TIDMBMN
RNS Number : 0239X
Bushveld Minerals Limited
21 November 2017
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
21 November 2017
Bushveld Minerals Limited
("Bushveld" or the "Company")
Bushveld Energy and Partners Deploy Eskom's First Vanadium Redox
Flow Battery
Bushveld Minerals Limited (AIM: BMN), a mineral project
development company with a portfolio of vanadium and coal assets in
Southern Africa and an investment in tin, is pleased to announce
that its 84%-owned energy subsidiary, Bushveld Energy Limited
("Bushveld Energy") has confirmed its first vanadium redox flow
battery (VRFB) deployment in South Africa. The system will be
deployed with Eskom, the South African national power utility, at
its Research, Testing and Development (RT&D) Centre in
Rosherville, South Africa. This follows Eskom's identification of
the need for potentially up to 2,000MW of additional, daily
balanced energy storage within the existing grid earlier this
year.
The project is co-developed by Bushveld Energy and the
Industrial Development Corporation of South Africa (IDC) and will
allow Eskom to test the VRFB, its performance and applications
under numerous simulations. This will include minimum load
shifting, wind generation smoothing, solar generation smoothing,
power quality improvement and self-black-start capability. The VRFB
commissioning is expected in the first half of 2018.
Highlights:
-- This is the first utility-scale VRFB to be deployed in South
Africa. Eskom, the IDC and Bushveld Energy will jointly facilitate
access to the battery at ERIC for independent power producers,
energy storage developers, policy decision-makers as well as
various capital providers for wider familiarisation in order to
realize large scale adoption of VRFBs;
-- Single 20 foot container, advanced VRFB to be produced by
UniEnergy Technologies (UET) planned to have peak power of 120
kilowatts (kW) and be able to store peak energy of 450 kilowatt
hours (kWh);
-- UET's advanced VRFB utilizes 3rd generation technology
originally developed at a U.S. National Lab with funding from the
U.S. Department of Energy;
-- Eskom will conduct testing, based on its existing measurement
and verification approach, to validate the operational performance
of energy storage systems in local conditions to demonstrate the
abilities and maturity of the VRFB for broad commercial use in
South Africa and across the African continent;
-- Key evaluation criteria expected to especially favour the
flexibility of VRFB compared to other technologies include its
non-degradation in performance, good round-trip energy efficiency
and ability to perform multiple 100% discharge cycles;
-- The testing process is planned to last for 18 months, after
which the system will be redeployed to a commercial site within
South Africa to provide maximum benefit taking into consideration
the outcomes of the test work results.
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"This deployment is a critical stepping stone for both Bushveld
Energy and the energy storage market in South Africa. This project
brings new technology to South Africa to make the local power
system more efficient and more importantly create a new industry to
not only supply South Africa, but offer significant export
potential as well. We are pleased to bring all the key stakeholders
together in this effort. As Eskom has identified significant energy
storage requirements within the South African grid, this project
will ensure VRFBs can showcase their superior technical and
financial value. In addition, it will offer an opportunity for all
South Africans to see the technology operating at utility-scale for
the first time in the local environment. Bushveld Minerals
continues to grow its vanadium production and create capability to
beneficiate that vanadium into higher-value electrolyte and in
parallel develop the local and regional market demand for
VRFBs."
According to the International Renewable Energy Association
(IRENA), VRFBs already offer some of the lowest system costs among
battery technologies and are expected to decrease in cost by 66%
through to 2030, which is faster than any other technology in
energy storage. With the stationary energy storage market rapidly
growing and, according to Navigant Research, expected to exceed
US$25 billion in annual revenues by 2025, South Africa is extremely
well-positioned to participate in this market by virtue of holding
the second largest reserves of vanadium in the world in the
Bushveld Complex.
A recent study of energy storage in South Africa commissioned by
the IDC and the United States Trade and Development Agency (USTDA)
confirmed "the relative ease of vanadium electrolyte production and
the availability of vanadium in South Africa further enhancing the
attractiveness of this specific flow technology." Based on a
Cooperation Agreement signed in 2016, Bushveld Energy and the IDC
are working jointly to bring significant portions of the VRFB value
chain to South Africa.
Commenting on this milestone, Christo Fourie, Head of the IDC's
New Industries Strategic Business Unit, said:
"This deployment moves us one step closer to realising our
end-goal for the South African Energy Storage industry, namely the
localisation and domestication of energy storage solutions, the
local adoption thereof and ultimately the export thereof. During
the next year we will support the deployment of multiple "pilot"
energy storage installations in collaboration with local or
international project partners and technology providers to
demonstrate the stacked advantages of energy storage solutions at a
distribution level (capital deferral, security of supply,
densification solutions, mini grids for new electrification,
ancillary services, etc.). We believe that this first pilot
installation in partnership with Bushveld Energy and Eskom will
demonstrate that energy storage solutions do offer a financially
attractive proposition and create the opportunity for a new local
industry to be developed through which local mineral resources can
be beneficiated and jobs can be created."
Commenting on the project, Thava Govender, Eskom Group Executive
for Transmission and Acting Group Executive for Risk &
Sustainability, said:
"Through research and extensive experience in this field, Eskom
has recognised that there is a need to incorporate energy storage
in significant quantities in the future grid as this could be the
solution to our needs for increased flexibility. It is important
for Eskom to determine the real performance of these batteries
prior to widespread installation, especially in view of the current
costs and the associated risks of a non-performing technology. As a
result, a Large-Scale Battery Testing Facility at Rosherville has
been established, which is world class and the first-of-its kind in
the African continent. Eskom is also committed to the National
Development Plan and Sustainable Development Goal and through
initiatives like this with potential of utilising South African
resources, these national goals could be achieved in a sustainable
manner."
Commenting on this project, John DeBoever, VP of Eastern Sales
of UET, noted:
"Raised in the Congo in the 1960's by Belgian parents, I and
therefore UET understand the importance of providing reliable,
sustainable, and cost-effective grid-tied and off-grid energy
systems to the African continent. UET as a global company with
eight deployments so far in North America and Europe will now
deliver its field-proven energy storage systems to South Africa.
Eskom is by far the largest provider of electricity in Africa, and
this first project with Bushveld Energy's critical support will
showcase locally the performance advantages of UET's US technology,
using our advanced vanadium electrolyte, especially in operational
flexibility, long-life, safety and economic value. Across Africa,
advanced VRFB technology presents an opportunity to create a more
efficient power system, optimising both renewable and base-load
generation, reducing the costs of transmission and distribution
system upgrades and enabling off-grid users to reduce reliance on
costly and polluting thermal generators. South Africa in particular
stands to gain from advanced VRFB technology as a base for new and
existing local industries such as vanadium mining, electrolyte
production and advanced VRFB installation and maintenance. We look
forward in continuing our partnership with Bushveld Energy in
deploying energy storage systems across the African continent."
Enquiries: info@bushveldminerals.com
+27 (0) 11 268
Bushveld Minerals 6555
Fortune Mojapelo, Chief Executive
Officer
Bushveld Energy Limited
Mikhail Nikomarov,
Chief Executive Officer Bushveld +27 (0) 11 268
Energy Limited 6555
+44 (0) 20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser & Broker
Ewan Leggat
Blytheweigh
Financial PR
+44 (0) 207 138
Tim Blythe / Nick Elwes 3204
+27 (0) 711 121
Gabriella von Ille 907
Notes to editors:
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is an AIM listed mineral project development
company with a portfolio of vanadium and coal assets in Southern
Africa and an investment in tin.
The Company's flagship vanadium platform includes the Mokopane
Vanadium Project, the Brits Vanadium Project, and an interest in
Bushveld Vametco Alloys (Pty) Ltd primary vanadium mining and
processing company. The coal platform comprises the wholly-owned
Imaloto Coal Project, which is being developed as one of
Madagascar's leading independent power producers. The Company's tin
interests are held through its shareholding in AIM listed AfriTin
Mining Limited.
Bushveld's vision is to become one of the largest, low cost,
integrated primary vanadium producers through owned high grade
assets. This incorporates development and promotion of the role of
vanadium in the growing global energy storage market through
Bushveld Energy, the Company's energy storage solutions provider.
Whilst the demand for vanadium remains largely anchored in the
steel industry, Bushveld Minerals believes there is strong
potential for an imminent and significant global vanadium demand
surge from the fast-growing energy storage market, particularly
through the use and adoption of Vanadium Redox Flow Batteries.
The Company's approach to project development recognises that,
whilst attractive project economics are imperative, they are
insufficient to secure capital to bring them to account. A clear
path to production within a visible timeframe, low capital
expenditure requirements and scalability are important factors in
ensuring a positive return on investment. This philosophy is core
to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be
accessed on the website: www.bushveldminerals.com
About Bushveld Energy Limited
Bushveld Energy Limited is an energy storage solutions provider
focusing on the African market, with registered offices in
Mauritius and a wholly owned subsidiary in South Africa. Bushveld
Energy recognises that electricity in Africa intersects paramount
potential for social transformation with an immense commercial
opportunity.
Launched in 2016, Bushveld Energy is focused on developing and
promoting the role of vanadium in the growing global energy storage
market through application in vanadium redox flow batteries. Its
near term strategy is to deploy several VRFB systems as part of its
longer term vision to become a significant electricity storage
provider in Africa by 2020, meeting the demand for utility scale
energy storage in Africa by leveraging South Africa-mined and
beneficiated vanadium.
http://www.bushveldenergy.com/
About Industrial Development Corporation
The IDC provides finance for industrial development projects,
playing a catalytic role in promoting partnerships across
industries within South Africa and the rest of the African
continent to promote regional economic growth. The IDC achieves
this by:
-- Proactively identifying and funding high-impact and labour-intensive projects;
-- Leading the creation of viable new industries;
-- Using its diverse industry expertise to drive growth in priority sectors; and
-- Taking up higher-risk funding projects.
www.idc.co.za
About Eskom Holdings
As one of the largest power utilities in the world, Eskom
generates approximately 95% of the electricity used in South Africa
and approximately 45% of the electricity used in Africa. It
operates 23 power stations with a total nominal capacity of
42,090MW and manages 26,000 kilometres of transmission lines. Eskom
sells power directly to some 6,000 industrial, 18,000 commercial,
70,000 agricultural and three million residential customers. It
owns and operates a number of coal-fired, gas-fired, hydro and
pumped storage power stations, as well as one nuclear power and one
wind powered station.
http://www.eskom.co.za
About UniEnergy Technologies, LLC (UET)
Founded in 2012 as part of a larger company group dating to
2006, UET manufactures and installs megawatt-scale energy storage
solutions for grid, microgrid, and commercial & industrial
applications. It is the leading flow battery producer in North
America and Europe, with 88MW/350MWh of systems deployed,
contracted or ordered. The core patented technology is an advanced
vanadium flow battery, with a new generation electrolyte first
developed at Pacific Northwest National Laboratory with the support
of the US DOE Office of Electricity, and then improved, patented
and commercialized by UET. UET's solution is differentiated by (i)
an electrolyte with double the energy density, much broader
temperature range than conventional vanadium, and 100%
recyclability, (ii) a plug & play containerized design with a
compact footprint equal to or better than solid batteries, (iii)
proven, high-performance large-scale stacks with 10 years of field
deployment, six years of R&D before then, and hundreds
deployed, and (iv) state of the art controls with DNP3 protocols
and power electronics supporting IEEE1547. UET's water-based
technology is inherently safe, operationally flexible, reliable, 20
year lifetime, and economically compelling. UET operates a 60,000
square foot engineering & manufacturing facility near Seattle,
Wash. scaling up to produce 100 megawatts annually. The company
group represents a combined investment of over $350 million into
the vanadium industry.
http://www.uetechnologies.com/
This information is provided by RNS
The company news service from the London Stock Exchange
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