Australian Vanadium reveals Project Lumina battery storage plans

Australian Vanadium subsidiary VSUN Energy has completed Phase 1 of Project Lumina designed to assess the viability of constructing a vanadium flow battery energy storage system in Australia.

Phase 1 was an internal analysis which has undergone an independent external review to assess whether a VFB battery electric storage (BESS) solution is likely to be competitive in the energy storage market.

According to Australian Vanadium, this indicated the merits of a modular, scalable, turnkey, utility-scale 100MW VFB BESS solution capable of delivering levelised cost of storage (LCOS) of $274/MWh for a 4-hour VFB BESS, and LCOS of $251/MWh for an 8-hour VFB BESS.

“Such an LCOS for a VFB BESS would be competitive with the LCOS of similar lithium-ion BESS products currently in the market.”

AVL’s Chief Executive Officer Graham Arvidson said the results were significant steps taken to develop the downstream value of the company’s business.

Battery production provided an opportunity for offtake of the company’s planned production of vanadium oxides from the Australian Vanadium Project and Australian manufactured vanadium electrolyte, as part of the company’s ‘pit to battery’ strategy.

Arvidson said: “The need for long duration energy storage in Australia is rapidly growing and the work the team is undertaking with Project Lumina is a key enabler to create a platform for us to deliver competitive long duration battery energy storage solutions.

“The scale of the projects VSUN Energy is pursuing aims to provide AVL with the ability to utilise our own manufactured vanadium electrolyte, ultimately unlocking the development pathway and full value of the Australian Vanadium Project.”

Australian Vanadium is already producing battery electrolyte at a Perth facility, and has constructed a VFB utilising the electrolyte.

The project has been backed by a $49 million from the federal government’s Modern Manufacturing Initiative Collaboration Stream to fund development of the company’s vanadium, iron and titanium resource at Gabanintha south of Meekatharra.

Project Lumina has given the company confidence to proceed with Phase 2 detailed design of a VFB BESS solution which will include:

• Development of a construction-ready, detailed design and delivery strategy for modular, commercial, turnkey, utility-scale 100MW VFB BESS on a 4-hour (100MW/400MWh) and 8-hour (100MW/800MWh) duration
• Delivery of a definitive basis for estimates of LCOS, capital cost, operating cost and revenue opportunities
• Exploration of the option of a ‘deconstructed’ VFB BESS to drive optimised economic returns and to potentially extend operational life to 40 years and beyond
• Advancement of conversations with potential energy offtake partners for the deployment of nergy storage solutions
• And progression of discussions on land access for the future deployment of energy storage
  solutions.

Australian Vanadium is considering a range of funding options for Project Lumina at either parent company or asset level within the group, which is expected to include debt supported by strategic equity or cornerstone equity funding, including from Australian government agencies.

Further reading:
Australian Vanadium electrolyte used in first battery
Australian Vanadium backed to produce critical battery materials

Picture: Australian Vanadium/pilot plant operation