Vanadium Rental Partnership with Invinity
7 September 2020
Bushveld Minerals Limited
("Bushveld Minerals" "Bushveld" or the "Company")
Vanadium Rental Partnership with Invinity
Bushveld Minerals Limited (AIM: BMN), the AIM quoted, integrated primary vanadium producer and energy storage provider, with ownership of high-grade assets in South Africa, announces that in line with the announcements made on 9 March 2020 and 1 April 2020, it has formed a special purpose company in partnership with Invinity Energy Systems plc ("Invinity"), named Vanadium Electrolyte Rental Limited ("VERL"). VERL's purpose is to provide a vanadium electrolyte rental option to Invinity's customers.
The formation of this company reinforces Bushveld Minerals' strategy of partnering with Vanadium Redox Flow Battery ("VRFB") companies for the supply of vanadium material, vanadium electrolyte and vanadium electrolyte rental products, as announced on 1 November 2019.
In addition, Bushveld is pleased to announce that VERL has signed a contract for electrolyte rental with Pivot Power, part of EDF Renewables. Under this contract, VERL will hold, and rent to Pivot for a period of ten years, the electrolyte in Pivot Power's five megawatt-hour flow battery, supplied by Invinity and to be delivered to Pivot Power's project at the Energy Superhub Oxford.
Fortune Mojapelo, CEO of Bushveld Minerals commented:
"Since setting up Bushveld Energy in 2016 we have said that the metal's unique characteristics will give it certain advantages in the energy storage sector. In this case it is the lack of degradation, even after years of charging and discharging cycles, that allows for us to loan the metal into a battery, thereby removing a significant portion of the upfront cost of the battery and ensuring the reusability of its electrolyte.
This partnership puts the rental model into a specific business unit, formalising a commercial partnership and ringfencing the vanadium rental sub-entity. We anticipate adding other rental agreements and VRFB companies to the partnership in growing the electrolyte rental model, ensuring that the VRFB is affordable and the most sustainable battery technology."
Larry Zulch, CEO of Invinity Energy Systems commented:
"Both Invinity and Bushveld are intent on removing any obstacle to vanadium flow batteries demonstrating their superiority for heavy cycling and long duration applications. VERL is an excellent means of giving our customers the option to reduce the capex of their energy storage system.
The ability to rent electrolyte and be confident of its residual value shows why vanadium flow batteries have an environmental life-cycle assessment consistent with their purpose of making renewable energy a reliable resource."
ENDS
Enquiries: info@bushveldminerals.com
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Bushveld Minerals Limited |
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+27 (0) 11 268 6555 |
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Fortune Mojapelo, Chief Executive Officer |
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Chika Edeh, Head of Investor Relations |
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SP Angel Corporate Finance LLP |
Nominated Adviser & Broker |
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Richard Morrison / Soltan Tagiev |
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Abigail Wayne / Richard Parlons |
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BMO Capital Markets Limited |
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Tom Rider / Michael Rechsteiner / |
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Neil Elliot |
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Peel Hunt Limited |
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Ross Allister / Alexander Allen |
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Tavistock |
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Charles Vivian / Gareth Tredway / Edward Lee |
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ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a low-cost, integrated, primary vanadium producer, with ownership of high-grade vanadium assets.
The Company's flagship vanadium platform includes a 74 per cent controlling interest in Bushveld Vametco Alloys (Pty) Ltd, a primary vanadium mining and processing company; 100 per cent of Bushveld Vanchem, a primary vanadium processing facility with a beneficiation plant; the Mokopane Vanadium Project and the Brits Vanadium Project.
Bushveld's vision is to become a significant, low-cost, integrated primary vanadium producer through owning high grade assets. Whilst the demand for vanadium remains largely anchored in the steel industry, Bushveld Minerals believes there is strong potential for an imminent and significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries. Bushveld Energy, the Company's energy storage solutions provider, plays a leading role in the development and promotion of the role of vanadium in this market.
The Company's approach to project development recognises that, whilst attractive project economics are imperative, they may be insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. This philosophy is core to the Company's strategy in developing projects.
Detailed information on the Company and progress to date can be accessed on the website www.bushveldminerals.com .
About Bushveld Energy Limited
Bushveld Energy is a leading energy storage solutions provider, focusing on the African market. Bushveld Energy recognises that electricity in Africa intersects paramount potential for social transformation with an immense commercial opportunity.
Bushveld Energy is focused on developing and promoting the role of vanadium in the growing global energy storage market through application in vanadium redox flow batteries. Its near term strategy is to deploy several VRFB systems as part of its longer term vision to become a significant electricity storage provider in Africa, meeting the demand for utility scale energy storage in Africa by leveraging South Africa-mined and beneficiated vanadium.
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