Redflow Limited advances clean energy storage with CEC-funded California project
Redflow Limited (ASX: RFX), a prominent figure in the clean energy storage sector, has announced a significant development in its journey towards enhancing clean energy storage solutions. The company has received a formal Notice to Proceed (NTP) from Faraday Microgrids for a California Energy Commission (CEC)-funded project in California. This milestone marks a pivotal moment for Redflow as it gears up to manufacture 15 MWh of energy storage, indicating a robust push towards renewable energy solutions in North America.
The NTP sets in motion the manufacturing of Redflow’s Energy Pods, totaling 15 MWh, for the project backed by the CEC. This phase not only includes the production of energy storage solutions but also encompasses non-recurring engineering work. The financial aspect of this phase is significant, with expected revenue reaching approximately USD $9.23 million, exclusive of duties and US sales tax. Redflow anticipates recognizing the total revenue in FY2025, with initial invoicing of about USD $4.18 million already initiated. Moreover, the agreement includes a five-year extended warranty, indicating additional revenue recognition in the forthcoming financial years.
Tim Harris, CEO and Managing Director of Redflow, expressed enthusiasm about entering the manufacturing phase with Faraday and the CEC, highlighting the project as a landmark for Redflow’s expansion in North America. This project aligns with California’s ambitious energy transition goals, as outlined in the California SB-100 Joint Agency Report. The state has set forth objectives to achieve 19.5 GW of energy storage by 2035 and 52 GW by 2045, with a minimum of ten percent expected to be met through long-duration energy storage solutions.
The CEC’s initiative to diversify energy storage solutions underscores the importance of developing non-lithium energy storage technologies. This diversity is crucial for meeting the state’s clean energy targets and ensuring a zero-carbon electricity supply by 2045, as mandated by state law SB-100. With USD $330M allocated by the state over the last two fiscal years for such projects, Redflow’s involvement signifies a strategic move towards fulfilling these long-term energy storage needs.
Subject to the finalization of schedules with Faraday Microgrids, Redflow anticipates the shipment of batteries to take place in late CY 2024. The installation and commissioning of the energy storage solutions are expected to occur in early CY 2025, setting the stage for a significant contribution towards California’s clean energy transition.
This project not only exemplifies Redflow’s capabilities in the clean energy sector but also represents a critical step forward in California’s journey towards achieving its ambitious clean energy and zero-carbon goals. The collaboration between Redflow, Faraday Microgrids, and the California Energy Commission is a testament to the growing importance of renewable energy solutions and the pivotal role of innovative energy storage technologies in facilitating the energy transition.