Bushveld Minerals has signed a term sheet setting out the main terms and conditions on, and subject to which, to acquire Enerox (VRFB specialist) on a debt free basis from CellCube Energy Storage Systems.
Enerox is one of the world's largest researchers, developers, manufacturers and distributors of vanadium redox flow batteries (VRFB), headquartered in Wiener Neudorf, Austria.
It has installed VRFBs at over 130 sites globally.
Fortune Mojapelo, CEO of Bushveld Minerals comments:
“The potential acquisition of Enerox is in line with Bushveld’s previously announced strategy of establishing a VRFB Investment Platform through which the company will mobilise additional capital from third party funders to help credible VRFB OEMs build scale to respond to a growing stationary energy storage market opportunity.
“Investing in the development and deployment of VRFB technology is a key part of Bushveld’s corporate strategy for several reasons.
“Firstly, the market opportunity presented by the widespread adoption of VRFBs is sufficiently attractive to grow Bushveld and generate returns for shareholders.
“Secondly, by helping to increase the speed and scale of adoption of VRFBs, the company will help boost long term structural demand for vanadium, which is key for our existing primary vanadium production platform.
“In addition, the combination of vanadium production and commercial exploitation provides a natural hedge for the company against vanadium price volatility.
The advantages this strategy brings are clearly illustrated by the right of first refusal agreement, also concluded with Enerox, whereby Bushveld will have the right to match commercial terms for the provision of vanadium products.
“Enerox’s existing platform complements the relationships that Bushveld Minerals and Bushveld Energy already have in place, for example, the Enerox acquisition will help the company develop potential opportunities in Europe more quickly.”
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Brett Whalen, Interim president and chairman, Cellcube Energy Storage Systems comments:
“As a leader in the VRFB space, Enerox deserves the capital necessary to maintain its competitive advantage. We are confident the Bushveld Consortium will maximise Enerox's full potential for its 4th generation project while increasing manufacturing capacity.”
The investment is in line with the company’s strategy of establishing a VRFB Investment Platform (VIP) to lead investments in VRFB original equipment manufacturers (OEMs) with attractive upside potential.
The VIP is one of multiple avenues of partnering with OEMs.
- The company and its initial investments will play a catalyst role and mobilise additional capital from third party funders to establish an investment capital pool to support VRFB OEM growth
- These partnerships support Bushveld Energy's business model, that includes electrolyte manufacturing and rental, VRFB manufacturing and deployments
- Bushveld Energy intends to own a significant minority interest in the Bushveld Consortium, in line with its strategy of holding minority positions in select VRFB OEMs and being a catalyst to mobilise third party financing and assist the scale up VRFB OEMs.