Management expects to be able to make an announcement to the market by Friday regarding the terms of the raising.
Capital would assist Western Australian initiative
Through its subsidiary VSUN Energy, Australian Vanadium has registered its interest for Western Power’s standalone power systems (SPS) project.
The SPS use a combination of renewable energy, batteries and back-up diesel generators, enabling generation, storage and reliable delivery of power.
This wouldn’t be the company’s first foray into using its vanadium redox flow battery (VRFB) technology.
VFRBs have proven track record
Australian Vanadium's VFRBs are non-flammable and provide in excess of four hours of energy.
The battery VSUN Energy installed at a native tree nursery in Busselton in late 2016 is a 10-kilowatt power system with 100 kilowatt-hours of energy storage.
This enables it to deliver 10 kilowatts for 10 hours, or with a smaller load, provide 5 kilowatts continuously for 20 hours.
Project to involve up to 60 locations in regional areas
The project will involve up to 60 locations in regional areas and builds on the successful trial of the technology on six properties in 2017.
It will provide companies like Australian Vanadium an opportunity to supply and install equipment and systems, with national and global interest expected.
Governments lean towards financially robust tenderers
The group’s strengthened balance sheet would assist in funding such a project.
It could also have a positive impact on being selected, as government instrumentalities take into account the financial position of those tendering for such projects.