology to the lithium-ion batteries currently used in many energy storage installations around the world.

You can see a previous article on the company, explaining more about the company HERE

Final Results 2022

Today Invinity released its final results for the year ended 31st December 2022. As with any financial report for a loss making growing company, it’s worth paying attention to the fundamentals but what’s more interesting is the progress Invinity has achieved to date and what’s to come in 2023 and beyond.

This year revenue generated was just £3.6m, a 13% increase from sales of £3.2m in 2021.

However if we look at the broker forecasts, revenue growth is set to rise impressively, over 600% from 2022 to 2023. That looks nailed on given that 98% of forecast 2023 revenue of £22m is covered by existing confirmed contracts, with 64% of 2024's forecast revenue of £30m already contracted, too.

Forecast Revenue

2023E: £22m
2024E: £30m 
2025E: £134m 
2026E: £215m

The company closed 39.2 MWh of sales in 2022, a huge big ramp up from the 0.5 MWh its sold in 2021 and set to continue increasing, especially when their next generation of Vanadium flow batteries come online in 2024. The project for this rollout is called Mistral.

In June Invinity announced its first Mistral prototype project, supported by the British Columbia Centre for Innovation and Clean Energy, at a site near the Company's recently expanded Vancouver manufacturing facility.

Larry Zulch Invinity’s CEO recently commented that “when we come out with Mistral we will have the most advanced vanadium flow battery on the market along multiple axis”.

View from Vox

It’s unusual to see a world leader listed in the UK with a market capitalisation below £100m. However Invinity do seem to be well placed to benefit from the increasing support from industry and governments in this area. For example the UK Department of Energy Security and Net Zero have announced £69m of funding  Longer Duration Energy Storage (LODES) which is an overshadowed by California Energy Commission’s US$380m worth of support.

There’s still risk ahead. Even though the Invinity had £15.3m of cash (as of 31st May 2023) they are still loss making and forecast to be so until 2025. However, existing and leading in an a sector that attracts so much inward investment from so many levels means raising money shouldn’t be an issue. It’s also worth noting that this bear market can’t last forever and when the bull market return investors tend to throw their money at market leaders within hot sectors.

The last word goes to Larry Zulch, Chief Executive Officer at Invinity: "We're pleased with the progress we made in 2022 along Invinity's pathway to profitability. Achieving and exceeding our expectations for signing new deals was foundational for achieving the significant increase in revenue we expect in 2023. Government support around the globe demonstrated acknowledgement of the long duration energy storage imperative. And progress on our next generation product, code-named Mistral, keeps us on target for first customer shipments next year of an offering we expect to be transformative for the prospects for non-lithium storage. Our confidence and optimism have never been higher."