The Redflow Ltd (ASX: RFX) share price skyrocketed by more than 50% in late morning trade following the company's largest ever battery sale. At the time of writing, the energy storage company's shares have dropped back slightly to 7.5 cents, up 38.88%.
It's worth noting that when news broke out, Redflow shares surged to as much as 9.1 cents, reflecting a 68.5% increase.
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What's pushing the Redflow share price higher?
The Redflow share price reached astronomical highs today as investors welcomed the company's latest update.
Redflow advised that it has entered into an agreement with international waste recovery company Anergia to supply batteries to its Rialto Bioenergy Facility, located east of Los Angeles. The deal will see Redflow supply Anaergia an energy storage system consisting of 192 zinc-bromine flow batteries. This will enable the facility to store and supply a maximum of two megawatt hours of energy, reducing pressure off the system during peak times.
Once operational, the Rialto Bioenergy Facility will convert 700 tonnes of organic waste and 300 tonnes of biosolids per day into renewable natural gas and fertiliser for farms and vegetable gardens. Redflow stated that it will be North America's largest landfill diverted organic waste digester facility.
The deal will generate total revenue, excluding taxes, of more than $1.2 million for Redflow. It will be paid in various stages once certain fulfilments have been met. They include signing, shipment, delivery of goods, and contract completion, which is expected to occur sometime in the third quarter of 2021.
What did management say?
Redflow managing director and CEO Tim Harris hailed the company's largest ever single sale and deployment of batteries. He said:
Anaergia's Rialto Bioenergy Facility provides the ideal use case for Redflow zinc-bromine flow batteries. Our batteries thrive on heat and hard work, which is exactly what Anaergia requires from them.
This project also enables Redflow to establish a presence in California, where we can offer commercially-proven zinc-bromine flow battery solutions to the broader Californian and US energy market, which is expected to rapidly transition to renewable energy. We are very excited about the potential for Redflow in California and the broader US market.
The Redflow share price is up over 95% in the past 12-month period, and 160% year-to-date.
