VOLTSTORAGE (EDP)

The project will finance the additional Research, Development & Innovation (RDI) activities , manufacturing demo plant and commercialisation of innovative Vanadium and Iron Salt redox flow batteries. They are suitable for commercial and industrial, as well as large-scale long-duration storage applications.

The aim is to bring the technology from pilot to a demonstration manufacturing line of innovative, cost-competitive redox flow batteries. It will also allow potential customers to evaluate, test and qualify the technology for the final market launch.

EIB financing supports the Promoter's growth and the scaling-up of innovative, low-cost redox flow battery technology.

The project will lead to the development and deployment of innovative technology with substantial environmental benefits. The financing of this project supports RDI activities, which generate significant positive knowledge, technology and/or environmental externalities, through the creation of innovative processes, products or services and through the development and upgrading of skills.

The financing of this project addresses the market failure of imperfect competition as it contributes to expanding the competitive space for new processes, products and services, namely innovative redox flow battery technology.

In particular, it supports the additional RDI to bring ISB technology forward and the manufacturing capacity scale-up to a mega-factory level, which should make the business case of this technology viable.

EIB venture debt financing complements the latest equity financing round from a strategic industrial player, in order to foster promoter's growth and scale-up by providing more affordable financing and signalling effect to other potential investors. The contribution of the EIB also allows the Company to diversify its financing sources and to benefit from a financing structure that is not available on the market

The initial project RDI activities are expected to be carried out in the existing facility, which is already authorised, and will not change their already authorised scope due to the project. Regarding the manufacturing component of the project, the promoter has to decide if it will follow an assembly-only strategy or if it will perform the full manufacturing of the battery components. The design, development and assembly (system integration) of redox flow battery components is not listed in any of the Annexes of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU. If the promoter decides to pursue the full-blown manufacturing of battery components, then the new demonstration assembly/manufacturing plant could fall under Annex II (4) (e) of the EIA Directive as an installation for surface treatment of metals and plastic materials using an electrolytic or chemical process. The Bank's services will verify the relevant environmental details at the time it is informed by the promoter of their decision. Furthermore, the Bank's services will put as a condition precedent in the financial contract for the disbursement linked to the assembly/manufacturing plant the requirement to provide the positive EIA in case such an EIA has to be performed. The project is considered not in scope for PATH framework because it does not apply to small companies (less than 250 employees , net revenues less than ? 40M) and it has been assessed for Paris alignment and it is deemed to be sector aligned in Industry, RDI low carbon technology and products as set out in the Climate Bank Roadmap.

The Promoter has been assessed by EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the promoter to apply those rules.