10.08.2023 Views

Opportunity Issue 106

Opportunity magazine is a niche business-to-business publication that explores various investment opportunities within Southern Africa’s economic sectors. The publication is endorsed by the South African Chamber of Commerce and Industry (SACCI).

Opportunity magazine is a niche business-to-business publication that explores various investment opportunities within Southern Africa’s economic sectors. The publication is endorsed by the South African Chamber of Commerce and Industry (SACCI).

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BATTERY STORAGE<br />

phase, and when complemented by wind and solar projects, will<br />

provide baseload energy.<br />

Solutions<br />

Lithium and vanadium are two preferred solutions for new-generation<br />

batteries. Australia, Chile and China are the world’s top producers of<br />

lithium, with Argentina and Brazil making up the top five.<br />

South Africa is in third place in terms of vanadium production,<br />

but China makes more than twice as much as South Africa and the<br />

second and fourth-placed Russia and Brazil combined.<br />

Marula Mining has a new project in the Northern Cape mining<br />

lithium and Bushveld Minerals in Limpopo describes itself as<br />

being “one of only three operating primary vanadium producers”<br />

in the world. Glencore is the other South African company that<br />

mines vanadium.<br />

But Bushveld Minerals has gone beyond mining. Its subsidiary,<br />

Bushveld Energy, is to produce vanadium battery electrolyte at its<br />

new Belco facility in East London. The aim is ultimately to produce<br />

battery systems. The plant was built with the support of the Industrial<br />

Development Corporation (IDC), which is well placed to assist in the<br />

creation of a value chain for vanadium batteries in South Africa. If<br />

Bushveld Energy reaches its target of eight-million litres, it will be the<br />

largest plant of its kind outside of China.<br />

A perfect storm<br />

According to the South African manager of the new factory assembling<br />

lithium-ion batteries in Cape Town, Etienne Grobler, conditions right<br />

now represent a “perfect storm for energy storage”.<br />

Grobler joined Swedish company Polarium to make a meaningful<br />

difference by manufacturing “high-quality, sustainable energy<br />

projects in South Africa, for South Africa”. He has previously worked<br />

on fuel-cell and flow-battery solutions.<br />

Polarium spent $30-million setting up the plant and intends<br />

expanding quickly. The biggest customer for Polarium’s batteries<br />

in Africa is the American Tower Corp, which sets up and maintains<br />

telecommunications towers across the continent. In South Africa the<br />

12.6kWh battery sells well and customers include shopping malls<br />

and hotels.<br />

By using nickel, manganese and cobalt (NMC) technology, the<br />

lifecycle of the manufactured batteries is effectively doubled and<br />

they are recyclable, a fact which will assist Polarium as it aims for<br />

net-zero status for the factory by 2030. The factory is in Marconi Beam<br />

industrial area near Milnerton in Cape Town.<br />

A model of hybrid power generation. Credit: Yellow Door Energy<br />

Arguing that the previous decade was about solar, the<br />

company’s Country Director: South Africa, Mohamed Madhi, said,<br />

“The decade of the battery has arrived!” He added that companies<br />

can significantly reduce their dependency on the grid by installing<br />

solar and combining it with a battery energy-storage solution.<br />

Power Purchase Agreements (PPA) are instruments that allow<br />

companies to receive power without any capital outlay for building<br />

the plant that produces the power. By the same token, companies<br />

that do invest in a plant of some sort and find they are making more<br />

power than they need, could then sign PPAs with other parties to<br />

sell the excess power.<br />

Hybrid systems<br />

A good deal of discussion centred on battery systems and battery<br />

storage in the course of the 2023 Africa Energy Indaba which took place<br />

in Cape Town in March. A company that has been very active in the<br />

UAE and other parts of the Middle East, Yellow Door Energy, made the<br />

case for combinations of solar, wind and battery storage as a solution<br />

for the private sector.<br />

An East London plant is producing vanadium battery electrolyte. Credit: Bushveld Energy<br />

www.opportunityonline.co.za | 23

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