vanadium batteries to power the $27 billion off-grid energy market

While the cost of renewable energy such as wind and solar has fallen sharply in recent years, low availability continues to hinder the development of renewable energy in some energy markets.
In this article, I will look at the huge growth opportunities of vanadium battery renewable energy in a $27 billion discount
Power grid energy market
Electricity charges by source (from Wikipedia)
Due to innovation and economies of scale, LCOE for wind and solar power plants have fallen so fast that they have reached or below the LCOE for conventional basic load coal, nuclear and gas power plants.
According to Wikipedia, the problem with wind and solar power is their availability factor. The obvious solution is to invent utility-scale batteries that can store solar energy on sunny days and at night
The demand for wind power is often the opposite (i. e.
Large wind force at night).
Although this battery technology exists, it has not become an actual solution until recently, as mentioned earlier, because its high cost has declined through innovation and increasing adoption (
Economies of scale).
BatteriesAccording collects horizontal power costs based on a great 2015 article entitled \"Why energy storage is about to get bigger -\"
Ramez Naam has worked at Microsoft for 13 years (NASDAQ:MSFT).
He owns 19 patents related to search engines, information retrieval, web browsing, artificial intelligence and machine learning and is also the winner of the award
The winning author of five books.
Disadvantages of vanadium redox mobile battery (\"VRB\")
It has a large volume and a relatively low circle.
Travel efficiency (
Measured by power failure)
In contrast, the lithium battery is 75%, 85%.
Here is my exercise to calculate the cost of running VRB: redT Energy Plc. (OTC:CAMCF)
It claims on its website that the price of its Gen2 VRB machine last week was $490/kwhI, called redT.
They currently have about a dozen clients and deployed a total of 2,000 KW when I got the general pricing info and calculated all
The cost of their products is as follows: therefore, the VRB is similar to the LCOE of lithium batteries, 33 cents per kilowatt hour. (
Assuming the cost of the lithium battery is $300 per kWh, the initial cost of the VRB is higher, but the charging cycle is longer and the battery life is longer).
33 cents per kilowatt hour is the cost of storage, excluding the cost of power input. On-
The grid VRB app is 33 cents per kilowatt hour, more than 24 cents per kilowatt hour quoted by redT.
However, even at a price of 24 cents per kilowatt hour, retail electricity prices in the United States averaged about 12 cents per kilowatt hour,
Grid market except for specific applications such-
Replace the natural gas beaker.
Energy grids must be built to support peak use.
Peaker factory is a natural gas reserve factory.
On average, they are much less active than 10%.
They are idle, refuel and ready to go online to cope with the peak of electricity consumption.
Even in this state, it takes a few minutes to get peaker online.
Layered pricing arbitrage in the same 2015 article by Ramez Naam: battery below 19 cents/kWh LCOE (
Including financing, installation, etc. )
This difference can be used for arbitrage.
The software charges the battery with cheap electricity at night.
At peak demand, software prioritizes the cheap power provided by the battery rather than extracting it from the grid. \"-
Storage of excess renewable power is available when needed. This is very useful for unstable grids with low availability factors or when the grid is charged more than 34 US dollars per kilowatt hour.
My last article on vanadium batteries talked about the largest vanadium battery, which has 60 MW in Hokkaido, Japan, and was put into use in 2016.
In the current innovation and adoption rate, the cost of the grid
The horizontal energy storage battery could be close to $100 to $200/kWh-
Within 3 to 5 years, LCOE is about 10 to 15 cents per kilowatt hour.
At this rate, I believe we will see mainstream adoptiongrid. Off-
Grid applications for batteries with the use of vanadium batteries, there is a huge opportunity for renewable energy, at a discount of $27 billion
Power grid energy market
The following is based on OFF-
Bloomberg New Energy Finance and Lighting Global Power Grid Solar Market Trend Report 2016, an innovation of the World Bank Group\'s cooperation with the global OTC
Grid Lighting Association: The report goes on to discuss how solar energy is perfect for outdoor lighting
Power grid energy market
Power outages are a frequent occurrence in developing countries.
I spend 2 to 3 months a year in Mongolia and weekly summer power outages are common.
Power outages sometimes last for a few minutes to the whole afternoon.
Hospitals and hotels maintain operations using diesel generators.
When I was managing the wulanowo coal mine in Mongolia, I was very familiar with the diesel generator, which uses a large diesel generator that runs 24 hours a day, 7 days a week, pumping in-
Water flowing out of open-air coal mines.
The cost of diesel power generation is as follows: Please note that the average household electricity consumption in the United States is about 10,000 KW hours per year, and the mine consumes 15,000 KW hours per day.
Therefore, in retail establishments, it is not unreasonable to hear that the price of diesel-powered machines exceeds $1 per kWh.
If fuel goes up to $1
$50 per liter, $1.
Electricity costs rose 45% to $0 per liter of 00. 4278 per kwh.
The machine overheat after 5 hours of operation at 100% capacity and needs to be turned off for 30 minutes.
Parts need to be repaired every month and filters need to be replaced.
Of course, the practical problem with using wind or solar water pumping in a mine is the low availability factor.
In the following exercise, I compared the cost of diesel power generation to wind and VRB: the cost of wind power generation is based on the United StatesS.
According to the Energy Department\'s 2015 Wind Energy Technology Market Report, \"in 2015, capacity-
The weighted average installation project cost is close to $1,690/kilowatt, down $ 27%/kilowatt or 2010 from the obvious peak of the average reported cost in 2009 and 640.
\"The other key assumptions I made are: 1,500 wind power, 648 water pump power supply, the remaining VRB charge, the wind force is 7 hours a day, and the VRB is deployed in turn to provide 648 power continuously, for seven hours.
The availability factor is increased to 70% under this setting.
In this case, I was surprised to see that the LCOE is 32% lower than the LCOE using a diesel generator.
In real life, the wind does not blow for 7 hours in a row, and we still need a diesel generator to increase the availability factor to more than 90%.
However, people can certainly optimize the settings-
Increase availability by installing wind and solar equipment, thus reducing reliance on VRB and diesel as they have higher LCOE.
A recent article entitled \"miners become green when looking for cost-effectiveness and use renewable energy in distant places --
The merits of renewable energy have also been commended in the mining industry.
According to the research and market press release entitled \"Diesel Generator Market Update 2016-\" dated May 26, 2016
2020: renewable energy with batteries will definitely enter this important market.
Summary: LCOE (
Level Cost of Energy)
For wind and solar power plants, they are falling so fast that they are in the LCOE or below of traditional basic load coal, nuclear and natural gas power plants. Grid-
The cost of horizontal batteries has also dropped significantly in recent years.
While it cannot compete with coal or nuclear energy for 30 cents per kilowatt hour, grid batteries are gaining traction in some ways
Replace grid applications such as peaker factory and tiered pricing arbitrage. For off-
Grid applications, grid
Horizontal batteries can double the availability factor of renewable energy to more than 70%, and compete with diesel generators during the $27 billion holiday each year
Power grid energy market
At the current rate of innovation and adoption, the LCOE of grid batteries may drop to 10 to 15 cents per kilowatt hour in 3 to 5 years to dominate Rapid
It is estimated that the growing energy storage market will reach $2.
It reached 5 billion MW or 1,662 MW by 2020.
Source: GTM Research/esa u. S.
Lithium ion-energy storage monitoring
Battery is not suitable for power grid-
Because they have a short level of energy storage.
Continuous discharge cycle, degradation begins after hundreds of full charge and full discharge (
Or up to 1,000 cycles)
The vanadium battery can run 10,000 cycles.
Think of a sample (lithium)
With the 1970 Rolex I used (vanadium)
This is still strong.
Finally, vanadium accounts for 30% to 50% of the cost of VRB, which makes it essential for VRB manufacturers to ensure the supply of vanadium.
Over the past decade, billions of dollars have been invested in the research and development of VRB, with an inevitable mass use
Scale VRB adopted, therefore long
In the long term, the price trend of vanadium seems promising, which makes people increasingly interested in miners who produce vanadium metal.
All we need to do is take lithium exploration as an example: Lithium X Energy. 3-
Chronology, source: Stoke observation.
At present, there is no primary vanadium ore in North America, and there are only a few vanadium ore beds in North America.
Prophecy Development Company(OTCQX:PRPCF)
Hope to develop the 80% titanium it ownsvanadium-
Iron ore, Titan is put into production.
Titan is an exploration phase project located in Ontario, Canada, with good infrastructure.
The mine development association has prepared the Titan technical report dated February 26, 2010, which is in compliance with the National Instrument 43-
101, disclosure of resource estimates based on the CIM Mineral Resources and Reserves definition criteria and submission to SEDAR through prophecy.
According to the resource estimates of the Mining Development Association, Titan has 49 million tons of inferred resources, using 40% of the iron oxide cutoff value, graded as 0. 24% vanadium (
The company estimates 0.
43% vanadium oxide).
Based on this resource and grade, Prophecy estimates that the recovery rate is assumed to be 0. 259 billion and that the Titan contains 100% of vanadium metal.
Here is the report.
I manage prophecy development.
Engaged in the exploration of vanadium.
Jlee @ prophecydev.
CFA comJohn Lee is an accredited investor with over 20 years of investment experience in metals and mining stocks. Mr.
Li joined the parent company of the prophetic development company. (prophecydev. com)
CEO of the company in 2009.
Under the leadership of John Lee, the prophecy raised more than CAD100 million dollars through the Toronto Stock Exchange and secured a portfolio including silverzinc-
Leading assets in Bolivia, coal assets in Mongolia and titaniumvanadium-
Steel projects in Canada
John Lee graduated from Rice University with a degree in economics and engineering.
Christopher M. reviewed and approved the technical content of this article.
Kravits CPG, LPG, he is a qualified person in the sense of National Instrument 43101. Mr.
Kravits is a consultant to the company and serves as a Qualified Person and general manager of the company.
Disclosure: I am/We are long PCY PRPCF.
This article was written by myself and expressed my views.
I was not compensated.
I have no business relationship with any stock company mentioned in this article.
Editor\'s note: This article covers one or more microcap stocks.
Please note the risks associated with these stocks.