Ann: Project Lumina Progress Confirms Improved Competitiveness, page-14

https://www.pro active investors.com.au/companies/news/1070931/australian-vanadium-s-project-lumina-demonstrates-improved-cost-competitiveness-for-vanadium-flow-battery-energy-storage-1070931.html

Australian Vanadium’s Project Lumina demonstrates improved cost competitiveness for vanadium flow battery energy storage

Published: 09:52 09 May 2025 AEST
Jonathon JacksoN
This record is published on behalf of Australian Vanadium Ltd, a paid client of Pro active



Australian Vanadium Ltd has reported improved cost metrics for Project Lumina, its flagship vanadium flow battery (VFB) energy storage initiative, through subsidiary VSUN Energy Pty Ltd. The project now boasts a levelised cost of storage (LCOS) of A$214 per megawatt-hour (MWh) for an eight-hour duration battery, down from a previous estimate of A$251/MWh. This positions Project Lumina’s vanadium-based solution competitively against similar lithium-ion alternatives in the Australian market.


VSUN Energy is advancing the design of a scalable, turnkey utility-scale battery energy storage system (BESS) in collaboration with GenusPlus Group, Sedgman (a CIMIC Group company), and Austrian manufacturer Cellcube Energy Storage GmbH.
“AVL and VSUN Energy’s vertical integration strategy was built on the conviction that long-duration energy storage would soon become a major market opportunity in Australia and globally. That moment has arrived with the Australian energy sector advancing multiple eight-hour plus utility-scale storage projects nationwide, and for the first time we are seeing VFB BESS identified as the preferred solution in some of these longer duration projects,” AVL’s CEO, Graham Arvidson said.
“As Project Lumina nears investment readiness, VSUN Energy is actively pursuing utility-scale projects across five states, aligning with government policies supporting long duration energy storage, VFB adoption, vanadium mining and domestic downstream processing of critical minerals.
“Project Lumina remains on track for detailed design by Q3 CY2025, aligning with the accelerating demand for long-duration energy storage. We are pleased that additional work highlights improvement to LCOS underscoring the competitiveness of Project Lumina’s architecture to compete in the long duration energy storage market.
“Importantly, these LCOS estimations continue to be underpinned by an assumed US$10/lb V2O5 vanadium price. This indicates that vanadium pricing supportive of incentivising new upstream vanadium oxide supply does not inhibit competitiveness of VFB BESS in long duration energy storage applications.
“The advanced design status and competitiveness of our Project Lumina VFB BESS architecture positions us well to pursue a growing pipeline of long duration opportunities such as the 500MWh VFB BESS proposed for Kalgoorlie in WA and several even larger project opportunities emerging on the east coast of Australia where market duration price signals are moving to eight hours and beyond.”
Design and engineering progress

Project Lumina’s design incorporates modular 15 megawatt (MW) arrays capable of scaling to larger capacities, such as a 90 MW BESS made up of six arrays. Each system includes a power unit, electrolyte storage, vanadium electrolyte, power conversion, distribution, and cooling systems, alongside site administration infrastructure.


Project Lumina’s simplicity of duration expansion: clockwise (from top left) 4h, 6h, 8h, and longer durations.

Key benefits of the design include:

• Faster deployment timelines
• Reduced construction and logistics costs
• High local content integration
• Simplified expansion potential through additional electrolyte and tank capacity

Enhanced LCOS and economic modelling

The revised LCOS of A$214/MWh was achieved through detailed engineering studies and a shift toward locally sourced components. The estimate assumes a vanadium pentoxide (V₂O₅  ) price of US$10 per pound and is calculated using standard industry models aligned with the Australian Energy Regulator.
Notable LCOS assumptions include:

• 90 MW output for 8 hours (720 MWh capacity)
• 78% round-trip efficiency
• 30-year asset life
• Operating cost of A$1.86/kWh

Strategic alignment and future milestones

VSUN Energy is targeting deployment opportunities in five Australian states, supported by government policies on long-duration energy storage and critical minerals. Project Lumina is expected to complete detailed design work by Q3 2025 and aligns with proposals such as the 500 MWh BESS in Kalgoorlie.
Next steps include:

• Finalising construction-ready designs
• Advancing offtake agreements and land access negotiations
• Developing a funding model, including debt and strategic equity
• Assessing a Build-Own-Operate (BOO) model

AVL aims to capitalise on its vertically integrated supply chain, from upstream vanadium mining to downstream battery deployment, aligning with Australia’s National Battery Strategy.