10:06 Mon 10 Jun 2019
Bushveld Minerals Ld - Deployment of Vanadium Electrolyte Rental Product
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Bushveld Energy and Avalon Battery Innovate with Vanadium Electrolyte Rental
Bushveld Energy and Avalon Battery worked together to structure and design this specific rental product. This included creating a financial model for the product and a set of legal agreements for the transaction. The complexity stemmed from developing financial and non-financial terms acceptable to three different parties - a vanadium producer, a battery company and an electricity customer. The structures and documentation created from this project are available to both Bushveld Energy and Avalon Battery to use in future projects, making it easier and faster to execute vanadium electrolyte rentals in the future.
Avalon's customer,
Batteries that use vanadium electrolyte to store energy have a major advantage over competing battery technologies as vanadium does not degrade, therefore, the performance of electrolyte batteries does not deteriorate with age. Renting the electrolyte reduces capital costs, and essential consistent performance reduces overall costs, making VRFBs the most dependable, safe, and economical battery for energy storage systems.
The rental structure makes commercial sense for both battery manufacturers and vanadium producers and the residual value of the vanadium is essential to making this structure economically efficient. The majority of the challenges in implementing the product commercially were not financial but legal, including title ownership and risk allocation. Considering the uniqueness of the product, it was also critical to draft a legal agreement that current and future customers would be amenable to.
Mikhail Nikomarov, CEO of Bushveld Energy commented: "Renting electrolyte is only practical with vanadium because the metal does not degrade after its useful life, one more reason that vanadium is the preferred mineral for energy storage systems. We are pleased to partner with Avalon Battery for commercial deployment of a concept that has been in development for a while, but not successfully implemented. Now vanadium takes its place alongside gold, silver, and platinum, as a metal that can be leased, opening up immense future opportunities for this model."
Enquiries: info@bushveldminerals.com
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+27 (0) 11 268 6555 |
Fortune Mojapelo, Chief Executive Officer |
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Nominated Adviser & Broker |
+44 (0) 20 3470 0470 |
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Alternative Resource Capital |
Joint Broker |
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+44 (0) 207 186 9001 |
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+44 (0) 207 186 9004 |
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Joint Broker |
+44 (0) 20 7236 1010 |
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Financial PR |
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+44 (0) 207 920 3150 |
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Brunswick |
Financial PR ( |
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Miyelani Shikwambana |
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ABOUT
The Company's flagship vanadium platform includes a 74 per cent controlling interest in
Bushveld's vision is to become a significant, low cost, integrated primary vanadium producer through owning high grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage project developer and component manufacturer. Whilst the demand for vanadium remains largely anchored in the steel industry,
While the Company's focus is on vanadium operations and the development and promotion of VRFBs, it has additional investments in coal, power and tin.
The Company's approach to project development recognises that, whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. This philosophy is core to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com.
About
Launched in 2016, Bushveld Energy is focused on developing and promoting the role of vanadium in the growing global energy storage market through application in vanadium redox flow batteries. Its near term strategy is to deploy several VRFB systems as part of its longer term vision to become a significant electricity storage provider in
About Avalon Battery
Avalon Battery was founded on the principle that productized vanadium-based flow batteries will revolutionize energy projects and play a critical role in a renewable energy future. Avalon, with operations in
The foundations of Avalon's product excellence are its technology and engineering team. Since 2005, its team has designed, built and deployed more flow batteries than anyone in the world; the team now counts over 140 years' experience in flow battery development, has deployed over 15MWh of vanadium flow batteries since 2005, and invented over 50 related independent patents.
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