daytrading june 2 afternoon, page-34

Energy storage is the holy grail of renewable energy technologies - wind and solar power only really work when there is wind and sun actively powering the system.

The billion dollar idea is really found in technology that can STORE that energy for future use.

Redflow (RFX) has the billion dollar product ready to go - and it's just inked deals with Flextronics - a $5 billion US company, and now Schneider Electric, the $55 BILLION dollar global leader in energy technologies.

An 11 months ago, just before the current tech boom on the ASX started heating up, RFX signed a deal with none other than Emerson Electric Co (NYSE:EMR), one of the largest power equipment manufacturers in the U.S.

EMR has around 150,000 employees worldwide, in 150 countries, and is capitalised at $60 BILLION.

Why would 3 multibillion dollar, multination conglomerates all be interested in the same $29 million Aussie tech company?

Specifically, the deal with Emerson Electric was with its business division called Emerson Network Power, which provides power backup systems, embedded power, and connectivity technologies for data centers and telecommunications networks.

And then we had the deal with Flextronics.

And then the director of NBN Co. took a substantial shareholding in RFX at a premium to the current share price at the time.

And now the $55 billion Scheider Electric has jumped on the RFX bandwagon.

Follow the money??

I am getting super bullish about energy STORAGE technologies, in place of energy generation technologies.

RFX's tech can provide backup power for multibillion dollar enterprises during blackouts or systems malfunctions, in addition to a myriad other uses.

RFX's flow batteries are easily scaleable, because it produces electricity via liquid electrolyte in a container flowing through a cell and reacting with electrodes.

So if a client wants a more powerful battery, RFX can simply increase the size of the containers.

RFX is capped at $29 million - the same as PSY.

If PSY signed manufacturing agreements with global tech players (ie ST Microelectronics) and had a working product like RFX already does, they would be capped at $150 million.

Realistically RFX could be a $1 company in 2 years, which would still only be a cap of $150 million.