Australian Vanadium Ltd (ASX:AVL) has installed its first CellCube, a vanadium redox flow battery storage system at a native tree nursery in Busselton, Western Australia.
AVL made this first battery sale through its distribution agreement with world-leading flow battery manufacturer GILDEMEISTER Energy Storage GmbH.
The total project value of the CellCube storage system and solar system is A$164,000 excluding shipping costs.
AVL will look to use this first successful installation to drive additional sales.
Vincent Algar, managing director, commented: “It is expected this farm installation will be the first of many on Australian farms, as vanadium flow batteries can store large amounts of solar and wind power, and they are a perfect option for many off-grid Farming operations, particularly in the more remote parts of Western Australia.”
Background
AVL is advancing the development of its 100%-owned Gabanintha Vanadium project measuring 91.4 million tonnes at 0.82% vanadium.
AVL also aims to develop a local production capacity for high-purity vanadium electrolyte, which forms a key component of vanadium redox flow batteries (VRB).
The company recently purchased a vanadium electrolyte pilot plant from C-Tech Innovation Ltd.
This purchase will enable AVL to develop unique vanadium electrolyte production expertise and capability in Australia, through both stand-alone and planned mine-attached facilities.
AVL is actively marketing vanadium redox flow batteries in Australia through a distribution agreement with world-leading flow battery manufacturer, GILDEMEISTER.
Analysis
The successful installation of Western Australia’s first vanadium redox flow battery system confirms the opportunity that the distribution agreement with GILDEMEISTER presents to AVL.
The company now possesses valuable technical experience having overseen the sale, build, shipping and installation of the system.
The company’s ongoing sales and marketing strategy will now be able to showcase the completed installation to support additional sales.
The GILDEMEISTER storage systems have large cost-saving energy ramifications for a range of industries, including mining and resources.
Further battery sales represent strong earnings potential for AVL and the installation of the first sale and Western Australia’s first vanadium flow battery will act as a foundation for future sales.
The stock is up 150% year to date, currently trading at $0.02.
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