Australian Vanadium Ltd (ASX:AVL, OTCQB:ATVVF)’s subsidiary VSUN Energy Pty Ltd has signed an agreement with Western Australia’s regional energy provider, Horizon Power, for the purchase, installation and commissioning of its first vanadium flow battery (VFB) in Kununurra, Western Australia.
The 220kWh battery, which can deliver up to 78kW of power, will be sourced from leading global VFB manufacturer Invinity Energy Systems PLC (AIM:IES, OTCQX:IESVF).
The use of long duration energy storage, in the form of VFBs, could assist Horizon Power to accelerate the decarbonisation of its energy network, which covers 2.3 million square kilometres.
The VFB will be used for Horizon Power’s long duration energy storage pilot, which aims to increase understanding of how this technology can provide long periods of 100% renewable energy supply in regional and remote energy systems across Western Australia.
Site planning and development work will now kick off, with the Invinity Energy Systems’ VFB to be delivered and installed early next year.
Game changer
AVL CEO Graham Arvidson said: “This is the first contracted VFB project for an Australian energy utility. VSUN Energy has been actively pursuing opportunities for VFB deployments and is seeing an increased interest from all energy sectors for this effective energy storage technology which uses vanadium at its core.
“Horizon Power has chosen to be one of the early movers in Australia in support of a technology game changer for the many microgrids in the country.
“Horizon Power’s support of the VFB technology will also assist AVL and VSUN Energy’s planned vertical integration “pit to battery” strategy.
“Future VFB projects in Australia will not only be deployed locally, but have significant local content, including AVL’s vanadium electrolyte from its plant which is currently under construction in Wangara, Western Australia.”
Long duration storage
Horizon Power’s CEO Stephanie Unwin said that the pilot would support the organisation’s focus on solving the important technical problem of long duration storage and performance in harsh conditions, providing a pathway to reaching its decarbonisation goals.
“Long duration energy storage provides backup power during times of peak demand or when the power supply is interrupted, storing high volumes of excess energy when demand is low and the ability to shift energy storage into the night," she said.
“It can also minimise the need for costly fossil fuel generation and grid infrastructure upgrades.
“The VFB is specifically designed to deliver large amounts of energy over a long period of time and is temperature resilient – which is critical for our unique regional and remote networks.
“This is an exciting trial which will allow us to increase our understanding of the technology in a regional energy system and its ability to provide long periods of 100% renewable energy.”