Vanadium Electrolyte / Batteries @Megafauna I couldn't agree...

Vanadium Electrolyte / Batteries

@Megafauna

I couldn't agree with you more on timing.  I thought I would reply on this thread to your article about the 8Mwh installation for $20m in South Australia given what Bruno is trying to achieve with getting a thread for consider information


I thought I would share some details about how much V2O5 will be needed for such an installation.

Every litre of vanadium electrolyte (VE) requires about 200 grams on V2O5.  A 1MWh installation requires about 80,000L of VE (equivalent to 16,000kg or 16T of V2O5).

TNG production cost for V2O5 is $2.50/lb or $5,510/T and selling for $6/lb or $13,225/T.

As I understand the cost to the produce a litre of VE is about $2.00/L.  So TNG Energy could produce the VE for a 1MWh VRB at a total cost of about $160k.

The sale price of VE is about between $5-$10/L (let’s say $7.50/L)  That means TNG, as vertically integrated business could sell the VE to an end user for about $600k.   Cracking margin of $440k.

That is uninstalled and only for the VE so if obviously you then have the cost/margin on the battery unit itself and the installation.

On an 8 MWh installation, you need 640,000L of VE or 128,000 kg of V2O5.  TNG Energy could produce the materials for about $1.3 million and sell for $4.8m, a margin of $3.5m.  Again further margins on the battery unit and installations.

They say for a rural community to be self-sufficient you need a 20Mwh installation and then you have grid scale installations like at Dalian at 800MWh.  Just to quantify on 800MWh, the margin would be $350 million for the VE alone.

It’s exciting that beyond the Mt. Peake cash flows, you have TIVAN Co as a licenser and the Energy business that can achieve margins like this.

I’d expect once we see the FEED and EIS behind us, the VRB/Energy business is going to get some airtime.