Invinity Energy Systems Plc · LSE:IES
Invinity Energy Systems — Investor Presentation (November 2020)
31 slides from Invinity Energy Systems's investor presentation, November 2020
Slide 1: Production Flow Batteries
Production Flow Batteries © 2020 Invinity Energy Systems plc London | Vancouver | Edinburgh | San Francisco www.invinity.com
Slide 2: Agenda
Agenda 1 Invinity Energy Systems 2 Product 3 Opportunity 4 Execution 2
Slide 3: Shifting to renewable energy requires energy storage
Shifting to renewable Lithium will not meet Invinity delivers energy requires all future energy the flow battery energy storage. storage needs. alternative. Invinity’s goal is simple: 10% of the global energy storage market by 2030. 3 3
Slide 4: Presenters
Presenters Larry Zulch Matt Harper Peter Dixon-Clarke CEO Chief Commercial Chief Financial Officer Officer ▪ Over 25 years as CEO of ▪ Avalon Battery founder ▪ Deloitte-trained chartered investor-backed technology accountant ▪ Responsible for sales, business businesses development, marketing, and fi
Slide 5: Established 2020 (AIM:IES)
Established 2020 (AIM:IES) Merger of redT energy and Avalon Battery 14 Years of R&D Investment Over £40 million spent on development to date 102 Employees We believe to be the most experienced team in flow batteries 50 Projects Over 25 MWh installed or signed on five continents 73 Patents Granted or
Slide 6: Invinity's Vanadium Flow Battery
Invinity’s Vanadium Flow Battery Proven Capable Available 6
Slide 7: Invinity Flow Battery Value Proposition
Invinity Flow Battery Value Proposition Longer Duration – Optimized for requirements of 3 to 10 hours. More Durable – No degradation from heavy cycling; 25-year lifetime Safer – Non-flammable; no risk of thermal runaway Compelling Economics – Superior levelized cost of storage (LCOS) Sustainable Mat
Slide 8: Vanadium Flow Batteries
Vanadium Vanadium Flow Batteries Vanadium, element 23, is readily available and more abundant in the Earth’s crust than copper. Durable • Reliable • Economical • Proven Leading primary producers include South Africa, China, Brazil, Russia. Vanadium is also produced from slag and tailings worldwide.
Slide 9: Foundation Technology: Proven Battery Module
Foundation Technology: Proven Battery Module Invinity’s VS3 Module ▪ 37 kWh, 10 kW (nominal) ▪ 1 x 2 x 2 meters (approx.) ▪ 3rd generation vanadium flow battery ▪ Self-contained and fully integrated ▪ Control systems ▪ Power electronics ▪ Cooling ▪ Secondary containment ▪ Tested as a fully functiona
Slide 10: Invinity's Battery Product
Invinity’s Battery Product Invinity VS3 Battery Project Rated Power, Continuous: 78 kW Up to 10 MW Energy Storage, Nominal: 220 kWh Up to 24 MWh Energy Storage, Duration: 2 – 12 hours Rather than typical Form Factor: 20’ container size, handling flow battery custom Lifetime: 25 years production, Inv
Slide 11: Opportunity
Opportunity Large and growing Global Addressable 11
Slide 12: Operating Reserves / California Strategy Notes
California Strategy Notes 1) The California Energy Commission 800 awarded funds to eight projects for Invinity Opportunity 10-hour, non-lithium storage. Invinity 700 (2020) will provide the storage for four of Operating Reserves them. 600 Wind Smoothing and Dispatch 2) Governor Newsom (Aug 2020) “ou
Slide 13: Energy Superhub Oxford
Energy Superhub Oxford Invinity Is Providing UK’s largest flow battery ▪ £41 million project to support Oxford’s decarbonization ▪ 2 MW / 5 MWh flow battery system ▪ Flow batteries provide heavy cycling capability ▪ Order to be fulfilled with 27 Invinity VS3 batteries ▪ Construction / manufacturing
Slide 14: European Marine Energy Centre
Invinity To Deliver 1.8 MWh Battery System European Marine ▪ ▪ Announced November 9th 2020 Tidal power → Invinity energy storage → Hydrogen electrolyser Energy Centre ▪ ▪ To be installed at EMEC in Orkney, Scotland Eight Invinity VS3s ▪ Delivery 1st half 2021 Cutaway rendering of installation. “Hydr
Slide 15: Soboba Fire Station
Soboba Fire Station California Energy Commission-Funded Project ▪ First of four previously-announced projects to conclude final contract with partners ▪ $1.7 million project to deliver clean power to critical infrastructure ▪ 0.5 MWh flow battery system integrated with onsite solar PV ▪ 10-hours sto
Slide 16: Yadlamalka Solar + Storage
Yadlamalka Solar + Storage Invinity’s Largest Battery Project ▪ 8 MWh Invinity Battery System + 6 MWp Solar PV ▪ Fully-funded, deposit due, manufacturing starting H1 2021 ▪ Invinity’s largest sale to date ▪ 41 Invinity VS3s ▪ Delivery H2 2021 Dispatchable Solar to Displace Thermal Generation 16 16
Slide 17: Storage Cost Metrics
Storage Cost Metrics $/kWh is a frequent comparison where Invinity is on par with But as the storage industry matures, asset owners are focusing lithium for behind-the-meter, commercial and industrial projects. on total cost of energy delivery: the “Levelized Cost of Storage”. Invinity’s next-genera
Slide 18: Execution
Execution Commercial traction Project delivery Pathway to profitability 18
Slide 19: Sales Pipeline
Sales Pipeline By Deal Stage By Region 31% 27% Closed – 17.8 MWh Closed: Signed, in production. Oct 2020: 6.7 MWh 21% Base: In final contracting. 14% Base – 10.8 MWh Oct 2020: 13.7 MWh 6% Upside – 27.8 MWh Upside: Selected Invinity, funded. 1% Oct 2020: 36.4 MWh Asia Europe UK Rest of World Australi
Slide 20: Manufacturing Capacity Utilisation
Manufacturing Capacity Utilisation 1.2 Invinity’s current deals Weekly Production in Base and Upside 1.0 ESO / Closed are sufficient to Base 3. support plans to ramp Upside 0.8 Factory Capacity up manufacturing capacity in line with MWh 0.6 future demand 2. 0.4 Manufacturing ramps: 1. 1. Second shif
Slide 21: Summary
Summary Invinity’s VFB Invinity is poised for Proven, Capable, Available significant growth and to Invinity’s Opportunity capture 10% of the Large, Global, Addressable stationary storage market Invinity’s Execution within ten years. Traction, Delivery, Profitability 21
Slide 22: Energy Systems
ENERGY SYSTEMS
Slide 23: Appendix
Appendix INVINITY ENERGY SYSTEMS
Slide 24: Invinity Accomplishments
Invinity Accomplishments March 2020 Merge two development-stage leaders in vanadium flow batteries during a global pandemic. April 2020 List Invinity on the London Stock Exchange (AIM:IES) May 2020 Launch Invinity brand and market presence. June 2020 Announce signed orders for 1.7 MWh from commercia
Slide 25: Interims Highlights
Interims Highlights First three months as redT energy, second three months Invinity during integration. Revenue £0.3m (H1 2019 £0.2m) Operating loss, including £1m of merger transaction costs, from continuing operations £5.0m (H1 2019 £3.9m) Half year end free cash £4.5m (31 December 2019 £1.2m) Net
Slide 26: Electrolyte Rental
Electrolyte Rental Project Experience Advantages Up-front capital cost reduced by approximately 30% Decreased total cost of ownership Ongoing commitment to VFB performance Rental Structure High residual value at end of life eliminates depreciation Rental (not lease) payments relate to carrying cost
Slide 27: Merger Heritage
Merger Heritage Invinity VS3 75kW-220kWh redT Energy Gen3 Battery Unit 60kW-300kWh Avalon AFB3 Battery Module 10kW-40kWh Invinity VS3 Battery Module 29 13kW-37kWh
Slide 28: VRFB Electrochemistry
VRFB Electrochemistry Charging the system from a discharged state Conductor Tank 2 Bipolar plate Bipolar plate Membrane iia Positive fluid circuit Negative fluid circuit Bipolar plate Bipolar plate Membrane 'iaamm Positive fluid circuit Negative fluid circuit INVINITY ENERGY SYSTEMS
Slide 29: Demonstrated Durability
Demonstrated Durability Negligible capacity degradation over equivalent of 30 years in customer’s test. Equivalent years of real operation passed on CEC duty cycle. Outdoor Temperature Variations 0 to 45 °C max 5 to 32 °C average Per 12 hour cycle 31
Slide 30: Important Notice
IMPORTANT NOTICE This document (the "Presentation"), which has been prepared by, and is the sole responsibility of, Invinity Energy Systems plc (the "Company"), has been prepared solely in connection with the proposed placing of new ordinary shares of €0.50 each in the capital of the Company (the "P
Slide 31: Important Notice (continued)
IMPORTANT NOTICE (CONTINUED) In addition, all projections, valuations and statistical analyses provided in the Presentation may be based on subjective assessments and assumptions and may use among alternative methodologies that produce different results and should not be relied upon as an accurate p
Invinity Energy Systems — Investor Presentation (November 2020) on 6ix