Redflow (ASX:RFX) has been selected to supply 4MWh of energy storage to Energy Queensland as part of a $12 million network battery project.
The contract is currently being negotiated and is expected to be concluded by the end of August, in a deal estimated to generate about $3.5 million in revenue for Redflow to be recognised in FY24.
Redflow reports the project is scheduled to be delivered in Q2 2024, of which the company’s zinc-bromine flow batteries will play a key part in Energy Queensland’s battery program.
The Queensland Government Battery Industry Opportunities for Queensland discussion paper highlighted the state’s energy storage demand could potentially reach 14 GWh by 2030.
Following the memorandum of understanding signed between Redflow and Energy Queensland in February 2023, the company has been working with Energy Queensland on this project to further validate Redflow’s long-duration energy storage technology and the role it plays in the energy transition strategies.
Redflow says its batteries are modular, scalable, fire-safe, and capable of 100% depth of discharge. They can also operate in a wide range of environments without supplemental heating or cooling and offer an extended life with minimal degradation over time.
Redflow CEO and Managing Director Tim Harris believes that Redflow’s batteries have a critical role in the energy transition required to meet the reduction targets in Queensland.
“Redflow has been working closely with Energy Queensland over the last few months to finalise this initial project. The MoU provided us with the avenue to delve deeper into project details together and engineer a Redflow long-duration energy storage solution that will be a perfect complement to lithium-based systems to meet Queensland’s energy storage needs.
Our technology is proudly developed in Queensland, where we have invested for over 15 years into delivering our world-leading zinc-bromine flow battery solution. Significant amounts of stationary energy storage will be required to meet the Queensland Government’s strategic plan and deliver the Queensland Energy and Jobs plan, which targets 70% renewable energy penetration by 2032.”
“The momentum towards a decarbonised grid and the energy storage market continue to rapidly accelerate…”
The momentum towards a decarbonised grid and the energy storage market continue to rapidly accelerate, and this is one of many multi-MWh opportunities in our sales pipeline that continues to grow. It further demonstrates the market acceptance of industry leading energy storage solution following the announcement of our 20 MWh project in California in June.”
The Queensland government is investing $24 million into flow batteries from local manufacturers to support the next stage of Queensland’s local battery capability, helping the state to meet its renewable energy commitments.
Half of the funding will go towards a pilot project to deliver new locally developed iron and zinc flow batteries. This includes the zinc-bromine flow battery from Redflow with the preferred site identified at Ipswich, plus a $12 million iron flow battery from Energy Storage Industries – Asia Pacific (ESI), with the preferred site in the Wide Bay region.
The new battery projects will use zinc-bromine and iron flow technologies, which are both alternatives to the more common lithium-ion battery systems which predominantly are manufactured off-shore.
Queensland Energy Minister Mick de Brenni says these new zinc-bromine and iron flow battery projects are an important part of the transformation of Queensland’s energy system “to deliver clean, reliable, and affordable energy to provide power for generations”.
“These new flow battery projects are just one of the ways we are enabling the transition to a low carbon energy future and, ultimately, helping to keep electricity prices down”
“These projects will support jobs both directly, and through the supply chain, meaning more jobs for Queenslanders, while using Queensland minerals in Queensland will benefit communities as far reaching as Mount Isa to Mount Cotton.
These new flow battery projects are just one of the ways we are enabling the transition to a low carbon energy future and, ultimately, helping to keep electricity prices down.”
Energy Queensland’s Chief Engineer Peter Price adds these projects will help better understand the benefits and possible challenges of distribution-connected energy storage.
“The new zinc-bromine and iron flow battery projects are an important trial for Energy Queensland as it is a step towards diversifying our overall battery program away from the more commonly available lithium battery systems.”
The batteries will be located close to areas of high solar penetration, while supporting the whole electricity supply chain, alongside other complementary solutions to maximise the growing uptake of renewable energy.
Redflow has offices in Australia and the US and designs and manufactures long-duration zinc-bromine flow batteries for stationary commercial, industrial, and utility applications. The company’s smart, self-protecting storage technology offers unique advantages, including a hibernation feature, secure remote management, a simple recycling path, and sustained energy delivery throughout its operating life. Redflow’s energy storage solutions have been in use for more than a decade at more than 250 sites in some 9 countries.
Write to Adam Orlando at Mining.com.au
Images: Redflow Ltd
