Panzhihua Urban Construction & Transportation Group and Rongke Power Collaborate on a Vanadium Flow Battery DemonstProject, Introducing an “Storage + Leasing” Business Model for Vanadium Electrolyte!
Date: 05 Nov 2024 |
Source: VRFB-Battery WeChat, 5 November 2024
Panzhihua Urban Construction & Transportation Group, through its subsidiary Panxi Financing Leasing (Shanghai) Co., Ltd., in partnership with Dalian Rongke Power Co.,Ltd., has secured a major contract for the State Power Investment Corporation’s (SPIC) 100 MW/500 MWh Vanadium Flow Battery Energy Storage Demonstration Project in Panzhihua, Sichuan. The initial phase of this landmark project will deploy 12 MW/60 MWh of vanadium flow battery capacity, with a 20-year equipment leasing agreement valued at 33.9 million RMB.
This project pioneers a new financing and leasing model for vanadium electrolyte, a critical component of vanadium flow batteries. By leasing the vanadium electrolyte, clients can access the benefits of vanadium flow batteries, including high safety, long-duration storage, and low life-cycle costs, without bearing the full upfront cost. This model addresses key challenges in vanadium electrolyte finance, such as asset security, quality assurance, valuation, liquidity, and maintenance, paving the way for broader adoption in the energy storage sector.
In alignment with China's "dual-carbon" strategy and Panzhihua’s vanadium battery industry plan, Panzhihua Urban Construction & Transportation Group is leveraging its position as the world’s largest vanadium resource base. In collaboration with Rongke and other industry leaders, they are developing a comprehensive vanadium electrolyte supply chain, product trading platform, quality standards, and recycling mechanisms, setting a robust foundation for this financing model.
The leased electrolyte for this project is sourced from Sichuan Panzhihua Vanadium Titanium Supply Chain Management Co., Ltd., a state-owned enterprise jointly founded by Panzhihua Urban Construction & Transportation Group, Tianfu Commodity Exchange, and Rongke. This initiative not only establishes a precedent for vanadium flow battery commercialization but also promotes sustainable economic development in Panzhihua’s vanadium sector.
Located in the Vanadium-Titanium High-Tech Zone, SPIC’s demonstration project is the largest vanadium flow battery installation in Sichuan, covering 13 acres and representing a total investment of 210 million RMB. The initial demonstration site, which includes 3 MW/15 MWh for technology showcase and 3 MW/15 MWh for product comparison, is a vital step in Panzhihua’s mission to become the “Vanadium Flow Battery Capital.”
The successful deployment of this project will invigorate Panzhihua’s vanadium industry and establish a replicable model for vanadium electrolyte leasing in energy storage, supporting the development of vanadium-based resources, electrolyte production, and system integration.
Panzhihua Urban Construction & Transportation Group plans to continue collaborating with industry leaders in vanadium energy storage, advancing the “dual-carbon” goals and fostering economic growth. Future plans include building a national center for vanadium electrolyte research, testing, and standardization, enhancing Panzhihua’s reputation as a global hub for vanadium technology, and contributing to high-quality regional development and a world-class vanadium-titanium industrial base.