Invinity Energy Systems Plc · LSE:IES
Invinity Energy Systems — redT energy — Investor Presentation (March 2019)
24 slides from Invinity Energy Systems's investor presentation, March 2019
Slide 1: Corporate Presentation
Corporate Presentation redT energy plc (AIM:RED) 1
Slide 2: Executive Summary
Executive Summary Energy storage to enable cheap baseload renewables Trusted energy storage expert with 20 years in the sector In-house proprietary, heavy-cycling flow machine technology Energy storage solutions (including finance) in key sectors; C&I, Grid, Large Solar Business model; pro
Slide 3: Sector Opportunity
Sector Opportunity Macro trends in global energy and the role energy storage will play in our future energy system 3
Slide 4: A changing generation mix
A changing generation mix Low-cost renewables are replacing gas and coal power from the merit order Drives increasing volatility in the wholesale power market, opening up new opportunities for energy storage 4
Slide 5: Solar + Storage: Tipping Point
Solar + Storage: Tipping Point Price of Energy Power Price Volatility Grid Service Revenues Tending to $0/kWh Peak Prices Rising USA, UK + others coming online Free abundance of energy Energy storage is enabling more renewables to come online Cheaper, cleaner energy, globally 5
Slide 6: Maximise Use of Cheap Solar Power
Maximise Use of Cheap Solar Power 1. Utilise circa. x2 as much cheap solar 2. Average peak energy cost in UK ~12-14p Source: redT 6
Slide 7: Stationary Energy Storage Market
Stationary Energy Storage Market GW Pumped Hydro 99% Li-ion Bespoke 1% New market driven by economics Projects Renewable + storage Freq. ( currently 0.1%) Power Resp MW Flow = pumped hydro in a box Small solar Grid Services (All) (<2 hours) Renewable Firming (4 hours – 24 hours) Back-up Network Rein
Slide 8: Company Overview
Company Overview redT energy – key differentiators, technology and position within the sector 8
Slide 9: Who we are and what we do
Who we are and what we do Trusted experts 20 years in energy sector – detailed client models Our experts are based in: London, Edinburgh, Denver, Munich, Johannesburg, Melbourne and Bangkok. Technology Solutions and finance IP proven, patents, know how Low risk infrastructure – 20+ year asse
Slide 10: Our experience and track record
Our experience and track record Recent Contract Wins Anglian Water: Collaboration agreement and initial 4 unit order for pathfinder site Awarded framework contract to supply the NHS and UK Public Sector German grid storage 700MWh of projects Australian largest commercial BTM system Lithium +
Slide 11: Our energy solutions and finance
Our energy solutions and finance Pre-tax returns Business model redT advantage (unlevered) (1) C&I sector 1. Low risk infrastructure returns (~50% energy UK/Aus Infrastructure modelling cost reduction) 10%+ expertise and proprietary 2. Grid service upside “Flow” technology (2) Grid Storage Experienc
Slide 12: How redT Technology Works
ow redT Technology Works 60kW, 300kWh energy storage machine 20ft HC Container 15kW, 75kWh SkW Stack module Electrolyte tanks
Slide 13: redT – Flow Machine Technology
redT – Flow Machine Technology Differentiation within the energy storage sector Pumped Hydro in a box - Doesn’t degrade High cost of degradation – Single application use Lowest Levelised cost, financeable, infrastructure asset High Levelised cost, requires regular replacement 25 year Cheap Power Reg
Slide 14: Our flow machine technology
Our flow machine technology Pure Vanadium redox flow machines Gen 3 Technology with embedded functionality to enhance customer returns Simple Durable Low-Risk Flexible energy infrastructure 14
Slide 15: redT - Business Model
redT - Business Model Year 1 20+ Year Annuity Stream Product Operation Capex Warranty 1-2% capex p.a. Product model Value Service & Maintenance 1-2% capex p.a. based pricing Asset Management Services Energy finance model margin Energy Trading 10-30% revenues p.a. % Margin Grid Services Revenues Up t
Slide 16: Development Map
Development Map Development Commoditise Scale 1999 - 2014 2014-2017 2017-Present Stack technology proven Manufacturing commoditisation Functional, performing team Gen 3 launch (Margin product) – System prototyping & testing embedded functionality, improved power output, efficiency and capa
Slide 17: Market Opportunity
Market Opportunity Core Customers: 1. Commercial BTM C&I 2. Grid Storage 3. Large Solar + Storage FTM 17
Slide 18: Sector 1: Distributed energy infrastructure
Sector 1: Distributed energy infrastructure Distributed energy storage infrastructure is now open for business This is real, economic, distributed infrastructure Av Distribution cost 50% Peak >10p+/kWh Centralised Purchased energy Type Levelised Cost (UK) Coal 13.7p – 17.1p / kWh Nuclear 8.5p – 12.3
Slide 19: Sector 1: Commercial BTM C&I
Sector 1: Commercial BTM C&I redT PV + Energy Storage Infrastructure Sector facts: Energy costs core to business (water sector 50% Upside more revenues of site costs) Low risk infrastructure investment Perform all services, remain flexible Pressure due to rising energy costs Flow Machines: All
Slide 20: Sector 1: Case study – Anglian Water
Sector 1: Case study – Anglian Water Anglian Water: Installed to date 15% renewables (106GWh) 30% renewables by 2020 redT solution can accelerate decarbonisation by doubling renewables by site 7,000 sites in the UK redT and Anglian Water collaboration agreement to optimise solar & energy sto
Slide 21: Sector 2: Grid Storage
Sector 2: Grid Storage Market Value: $bn’s – initial markets UK, Australia & Germany Hybrid Lithium: 40MW, 40MWh Flow: 10MW, 50MWh ~5-7% ~10%+ IRR (Unlevered) IRR (Unlevered) Single revenue Diversified asset risk Source: redT Sector Facts Sector Opportunity Grid assets subject to policy and market
Slide 22: Sector 2: Case Study - German Grid Storage
Sector 2: Case Study - German Grid Storage Initial project Further Phase 8MWh (200 redT units) hybridised with 32MW Gas 2nd project identical to initial project + further project turbines expansions Heavy cycling flow machines (>30% load factor) enable Total exclusive project portfolio ~700M
Slide 23: Sector 3: Solar/wind + storage
Sector 3: Solar/wind + storage Long duration Wind Solar energy storage Baseload Energy Now < $90/MWh Future < $50/MWh 23
Slide 24: New sector in UK: Energy storage + EVs
New sector in UK: Energy storage + EVs Long duration EV charging energy storage infrastructure Cheaper connection costs for EV chargers Smaller connection size required when storage used Ability to implement ‘flexible’ DNO connections for the site Ability to create arbitrage opportunities More