Proactive Investors - Shares in Invinity Energy Systems PLC (LON:IES) started Wednesday positively after the manufacturer of ‘utility-grade’ energy storage systems landed an £11mln grant from the UK Department for Energy Security and Net Zero, under the ‘LODES’ (Longer Duration Energy Storage Demonstration) scheme.
The government money will be invested to deploy a 30MWh vanadium flow battery, which will be the largest in the UK to date, Invinity said in a statement.
It is a ‘matched-funding’ award which is conditional on the company executing a sales contract with a project partner, expected to provide the balance of funding to develop, operate and optimise the battery project.
Invinity told investors it expects to deliver the project in 2024 and it will be a standalone, grid-connected plant capable of delivering more than 7MW of power on demand. The company said it will provide important network flexibility and accelerate the UK's transition to low carbon domestic energy sources.
At capacity, it is predicted to be able to supply the daily electricity use of more than 3,500 homes, making is six times larger that the company’s existing battery at the Energy Superhub in Oxford.
"We appreciate the UK Department of Energy Security and Net Zero Energy's recognition of the importance of longer duration energy storage for grid stability and to making low-cost renewable power available on demand,” Invinity chief commercial officer Matt Harper said.
He added: “We are pleased to help improve the UK's energy security, further demonstrate UK leadership in energy technology, and support UK industry and jobs.
“This award is a critical step in Invinity's journey from development stage to a commercial supplier of batteries critical to the global path to net zero."
Graham Stuart, the UK minister for Energy Security, meanwhile, commented: “Storing energy for longer periods is vital to build a robust and secure energy system and ensure that renewable energy is used efficiently. Fortunately the UK has a wealth of pioneering businesses that are making their mark on this industry.
"Today we're backing three UK businesses to make their projects a reality, which will go on to play a role in our country's energy security."
In London, after starting even higher, Invinity shares climbed 4.5p or 13.24% to change hands at 38.5p which values the company at over £72mln.