The corporate intends to seize worth in a quickly increasing market.
A latest Wood Mackenzie report discovered international vitality storage deployment surged 62% in 2020, with 5 gigawatt, or nine-gigawatt hours, of recent capability added. This introduced the overall vitality storage market to greater than 27 GWh. WoodMac expects the worldwide market to develop 27-fold by 2030.
“The long-duration vitality storage battery market has reached an inflexion level with the arrival of the brand new inexperienced financial system,” mentioned Largo CEO Paulo Misk in the course of the battery day occasion. The agency’s vanadium batteries had been decrease price and lasted longer than rival options, equivalent to lithium-ion battery vitality storage.
“Largo brings the lacking piece to the puzzle, which is to supply steady, low-cost VRFB know-how to market,” mentioned Misk.
The vanadium for the batteries comes from Largo’s 17,690-hectare Maracás Menchen mine within the east-central state of Bahia, in Brazil. Misk expects the corporate’s vertically built-in method to end in a 30 to 40% decreased price of deploying VRFBs than conventional distributors.
Whereas vanadium battery know-how shouldn’t be new, it’s extensively seen as an up-and-coming industrial resolution for renewable vitality suppliers seeking to scale up. The know-how basically works by shuttling vanadium electrons between their totally different valence states.
It’s thought of as a superior resolution for functions with long-duration discharge necessities of six hours or extra. “That’s the place VRFBs actually come into their very own,” mentioned Misk.
Largo Clear Vitality expects to reap three income streams from the VRFB enterprise, capturing potential margins of 110% over the standard vanadium mining and advertising and marketing mannequin.
The primary income is taken in the course of the preliminary capital outlay to put in a VRFB facility. The second is a recurring income stream from the lease of vanadium electrolyte to be used within the facility over the 25-year-plus life; the third comes from the online current worth inherent within the vanadium the corporate recovers from the ability upon shutdown.
Largo Clear Vitality is commercialising VRFB know-how beforehand owned by VionX Vitality, a agency concerned within the renewable vitality storage market since 2002.
“The patented VRFB know-how and proprietary vanadium electrolyte processing system can ship cost-competitive efficiency over its life cycle with nominal degradation. On the whole, the VRFB is intrinsically protected with no hearth danger from thermal runaway,” mentioned Misk.
Moreover, the contained vanadium electrolyte will be recycled for reuse in different VRFB installations on the finish of the battery life.
“Over time we anticipate to construct a portfolio of electrolyte rental belongings which can doubtlessly entice very excessive yields,” mentioned Misk.