Inaugural VRFB saleWho is the big company that is tentatively planning to purchase the Largo Clean Energy VRFB?
During the “Battery Day presentation”, Cooperman asked brusquely: Where are the orders which is the proof of concept? That is a legitimate question, even though aggressively asked. Paulo said that when they scheduled Battery Day”, they expected to have been able to make a prior announcement. Unfortunately, the deal has not been signed and the announcement has been delayed. Paulo asked for patience and stated he is 100% that it will be signed. Later, Paulo was pressed on when the announcement would be forthcoming. I think he said they would have an announcement within a week. I am waiting.
During the “Battery Day” presentation, it was claimed that Largo has the most effective and lowest cost solution for VRFB storage. As proof, it was stated that the inaugural order (not yet announced) was won on a RFP bid in which Largo had the lowest cost. During the presentation, it was claimed that Largo’s initial orders will be at lower margins, but those margins will increase in the future as a result of lowering costs.
So, who is the inaugural purchaser? I do no know!
I wonder, however, whether it is Algonquin Power. Ian Robertson, the new LGO director who spoke glowingly about the necessity of VRFB storage, was the co-founder of the predecessor company to Algonquin and prior to July 2020, he was CEO of Algonquin. Last February, Algonquin’s Texas wind farms were disrupted by a severe storm (freezing temperatures and ice) that their system was not designed to withstand. Algonquin lost revenue and missed the opportunity to realize escalating rates. VRFB storage would have beneficial at that time.
As stated, I do not know the name of the inaugural purchaser. I look forward to the announcement and I invite others to present their speculations. I just hope that there are multiple purchasers. I do not want the repeat of the inaugural iron ore sale where there has only been one purchaser.