Invinity has reached an agreement to proceed with the LODES project, developing, building, owning and operating an up to 20.7 MWh VFB in the UK.
Monday 31 March 2025
Invinity Energy Systems today announces that it has reached an agreement to proceed with the LODES project.
Invinity has acquired the rights to develop, build, own and operate an up to 20.7 MWh vanadium flow battery system using the Company’s VS3 vanadium flow batteries on a site in the South East of England (“VFB BESS Project”). The VFB BESS Project is anticipated to be co-located alongside a solar PV array which will be developed separately by a third party.
The system will be the largest deployed by Invinity to date and would be one of the first commercial battery projects in the UK to co-locate a long duration battery energy storage system with on-site renewable generation. Having full ownership and control of the VFB BESS Project will provide Invinity with unrestricted access to trading and operating data concerning the site and enable the Company to fully optimise the battery to showcase its capabilities as well as receiving ongoing revenue from the system’s grid balancing and energy trading activities. The site is expected to become a high-profile reference site and an important commercial asset for the Company at a time of major demand for LDES battery technology in the UK and globally.
“I am extremely pleased that we can today announce progress on the LODES project. Moving forward with the project ourselves enables Invinity to retain the financial value generated from this DESNZ grant and leverage full control and access to the asset on an ongoing basis to enhance our commercial activities. Once operational in 2026, the asset should generate revenue and positive cash flow for the Company and provide important benefits to the UK grid, allowing more low-cost, low-carbon renewable energy to be utilised, contributing to lower consumer bills as a result.
“With the first application window for the transformational LDES Cap and Floor scheme opening imminently, this flagship UK project, featuring our certified “Made in Britain” batteries will act as an important reference site for Invinity’s prospective customers and partners and generate significant benefits to the Company both in the short and long term. We’re looking forward to delivering it as soon as possible.”
– Jonathan Marren, Chief Executive Officer, Invinity Energy Systems
The total VFB BESS Project cost is expected to be up to £20m including site acquisition, development costs and contingency, of which between £7m-£10m will be funded by the Department for Energy Security and Net Zero (“DESNZ”) through the Longer Duration Energy Storage (LODES) Demonstration competition, as previously announced. This funding will be recognised as grant income by the Company during the current year. The remainder of the funds will be derived from cash ringfenced for such purposes on Invinity’s balance sheet as part of the £57.4m fundraising in May 2024 from the National Wealth Fund and institutional investors. DESNZ has formally confirmed to Invinity that it can proceed with the project, which is planned to enter construction phase in H2 2025 ahead of operation in 2026.
Invinity has acquired a special purpose vehicle which owns a 25-year lease over the site and which is capable of being extended by 15 years at its option. The site has an existing approved 5.5 MW grid connection and planning for a solar array and BESS system. Building the site to include a VFB BESS Project requires a minor amendment to the planning permission to change from a lithium-ion to a vanadium flow battery. The development of the VFB BESS Project is not conditional on the solar array being installed and the application to amend the planning permission has already been submitted alongside a letter of support from DESNZ. Given the characteristics of a Vanadium Flow Battery (notably zero fire risk and lower noise levels than a lithium battery), the Company believes that such approval will be forthcoming.
Invinity has commenced manufacturing of the VS3s for this project at the Company’s facility in Motherwell, Scotland and is currently holding a significant portion of inventory which can be utilised for the project. The £7m-£10m grant also covers a portion of existing internal Invinity labour overheads which is expected to be net margin beneficial to the Company. Once operational, Invinity expects the project to contribute positive cashflow and revenue to the business on an ongoing basis, noting that the VFB BESS Project can be sold on to a third party in the future, if desired.