Australian Vanadium Limited (ASX: AVL, the Company or AVL) is pleased to announce significant progress in the next phase of Project Lumina3 with the strategic appointment of engineering, procurement and construction (EPC) contractors, Genus and Sedgman, to provide ECI services and the appointment of Austrian VFB manufacturer CellCube as technology provider.
Project Lumina targets the development by VSUN Energy of a VFB BESS for Australian energy markets that is modular, scalable, turnkey and suitable for medium to long duration battery storage applications at utility scale, employing well-established VFB technology optimised for local conditions.
AVL's Chief Executive Officer, Graham Arvidson comments, “VSUN Energy is rapidly progressing the next phase of Project Lumina, which incorporates the detailed design of a 100MW 4 and 8 hour BESS using VFBs. We are pleased to be working with highly credible parties such as Genus, Sedgman and CellCube and look forward to working together to develop energy storage solutions for utility scale use across the country.”
Genus constructs and maintains critical power and communications infrastructure. Its projects have included EPC for the recently completed 100MW/200MWh Kwinana BESS lithium-ion battery brings design and construction capability to the power conversion and transformer systems for Project Lumina.
Sedgman is a leading provider of processing and infrastructure solutions for the global resources industry. Sedgman is contributing its design and construct experience to the vanadium electrolyte storage and auxiliary systems and providing battery system integration for the project.
CellCube is a global leader and pioneer in VFB technology.
With over 20 years of experience in designing and deploying its battery systems worldwide, CellCube is engaged to contribute its expertise to design VFB power units, develop associated engineering documentation and provide
technical guidance. Cellcube is expected to provide critical VFB componentry including the supply of power units in the implementation of Project Lumina.
VSUN Energy recently completed Phase 1 of Project Lumina, an analysis to assess whether a VFB BESS solution is competitive in the energy storage market. The outcome supported the merits of a modular, scalable, turnkey, utility-scale 100MW VFB BESS solution capable of delivering levelised cost of storage (LCOS) of A$274/MWh for a 4-hour VFB BESS and LCOS of A$251/MWh for an 8-hour VFB BESS.4
Phase 2 of Project Lumina is the delivery of the detailed design of a VFB BESS solution, which is expected to refine the Phase 1 assumptions and develop an executable delivery strategy.
Key aims of Phase 2 include the:
Development of a construction-ready, detailed design and delivery strategy for modular, commercial, turnkey, utility-scale 100MW VFB BESS on a 4-hour (100MW/400MWh) and 8- hour (100MW/800MWh) duration.
Delivery of a definitive basis for estimates of LCOS, capital cost, operating cost and revenue opportunities, refining from the Phase 1 accuracy of ± 30%.
Exploration of the option of a ‘deconstructed' VFB BESS to drive optimised economic returns and to potentially extend operational life to 40 years and beyond.
Optimisation of the design with a cost-effective means of independently scaling either power (MW) or duration (MWh of discharge) to capture opportunities emerging from the evolution of the Australian energy markets and deliver a competitive advantage via in-built optionality.
Related activities include continuing discussions with potential energy offtakers for the deployment of energy storage solutions, progressing land access arrangements for the future deployment of energy storage solutions, developing a funding strategy (debt and equity) to allow for the rapid deployment of energy storage solutions and determining the merits of deploying a VSUN EnergyvBuild-Own-Operate (BOO) business model, as well as delivering on an EPC basis.
It is intended for Phase 2 to enable the Company and potential third-party investors to make a final investment decision (FID) on the deployment of utility scale VFB BESS solutions by VSUN Energyin Q3 CY2025.
The Company recognises that, as the work progresses and options are explored, the timeline may change.
The utilisation of well-established technology and building long term relationships with experienced providers such as Genus, Sedgman and will contribute to de-risking the deployment of VFB BESS units by VSUN Energy, providing confidence for end users of the technology.
AVL Price at posting:
1.3¢ Sentiment: None Disclosure: Held
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