Leclanché ups 2017 revenue guidance to 75% growth


Leclanché, the Swiss vertically integrated energy storage company, has updated its guidance for 2017 on the back of a strong order book for next year and beyond.

The lithium-ion battery developer expects to deliver more than 85 MWh of new storage capacity in 2017, equating to more than 75% revenue growth. The firm also has in excess of 300 MWh of additional capacity currently under negotiation, around 50 MWh of which has the potential to be brought online next year.

The order backlog extends out into 2018, ensuring a healthy mid-term outlook for the battery developer.

Further, Leclanché believes that there are "substantial opportunities" for its electric bus project, with recognized revenue costed in for the end of next year.

EBITDA is projected at breakeven above 100 MWh production, currently envisaged during or before 2018 as Leclanché continues to sharply focus on improving profit margins from efficiency gains and growing installation volumes.

The board intends to follow through on a comprehensive funding program to support its business objectives, drawing upon project finance secured from Swiss Green Electricity Management Group (SGEM) for a North American project, while further discussions are in the offing for additional non-recourse capital.

In August this year Leclanché secured CHF 11.1 million private equity to augment its goals. There are also talks relating to a strategic joint venture for volume manufacturing in Asia, the company confirmed.

"We continue to be confident on our growth outlook as our full energy storage solution capabilities are being well received by our customers globally," said Leclanché CEO Anil Srivastava. "We are also focused on optimizing our capital structure to support our growth, including through project finance and debt, with our objective to improve capital efficiency as we expand."

Leclanché added that its growth targets are contingent on an array of factors, not least the delivery of its supply chain and satisfactorily securing planned funding.