Sherwood Partners, corporate undertaker, "has been engaged by Imergy to market and sell the Company’s assets, including all of its valued intellectual property assets," according to an offering obtained by GTM -- in case you're interested in starting a flow battery company on the cheap.
According to the document:
- "Unfortunately, current investors have chosen not to continue to support the Company’s ongoing operations. As a result, Imergy entered into an Assignment for the Benefit of Creditors (“ABC”), a form of insolvency under California state law, on Monday, July 18, 2016."
- "As a result of the ABC, the Company recently terminated its employees and ceased operations. However, the Assignee has retained the services of many of the key former employees to assist with the sale of the intellectual property and related assets."
Flow battery developer Imergy, the former Deeya, raised more than $100 million from Technology Partners, NEA, DFJ, BlueRun Ventures and SunEdison to commercialize a long-duration energy storage solution. (GTM Squared took a deep look at this technology here.) The company pivoted from its original iron-chromium chemistry to a vanadium electrolyte in 2013. Imergy also moved from the sulfuric acid usually used with vanadium to another acid, which aimed to reduce the problem of hydrogen forming in the charged electrolyte.
Imergy was working with contract manufacturer Flextronics to build a 5-kilowatt/30-kilowatt-hour battery for cellular towers and remote applications in India -- the application earnestly cited by all desperate flow-battery, battery and fuel cell manufacturers.
The now-bankrupt SunEdison had agreed to buy up to 1,000 of Imergy's 30-kilowatt units over the next three years for deployment in, wait for it, India, of course. It was by far the biggest single mirage of an order that Imergy -- or perhaps any other flow battery manufacturer -- had ever received. And it disappeared just like SunEdison.
The offering letter makes some brave claims on the firm's cost-competitiveness, asserting that Imergy can "reduce the manufacturing costs of the flow batteries from $500 per kilowatt-hour, already an industry benchmark, to under $300 per kilowatt-hour."
But sadly, most VC-funded companies fail, and Imergy, with its many good people, won't be our last energy storage startup obituary.
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