Bushveld Minerals Limited (LON:BMN) said it has been experiencing increased requests for electrolyte supply and vanadium redox flow battery (VFRB) technology for energy storage projects.
The vanadium producer gave an update on the first quarter operations of its 84% owned energy subsidiary Bushveld Energy in which Bushveld chief executive officer Fortune Mojapelo expressed delight at the significant progress made on its two main projects: the electrolyte production facility and the VFRB project for Eskom.
READ: Bushveld Energy on track to become one of the largest electrical energy storage providers in Africa
The first quarter of 2018 saw Bushveld engage an international chemicals company to work on the electrolyte production facility.
As for the Eskom VFRB project, the company completed the manufacturing of the direct current portion of the VFRB, and delivery of the entire system is still on track for the current quarter.
Bushveld observed that the growth of VRFB deployments continues to grow globally, led by China. Market intelligence points to two more VRFBs, capable of producing around 400 megawatt-hours (Mwh) that will be procured in China in addition to the 800MWh system by Rongke Power and roughly 400MWh system by Pu Neng, which have already been announced.
In South Africa, demand continues to rise, evidenced both by greater enquiries for the provision of single-acid vanadium electrolyte or direct projects that require energy storage for at least four hours per day, Bushveld asserted.
This demand has allowed Bushveld Energy to continue growing its regional project pipeline; however, conversion of potential projects is currently low due to regulatory uncertainty over the treatment of energy storage, the lack of progress of South Africa's renewable energy programme and opaque official guidance on the direction of the country's energy policy as published in the Department of Energy's Integrated Resource Plan.
The good news is that the new government in South Africa seems to have renewed investor confidence and has, in Bushveld's view, increased hopes of increased regulatory clarity.
“We are encouraged by the establishment of the South Africa Energy Storage Association (SAESA), of which Bushveld Energy CEO, Mikhail Nikomarov, has been elected to serve as the association's first chairman," Mojapelo observed.
“The prevailing price environment, coupled with ownership of a low-cost vanadium production base, creates a uniquely attractive opportunity for Bushveld. In this context, our vertical integration strategy, and development of innovative business models for electrolyte delivery into VRFBs, strongly positions us to support adoption of VRFBs in the energy storage market while creating significant value for our shareholders,” Mojapelo said.