Aim-listed integrated vanadium producer Bushveld Minerals’ energy subsidiary, Bushveld Energy, is underway with its first energy storage project that will see the company commission a utility- scale vanadium redox flow battery (VRFB) in June. The VRFB, which is the first utility-scale VRFB to be commissioned in South Africa, is being installed and tested at state-owned power utility Eskom, writes CHANTELLE KOTZE.
Headed by CEO and cofounder Mikhail Nikomarov, Bushveld Energy was established in 2016 to specifically explore opportunities for the use of vanadium in the energy market.
While much of the hype around energy storage has been around lithium-ion batteries, which are able to power almost everything – from personal electronic devices to electric vehicles – there is a need for bigger batteries that are able to store much more power.
The VRFB is emerging as a solution to the challenge faced by the renewable energy generation sector for storing energy – as the energy is not always generated at the same time as peak demand occurs. This means that VRFBs can be used to store energy for use at peak load times on conventional energy grids or when the renewable energy system is not producing energy; for example, when the sun is not shining or the wind is not blowing in the case of solar and wind power, respectively.
There are also many other suitable application for VRFBs within the transmission and distribution network, and mini and smart grids, as well as behind-the-meter applications.
Global energy market fundamentals
The vanadium market is in a deficit. While vanadium demand has remained strong and is continuing to increase, primarily driven by the energy storage market but equally so by the steel sector. The new high strength rebar standard that was passed in February 2018 is predicted by some analysts to add as much as 30% to global vanadium demand. Illustrating the significant increase in
vanadium demand from the energy sector alone, Nikomarov notes that just three years ago, energy storage applications accounted for less than 1% of vanadium consumption. In 2017, this number
had grown to approximately 5% and is estimated will be as much as 20% of global vanadium demand by 2030. Both Nikomarov and Bushveld Minerals founder and CEO Fortune Mojapelo expect this percentage will be reached sooner, judging by the uptake of VRFB systems globally.
