Incubator key driver in electricity storage company success 

2 March 2011

Brisbane-based business incubator ilab was a key driver behind the growth of electricity sotrage company RedFlow Ltd, which successfully listed on the Australian Stock Exchange in December.  RedFlow's $17.5 million initial public offering closed fully subscribed.

ilab’s chief executive, Colin Kinner, congratulated RedFlow (RFX) on its rapid transition from a start-up to a successful business.

"RedFlow is one of Australia’s technology triumphs, and ilab is proud to have worked with the RedFlow team," he said.  "In the 10 years ilab has been operating we’ve had a significant impact on the business landscape by helping to build successful companies, and we’re delighted to that RedFlow is part of that list," he said.

RedFlow was a member of the incubator from 2005 to 2008. During this time ilab leveraged its networks to introduce RedFlow to the company’s first major investors, its first foundation customer (Ergon Energy) and even its current CEO.  In addition, ilab provided assistance with business plans and market research which enabled the company to focus on what is now a multi-billion dollar global market.

As with many technology start-ups, RedFlow had significant commercial potential, and the founders identified that they needed guidance on how to grow it into a successful business. The RedFlow team was receptive to the advice and input ilab offered.

"These are the qualities ilab looks for in companies it accepts into the incubator," Mr Kinner said.  "Having an innovative and competitive product or service is a given, but it’s also essential that the founders are committed to growing a scalable business and willing to accept input from others."

RedFlow’s co-founder and chief technology officer, Chris Winter, said ilab was instrumental in transforming the company into a world leader in the energy storage market.  "Joining ilab was the most the important thing that happened to RedFlow in its start-up phase," said Mr Winter.

"Before that we were just a couple of engineers developing an elegant battery design in our father’s backyard. ilab showed us how to change our mindset from building a product to building a business," said Mr Winter, who founded the company with his brother Dr Alex Winter. 

Chris and Alex both gained their engineering degrees from UQ.

"ilab opened a lot of doors and helped us develop the skills to break into the business world," Mr Winter said.

RedFlow manufactures 5kW zinc-bromine battery modules that store conventional and solar electricity for release during times of peak demand. The modules are packaged into plug-and-play electricity storage systems. 

A number of electricity distribution utilities in Australia and New Zealand currently are using RedFlow’s products.  The company is a research partner in The University of Queensland’s 1.2 megawatt photovoltaic project, which is under construction at St Lucia in Brisbane.  On completion this year, the system will be Australia's largest and most powerful photovoltaic flat panel array.  The prototype RedFlow 200 system, rated at 200kW, will be linked to a 390 kW section of the UQ PV array, and the performance of those panels will be compared with an identical section with no storage.  "This will demonstrate how large-scale energy storage can be used to manage the harmonics and transient effects of periodic dips in power input, such as those that occur when clouds move across the sky," Mr Hutchings said.

Media: Colin Kinner, CEO ilab ph +61 7 3327 9802 / +61 7 411 122 976 ckinner@ilab.com.au
Phil Hutchings, CEO RedFlow, ph +61 7 3376 0008/+61 7 402 120531 phil.hutchings@redflow.com.au

About RedFlow

Founded in 2005, RedFlow is now acknowledged as one of the world leaders in high performance zinc-bromine flow batteries (ZBM) for grid-connected electricity storage.  RedFlow's utility-scale energy storage systems help reduce electricity distribution costs and allow clean solar generated electricity to be used at night.

www.redflow.com.au