Another key outcome is the battery is now more flexible to use in finished energy storage systems.
The ZBM flow battery is a high performance battery that provides high energy density and best performance in deep discharging applications.
It operates at 100% and partial charge and discharge without degradation.
The potential of its ZBM flow battery has not been lost of NYSE listed Flextronics, which recently became the company's manufacturing partner.
Flextronics has facilities in over 30 countries and annual revenues of nearly $25 billion, and is one of the largest end-to-end supply chain solutions companies.
Technology advances to support revenue opportunity
The outcome is an increased revenue opportunity for RedFlow, as the advances deliver additional applications in telecommunication towers (where grid supply is not available or unreliable), and also residential applications where grid outages are common.
Further enhancing the opportunity is the potential for; renewable integration for remote and rural sites; with RedFlow to also target the emerging DC powered microgrids and uninterruptable power supply markets.
The existing ZBM had a number of key components such as pumps, which required an auxillary AC power supply, such as a grid connection or a generator.
All electrical components on the battery are now DC powered and all components that previously required an auxillary AC power supply have been replaced with DC components.
RedFlow customers who already have energy storage systems developed using AC componentry will be able to receive either of these batteries as their applications require.
Energy storage market rapidly expanding
The energy storage market is rapidly evolving, and Lux Research has estimated that of a potential $114 billion energy storage market by 2017, zinc‐bromide flow batteries will have a 19% market share equating to a US$21 billion (A$22.6 billion) market opportunity.
The Boston Consulting Group predicts the market for solar‐integrated energy storage alone to be €15 billion (A$22.3 billion) by 2020.
In addition, the McKinsey Global Institute lists energy storage as 1 of 12 potentially disruptive technologies. Use of energy storage mandated in California, New York State and Costa Rica in past 6 months.
Where RedFlow differentiates itself is that the company has solved and patented the mechanical and electrochemical issues which other flow battery technology companies have all yet to resolve.
The company's technology readiness level is at a level where commercial manufacture and sales can commence.
The major vote of confidence in RedFlow comes from the recent partnership with Flextronics, which provides scalability, quality assurance, repeatability and consistency to the product.
Today's news of the potential for wider applications for RedFlow's ZBM battery, further expands future markets, and therefore delivers a wider range of revenue and cash flow opportunities.
With this Proactive Investors initiates its initial coverage of RedFlow, and we expect the company's shares to trade higher today.
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