Australian Vanadium (AVL) has signed an offtake and development deal with a Chinese vanadium redox flow battery (VRFB) manufacturer
The agreement with Gui Zhou Collect Energy Century Science and Technology will also cover the supply of electrolytes and exclusive sales in the Australian market
The first VRFB system will arrive in late October for testing and feedback ahead of planned product rollout in 2021
The VRFBs for homes and small businesses will allow users to store renewable energy and even sell some back into the grid
Australian Vanadium is trading 14.29 per cent higher at 1.6 cents
Australian Vanadium (AVL) has signed an offtake and development deal with a Chinese vanadium redox flow battery (VRFB) manufacturer.
The deal
The memorandum of understanding (MOU) with Gui Zhou Collect Energy Century Science and Technology (CEC) provides a framework for AVL to provide vanadium pentoxide for use in CEC VRFBs in Australia and overseas, while also assisting in product development for the Australian market.
Aside from offtake and product development agreements, the MOU also covers AVL’s electrolyte production in Australia for use in CEC VRFBs.
AVL’s subsidiary, VSUN Energy, will also potentially be granted a 12-month exclusivity period over sales of CEC VRFBs in Australia, with an option to renew the terms after the initial period.
Next steps
The first VRFB from CEC will arrive in Western Australia for installation in October.
The 5kW/30kWh system is a first for Australia, as the battery comes with an inverter approved by the Clean Energy Council for grid connection.
This means excess energy generated from renewable sources can be stored and sold back to the grid.
The first CEC VRFB will be installed at a Perth property for testing and feedback on the system’s development.
The companies are aiming to deliver a market-ready residential and small business VRFB in 2021.
The Western Australian Government’s recent announcement of a new residential programme for solar buyback is timely and almost tailor-made for the AVL-CEC MOU.
WA residents will be able to sign up to the Distributed Energy Buyback Scheme (DEBS) programme, which allows households to export to the grid at the higher rate of 10c per kWh during the late afternoon and evening.
A home VRFB is an ideal system to capitalise on such a scheme.
AVL Managing Director Vincent Algar says the time is right to capitalise on VRFB tech.
“VSUN Energy has seen a significant number of inbound enquiries for a grid-connected, long duration residential VRFB to fill a space that is currently met by short life, short duration, less flexible and less safe energy storage solutions,” Vincent said.
“Using solar energy at a time that suits the householder is the ideal application for VRFB energy storage. We look forward to developing this first residential VRFB in Australia with CEC and leveraging the future battery industry growth in Western Australia,” he said.
“Our goal to vertically integrate from mining vanadium, all the way through the value chain to onshore production of electrolyte and battery manufacturing in Australia, will allow AVL to benefit both commercially and ethically in helping the transition to a low carbon future and driving jobs growth in both the renewables and mining sectors,” he added.
Product testing and optimisation will begin in late October.
Australian Vanadium is trading 14.29 per cent higher at 1.6 cents at 2:38 pm AEST
www.ferroalloynet.com
