- 01AVL/VSUN & Alcoa sign MoU for 50-80MW, 6-8h VFB study.
- 02Study targets refinery ops, peak demand, renewables.
- 03Led by AVL/VSUN; covers design, costings, electrolyte.
Australian Vanadium (ASX: AVL) and wholly owned subsidiary VSUN Energy have signed a non-binding Memorandum of Understanding (MoU) with Alcoa of Australia to jointly assess a vanadium flow battery (VFB) system for Alcoa’s alumina refinery operations in Western Australia.
The parties will undertake a scoping-level equivalent study for a system with nominal capacity of 50–80 megawatts and storage duration of six to eight hours, with the ability to extend beyond eight hours.
The proposed system would be evaluated for its capacity to support refinery operations, optimise energy use during peak demand periods and increase the utilisation of renewable energy across Alcoa’s operations.
The collaboration will examine the role of long-duration energy storage in supporting industrial electrification and integrating renewable energy within energy-intensive industrial operations.
The MoU has an 18-month term and is non-binding apart from customary provisions covering confidentiality and intellectual property, with neither party obliged to enter a future commercial agreement or proceed with further feasibility studies following completion of the initial study.
Technical and Financial Case
Australian Vanadium and VSUN Energy will lead the study, covering VFB system design, technical specifications, costings, and the electrolyte supply considerations required for a potential large-scale deployment.
The work will also examine project financing options and potential government funding opportunities, while Alcoa will provide support throughout the assessment process.
Potential deployment locations include Alcoa’s existing sites and associated landholdings in WA, allowing the parties to consider how the system could be integrated with the refiner’s operations and site requirements.
The study will test the financial and technical merits of using long-duration energy storage to improve operational flexibility, manage energy costs, and support greater renewable energy use during peak demand periods.
A positive study outcome could lead to further feasibility work and discussions over commercial arrangements, including potential energy offtake agreements.
Integrated Battery Strategy
Australian Vanadium expects the work to draw on its V-NOMAD electrolyte technology platform and VSUN Energy’s Lumina utility-scale VFB development platform.
The collaboration fits Australian Vanadium’s strategy of participating across the vanadium value chain through vanadium production, electrolyte manufacturing, and VFB deployment via VSUN Energy.
“Long-duration energy storage will play a critical role in enabling industrial electrification and increasing the utilisation of renewable energy, and VFB technology is particularly well suited to these applications,” chief executive officer Graham Arvidson said.
“Working with a globally recognised industrial operator such as Alcoa provides an opportunity to evaluate how long-duration energy storage can support operational flexibility, energy cost management and decarbonisation objectives.”
Australian Vanadium considers VFB technology particularly suited to utility-scale industrial applications because the proposed system would combine multi-hour storage with the potential to extend its duration beyond eight hours.
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