Vanadium redox flow technology provider redT energy reported a loss of €2.7 million in 1H 2016 compared to a profit of €0.1m in 1H 2015, in line with the company’s expectations.
The move into a loss was put down to two main factors. The first was increased administration expenses of €0.7 million in this period due to development of the energy storage business and the acquisition of additional shareholding in REDH to fully consolidate the subsidiary within the Group. This REDH roll in led to administration expenses across the group increasing to €3.6 million up from €2.9m in 1H 2015.
The second reason was because the €2.3 million gross profit in 1H 2015 was largely down to a one-off sale of redT's US Carbon Credit portfolio.
redT’s revenue was €4.5 million in the first half year, compared to €6.4 million in 1H 2015.
The company’s 1H 2016 gross profit was €1.2 million compared to €3.4 million in the same period last year.
redT CEO, Scott McGregor said: “The Company continues to make strong progress towards the commercialisation and full-scale production of redT's industrial, long duration, energy storage machines.
“redT's market seeding phase is now nearing completion.”
During the first half of 2016, redT deployed its first storage units into Africa, which it describes as a key future market. Other systems were deployed in Europe. The company also undertook a joint project with E.ON, looking at improving payback on solar PV installations for their commercial customers in the on-grid market.
It also carried out a testing programme for its large-scale energy storage machines at the Power Networks Demonstration Centre (PNDC), which will soon ship to the Scottish Isle of Gigha for commissioning.
The redT energy storage business was described as being “on the threshold of producing a full commercial offering”.