Within the annual budget address in January of New York Gov. Andrew M. Cuomo, was a radical proposal to completely overhaul how his state handles its renewable energysiting. Cuomo’s government’s actions ambitious projections for the global renewable energy market’s growth, pegged to surpass $1.5 billion by 2025. Earlier in the month, and in timed well with Cuomo’s shifts, plans for a new high capacity, low-risk battery factory were announced in New York to build vanadium redox flow batteries (VRFBs)—a market projected to grow at a CAGR of 13.5% to be worth nearly $310 million by 2026.
Helping to foster this shift to VRFBs in major centers are several innovators in the space, including Margaret Lake Diamonds (TSX.V:DIA) (OTC:DDIAF), The ChemoursCompany (NYSE:CC), United Technologies Corporation (NYSE:UTX), National Grid Plc (NYSE:NGG), and Largo Resources (TSE:LGO) (OTC:LGORF).
BATTERIES BUILT IN, AND FOR THE USA
Earlier in January, an announcement was delivered by former NY Gov. George Pataki involving a Joint Venture between South Korean proprietary vanadium redox battery technology developer KORID Energy, and Canadian technology and strategic metals company, Margaret Lake Diamonds (TSX.V:DIA) (OTC:DDIAF), to construct a factory (known as the “Factory”) to produce VRFBs and energy storage systems.
The planned Phase I annual output capacity of the Factory is for 50MW output and 200MWh of storage. KORID’s proprietary VRFB has been developed and tested over the past 10 years and is patent protected. From a policy-maker standpoint, the batteries are also appealing due ot their non-flammable, non-explosive nature, and their complete lack of degradation due to cycling, partial charging, or time with a 100% depth of discharge. These batteries are projected for a 20-year lifetime.
KORID’s vanadium redox flow battery design allows for expandable storage based on the capacity of the electrolyte tanks, versus the fixed capacity of other technologies such as lithium-ion.
With markets such as California still reeling from the wildfire catastrophe partially attributed to now-bankrupt utilities giant PG&E, calls for increased use of battery storage for backup use are being made, as well as for more developing technologies such as microgrids that enable the power supply to be managed on a more localized basis.
Key characteristics of the Vanadium Redox Flow Battery make it a leading technology in energy storage. Among them, when compared to other technologies, is the VRFB technology’s complete lack of “thermal runaway” risk—the risk that causes a fire in a battery, inherent in solid-state batteries.
PROMOTING VRFB TECHNOLOGY ACROSS THE COUNTRY
Invented by Professor Maria Skyllas-Kazacos in the 1980’s, the Vanadium Redox Flow Battery is an energy storage flow battery suitable for large-scale energy storage, including but not limited to utility, commercial, industrial and residential applications.
Outside of New York, other states have also seen the use of VRFBs. Private company UniEnergy Technologies based out of Washington State has worked to grow its highly scalable ReFlexsystem, announcing a partnership in April 2019 with chemical supplier The Chemours Company (NYSE:CC) to promote the technology. Along with reportedly making an investment in UET, Chemours will supply the ion exchange membranes used for the recyclable electrolyte in UET’s flow battery.
Massachusetts-based Vionx Energy is another privately-held company emerging in the vanadium redox flow battery market, utilizing technology originally developed by United Technologies Corporation (NYSE:UTX)—a company that also became a significant shareholder in Vionx.
Vionx went on to find early success through a partnership with National Grid Plc (NYSE:NGG) to install and commission a 3MWhr storage system at a high school in Worcester, Massachusetts. The school uses the system to store energy provided by a utility-scale wind turbine on campus, as well as other intermittent sources in the community.
Much like the KORID and Margaret Lake Diamonds (TSX.V:DIA) (OTC:DDIAF) system planned for manufacturing from the Factory, the Vionx system is also expected to last twenty years after installation.
There are currently over 100 VRFB installations in place around the globe, with an estimated capacity of over 209,800 kWh of energy. Use of vanadium in energy storage applications continues to grow rapidly, having doubled to 2.1% of the global vanadium consumption in 2018.
However, excitement over the Vanadium Redox Flow Battery has come with some outside skepticism, including misconceptions involving its cost.
The price of vanadium electrolyte is highly dependent on vanadium market prices, and supply coming from some of the larger vanadium providers, such as Largo Resources (TSE:LGO)(OTC:LGORF).
Earlier this year, Largo launched two newly developed brands of its vanadium products—VPURE and VPURE+.
Particularly relevant is the VPURE+ Powder line which is ideal to produce chemicals, catalysts and vanadium electrolyte used in VRFBs.
However, in the VRFB system, the electrolyte can be re-used ad infinitum, as vanadium in the electrolyte is recovered and re-used later for other applications including as a strengthening alloy for steel.
Because it’s reusable in this capacity, many market participants are exploring re-use and recovery options involving leasing the electrolyte to help manage cost considerations.
DISCLAIMER: While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment. Furthermore, it is certainly possible for errors or omissions to take place regarding the profiled company, in communications, writing and/or editing. Nothing in this publication should be considered as personalized financial advice. We are not licensed under any securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand eight hundred dollars from Margaret Lake Diamonds for distribution of this article. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing Baystreet.ca, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.
