Redflow signs MOU with Stanwell for renewable energy transition

Redflow (ASX: RFX) has signed a memorandum of understanding (MOU) with Queensland’s largest energy generator, Stanwell Corporation.

The MOU sets out Redflow’s and Stanwell’s intention to collaborate on the development and deployment of Redflow’s X10 battery for use in a 400MWh large-scale project. This project will serve as a potential anchor order for Redflow’s planned manufacturing facility in Queensland.

An initial feasibility study will conduct technical and commercial due diligence for a 5MWh X10 battery project at the Stanwell Future Energy Innovation Training Hub.

During the feasibility study, Redflow and Stanwell will negotiate definitive legal project agreements for the supply, installation and operation of the battery project.

The feasibility study is scheduled to be completed in the second half of 2024, followed by a decision to proceed with the project which is expected to be deployed in the first half of 2025.

Redflow managing director and chief executive Tim Harris says the company is thrilled to be partnering with Stanwell to further develop its technology.

“With the launch of the Queensland Government’s Battery Strategy and Energy and Jobs plan, and the recently released Australian Government National Battery Strategy, this announcement reinforces the incredibly critical role that energy storage and more specifically long-duration energy storage, will play in Australia becoming a renewable energy superpower,” he said.

The MOU with Redflow forms part of Stanwell’s strategy to develop alternative technologies and build a renewables portfolio including nine to 10GW of generation and 5GW of storage by 2035 to support Queensland’s renewable energy targets.

Stanwell chief executive Michael O’Rourke emphasised the importance of battery energy storage systems on the journey to a renewable future.

“Stanwell has ambitious targets for energy storage within our portfolio, and we see longer duration energy storage solutions such as Redflow’s as being crucial to meeting our customer demand for firmed renewable solutions,” he said.

“We already have a number of battery storage projects in the pipeline, and this new partnership will ensure the battery technologies deployed in the future are the best fit to serve our communities and customers through our renewable transformation.”