Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Yeah, they need to show the quality of the product before someone will commit to buying it.
From the interim results;
"BELCO is currently undergoing a qualification process for its electrolyte with VRFB companies in preparation for electrolyte sales next year."
This was Frank Spencer (ooh Betty, thats for all you oldies out there) back in February. Maybe I have got the wrong end of the stick but I really thought we were driving to having the whole value chain in the vertical integration.
https://www.engineeringnews.co.za/article/bushveld-energy-pushing-for-localisation-of-vrfb-technology-2022-02-25
Lindon, I'd be pretty disappointed if they lose control of BE, maybe to Garnet who I think will be a thorn in our side, allow them any possibility of gaining control of VRFB-H and ultimately Enerox.
BMN has invested a lot of time, energy and more importantly money into Bushveld Energy to get it to the point it is, to then discard that for a substantial share of BE which could then potentially be diluted wouldn't be palatable at all. I contacted BMN yesterday making my opinion on this known. If I get a response I'll be amazed but you never know.
calamari, you also have to consider though that the size of the market going forward even if vrfb may only capture 10% that would still be a large amount of money.
There is also the fact that the ever increasing demand on lithium for batteries for everything from phones, to cars to grid scale batteries will put huge pressures on the price of lithium and also how much can physically be supplied within a cost efficient way.
Replies to questions after the presentation.
Mojapelo, during a question-and-answer session after a presentation of the group’s results noted that Bushveld was looking to reduce the effects of load-shedding on its operations.
He explained that, unlike Vanchem, which receives its power from the municipality and is therefore affected by load-shedding schedules, Vametco receives its power directly from Eskom, and as a large industrial user, has its consumption curtailed, rather than shut off.
Bushveld is hoping to implement a similar arrangement for Vanchem.
However, he also noted that the group was evaluating self-generation initiatives, as it intends to take advantage of recent regulatory changes in the electricity sector.
When responding to a question regarding the lack of VRFB systems awarded by power utility Eskom, he noted that only 343 MW of the 500 MW battery energy storage solutions initiative had been awarded.
“I think, in reality, a lot of stationary storage systems procured to date are still predominantly focused on the upfront capex. We are seeing the landscape evolving, but I think it's fair to say that we still see most procurement processes favouring technologies of the likes of lithium-ion.”
However, he reiterated that Bushveld was “comfortable” that VRFBs were competitive in terms of long-duration storage, and long lifecycle systems, adding that the requirements and the demand for long-duration energy storage were growing.
I haven’t got access to my notes but I think this is right, as long as they retain a 51% share of BE they’ll keep control of their majority share of 50.5% of VRFB-H with Mustang owning the other 49.5%
BMN have 84% of Bushveld Energy and Mikhail has the other 16% so they can both give some of their share or issue other shares such that they keep that ownership above 50%
https://www.rigzone.com/news/new_record_for_q2_global_wind_turbine_orders-13-sep-2022-170334-article/
Strong activity in China pushed global wind turbine order intake to 43 GW in quarter two of 2022, a new record, up 36 percent from year-ago levels.
According to a new analysis from Wood Mackenzie, the total global order intake in the quarter equates to an estimated $18.1 billion.
With ambitious decarbonization targets, China aims to support an estimated average build of more than 55 GW per year over the next 10 years. In the second quarter alone, China accounted for a record 35 GW of activity and is at 45 GW year-to-date.
Europe showed growth in order intake with 3.8 GW, doubling its first-quarter activity. Order intake activity in the U.S. remained slow, with less than 2 GW through the first half of the year.
The global order intake for offshore wind exceeded 6 GW in the second quarter of this year. This is only the third time offshore orders have exceeded that number. Developers in the Chinese market galvanized the largest ever first-half firm orderbook for the offshore wind sector, comprising 74 percent of global offshore order capacity. Offshore order intake in China has now increased consecutively for three quarters, following a nearly year-long lull.
“Goldwind, Mingyang, and Envision were all very active in the second quarter with projects in China, accounting for more than 26 MW of activity between them. Seven Chinese turbine OEMs – with Envision, Mingyang, and Goldwind in the first three positions – recorded enough firm order capacity to rank in the global top 10 for order intake through the first half of 2022. Rapid technology adoption and government support have catapulted China to this leading position,” said Luke Lewandowski, Wood Mackenzie Research Director.
Buoyed by China, global activity is on a record pace through the first two quarters of 2022, with 61 GW ordered. This is 13 percent higher than the first half of 2021 and is the highest half-year ever recorded.
“China is surging, and we are seeing strength in Europe too. The U.S. is where demand has been sluggish. This is due to tough market conditions, such as labor cost increases, inflation, and supply chain disruptions. As a result, securing new orders in the US has been difficult, which has had a negative impact on OEMs dependent on the market, primarily Western-based OEMs.”
“However, with the passage of the IRA bill in the U.S., Wood Mackenzie anticipates a boost in activity over the second half of the year. With these new incentives, wind power projects have become more economically viable and thus more competitive compared to conventional technologies. If procurement of wind turbines in China continues at its current pace and intake activity picks up in the U.S., the wind turbine market could be set for a record year,” Lewandowski added.
https://www.proactiveinvestors.co.uk/companies/news/992504/bushveld-minerals-posts-operating-profit-as-vanadium-price-recovers-992504.html
Operating profits in the half year to June 2022 rebounded to US$6.1mln
Bushveld Minerals returned to profitability in the first half of 2022 helped by higher vanadium prices and a steady rise in production.
Revenues jumped to US$76mln from US$47mln as the average ferrovanadium price rose by 35% and production edged up 4%.
The weakness of the South African rand against the US dollar also provided a tailwind on costs, said the miner.
Operating profits in the half year to June 2022 rebounded to US$6.1mln from a loss of US$19.7mln a year ago, while a cash inflow of US$7.1mln represented a US$27mln positive swing. Pre-tax losses were cut to US$1.2mln from US$22.3mln.
Fortune Mojapelo, chief executive, said the positive momentum should continue in the second half of the year though production guidance has been lowered due to kiln commissioning at its Vanchem arm
Group 2022 production is now forecast to be between 3,900 mtV and 4,100 mtV, though Mojapelo still expects the group to hit an annual run rate of 5,000 - 5,400mtV by the year-end.
Construction of the electrolyte manufacturing facility (BELCO) is also now 80% complete, he added, with production expected in the first half of 2023.
A bit on the potential scale of the Electrolyte plant.
The Bushveld Electrolyte Company (BELCO) is located in East London, South Africa, with targeted initial capacity of 8 million litres of vanadium electrolyte (using up to 1,100 tons of pentoxide equivalent) and capability to scale up to 32 million litres at the same location, the electrolyte plant is the largest publicly announced plant outside of China.