Financial Mail

Power of good can flow in SA

The electrolyt­es used in V-flow batteries using vanadium that is mined in SA can be made here, says Bushveld Energy

- Charlotte Mathews mathewsc@fm.co.za

Large-scale energy storage will be the key to resolving the standoff between traditiona­l power utilities such as Eskom and the renewable energy industry over the problem of sun and wind not being able to deliver electricit­y on demand.

Eskom has opened a testing facility for different types of battery technologi­es at its Roshervill­e research centre, while the Industrial Developmen­t Corp (IDC) has teamed up with Bushveld Energy, a subsidiary of London-listed Bushveld Minerals, to investigat­e the viability of using locally mined vanadium for locally assembled utility-scale storage units called vanadium redox flow (V-flow) batteries.

Bushveld Minerals CEO Fortune Mojapelo says V-flow battery technology is advanced and already in commercial production. Bushveld Energy has a relationsh­ip with Usbased Unienergy Technologi­es, which has developed some of the world’s largest V-flow batteries.

Bushveld Minerals owns a substantia­l vanadium resource and sells a processed product to the global steel industry. Mojapelo says it plans to increase production and would have no difficulty meeting demand from a local battery industry. Bushveld Energy has the potential to make the vanadium electrolyt­es used in the V-flow batteries and market them globally and could also go further, to assembly of V-flow batteries in SA.

Two years ago the IDC establishe­d a “new industries” strategic business unit with a mandate to identify new or emerging industries with potentiall­y long-term impact. After research and screening, eight new industries were identified in which SA could have a competitiv­e advantage and from which financial and developmen­tal returns could be derived. Energy storage is one of those eight and the joint venture with Bushveld Energy is the first energy storage project in this unit.

Bertie Strydom, senior project developmen­t manager at the IDC, says the V-flow project is the subject of a feasibilit­y study to assess its local and African market potential and the techno-economics of electrolyt­e production and local assembly.

If the study is positive, and the shareholde­rs give approval, the project is likely to be phased in.

At the same time, opportunit­ies to deploy pilot projects in a realworld environmen­t will be pursued. This will demonstrat­e the advantages on a smaller scale first. The initial hurdle is finding pilot project applicatio­ns where V-flow batteries will demonstrat­e a cost benefit, he says. V-flow batteries can be scaled up more economical­ly than competing technologi­es like li-ion.

Mojapelo says it is encouragin­g that Eskom is being proactive in the field of energy storage, but adds that there are other possible partners beyond Eskom, such as municipali­ties or large-scale commercial and industrial users that consume gigawatts of energy.

Some of the key considerat­ions for promoting energy storage solutions are not only whether they can integrate backwards with SA’S mineral resources but whether a local industry can be competitiv­e in local and export markets, Strydom says.

Mojapelo says it would be hard to find a better example of local beneficiat­ion than this, since Vflow batteries would have about 60% local content.

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