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The IDC's Nicole Moonsamy (Senior Dealmaker) and Abraham Kruger (Investment Banking Associate) have been appointed as directors of Bushveld Electrolyte Company recently.
No, we aren't immune from the impacts of COVID but the business continues to progress and formalise ties with a multi-billion dollar state-backed financing institution. No big deal.
Oh, and Invinity has established its South Africa entity.
Also worth noting that Unienergy (UET), Bushveld's partner on the Eskom research battery (and long-term) collaborator has registered "UET Africa" as a company at CIPC, the SA equivalent to Companies House. That would suggest worthwhile energy storage opportunities in Africa (and beyond), plus the likely success of the Eskom test.
UET is also the US sister company of Rongke Power; the firm behind the 200MW/800MWh mega-VRFB in China. No small tie-up to have.
Completely agree, LS. I’ve been a holder since 2013 and will continue to add when I can. This price is just not reflective of business today, given the progress made and sustained delivery over the past few years, the in-flight opportunities and upcoming prospects.
COVID and macro events are real but so is BMN’s stellar commercial performance and the proven delivery.
As an example, the MCAP of IES is not a million miles away from BMN’s, when Bushy funded the REDT/Avalon merger and will supply the electrolyte for the batteries that business sells. It’s just not logical. Nonetheless, it’s proving another great investment by Fortune et al and further demonstrates the all round quality of the operation and leadership.
Pleased with those results. Also very encouraged by the stability of the business in these uncertain times - a steady ship, in choppy waters.
Bushveld has the feel of business that is maturing very nicely. COVID has been a real blight in 2020, with human tragedy and commercial devastation but you can bet that Fortune and the BMN leadership team will use this period as effectively as possible to build a really solid platform for this growth story to continue as we all expect.
Merlot - If we get a sniff of vanadium or electrolyte offtake agreement from the likes of Rongke (Dalian 200MW/800MWh) or Schmid (tie up with Saudi firm SABIC, a subsidiary or Saudi Amaroco), then things could perk up nicely. If and when the Enerox deal completes, and they or Invinity start announcing deals, then things will look rosier too.
There is also the general sentiment towards states supporting the post-COVID economic recovery through a focus on "green" initiatives. That movement has real weight behind it and I believe we will see a material increase in engagement and uptake in renewal energy production, energy storage and carbon reduction. I have a quite a few friends in the O&G industry, most of whom are looking for avenues towards the renewable energy space, as the volatility of the O&G sector is fairly tiresome for those who work in the industry and, more fundamentally, supporting the production of fossil fuels while one is actively try to buy unpacked fruit and veg, reduce home energy emissions etc. creates quite an emotional conflict.
Therefore, I foresee energy storage becoming much more mainstream, with those firms that are involved early on, becoming powerful players. BMN may not rocket within 3 days like some pharma stocks but I don't necessarily think we will need to wait until 2021 to see a strong increase in the share price here. China is going all guns blazing with construction, there will be a lot of government back stimulus across the globe and energy storage is rising to prominence. So it isn't all doom and gloom. Fortune stated as much in the recent investor call and video interview.
For all the tragedy and suffering, Coronavirus has shown us, precisely when we needed to be shown, what a cleaner, lower carbon world looks like and I think most people quite like it.
Interestingly, the US Department of Defense [sic}] is working with a specialist energy services firm (Ameresco) to evaluate the potential of VRFB in microgrids. This initial assessment appears to have been positive, with some interesting excerpts:
"In particular, Ameresco’s ESTCP-funded project aims to assess, validate, and demonstrate the operational effectiveness of vanadium-redox flow battery storage technology and quantify the extent to which it could replace or significantly reduce the need for diesel generators in military microgrids"
"Energy storage has become a critical part of Ameresco’s innovative microgrid solutions, with lithium-ion technology serving nearly all of today’s distributed energy storage needs. However, alternative technologies such as flow batteries offer the potential for unique opportunities – particularly related to very long duration capabilities with reduced degradation over life.
“We are seeing growing interest from our Federal Government customers in how new energy storage technologies could complement lithium ion batteries to support their mission objectives,”
https://www.ameresco.com/ameresco-completes-first-phase-of-department-of-defense-funded-flow-battery-investigation/
The full paper and executive summary can be found here:
https://www.serdp-estcp.org/Program-Areas/Installation-Energy-and-Water/Energy/Microgrids-and-Storage/EW19-5312/EW19-5312/(language)/eng-US
REDT was a basket case before it got good management and surety of vanadium supply.
Now it has those things through the Avalon merger (takeover) and the Bushveld supply agreement.
The Oxford energy superhub green light further bolsters REDT's credibility, plus the other projects to which the recent RNS alluded and BMN will supply the vanadium for.
The new combined business is shaping up to be good company.
Further to my post earlier in the week, the Bushveld Electrolyte Company is now formed, having previously been “Reserved”, with Mikhail as sole director.
I’ve kept my eye on CIPC and BEC hasn’t featured at all until very recently. So the fact it is already fully set-up, is very quick.
Really exciting times. Remember, reasonably priced vanadium is a great thing for VRFB uptake and BE. Bushveld Minerals, with its traditional revenue stream from the steel industry, is wonderfully hedged by Bushveld Energy and the vertically integrated model. Therefore, vanadium prices staying in this range, or even lower, doesn’t hurt BMN - it actually serves as a great foundation for uptake of VRFB within the broader stationary energy storage mix. We have already seen evidence of this with a number of large scale VRFBs regaining momentum with calmer commodity prices in play.
Very excited to see "Bushveld Electrolyte Company" reserved as a trading name at CIPC (South Africa's equivalent to Companies House).
The plans outlined by Fortune are now becoming very tangible and momentum really starting to build....
Great to see Vanadium prices materially on the up. Also nice to see the average FY V pricing that Evraz reported in their Q4 update.
Keep in mind that reasonable vanadium prices are helpful to the wider uptake of VRFB, so a sensible rise would be very nice. However, the vanadium electrolyte leasing model is readily available to help manage fluctuations in the underlying commodity price.
The stage has been set nicely for BMN to demonstrate what vertically integrated really means, crystallise years of preparation and capitalise on its significant first mover advantage.
You’re missing the point - Think risk reduction, rather risk elimination.
There is no viable alternative to L-Ion for mobile device and EV energy storage (to my knowledge). There is for stationary, grid scale storage.
PG - accept your point; however, we are now seeing L-ion batteries of a scale not seen before. There is a fragility to L-ion that needs to be acknowledged - particularly when considering this technology at a massive scale.
More relevant, on a day to day basis, is perhaps the controls required to keep L-ion cells safe, such as cooling systems and additional tech which impact performance and suitability for some uses. Coupled with the under-discussed aspect of degradation of performance in the relatively short-term as the L-ion battery ages.
I believe there is a place L-ion in the matrix of energy storage solution but there are clearly situations, environments, applications and locations where VRFB is just better (and likely vice versa). Therefore, in the interests of the planet, the compelling capabilities that VRFB offers needs wider and louder discussion. L-ion currently already has that sort of profile.
Bottom line, if I had the choice between a L-ion battery or VRFB in the garage under my daughters room, I would chose VRFB. I believe people need to know that there are options beyond Tesla and L-ion.
Australian Vanadium share price responded nicely to that LoI - up nearly 25%. I’ve no doubt the BMN is working on both Vanadium and electrolyte offtakes - really looking forwards to those being announced.
Good to know, Alfa. Happy to assist with that piece of work if needed; as would many others, I expect.
That Vogelstruisfontein project has been with SAHRA for a few years, so I expect it to be approved in 2020.
Solarreserve.
https://sahris.sahra.org.za/cases/solarreserve-vogelstruisfontein-photovoltaic-project-gaut-00217-18e2033
Absolutely tremendous news. Commonsense, at last.
A really great opportunity for BMN, BE and partners.
Remember that Bushveld Energy is on the South African Government's list of approved suppliers, which details who can provide goods and services to the government. This is required for participating in tendering for government projects etc.
All in all we are positioned very nicely.
Bearing in mind my previous post on US interest (concern) in energy storage mineral supply chains, coupled with China’s head start in courting South African sources of vanadium, it’s fairly obvious how Mokopane could contribute to the following. The numbers for which are simply staggering:
“Fangchenggang Economic Development Zone Energy Storage Industrial Park
The Fangchenggang Energy Storage Industrial Park is one representative of the good momentum that energy storage industrial park development has had over the past few years. It is estimated that the total investment of the Fangchenggang Energy Storage Industrial Park project is 12.2 billion yuan. Upon completion, the project will provide an annual output of 250,000 tons of high-purity vanadium, 2 million tons of electrolyte, 500,000 tons of sodium hydroxide, and 20GWh of vanadium flow battery production. The project will allow Fangchenggang to bring its advanced energy storage materials, equipment, and technology from the Fangchenggang Economic Development Zone to the rest of the country and the world. The Energy Storage Industrial Park allows Fangchenggang to use energy storage as a window for promoting regional visibility.”
http://en.cnesa.org/latest-news
Despite the Trump era, even the US is realising the importance of minerals required for clean energy. The below paper was presented to the U.S. Senate Committee on Energy and Natural Resources and cites directly material produced by Bushveld Minerals. The US is aware and concerned by the Chinese making quick moves towards securing key materials to support clean energy infrastructure, including Vanadium.
"The [Bushveld] Complex also holds the world’s highest-grade and third-largest deposit of vanadium - a resource integral to a broad range of high-tech industries, from renewable energy storage to aerospace and defense. Such investments in South Africa’s highly concentrated and strategic resource deposits have helped make metals the country’s leading source of export growth, 6 with nearly 50 percent of its metal exports going to China — tying South Africa’s economic welfare directly to Chinese investment."
"China is also expanding its dominant market position in vanadium and graphite, securing additional supplies and building integrated supply chains. Vanadium is a transition metal that is used in flow batteries, superconducting magnets, and high-strength alloys for jet engines and high-speed aircraft. Chinese firms already produce 56 percent of the world’s vanadium domestically, and China is home to 48 percent of the world’s reserves. Now, they are targeting South Africa - ranked third in vanadium production and reserves behind China and Russia - and tapping into local companies’ plans to develop an integrated platform to produce vanadium redox flow batteries for distributed energy across South Africa. The vanadium resources will also flow toward China, feeding its battery industry and the National Development and Reform Commission’s planned rollout of 100-megawatt stationary energy storage stations to manage its wind and solar energy."
Given that the only other producer in South Africa is Glencore, I have little doubt as to which source of Vanadium this paper is referring to as the pipeline of V that China is tapping.
Despite what some would have you believe, Bushveld Minerals is a big fish in a small pond. We are of significance to global commodity markets and are of international importance.
https://www.energy.senate.gov/public/index.cfm/files/serve?File_id=DE769FDF-8C5C-409F-9452-486B9AEE209C
Should anyone be interested, Bushveld Energy is on on the South African Government's list of approved suppliers, which details who can provide goods and services to the government. This is required for participating in tendering for projects etc.
It's a big list, so doesn't seem too exclusive at first glance, but it looks like we are the only utility-scale energy storage firm on that database. Certainly the only South African one. Fits well with the Eskom Battery Energy Storage System (BESS) project.
http://www.energy.gov.za/files/tenders/2019/DOE005201920/project-commodities/GP/GP-SHS-Supplier-List.pdf