Transform energy technologies into assets and scale production

Project Summary

An investment in Thorion Energy purchases an entry into the vast, dynamic, rapidly growing global energy-storage market Thorion seeks $A6 million (via straight equity purchase or a convertible note), largely to drive sales growth through inventory of components and battery modules Thorion occupies a unique position in the market Thorion batteries do not catch fire or explode and are designed to operate for more than 20 years with multiple daily cycles without degradation The electrolyte, developed by the US government and licensed to Thorion, also enables Thorion batteries to operate in up to 60 degrees Celsius Thorion has a swiftly scalable business model that doesn’t require large infrastructure and makes global expansion practical The company has validated its technology through selected field installations and is ready for a strong sales push An investment in Thorion aligns well with key WA government priorities and will facilitate important benefits to the WA

Project Description

Thorion’s current specialisation in vanadium flow batteries gives it a strong claim to those market segments that values reliability, longevity and safety. Additionally, Thorion’s exclusive chloride-based electrolyte can operate in ambient temperature up to 60 degrees Celsius, which is well suited to the many countries with hot climates.
Electrolyte is at the heart of the vanadium flow battery. Vanadium electrolyte can cycle multiple times a day for more than 20 years without suffering degradation. Furthermore, it is not subject to fires or explosions. Additionally, as well as its high temperature capacity, Thorion’s chloride-based electrolyte can offer a greater energy density (up to 70% higher than mainstream vanadium electrolyte), which can dramatically improve the physical footprint of Thorion batteries. These three electrolyte features (extensive cycling, enhanced spatial efficiency, and expanded temperature range) represent added value for customers in many applications and provide strong differentiation in favour of Thorion.
The patented electrolyte formulation, owned by the US government, was developed by the US government’s Pacific Northwest National Laboratory (“PNNL”). Thorion holds one of only three exclusive licenses to the electrolyte in the world and is the only non-US company to do so.
Thorion has a clear and scalable business model, which has three main elements. These are (1) forming contractual arrangements with selected existing businesses to assemble and sell Thorion batteries (“flow partnerships”), (2) supplying electrolyte and cell stacks to these flow partnerships, and (3) engage in technical development and continuous improvement to maintain a high level of support for its flow partners.
This framework provides benefits for both parties to the agreement; Thorion products gain access to the partners’ channels to market while the partners expand their services with new products.

Investment Opportunity Details

Thorion’s economic framework offers some attractive features. First, it represents a low capital intensity as there is no need for a large, centralised factory. Second, there is potential for attractive returns, particularly on the leasing of batteries, which offer a five-year payback on a thirty-year asset (in the case of diesel replacement). Third, because there is no large infrastructure required, Thorion can scale operations up or down swiftly.
Having spent four years in developing know-how and monitoring trial field installations, Thorion is ready to enter the commercialisation stage. Initial emphasis will be on the simpler applications such as remote diesel generator replacement, which is a large market.
Thorion seeks $A6 million, largely to fund acquisition of core components and battery modules for lease to customers. This investment can be either a straight equity purchase (Thorion is an unlisted public company) or in the form of a convertible note.