Australian Vanadium Limited · ASX:AVL
Australian Vanadium — Diggers and Dealers Mining Forum 2024
27 slides from Australian Vanadium's conference presentation, August 2024
Slide 1: AVL - the solution to Australia's energy storage needs
AVL - the solution to Australia’s energy storage needs Diggers and Dealers Mining Forum August 2024 ASX:AVL
Slide 2: Compliance & Cautionary Forward-looking Statements
Compliance & Cautionary Forward-looking Statements The views expressed in this Presentation contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information.
Slide 3: A renewables-based energy transition requires both electricity generation AND matched energy storage
A renewables-based energy transition requires both electricity generation AND matched energy storage Metal contribution to supply chain value • There is enormous effort and spend 60% on electricity generation – too little on energy storage 50% • Vanadium flow batteries provide a 40% proven, economic
Slide 4: Growing global need for battery storage
Growing global need for battery storage Renewable energy is forecast to account for over …increasing the need for global stationary energy 40% of global energy generation by 2028… storage Share of global renewable electricity generation by Global demand in GWh technology, 2000−2028 50% 1,200 1,114 A
Slide 5: The need for long duration storage – Californian case study
The need for long duration storage – Californian case study California’s Average Daily Operational Demand (April 2024)1 California has 46GW of installed solar capacity2 and over 10GW of 30 battery storage capacity3 6am 12pm 6pm 12am 6am Mismatch in renewable 25 generation versus storage Imports capa
Slide 6: The need for long duration storage – Victorian case study
The need for long duration storage – Victorian case study Victoria recently set a new peak power Winter operational demand – Victoria 15 July 2024 demand record of 8.6GW 30min Generation Type/Operational Demand MW 8,000 Despite Victoria having over 4GW of solar capacity, solar and 6,000 battery stor
Slide 7: The benefits of VFBs
The benefits of VFBs Zero 4-10+ 30+ >60% Thermal Hours of storage Year asset Commercial end-of- event risk capacity life life reuse and recyclability Cost 100% Zero Proven Competitive on a Depth of Operational Nearly 20 years of LCOS basis to discharge warranty grid-connected VFBs lithium-ion batter
Slide 8: Levelised Cost of Storage (LCOS)
Levelised Cost of Storage Levelised Cost of Storage (LCOS) 400 350 Lithium-ion VFB Large scale vanadium flow 300 1 1 batteries are projected to have 250 US$/MWh a lower LCOS than the current 200 benchmark utility-scale lithium 2 batteries, driven by their 30+ 150 2 year life and residual value 100 (
Slide 9: The VFB is a proven and commercialised technology at scale
The VFB is a proven and commercialised technology at scale VFBs are operational across 20+ countries Japan China USA Sumitomo Electric Industries Rongke Power Sumitomo Electric Industries 15MW x 4 hour and 17MW x 3 hour VFB in 100MW x 4 hour VFB in Dalian, China 2MW x 4 hour VFB in San Diego, USA Ho
Slide 10: The transition is underway in China - Australia needs to make progress
The transition is underway in China - Australia needs to make progress Global VFB projects Recent announcements from China indicate 120 the potential for 180 GWh of VFB deployment by 2030, requiring 1.4 million Announced tonnes of V2O5 VFB projects 100 2023 global production of vanadium was 80 equiv
Slide 11: Vertically integrated to generate value across the supply chain
Vertically integrated to generate value across the supply chain Upstream Midstream Downstream Vanadium Electrolyte Battery Mining and Manufacture Installation and Processing Maintenance Asset Australian Vanadium Project Electrolyte manufacturing facility VSUN Energy AVL High-grade project in Tier-1
Slide 12: VSUN Energy – engaging with mining and utility customers
VSUN Energy – engaging with mining and utility customers IGO Limited Horizon Power Nova Nickel Operation (Western Australia) Kununurra (Western Australia) Installation of a VFB to provide storage capacity to allow for carbon free Horizon Power, a utility owned by the Western Australia government, el
Slide 13: VSUN Energy will utilise key relationships to deliver a total VFB storage solution
VSUN Energy will utilise key relationships to deliver a total VFB storage solution Site Infrastructure Utilise local specialist EPC partners Electrolyte Sourced from an AVL Forward Planning electrolyte manufacturing Ensuring additional units can facility be installed as required Battery Technology U
Slide 14: Leveraging partners to accelerate deployment
Leveraging partners to accelerate deployment Technology and VFB Energy Land Deployment Funding Offtake Access • Advanced discussions • 30+ year asset life • Advanced discussions • Advanced discussions with VFB technology delivers multiple with BESS energy to secure land access partners to secure fun
Slide 15: VSUN Energy delivers local content to the Australian market
VSUN Energy delivers local content to the Australian market VSUN Energy’s ability to leverage electrolyte supply from AVL delivers a VFB that contains an unrivalled local content component with unparalleled supply chain security International VFB Competitor Overseas Australia Overseas Australia Indi
Slide 16: Proven vanadium electrolyte manufacturing capacity
Proven vanadium electrolyte manufacturing capacity AVL built, owns and operates a manufacturing facility in Perth, Western Australia, capable of commercial vanadium electrolyte production • 33MWh per annum energy storage equivalent of vanadium electrolyte production • First production completed in 2
Slide 17: The world class Australian Vanadium Project unlocks our strategy
The world class Australian Vanadium Project unlocks our strategy A world class asset located in Western Australia, a Tier-1 mining jurisdiction Simple open pit mining with standard magnetite concentrator process Proven processing technology that reduces project risk Optimised Feasibility Study (OFS)
Slide 18: Improved funding capability
Improved funding capability Potential project funding mix $49M Australian Vanadium offtake Commercial Equity market Government grant banks investors (eg VSUN Energy, secured VFB project developers, steel, electrolyte producers, Government aerospace and funding bodies (eg Equity market defence, speci
Slide 19: Progressing the project to production
Progressing the project to production Delivered Next steps BFS completed (pre-merger basis) AVL Project Downstream strategy Mining Leases approved Publish integrated Optimised Secure VFB technology partners Feasibility Study (OFS) Completion of large-scale process Secure priority locations for VFB p
Slide 20: Investment thesis
Investment thesis Growing World-class Ability to capture vanadium High metal Australian downstream Delivering local fundamentals content of VFBs Vanadium Project value content Leveraged to energy Underpinning the World-class asset VSUN Energy Australian Vanadium market structural importance of locat
Slide 21: Appendix
’ Appendix vers
Slide 22: Board
Board Cliff Lawrenson Daniel Harris Miriam Stanborough AM Chair Non-Executive Non-Executive Director Director Experienced Chair and extensive Over 40 years of global vanadium Over 20 years of experience in the executive career in resources, experience, including processing mineral processing industr
Slide 23: Executive Team
Executive Team International vanadium expertise − track record in project execution and operations Graham Arvidson Todd Richardson Louis Mostert Chief Executive Chief Operating Chief Legal and Officer Officer Commercial Officer 18 years of experience in the Over 20 years of experience in the 20 year
Slide 24: What is a vanadium flow battery (VFB)?
What is a vanadium flow battery (VFB)? • A VFB is made up of two tanks filled with vanadium electrolyte fluid • The electrolyte acts as cathode and anode, tank size determines capacity • Vanadium electrolyte contains 145g of high-purity V2O5 per litre • Invented over 40 years ago and commercialised
Slide 25: Comparison between VFB and Li-ion Battery Technologies
Comparison between VFB and Li-ion Battery Technologies Vanadium Flow Battery Lithium (Li-ion) Energy Battery – Store large amounts of energy for later Power Battery – ideal for shorter-term high- use power application Energy stored in electrolyte tanks All energy stored in cell Stable – non-flammabl
Slide 26: ESG in action
ESG in action Renewable energy strategy Community relationships Governance • Ability to produce ethical, low • Workforce participation and • Developing ESG reporting structure carbon vanadium product, business opportunities for Yugunga- aligned to the global ISSB expecting to be 50% lower carbon Nya
Slide 27: Australian commitments driving energy storage
Australian commitments driving energy storage The Australian Federal Government continues to target 82% renewable energy by 2030, introducing the Capacity Investment Scheme (CIS) to encourage new investment in renewable capacity (eg wind and solar) and dispatchable capacity (eg battery storage). The
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