TIDMBMN
RNS Number : 0997U
Bushveld Minerals Limited
27 March 2019
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.
27 March 2019
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
Bushveld Energy Q4 and Subsequent Events Operational Update
Bushveld Minerals (AIM: BMN), the AIM listed, integrated primary
vanadium producer with ownership of high grade vanadium assets in
South Africa, is pleased to provide an operational update for its
84%-owned energy subsidiary, Bushveld Energy Limited ("Bushveld
Energy").
Q4 and Subsequent Events Highlights
-- Commissioned the vanadium redox flow battery ("VRFB") project
with the South African national power utility Eskom, including site
acceptance testing. At completion the unit will have a peak output
of 450 kWh.
-- Initiated development of a net 1 megawatt ("MW") mini-grid
combining solar photovoltaic ("PV") generation and energy storage
using VRFB technology at Vametco.
-- Progressed on the development of a vanadium electrolyte
production facility, including procurement of two tons of vanadium
for conversion into electrolyte.
-- Advanced positioning to participate in 1,000MWh of opportunities in Africa by 2020.
Mikhail Nikomarov, CEO of Bushveld Energy, commented:
"Completion of our first energy storage project in Africa, with
Eskom, has allowed Bushveld Energy to expand its project
development capabilities during the final quarter of 2018. We can
approach the development of a more complex project that includes a
hybrid of solar generation and VRFB storage technologies with even
higher confidence.
"The mini-grid project will demonstrate both the superior
technical merits of long duration VRFB systems when paired with
renewable energy, while providing a commercial return to its
investors. It will also use locally mined and beneficiated
vanadium, showing how VRFB energy solutions can create more local
value to South Africa than any other storage technology.
"More urgently, with the current load shedding in South Africa
this project is a first step in mitigating the single greatest risk
to production faced by the mining sector in South Africa. Combined
with our ongoing work with the Industrial Development Corporation
on electrolyte manufacturing, the Eskom project and now the hybrid
mini-grid will demonstrate solutions to South Africa's energy
challenges that can utilise South African sourced materials."
Operational highlights for Bushveld Energy projects:
Eskom VRFB project
The VRFB battery commissioning with the South African national
utility, Eskom recommenced in November 2018. The VRFB, supplied by
UniEnergy Technologies ("UET"), passed a series of manufacturer and
Eskom site acceptance tests, during January and February 2019.
Subsequent to that, the manufacturer recommended a set of upgrades
to the VRFB, at its own cost. These are based on field experience
from other operating sites gained in the time since the battery was
originally ordered and they will further improve the reliability of
the battery going forward. The upgrades are currently in progress.
At completion the unit will have a peak output of 450 kWh. The
system is co-owned by Bushveld Energy and the Industrial
Development Corporation ("IDC").
Mini-grid project
Bushveld Energy has initiated the development of, a mini-grid
project at the Vametco mining and processing facility in South
Africa. The new mini-grid will be able to deliver up to 1MW of
power to Vametco, the largest size permittable without a generation
licence under current regulations.
The mini-grid will consist of solar PV generation paired with a
1MW / 4MWh VRFB and will feed electricity directly into the
internal distribution network of the mine. The project is
structured on an unsubsidised, commercial basis with project
finance, showcasing the commercial viability of both renewable
energy and energy storage technologies.
The project will provide significant benefits to the mine,
including:
-- Reducing overall demand from the South African power grid
during the day time and peak periods in the mornings and evenings.
The benefit to the mine is a reduction in its electricity tariffs
due to lower consumption at the most expensive times of the day.
The benefit to the South African power system will be lower demand
during times when the power system is most constrained. VRFB
technology is ideally suited for such applications, as it will be
cycled two times per day to meet both the multi-hour morning and
evening peaks of South Africa's power system;
-- By using long duration VRFB technology, additional solar
energy can be generated and stored during the day for discharge
after sundown; and
-- Reducing the mine's reliance on grid power and increasing its
ability in the future to self-generate during load shedding or
other instances of grid interruptions.
While the mini-grid will supply at most eight percent of the
mine's energy consumption at any one time, the project will
demonstrate the technical and commercial capability of hybrid
mini-grids using solar PV and VRFB technology, which is unmatched
in its ability to deliver long-duration storage and cycle multiple
times per day. The project could be scaled up further to provide a
larger amount of energy in future. It could also be replicated at
other grid-connected sites. The design can also be used at off-grid
sites to replace more expensive and less environmentally friendly
thermal generation.
Similar to the structure of the projects covering the
electrolyte production facility and the Eskom VRFB, Bushveld Energy
will continue using its cooperation model in developing and
delivering this project. Cooperating partners will include project
development and investment, project finance and engineering,
procurement, construction and integration.
Electrolyte production facility
The development of the process to convert Bushveld-mined
vanadium into electrolyte and design the production facility
advanced in Q4 2018. After promising pilot results at laboratory
scale, Bushveld Energy procured two tons of vanadium for conversion
into vanadium electrolyte. The scaled-up conversion process is
currently being executed. If proven successful, samples from the
produced electrolyte will be provided to battery companies for
suitability assessment. There is significant expressed interest
from VRFB manufacturers for vanadium electrolyte and appetite to
add long duration energy storage to power systems and renewable
energy projects in Africa overall. This suggests that there is
sufficient market demand for vanadium electrolyte to support the
installation of a 200MWh capacity facility in South Africa. The
electrolyte production facility is being co-developed by Bushveld
Energy and the IDC.
Large energy storage opportunities in Africa
While most attention by energy storage researchers, suppliers
and funders has centred on markets in Australia, East Asia, Europe
and North America, since its inception Bushveld Energy has
maintained that Africa offers potential to meet or exceed the
market opportunities of those geographies in the near term. Our
expectation of 1,000MWh of annual opportunities by 2020 that befit
the technical advantages of VRFB technology, including cost
effectiveness in long-duration energy storage requirements, ability
to cycle without degradation for over 20 years, and the advantage
of having more local content, especially for South African
customers. Two specific factors supporting this are:
-- The World Bank Group ("WBG") committed US$1 billion for
Battery Storage to accelerate investments in battery storage for
energy systems in low and middle-income countries. This is expected
to mobilise an additional US$4 billion in concessional climate
financing and public and private investments. The program is
expected to help these countries ramp up their use of renewables -
particularly wind and solar power - improve energy security,
increase grid stability and expand access to electricity. The
programme aims to finance 17.5GWh of battery storage by 2025;
-- South Africa's draft 2018 Integrated Resource Plan (the
country's electricity plan) has massive opportunities for battery
energy storage. This includes 15,000MW of new renewable electricity
generation by 2040; 9,000MW in peaking generation capacity with
provision for alternative technologies (such as battery energy
storage) to participate; and a new allocation of an additional
200MW per annum for small scale embedded generation that can
include storage. In addition, the South African Renewable Energy
Independent Power Producer ("REIPP") Procurement Programme has been
restarted to continue to add renewable energy to the grid, creating
opportunities for long duration battery storage;
Bushveld Energy is well-positioned in terms of capabilities,
market knowledge and geography to take advantage of these massive
opportunities in the region. For example, nearly 40 per cent of WBG
funding historically has gone to sub-Saharan Africa, suggesting
that a similar amount of the battery energy storage programme may
be deployed there. The South African state-owned electricity
utility, Eskom is preparing to roll-out 1,400MWh of battery energy
this year and complete it by 2022, in an effort to improve the
performance of the power system and integrate more renewable
energy. More recently, the decreasing performance of the South
African power system and recent return of "load shedding" or power
rationing is creating significant demand from electricity consumers
for self-supply of electricity, including large amounts of
storage.
Vametco Mineral Resource Estimate update
The Vametco Mineral Resource Estimate is now expected by 15
April 2019.
S
Enquiries: info@bushveldminerals.com
+27 (0) 11 268
Bushveld Minerals 6555
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Officer
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Relations
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Africa)
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Miyelani Shikwambana 7300
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low cost, integrated, primary vanadium
producer, with ownership of high grade vanadium assets.in.
The Company's flagship vanadium platform includes a 74%
controlling interest in Bushveld Vametco Alloys (Pty) Ltd a primary
vanadium mining and processing company; the Mokopane Vanadium
Project and the Brits Vanadium Project.
Bushveld's vision is to become a significant, low cost,
integrated primary vanadium producer through owning 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 project developer and
component manufacturer. 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.
While the Company's focus is on the vanadium operations and the
development and promotion of VRFBs it has additional investments in
coal, power and tin.
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.
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 project developer
and component manufacturer 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
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END
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