LONDON (ShareCast) - (Sharecast News) - Invinity Energy Systems confirmed on Monday that trading for the start of 2025 was in line with expectations, underpinned by recent commercial progress and confirmation that its flagship LODES project in the UK had secured final approval to proceed.
The AIM-traded company also reiterated that its results for the full 2024 year were expected to meet market forecasts, with audited financials to be published by the end of June.

It said the LODES project, a 20.7 MWh vanadium flow battery system to be co-located with a solar photovoltaic installation in the south east of England, was set to be the largest system deployed by Invinity to date.

Construction was scheduled to start in the second half of 2025 ahead of commissioning in 2026.

Invinity said it had already started manufacturing battery modules for the project at its Motherwell facility and expected to recognise up to £10m in grant income this year from the Department for Energy Security and net zero, which was funding up to half of the project's £20m cost.

The system would be owned and operated by Invinity, offering the company long-term access to revenue and operational data.

It said the project formed a key part of its broader growth strategy, which continued to focus on scaling its next-generation Endurium in late 2024, Invinity said it had commissioned its first system in Spain with partner Gamesa Electric and confirmed performance in line with expectations.

Additional deployments were underway, including a 14.4 MWh system for Taiwanese partner Everdura and a 10.8 MWh order for STS Group, with financial close expected in the second quarter.

The company said it had achieved a 24% cost reduction in Endurium since launch through engineering, supply chain and performance enhancements, and expected further efficiencies to follow.

Manufacturing output was also set to expand, with a new semi-automated stack production line at its Bathgate facility on track to begin commissioning in April, expected to double stack production with minimal staffing increases.

"I am very pleased to report the significant progress made by our dedicated team against the critical corporate priorities I set out six months ago as part of a 12-month plan," said chief executive officer Jonathan Marren.

"Thanks to our achievements so far, we are increasingly well positioned to capitalise on the extraordinary opportunity ahead of us.

"I'm looking forward to speaking to many of our shareholders directly this week and answering their questions."

As demand for non-lithium long duration energy storage (LDES) rose globally, Invinity said it was continuing to pursue larger projects, particularly in markets favouring alternatives to lithium-ion technologies.

The company said it was in advanced negotiations to secure US-based projects backed by Department of Energy funding, expected to contribute to 2026 revenues.

In the UK, Invinity said it was preparing to benefit from the forthcoming cap and floor scheme for LDES, and was exploring expansion of its domestic operations, though it maintained flexibility through international manufacturing in Canada, China, and Taiwan.

Operational streamlining was also underway, led by new chief financial officer Adam Howard.

Measures included redomiciling to the UK, switching to electronic shareholder communications, and the planned cancellation of Invinity's secondary AQSE listing to reduce administrative costs.

Management said it would host an investor presentation on 4 April to update shareholders on progress against its 12-month strategic priorities.

"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," Jonathan Marren said.

"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."

Marren said that with the first application window for the transformational LDES cap and floor scheme opening imminently, the flagship UK project, featuring its certified 'Made in Britain' batteries, would 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."

At 1424 GMT, shares in Invinity Energy Systems were up 1.05% at 8.21p.

Reporting by Josh White for Sharecast.com.

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