The ongoing energy crisis has revealed the unfortunate reality that electricity prices in the UK are almost fully tied to gas prices, despite renewables now accounting for over 1/3rd of electricity generation in the country. Renewable sources can never fully replace natural gas until sufficient energy storage systems - in other words, batteries - are put in place to store the energy from solar and wind and use it at peak times, when the sun is down, or when there is not enough wind to turn the turbines.
Luckily, progress is being made in this area. Tesla is well known for its home, commercial, and utility energy solutions. However, as Li-Ion battery prices continue to drop, smaller players are making headway in the UK as well. Today we focus on three energy storage companies that released positive news today, sending their shares higher in early trading.
Simec Atlantis Energy
Simec Atlantis Energy (SAE ) shares soared over 30% today after the company announced it had secured grid variations for its 230MW/460MWh battery energy storage system (BESS) project in Uskmout, and completed the novation of the grid connection agreement. The company said the project was on track to be operational by 2024.
SAE entered into an agreement with Energy Optimisation Solutions (EOS) and Quinbrook Infrastructure Partners (Quinbrook) for the project, which is one of the largest BESS deployments in the UK.
Following the novation of the grid connection, SAE received a £6m payment from UES as an interest-free loan. Planning permission is expected to be awarded in Q4 2022. A further £4m payment will be received on financial close of the project, scheduled for Q1 2023.
"Today's announcement is a key next step in delivering value from the Uskmouth site. We have made excellent progress in securing the necessary planning approvals and the project is on track to begin construction, as planned, next year. SAE has further land and infrastructure available at the Uskmouth site and is progressing further BESS projects and exploring other energy projects to deliver maximum value from the Uskmouth site for our stakeholders. SAE will continue to update the market as these initiatives progress", the company said.
Invinity Energy Systems
Invinity Energy Systems (IES ) shares jumped 6% after the company announced first shipment of its batteries from new manufacturing partner Baojia New Energy.
IES announced the partnership with Baojia in its June FY21 report. 1.1 MWh of Invinity batteries have already been shipped from Baojia's facility in Suzhou, China. These batteries will form part of the 8.4 MWh order placed by Elemental Energy for their project in Alberta, Canada. The batteries will be shipped to Alberta via Invinity's facility in Vancouver where the systems will undergo final assembly and testing ahead of expected delivery in Q4 2022.
Matt Harper, CEO, commented: "We are constantly working to improve our customers' experience deploying Invinity's products. Delivering against tight timelines and seamlessly integrating our products at site is critical to achieving that goal. Our announcement today combines two critical steps toward delivering ever-larger projects that benefit from Invinity's focus on operational excellence at scale. I'm thrilled that our partners at Elemental and every one of our existing and future customers will benefit from this critical evolution of Invinity's capabilities."
DG Innovate
DG Innovate (DGI ) shares moved up 2.08% after the company provided an update on its Pareta electric vehicle drive and energy storage solutions.
DG Innovate said testing of its 250kW Pareta electric vehicle drive was underway. Initial performance results were in line with concept expectations, the company said, and cycle testing was expected to continue for another 2 months.
The Pareta project is being undertaken by a consortium of companies, including DG innovate and Meritor Electric Powertrain Systems UK, a subsidiary of US-headquartered Meritor Inc. DG Innovate said it is continuing discussions with partners and potential launch customers.
DG Innovate also provided an update on its energy storage solution. The initial formulation and testing of a hard carbon anode material from a sustainable bio waste product has advanced to the point of benchmark testing with good initial results, the company said. Plans are underway to supply small samples to key battery partners who consider this to be a good alternative to hydrocarbon-derived anodes for both sodium and lithium-ion batteries.
Peter Tierney, CEO, commented "We are very encouraged by recent progress, both with our Pareta e-drive and enhanced battery technology. This is a very exciting stage of the Company's evolution and development towards becoming a supplier of choice for differentiated electric vehicle and energy storage solutions to various key market sectors, including automotive applications both commercial and military. I look forward to providing further updates as we progress."
Follow News & Updates from Simec Atlantis Energy: Invinity Energy Systems: and DG Innovate: