Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
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Alfa - thanks for churning those numbers. No doubt you mean "mark up" when you mention 300%. The gross margin of course could never exceed 100% and on the numbers presented at $80/kg would represent circa 70-75%. Still very compelling economics - looking forward to the first contracts being announced.
Alfacomp, yes the calculated revenue for Vanadium Electrolyte looks incredible. The Bushveld Energy 1000kWh electrolyte plant looks like it will be a huge revenue generator!
Anyone looking only at today's vanadium price has missed the revenue profile completely! Not surprising that Fortune and Mikhail have repeatedly said that BE could be worth 10 times that of Bushveld Vametco / Vanchem. But the combination is going to be explosive in terms of real value.
We are getting closure to the full unveiling of the future. Q4 updates should come this week ahead all being well and we should see a lot of news being released!
Cheers, RK
that is an a very interesting presentation is it not ?
1) The leasing scheme means that customers would still have not even paid off the original cost of the electrolyte after 10 years. The interest rate has clearly been selected so that it would take 12 years approximately, so that it is a no-brainer option to opt for a 10 year lease.
2) For the worked Sandbar Solar example the cost of c. $32,000 for the electrolyte (containing) 1550 pounds of Vanadium pentoxide now gives us a very good handle on the cost of V electrolyte versus the cost of the Vanadium in the first place.
Following the sums through 1550 lbs is 704Kg of V2O5, but V2O5 is only 56% V by mass so the contained mass of V works out at 394 Kg. This is for 90kWh of energy storage - this gives approx 0.44 Tonnes V per 100kWh of storage, or 4,400 Tonnes V for 1GWh storage. This number is in line with the 5,000 Tonnes V per GWh we have previously been guided to use.
Now to the costs - $32,000 divided by approximately 400 Kg works out at a round $80 per Kg of V in the electrolyte. So it is twice the cost of the raw Vanadium if you are paying $40/Kg for your Vanadium. We are paying about $18/Kg to dig it out of the ground, so if we are going to be selling electrolyte at $80/Kg we are going to be having something like a 300% gross profit margin.
Thanks for the feedback, and yes RichKen that is the correct link and thanks for posting it.
Is this the first hard evidence of how the economics of the electrolyte rental model will actually work? It looks like a good deal for both parties. Avalon will recover about 80% of the original cost of the electrolyte over the 10 year term, and own 100% of the electrolyte at the end. Sandbar will benefit from spreading the payments over 10 years with a negative interest rate of -3.9%. Win-Win!
All the best.
I assume you were looking the download here?
http://vanitec.org/latest-from-vanitec/article/avalon-battery
I hope this helps!
Good reminder Yachty. Good reading for vrfb's and since it was 7 months ago we can expect industry take up picking up. I can't wait for an update from BE, could be due anytime now.
Breakfast as a new poster you cannot post Links.
Welcome to the board - look forward to your contributions.
Cheers, RK
Greetings breakfast, welcome to BMN on LSE.
Your link to whatever it was going to be was probably removed because LSE don't allow brand-new accounts to post links. I think you'll find after three days that you will be able to post links and that removed links will get re-instated. This is according to an old post from a staff member that I dug up a while ago.
All the best!
Hello everyone and big thanks for all the useful information posted on this board. I've been a regular reader since first investing in BMN in late 2017.
Not sure if this has been posted previously, but I recently found a presentation by Avalon (dated 13 April 2019). Several case studies illustrate commercial benefits under various scenarios and last few slides demonstrate how the electrolyte rental model works. Not sure if this link will work, but easy enough to find and pdf on the Vanitec website.
http://vanitec.org/images/uploads/Avalon_Battery_-_Company_and_Products_Overview_for_Chengdu_Vanadium_Symposium.pdf