Member Info for Lindon

“BE/Cellcube should look to build residential/small business VRFB's in SA as a starting point”

Yes HaleSpur, and those megga small BESS installations is where CellCube with their much touted circa 139 projects around Europe have been operating up to now!

If they started up in the U.K. - such is their experience of small installations in the rest of Europe, I believe they would be in prime position to also grab a hold on our local domestic market which currently no domestic VRRB provider seems to have any position in.

CellCube are the global experts at small battery installations. Easy to see why they are ideally suited to mini-grid type projects.

Spot on. Picks and shovels win! The whole global vanadium based BESS concept is dependant on digging the stuff outta the ground and processing it. FM knows where it’s at.

Things have changed since February.

FM called it a reset, and he was correct, and that, imo, is exactly what is happening.

“ Ramping up to the 200mwh capacity over several years” (analysts call- 39.30mins)

It took a consortium and $30 million funding just to increase CellCube’s manufacturing capacity to a paltry 50mwh level .

Obviously CellCube are not expecting to be going to require anything like 200mwh’s worth of electrolyte for the foreseeable future.

The next step for CellCube - they forecast will be to get capacity up to 150mwh - still nowhere sufficient to tender for any really large BESS projects - that is a massive increase - and how much funding to even get to that still relatively small capacity level will be required for that?

Tendering for major BESS projects around the globe is a pipe dream for a company the size of BMN/BE …. but BE should be able to earn a nice living as a stand alone company, attracting reasonable funding which should allow it to concentrate on getting the African mini- grid market off the ground.

BMN is best of out of it imo- but easily best placed to concentrate and dedicate itself to remaining as the ‘Go To’ mining and vanadium processing company with the additional benefit of being able to also supply electrolyte for any small mini-grid type projects that might happen along by those with the scale, funds and affordability to build them.

By any criteria and by any definition - I think FM has read the runes and understands that keeping BMN as a simple miner/ Vanadium processor, that can supply electrolyte to the battery industry if required- is a very clever move indeed.

Pdub, you can “argue” what the hell you like, and I don’t give a brass monkeys left testicle or a rats ass for your “more positive viewpoint’.

Just my opinion.

“No repayment terms have been set as yet. I imagine that the debt will be repaid out of the plants profits over a long term”

Whatever and however, the fact remains they have 45% stake and they’ll obviously want that loan paid back.

As the plant is due to owned by BMN after the split, presumably it’ll be BMN who will own the debt.

“Fortune said they would keep a significant interest not control”

Yep quite agree Ben, that was the point I was making to pb940.

(@pb940, BE, according to FM himself, will become a stand alone business, therefore it cannot be said to be still be under ‘BMN’s umbrella’ - BMN intends to retain a significant investment interest - not retain a controlling intrest)

I also agree with your general comments about the take up of the battery industry. The point was made in comments made on the analyst call about the ELZ plant due to come on line next year with ramp up eventually reaching 200mhh per yr - but potential demand for it to reach full production capacity reckoned to be several years away - any near or future income from electrolyte sales will presumably be also impacted by IDC - as being near 50% owners of the project - I expect they’ll also be wanting a large slice of any earnings as a return on their investment?

it’ll be good, imo, to see BMN concentrating on the mining and steel industry side - free of the BE ‘ball and chain’ around its neck, whilst just retaining control of the ELZ plant so they can supply electrolyte to whoever on the African continent might want it in the years ahead for mini- grids or whatever other small scale projects might arise …. is a 100% excellent move by FM that secures the main mining business.

@ pb940, maybe so, not sure, but my understanding is that retaining a controlling interest in BE would obviously mean keeping it as a subsidiary to the main business, rather than it being a carved off stand alone’ entity - and BMN would still retain investment responsibility.

As noted in the 2021 Annual Report, having incubated the energy division, and created the critical mass to ensure its success,

Bushveld Minerals intends to carve out Bushveld Energy as a stand-alone company focused on the Vanadium Redox Flow Batteries (VRFB) value chain.

This will crystalise its value and attract the appropriate institutional investors with a greater understanding of energy and the energy transition.

Bushveld plans to retain a substantial share in the carved-out entity.

@pb940, BE, according to FM himself, will become a stand alone business, therefore it cannot be said to be still be under ‘BMN’s umbrella’ - BMN intends to retain a significant investment interest - not retain a controlling intrest.

So - after that call, it seems it’s intended that VERL and VRFB-H / Enerox are going with BE but the chemical plant is staying with BMN (but no contracts/ agreements have been made!)

It looks like Bushveld Vanadium will be responsible for the mining and processing to Vanadium business, in addition to supplying Electrolyte from the co- owned (with IDC) chemical plant - to whatever contracts that BE might win, in addition to supplying Vanadium to its steel industry customers.

That in turn presumably means BE will be responsible for winning BESS contracts, project management of them, and any battery manufacturing/assembly plans that may be intended to be established in SA in the future. Also arranging for the enormous amounts of funding they’ll need for lift off!

That plan should eventually put the main mining business on a far more secure and far more simplified and understandable footing for investment purposes - and go a long way in gaining some vitally needed II interest, imo.

Now looking like capitulation is in progress after that conference call.

September 7, 2022
The Australia-based Electric Mine Consortium is seeking long duration energy storage solutions to help with decarbonising its mining operations.

The grouping of mining companies as well as some energy storage technology groups are seeking providers that can deploy solutions at one or more of several mining sites throughout Australia.

The energy storage solutions can be thermal, electric, gravity-based, chemical or any other type.

The closing date for submitting an Expression of Interest (EOI) is 13 October at 5pm Australian Western Standard Time. The EOI will cover small (under 50MWh), medium (50-500MWh) and large (500MWh and over) solutions.

The Electric Mine Consortium was founded in 2021 with the ambition to accelerate progress towards a fully electrified, zero-carbon and zero-particulates mining sector through resolving technology choices, shaping the supplier ecosystem, influencing policy makers and communicating the business case.

The Consortium estimates that by 2030, the mining industry in Australia alone will require 13x the estimated global energy storage capacity: 9710GWh versus an installed capacity of 741GWh.

As well as mining companies, its members include Amazon Web Services and gravity-based energy storage solution company Energy Vault.

Many of the mines operated by its members are off grid and rely on on-site generation from thermal, gas or diesel sources. A map of the Consortium companies’ sites across Australia below (courtesy of the Electric Mine Consortium).

https://www.energy-storage.news/australian-mining-consortium-launches-long-duration-energy-storage-challenge/

As Phase 1 winners of the UK Government’s Department of Business, Energy & Industrial Strategy (BEIS) Longer Duration Energy Storage Competition (LODES), Invinity are working in collaboration with Pivot Power (part of EDF Renewables) and EDF R&D UK to scope and deliver a 40 MWh solar-powered Vanadium Flow Battery (VFB) in the UK.Find out more about why this Long Duration Energy Storage project is so groundbreaking and what companies are involved below.The ProjectThe Vanadium Flow Battery Longer duration Energy Asset Demonstrator (VFB LEAD) project sees Invinity once again working alongside EDF following the successful deployment of a 2 MW / 5 MWh VFB as part of the Energy Superhub Oxford (ESO). The VFB LEAD project aims to develop and deploy one of the UK’s largest co-located solar + storage projects, featuring a 10 MW / 40 MWh VFB hybridised with a lithium-ion battery and connected to a utility-scale solar PV array.Invinity Energy Systems, alongside Pivot Power (part of EDF Renewables) and EDF R&D UK are amongst the 5 winners that progressed to Phase 1 (Project Development Stage) of the Longer Duration Energy Storage (LODES) Stream 1 Competition, intended to accelerate the commercialisation of long duration energy storage through large-scale demonstration projects. Three of the Phase 1 winners will proceed to Phase 2 (Construction Stage) funding. To find out more about the LODES competition winners, read the press release here.Phase 1 of the competition will run until the end of 2022, during which EDF and Invinity will develop the project to a “ready to build” phase.Down selection for the Phase 2 winners is expected by BEIS in Q2 2023 and, if successful, the project will progress to the construction phase. Once commissioned, the project is forecast to avoid up to 27,400 tonnes of CO2 per year.Cutting-Edge InnovationThe VFB LEAD project will showcase breakthrough innovations in the field of co-located energy storage.A True Co-located ApproachLarge scale solar PV parks and battery energy storage systems have so far been deployed on the UK grid as standalone assets. VFB LEAD will see both systems co-located on the same connection point to maximise grid utilisation factor, helping to reduce transmission network expansion costs and accelerate the UK’s progress towards a net zero power sector by 2035. Hybrid Energy Storage SystemBuilding on existing innovation at the Energy Superhub Oxford, VFB LEAD will follow a similar approach with a hybrid lithium-ion and vanadium flow battery system, albeit at a much larger scale and with a much more prominent VFB proportion of the system.…………https://invinity.com/vfb-lead-the-worlds-largest-solar-powered-flow-battery/#

Wed, Sep 14, 2022
Excess energy generated from renewables is often restricted due to grid constraints. For new renewable projects, one significant part of the site's feasibility is grid constraints. These restrictions can limit the size of a project, and also inhibit the chance of a renewable project to continue.

What is the solution? How does it work?

Learn about a CellCube deployment in co-location with solar, grid balancing, and the financial impact and funding challenges. Peter Oldacre’s presentation will focus on what a VRFB is, on how it works, and on its advantages & disadvantages vs Li-ion. register.gotowebinar.com/register/76164…

Longer Duration Energy Storage. It provides the ability to charge and discharge electricity for longer periods of time (4+ hours), allowing for a more commercially compelling business case that will support balancing renewables and the UK power grid, and also help us reduce our costs to meet our Net Zero target by 2050.

It works by storing low carbon energy generation for longer periods of time, absorbing excess (that would otherwise be curtailed) and exporting when needed. This reduces the amount of fossil fuels used to support the grid, and optimises the output from renewables.

Programme:
1. Introduction – Locogen: The project team and project objectives.

2. Longer Duration Energy Storage – Locogen: UK Gov funding challenge. Blackfinch: Reasons for interest in LODES from a portfolio manager perspective.

3. Vanadium Redox Flow Battery – CellCube: What is a VRFB, how does it work, advantages & disadvantages vs Li-ion.

4. Co-locating with Solar PV – Locogen: Technical feasibility.

5. Grid Balancing Services – GridBeyond: Market trends and revenue opportunity for this project.

6. Financial feasibility – Locogen: Results from the feasibility study.

Locogen (www.locogen.com) develops, delivers and operates renewable energy solutions across the UK. We provide expert strategic, technical and commercial services to our clients and, if appropriate, invest alongside our partners. We are focused on on-site solutions, local energy systems and utility scale renewables.

*Webinar supported by BEIS

22 August 2022
There needs to be a clear pipeline of bankable and investment-ready projects in three critical areas: energy transitions and related investments in sustainable infrastructure; investments in climate change adaptation and resilience; and restoration of natural capital (through agriculture, food and land use practices) and biodiversity. This is to deal with suggestions that African countries do not have a pipeline of bankable and investor-ready projects.………

https://www.un.org/africarenewal/magazine/august-2022/calling-just-well-financed-climate-action-africa

September 8, 2022
The iron ore price rose on Thursday after the Chinese city of Zhengzhou said it would start building stalled housing projects.

The most-traded January iron ore on China’s Dalian Commodity Exchange ended daytime trading 3.1% higher at 706 yuan ($101.54) a tonne, after hitting its strongest level since August 30 at 708.50 yuan.

Steel futures in Shanghai also advanced, despite concerns about intensifying covid-19 restrictions in the world’s biggest steel producer and iron ore consumer.

Zhengzhou city vowed to start building all stalled housing projects within 30 days, by making good use of special loans, asking developers to return misappropriated funds, and encouraging some real estate firms to file for bankruptcy, Reuters reported, citing three sources.

Homebuyers in at least 80 cities in China have threatened to halt making mortgage payments as liquidity problems or covid-19 restrictions hampered projects, adding to worries about an ailing property market.

“The market is cautiously looking forward to September and October demand,” Zhongzhou Futures analysts said in a note, referring to China’s peak construction season.

China’s imports of iron ore in August rose 5.5% from the prior month, customs data showed on Wednesday, even as operating rates at blast furnaces only slightly improved.

The country brought in 96.21 million tonnes of the steelmaking raw material last month, up from July’s 91.24 million tonnes, the General Administration of Customs said.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $100.62 a tonne Thursday morning, up 4.4%.

https://www.mining.com/iron-ore-price-back-above-100-as-chinese-city-vows-to-rescue-stalled-home-projects/

Jun 7, 2022
The use of vanadium in the battery energy storage sector is expected to experience disruptive growth this decade on the back of unprecedented vanadium redox flow battery (VRFB) deployments.

According to an independent analysis by market intelligence and advisory firm, Guidehouse Insights, global annual deployments of vanadium redox flow batteries (VRFBs) are expected to reach approximately 32.8 GWh per annum by 2031. This represents a compound annual growth rate (CAGR) of 41% over the forecasted period.

The VRFB deployment forecast by Guidehouse Insights would equate to between 127,500 and 173,800 tons of new vanadium demand per year by 2031, according to Vanitec calculations based off Guidehouse’s projection. That would be more than twice as much vanadium as is currently produced annually.

In a report on the metals required for clean energy commissioned by Eurometaux – Europe’s metals association – VRFBs were identified as one of the alternative energy storage technologies that may grow in importance and might reach penetration rates of 20% of the market.

These findings point towards significant vanadium demand increases equivalent to +110% of current demand, and echo Guidehouse Insights’ demand forecast. Vanitec, the not-for-profit international global member organisation whose objective it is to promote the use of vanadium-bearing materials, says that while vanadium is mainly used within the steel industry, vanadium is increasingly being recognised for its use in VRFBs. These long duration batteries can store large amounts of electrical energy produced by solar and wind power generators on a daily basis as a means to drive the deep decarbonization of electric power systems……………..

https://www.miningreview.com/battery-metals/vanadium-set-for-disruptive-growth-as-battery-energy-storage-gains-momentum/

Battery deployment in the U.S. faces non-technical barriers
Long Read……………

https://sciencepolicyreview.org/wp-content/uploads/securepdfs/2022/08/MITSPR-v3-191618003005.pdf

Aug 31, 2022
The international imperative to shift towards renewable energy along with, locally, South Africa’s energy security challenges, promises a growing demand for Vanadium Redox Flow Batteries (VRFBs) as a sustainable and long-term solution to the energy crisis faced by many, on a national and global scale.

VRFBs are a fundamental part of renewable energy as most renewable energy sources require battery energy storage systems to operate in the absence of their primary source of energy – particularly wind and sun. VRFBs have rechargeable properties which recharge without any loss of performance.

As Frank Spencer, Head of Deployment at Bushveld Minerals, told the recent Power and Electricity World conference at the Sandton Convention Centre: “Battery energy storage is a whole new ball game”.

RELATED:
Bushveld Energy achieves financial close on the Vametco hybrid mini-grid
Go-ahead for Bushveld Minerals’ Vametco acquisiton given

According to the World Bank, by 2025, the vanadium demand from energy storage alone will be nearly twice the current market for the mineral. Battery energy storage is indeed a whole new ball game, but it is also a lucrative one, with sustainable and long-term benefits.

Vanadium is a key component of VRFBs and 25% of the world’s vanadium reserves are found in South Africa. VFRBs are not only used for storing renewable energy sources, but they can also potentially support the existing grid. Frank Spencer says this is possible as VRFBs “allow for more renewable power plants to be built, by smoothing out the variability of the production from the sun and wind. VRFBs delay the need for transmission upgrades by balancing the supply and demand on the power lines, and they provide ancillary services that help keep the grid balanced.”

Bushveld Minerals is a local leading vanadium producer, and one of the world’s top three. The US and Australian governments have deemed vanadium to be a critical mineral.

Vanadium, and essentially VRFBs, provide extensive opportunities for South Africa to create jobs, reduce imports, increase exports, and will yield economic and environmental benefits.

As a leading vanadium producer, Bushveld Minerals is a key component is developing the local value chain in the production of VRFBs and working towards assisting the overall stability of the national grid. VFRBs and battery electricity energy storage systems are the future – and through investment, pilot projects and success stories, the future is becoming the present…………..

https://www.miningreview.com/battery-metals/battery-energy-storage-is-a-whole-new-ball-game/

August 31, 2022
Advanced battery energy storage solutions can improve the efficiency of renewable energy, and the need is increasing exponentially. In 2021, about 20 percent of electricity generation came from renewable energy sources. According to the International Energy Agency, that number needs to increase to two-thirds by 2030 in order to achieve net-zero goals. To truly unlock the potential of renewables, we need larger energy storage systems, and it will take a wide variety of battery chemistries to meet that demand.

The three battery technologies being widely utilized are lead, lithium and vanadium redox flow. There are a number of factors to consider when selecting the most appropriate battery chemistry to meet your energy storage needs.

Commercial Maturity

Like other technologies, batteries have evolved in design and manufacturing. Because of the ambitious goals to transition to clean energy, there needs to be a combined effort from the public and private sectors to accelerate innovation from research and development into the prototype and early adoption stages.

Invented in 1859, lead is the most commercially mature of the three battery technologies and has been the primary energy storage solution for many years. Regardless of its longevity, there are still areas where additional research could uncover even more potential capacity. Lead is also relatively inexpensive compared to other battery chemistries.

Lithium is another commercially mature technology in the scale necessary at this time. It was originally used for consumer products in the early 1990s. With its high energy density, lithium is currently the dominant battery technology for energy storage. Lithium comes in a wide variety of chemistry combinations, which can be somewhat daunting to choose from, with Nickel Manganese Cobalt (NMC) and Lithium Iron Phosphate (LFP) having the highest levels of maturity.

While vanadium redox flow battery technology has been around for over 50 years, it is the least commercially mature of the three chemistries. The concept of vanadium flow batteries was developed by NASA to power satellites. This chemistry has the potential to become a leading solution for long-duration energy storage.

Sustainability ……………..
https://cleantechnica.com/2022/08/31/comparing-battery-chemistries-for-energy-storage-solutions/