Australian Vanadium Limited Moves Forward with Project Lumina to Pioneer Long-Duration Vanadium Flow Battery Technology
Date: 07 Nov 2024 |
Source: PV Magazine, 6 November 2024
Australian Vanadium Limited (AVL) and its subsidiary, VSUN Energy, have announced the transition of Project Lumina, a vanadium flow battery (VFB) energy storage initiative, into the design phase. The project aims to create a modular, scalable, and utility-scale vanadium flow battery energy storage system (BESS) that is both cost-effective and home-grown, supporting AVL’s “pit to battery” strategy.
Project Lumina will produce a 100 MW VFB BESS with four-hour and eight-hour configurations, targeting a competitive levelized cost of storage (LCOS) of AUD 274 (USD 180.5)/MWh for the four-hour model and AUD 251/MWh for the eight-hour model. This design will leverage AVL’s vanadium oxide resources, enabling them to be converted into vanadium electrolyte for use in these BESS systems. Unlike lithium-ion batteries, VFB systems can handle daily charge and discharge cycles without significant degradation, offering increased flexibility for daily energy discharge and market-driven pricing optimization.
AVL’s Chief Executive Officer Graham Arvidson highlighted the strategic importance of Project Lumina, stating, “The demand for long-duration energy storage in Australia is rapidly increasing, and Project Lumina is a vital component in our plan to deliver cost-effective, long-term battery solutions. By utilizing our own vanadium electrolyte, this project maximizes the full potential of the Australian Vanadium Project.”
Australia’s energy market is expected to see a sharp increase in storage needs, with the Australian Energy Market Operator (AEMO) projecting medium-duration storage demand to grow from 13 GWh in 2024 to 81 GWh by 2040 in the National Electricity Market (NEM). In Western Australia, the Wholesale Electricity Market (WEM) forecasts an additional 50 GWh by 2040, excluding regional networks and microgrids. The projected demand for medium-duration storage aligns closely with Project Lumina’s capabilities, enhancing Australia’s energy resilience.