Fortune Mojapelo, CEO of Bushveld Minerals, commented: Bushveld Energy is pleased to be cooperating on both studies with the IDC, a state funding institution that committed ZAR 14 billion in support of renewable energy projects in the past five years. It has also prioritised energy storage as one of the eight most attractive new industries in terms of financial and developmental returns. The IDC also has important stakeholder linkages with the South African government, regulators and utilities and other key players that are necessary to provide a catalytic stimulus for the energy storage industry as they have for the renewable industry to date. We look forward to continuing to work with the IDC to develop the energy storage industry in South Africa.”
Bushveld Minerals Limited (AIM: BMN) Updates in respect of the other operational divisions of the Company will be presented in coming weeks.
Highlights
· Continued progress in respect of the cooperation agreement with the Industrial Development Corporation (“IDC”):
– Tenders for studies have closed, with the market study and the techno-economic study awards being concluded;
– Ongoing identification of potential sites for VRFB installations in South Africa in order to demonstrate the technology and its commercial application.
· Progressing market opportunities of VRFBs outside of South Africa through an MoU recently signed with UniEnergy Technologies, a United States of America based manufacturer of turn-key, large and medium-scale VRFBs for utility, micro-grid, commercial and industrial, and other applications.
Studies Underway
As part of the cooperation agreement signed between Bushveld Energy and the IDC, the parties committed to undertaking two important studies in respect of VRFBs – a study for the market potential of VRFBs and a techno-economic study of Vanadium Electrolyte Manufacturing in South Africa. Both studies have already started, with initial results expected before the end of the year.
Study A) Market study for Vanadium Flow Batteries
While there are an increasing number of studies in the energy storage market, coverage of Africa as a region is limited (and usually grouped with other regions such as the Middle East). At the same time, Africa has an energy demand environment especially conducive to energy storage, which includes a significant need for off-grid solutions, a very high cost of electricity when generated by diesel fuel and some of the best solar radiation levels in the world. With this study, BE will go a step further in its identified markets and develop granular, attainable market opportunities specifically for VRFB.
Both Bushveld and the IDC are pleased to have awarded the tender to a combined team of experts from LHA Management Consultants (“LHA”) and the Fraunhofer Institute for Chemical Technology (“Fraunhofer ICT”). LHA is a South African management consulting firm with over 40 years’ experience and 2,000 projects in business consulting, research and analysis across the African continent. Germany-based Fraunhofer ICT carries out applied research for government and commercial enterprises. It has over 200,000 m2 of research space, which includes a purpose-built 20MWh VRFB for research into materials, battery design, prototyping, performance and safety tests, as well as the simulation of smart and micro grids.
Study B) Techno-economic study of Vanadium Electrolyte Manufacturing in South Africa
The study will identify the vanadium electrolyte production processes that best suit vanadium feedstocks available in South Africa. It will identify the costs of electrolyte production specifically in South Africa, considering the various electrolyte chemistries and other production elements including, location, employment and environmental and other risks. BE recognises the significant additional costs in converting vanadium oxides (vanadium pentoxide/vanadium trioxide) into vanadium electrolyte and is hopeful that, in addition to having access to low cost vanadium input, it can also access and utilise low cost electrolyte manufacturing processes. Given that vanadium electrolyte makes up as much as 30-40% of the cost of a VRFB, the opportunity to better manage the volatility and price of this key input is important. Furthermore, it may be able to provide South Africa with a competitive advantage as a supply centre of VRFBs.
Likewise, both Bushveld and the IDC are pleased to have awarded the tender to a combined team of experts led by Venmyn Deloitte and including Live Blue Marble Technology, LogiProc and BizBuild. Venmyn Deloitte is a global business with professional expertise in the independent technical and economic assessment and review of mineral projects, including extensive experience in both the mineral resources feedstock and downstream purification. Over the past two decades it has been involved with techno-economic assessment for most of the vanadium mineral assets in South Africa.
