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redflow sustainable energy storage
Redflow Market Eye
Technology Conference
6th November 2019
Company Overview
Established in 2005. Listed on ASX in 2010 (ASX:RFX)
Redflow designs and manufactures zinc bromine flow batteries
Headquartered in Australia. Company owned manufacturing facility in Thailand
Over 60 deployments currently operational across multiple countries
South Africa New Zealand
Thailand (plus the Manufacturing Plant)
Fiji
Jordan
Germany
Italy
Poland
Netherlands
States in Australia: QLD (Corporate Head Office Brisbane) SA (Office in Adelaide) VIC, NSW, TAS
Redflow is positioned to redefine energy storage in our target markets
2
China
The Opportunity for Redflow
Australia Chief Scientist Dr Alan Finkell noted that flow battery technology has the potential to play a significant role in the energy storage market, with Australian companies well-positioned to lead the charge.
“Flow batteries are potentially going to be a big contributor in stationary energy storage, like the grid-level stationary energy storage”
Australian Financial Review, 31st June 2019
“We considered both lithium and lead-acid based batteries.
“Lead acid has too short a service life and was very bulky in the limited space we had. We saved 40 tons of battery weight by choosing Redflow.
“Lithium performance degrades over time and would struggle with the heat and our desire to run batteries without any cooling, even on days that are hotter than 30 degrees Celsius.
“Redflow batteries also present no fire risk through ‘thermal runaway’. In addition, we believe there are still questions about the safe disposal and recycling of lithium batteries at their end of life. Redflow batteries are made of components that are easily recycled or re-used.”
Derek Gaeth Chief Technology Officer, Soul Energy
The role of flow battery technologies is increasingly being recognised as being integral to the renewable energy ecosystem
Pumped Hydro
Flow
Power
Discharge duration at rated Power
kW
GW
MW
> 12 h 0-2 h 6-12 h 2-6 h
Compressed Air
Lithium
Lead
• The world is transitioning to a lower carbon energy system
• Storage sits at the core delivering reliable, affordable, low-carbon electricity
• Smart Energy Council estimates that 1-3GWh energy storage could be installed in Australia by 2020
• Flow batteries have a specific role in the energy storage ecosystem
Stationary storage market by type*
Our Growth Drivers
Market for redox flow batteries forecast to be worth
US$4.5 billion by 2028**
* Smart Energy Council : Australian Energy Storage Market Analysis , September 2018 ** Source: IDTechEx Aug 2018
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*ILLUSTRATIVE
• Flow batteries suited for 10kWh applications up to multi MWh • Comfortable with discharge times of up to 12 hours (at rated
power) • Chosen for versatility, adaptability and robustness
Redflow technology:
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Redflow Zinc Bromine Flow Battery Technology
Flow chemistry is like a reversible electroplating process
Unlike conventional batteries, it is happy to run flat and repeatedly use 100% of its energy capacity
Excellent tolerance for high ambient temperatures without external cooling
Compact Flow battery; this modular design enables scalability 10kWh → multi-MWh
Smart battery including Battery Management System (BMS) with remote monitoring and diagnostics
Recyclable HDPE plastic and re-usable electrolyte
Built in battery self-protection features
10 years or 3,650 cycles warranty
Ability to utilise 100% of the capacity of the battery
Ability to “park” a system and use it as optimum
Potential operational cost savings, especially in warm climates – no air conditioning required
Less hazardous for places with valuable infrastructure and reduced need for fire suppression costs
Ability to go to empty
Ability to turn the battery off without damage
No material electrochemical degradation at 30-50c battery operating temperature
Not susceptible to thermal runaway
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Redflow Zinc Bromine Target Applications and Advantages
OFF P
✘
1
3
2
Minimise Diesel Use
Maximise Renewable Consumption
Mitigate peak demand costs
Store excess energy generated through renewables to be deployed when needed
Generator only used to recharge batteries and/or as a backup solution
Battery discharge targets the load peak to avoid extra charges related to peak demand
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Redflow Zinc Bromine Environmental Credentials
Higher energy density than Vanadium or Lead Acid
Maximises use of renewable
generation
No CO2 emitted from operation
Potential for late-life refurbishment &
re-conditioning to extend life
Simple recovery & reuse of chemistry
at end of life
Recyclable plastics and construction
materials
No conflict minerals
Build
Use Re-use
✘
✓
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Redflow Life-time Cost Proposition
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Higher energy density (volume or weight) than Vanadium or Lead-acid*
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Long cycle-life and 100% useable energy
has cost benefits
3
Excellent temperature tolerance means lower air-conditioning Opex in warm climates
4
Non-flammable electrolyte means
lower fire suppression costs
5
Remote monitoring facilitates reduction in operations & maintenance costs
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Significant opportunities for
upfront cost reduction from
growth and scale
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Opportunity for late-life refurbishment & re-conditioning to extend operational life
8 Recovery and
recycling of chemical components at end
of life (EOL), provides opportunity
for lower EOL costs compared to
Lithium**
Current Future Planned
* See CSIRO Report Electrical Energy Storage: Technology Overview and Applications, July 2015 ** Referenced from Renew Economy, ‘Battery recycling could generate billion-dollar industry for Australia, push down prices.’
Off-grid – Diesel Reduction
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Redflow Customer Value Propositions
Weak-grid Resilience & Productivity
On & Off grid Renewable integration On-grid Power Consumption Reduction
Battery Theft Avoidance
Optimised minigrid operation
Targeting markets and applications where our unique battery technology has the strongest customer value proposition
Main Focus
Major target markets
• >4m cell towers globally • Power costs a major cost factor • Increase in infrastructure sharing
and tower companies • Battery theft & commercial and
environmental concerns over diesel use are increasing issues
Redflow offers a technical and commercial value proposition across Off-grid, Weak-grid and Back-up power supply applications
• Multiple industries where stable and cost efficient power is critical
• Key issues include intermittent power, high peak demand tariffs and maximising renewable use
• Address solar curtailment
Redflow can reduce energy costs by replacing / supplementing grid power and avoiding demand tariffs through storing off peak energy
• Battery Energy Storage System (BESS) crucial to RAPS containing renewable energy sources & can improve fossil fuel gen. efficiency
• Ideal battery for this use has high temperature tolerance, no capacity decline and 100% daily depth of discharge
Redflow solution is technically well suited to these and our ten year life offers an attractive commercial proposition
Energy-focussed Applications
Frequency Cycling
Warm climates that rapidly degrade other Batteries
Our sweet spots include…
RFX Investor Presentation Dec 2018 10
Telco Commercial, Industrial & Utility
Remote Area Power Systems (RAPS)
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The telecommunications sector presents a large and growing market
• Major growth in markets and geographies with no or weak grid environments. Major growth in towers (outside of 5G) expected to happen in areas of poor or limited grid connection and concentrated in Africa & Asia**
• Base stations energy use are a major cost component for Telcos. Vodafone Group has 164,000 base stations across its global network which consumed 3.7GWh in 2019 or 66% of total Group energy consumption***
• Flat average revenue per user (ARPU) leading to focus on reduction in Opex while ensuring network uptime (with a direct relationship to revenue)
• Expected increases in power consumption due to 5G. Dense electronics and peak consumption profile expected to drive higher energy usage
• Growth of tower companies and infrastructure services. Focus on efficient energy management and journey towards power as a service models
• Renewable Energy Commitments. Most large global telco operators have clear & ambitious renewable energy goals. Vodafone Group has a goal to “replace use of diesel by increasing solar generation and deploying diesel-battery hybrids, although this can be limited at remote locations prone to vandalism”***
• Various government driven and funded initiatives to reduce Blackspots in key countries. Programmes to fund, subsidise or mandate build out of towers in rural or remote locations (e.g. NZ, Australia)
>1.1 million off-grid
and bad-grid towers by 2020
with >90% using diesel as
main power source**
4m telco base stations
globally with 4.6% CAGR
growth 2019-2024*
120,000 new base
stations are deployed yearly – mostly in countries with poor grid infrastructure**
Telco presents the most immediate volume opportunity for Redflow
* Mordor Intelligence, Telecom Towers Market, Growth, Trends and Forecast (2019 - 2024) ** GSMA Report, Green Power for Mobile, December 2014 *** Vodafone Group Sustainability Report, 2019
Sales Pipeline – generating momentum in target markets
Major recent activity in FY18/19
Selected Highlights - Updated 30th August 2019 Region Initial
Customer Engagement
Initial Orders/ Trial
Commercial Negotiations
Commercial Deployment
Telco
TV network upgrade in Fiji NZ/Pacific
Mobile Operator (Optus) Australia
Mobile Operator in South Africa Africa
Telco Infrastructure provider in South Africa Africa
Telco Infrastructure provider NZ
Telco Infrastructure Provider Australia
Mobile Operator Australia
Mobile Operator in Indonesia Asia
Mobile Operators outside South Africa Africa
Misc. infrastructure and mobile operators Asia
Mobile Operator in NZ/Pacific NZ/Pacific
Emergency Services Operator Australia
C&I
Small Commercial (Knox City Council) Australia
Remote Power System (RAPs) Australia
Medium Industrial in South Africa Africa
Medium Commercial - Thailand Asia
RAPs Minigrid in Thailand Asia
Small Scale system – Demo with Zbest in China Asia
Multi-site Small Commercial (RAPs) Asia
Residential Various Residential Australia
Progress in the last 6 months Major activity previous to FY18/19
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Spotlight on South Africa
Cell tower battery theft a major headache for MTN, Vodacom
Iol.co.za – July 2019
Recent News Headlines
MTN South Africa logs theft of 733 batteries from tower sites in April Telecompaper.com – July 2019
Hundreds of security guards are now guarding South African cellphone towers from criminals
Businesstech.co.za – August 2019
Redflow batteries deployed in South Africa since 2016 and long standing partnership with Specialised Solar Systems
Ongoing national grid issues and endemic battery theft across telcos provide a significant opportunity for Redflow
Nov 2018 - New partnership with Moropa Site Solutions announced for 37 batteries for new telco tower build for a leading telco operator
May 2019 – New partnership with Mobax announced. Mobax Group is a leading field service provider to telco operators across southern Africa.
May 2019 - Announcement of a leading telco operator testing ZBM batteries with focus on reducing the high cost of running diesel generators as well as being a less attractive target for theft
Sept 2019 – Redflow secured an initial order to provide 68 ZBM2 zinc-bromine flow batteries for at least 20 mobile phone tower sites in South Africa by one of Africa’s leading telecommunication companies.
We have been on a two-year turnaround journey for Redflow. We now have the technology, commercial capabilities and emerging sales momentum to position the Company for future commercial success in FY20
1. Material progress made on required sales renewal with growing set of reference deployments, new partners and end customers capable of volume orders
2. Batteries produced are ready to meet current sales pipeline and our targeted order ramp up
3. ISO accredited Thai facility ready for production ramp up to align to emerging sales demand
4. Ongoing R&D investment and delivery of key engineering programs is critical to ensure competitiveness
5. Management team now in place with improved sales and customer delivery capabilities
6. Prudent cash management remains a key priority
7. Significant global addressable market opportunity available – immediate focus on conversion of current sales prospects
8. Engagement for potential strategic partners and investors that can deliver step change in growth
Momentum building to deliver on growth strategy
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Children and Family Centre , Bayswater Melbourne, Australia
Min. of Energy visiting village minigrid deployment, Thailand
Demonstration 100kWh project, Qinghai, China
