Australian Vanadium Ltd (ASX:AVL) has signed a non-binding memorandum of understanding (MoU) with Metrowest Power Systems to facilitate energy storage opportunities using vanadium redox flow battery (VRFB) technology.
Metrowest’s proven track record and networks in industrial and utility sectors, combined with the financial, marketing and technical capabilities of AVL and its subsidiary VSUN Energy, will provide the MoU participants the ability to tackle larger projects and rival prominent market players.
AVL managing director Vincent Algar said the relationship between Metrowest and AVL had been developed over the past few years.
He noted the partnership would bring to fruition some of the bigger project opportunities AVL had been unable to tackle on its own.
Metrowest delivers high-end critical uninterruptible power supply (UPS) systems and draws on the wider Metrowest Group to provide engineering, procurement and construction (EPC) capability.
AVL’s 100%-owned subsidiary VSUN provides promotion, installation and maintenance of energy storage solutions using VRFBs.
“Enable robust technology to demonstrate its strengths"
Algar added: “VSUN’s marketing and energy analysis has been very successful, but with a lack of experience in implementation it has certainly been difficult to persuade government agencies, for example, about the aptitude of the company and the VRFBs it offers.
“Working with Metrowest will allow us to push forwards with larger projects and enable this robust technology to demonstrate its strengths.”
Parties seek to formalise relationship
The MoU is for an initial 12-month term, during which time the parties will investigate the potential to formalise the partnership.
It may also be terminated by either party, provided they give no less than 30 days written notice to each other party.
VSUN Energy alongside Metrowest will continue to offer VRFB from a variety of manufacturers, with joint projects being focused on 250 kilowatt/1 megawatt an hour up to the multi-megawatt size.
Exposure to broader vanadium value chain
AVL is developing its world-class Australian Vanadium Project, one of the highest-grade vanadium projects globally with 183.6 million tonnes at 0.76% vanadium pentoxide, including a high-grade zone of 96.7 million tonnes at 1%.
Proved ore reserves amount to 9.82 million tonnes at 1.07% and the project holds a probable resource of 8.42 million tonnes at 1.01%.
The company has developed a local production capacity for high-purity vanadium electrolyte, which forms a key component of VRFBs, and through subsidiary VSUN Energy is actively marketing the scalable battery solution in Australia.