logo-loader

RedFlow receives CE approval for zinc bromide batteries

Last updated: 00:00 28 Jan 2015 AEDT, First published: 01:00 28 Jan 2015 AEDT

redflow_zbm_battery_358

RedFlow’s (ASX:RFX) core zinc-bromide flow battery has received CE approval, a requirement for sales in Europe.

As part of the CE certification process, the ZBM underwent and passed rigorous independent assessment and testing over several months in the areas of safety and EMC.

This included testing of the ZBM’s electronics, mechanical design, noise and temperature characteristics.

Changes required were minimal and these will be rolled out to production immediately and all products sold will now be CE compliant.

It also allows its partners to integrate the ZBM for use in energy storage systems in Europe.

Manufacturing of the batteries will be carried out by Flextronics (NASDAQ:FLEX), a US$6.4 billion market cap.

In December, the company said additional new trials had been approved by four new and existing customers.

Commercial sales from these trials are expected to begin in the second quarter of 2015.

This will help its focus on securing early sales and building sales volumes through calendar 2015 to the level at which it is at least cash flow neutral.


Zinc Bromine Flow Batteries

RedFlow’s zinc-bromide flow batteries have a significant advantage over traditional technologies including lithium in their ability to discharge daily at 100% for up to 8 hours (or longer).

This compares with competing technologies which have previously been for relatively short term power requirements.

However, large amounts of investment and resources are being invested to extend the applications to which they can be applied and the company continues to monitor competitive changes closely.

Zinc bromine batteries are expected to have a 19% market share of the energy storage market, which is predicted to be worth $114 billion by 2017.


Analysis

The CE approval allows RedFlow to begin selling its zinc bromine batteries in Europe.

In addition, its partners can also integrate the ZBM batteries in energy storage systems.

RedFlow already benefits from its manufacturing agreement with Flextronics, which also allows it to tap the latter’s extensive global supply chain.

This along with the focus on developing its sales pipeline provides the potential for the company to be cash flow positive by the end of 2015.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

5 hours, 13 minutes ago