Redflow's Funding Approval for Barona 6.6 MWh LDES Project

Redflow Limited (ASX: $RFX) has received approval for $A13.5m funding from the California Energy Commission (CEC) for its zinc-bromine battery technology, designated for the Barona Band of Mission Indians' 6.6 MWh LDES project. The total project budget is approximately A$19.6m, with matched funding by the Barona Tribal Community of $A6.1m. The project consortium, including Prosper Sustainably, Microgrid Initiatives, and Ameresco, will collaborate with Redflow to commence project planning, with the anticipated deployment of the 6.6 MWh Redflow system expected in FY26.

Redflow's Executive Commentary on Funding Approval

Redflow CEO and Managing Director Tim Harris expressed satisfaction with the CEC's funding approval, highlighting the demonstration of Redflow's technology capabilities at a commercial multi-megawatt hour scale. Additionally, Redflow's Chief Commercial Officer and President North America, Mark Higgins, emphasized the significance of the Barona battery project as Redflow's fourth multi-megawatt hour project in California involving the CEC as a funding partner. Higgins also noted the alignment of Redflow's LDES technology with California's decarbonization goals, reflecting the CEC's ongoing confidence in selecting projects utilizing Redflow's leading LDES solution.

Redflow's Funding Approval Summary and Outlook

Redflow's approval for $A13.5m funding from the CEC for the Barona 6.6 MWh LDES project marks a significant milestone, showcasing the demand for Redflow's technology in core markets like Australia and the United States. The collaboration with the Barona Band Project Consortium and strategic partner Ameresco signifies the commencement of project planning, with the 6.6 MWh Redflow system expected to be deployed in FY26. Redflow anticipates revenue on a $/kWh basis for this project to be consistent with similar U.S. projects and expects payment milestones to align with other US projects. The company's LDES technology's proven track record in the California market and its alignment with California's decarbonization goals position Redflow for continued success in the region, reflecting the CEC's confidence in selecting projects utilizing Redflow's leading LDES solution.