Altech Batteries Expands Market Reach with New Offtake Agreement
ATC (ATC) Share Update November 2024 Monday 25th
Altech Batteries Secures Second Offtake Agreement for CERENERGY GridPacks
Altech Batteries Limited (ASX: ATC) has announced a significant milestone with the signing of a second Offtake Letter of Intent with Referenzkraftwerk Lausitz GmbH (RefLau) for its CERENERGY GridPack systems.
Instant Summary:
- Altech signs second Offtake Letter of Intent with RefLau.
- RefLau to purchase 30MWh in first year, 32MWh annually thereafter.
- Agreement includes purchase of green electricity for Altech's plant.
- Deliveries expected to start in Q4-2026.
- RefLau plans to buy 10MWh for its green hydrogen project.
Agreement Overview
Altech Batteries Limited has entered into a strategic Offtake Letter of Intent with Referenzkraftwerk Lausitz GmbH (RefLau), a joint venture between Enertrag SE and Energiequelle GmbH. This agreement marks Altech's second offtake for its CERENERGY GridPack battery systems, highlighting the growing demand for innovative energy storage solutions.
Under the terms of the agreement, RefLau will purchase 30 MWh of CERENERGY storage capacity in the first year, with an increase to 32 MWh per year for the following four years. This commitment underscores the confidence in Altech's technology and its potential to stabilize renewable energy outputs.
Collaboration with Renewable Energy Leaders
Enertrag SE and Energiequelle GmbH, both prominent in the renewable energy sector, are integral to this partnership. Enertrag specializes in wind, solar, and Power-to-Gas systems, while Energiequelle focuses on renewable projects including wind and solar power. Together, they aim to develop a reference power plant powered by renewable energy, including green hydrogen.
This collaboration will enable Altech to purchase green electricity at competitive prices, furthering its commitment to sustainable energy solutions. The joint venture also plans to develop a hybrid power island, integrating Altech's GridPacks with renewable sources to create a decentralized energy solution.
Future Prospects and Market Expansion
The agreement also includes a preliminary purchase target of 30 MWh in 2027, with subsequent targets of 32 MWh for the years 2028 to 2031. RefLau's interest in purchasing 10 MWh for its green hydrogen project at Schwarze Pumpe highlights the potential for Altech to enter the hydrogen business segment, a market where traditional lithium-ion batteries pose safety risks.
Altech's CEO, Iggy Tan, expressed optimism about the growing demand for the company's scalable and reliable battery systems, noting that the first two years of production are already accounted for, with 50% of the following three years also secured.
This agreement is a significant step for Altech Batteries, potentially boosting investor confidence and market position. The commitment from RefLau, a joint venture of leading renewable energy companies, validates Altech's technology and market strategy. The collaboration could enhance Altech's reputation as a key player in the renewable energy storage market.
Investor Reaction:
Analysts are likely to view this agreement positively, as it secures future revenue streams for Altech and demonstrates the company's ability to attract significant partners. The focus on renewable energy and green hydrogen aligns with global trends, potentially attracting environmentally conscious investors.
Conclusion:
Investors should consider the long-term growth potential of Altech Batteries as it expands its market reach and solidifies its position in the renewable energy sector. The successful execution of this agreement could pave the way for further collaborations and market opportunities.