American Vanadium Corp. has entered into a Letter of Intent (LOI) to acquire DMG MORI’s wholly owned subsidiary, GILDEMEISTER energy storage (GES), manufacturer of the CellCube vanadium flow energy storage system. The LOI provides American Vanadium with the exclusive right to enter into a share purchase agreement (SPA) on or before February 29, 2016.
“With our plan to provide a CellCube finance program, as well as invest in scaling manufacturing and further reduce CellCube production cost, we look forward to building the business into a global energy storage leader,” stated Bill Radvak, President & CEO of American Vanadium. “Our vertical integration strategy of combining the ‘best in class’ CellCube system and American Vanadium’s future development of high-purity vanadium electrolyte from the Gibellini Vanadium Deposit located in Nevada presents a unique opportunity to create a global leader at an opportune time.”
An aging utility infrastructure, combined with the dramatic growth of renewable energy, are strong market drivers toward long-duration storage where flow batteries are expected to dominate. Applications of four to twelve hours (such as integrating increasing amount of renewable energy into the grid, enabling microgrids and offgrid power supply solutions, demand charge reduction, and utility-scale grid balancing with transmission and distribution upgrade deferral) are where flow batteries provide the most cost-effective, reliable, and safe solution.
Importantly, the energy storage market is acknowledging that flow batteries are a better solution for large capacity, long-duration energy storage than lithium ion and other batteries. This was recently supported by a comment from Bill Gates in his white paper entitled “Energy Innovation,” which he presented at the recent Paris Climate Control Conference COP21.
In this paper, he announced his Breakthrough Energy Coalition, and Gates made a compelling case for investing in energy innovations and examined three innovations that will help achieve an “energy miracle.” He maintained that flow-batteries that could last longer and hold more energy than lithium ion batteries and that could be used to help store energy created by solar cell and wind power.
American Vanadium Corp.
Filed Under: Energy storage, News