Dec 10, 2020

Funding and technicalities agreed for Mozambique gas plant

Gas
investment
Mozambique
Dominic Ellis
2 min
$2 billion project hailed as regional 'game changer'
$2 billion project hailed as regional 'game changer...

Debt funding and technical solutions have been secured for the Central Termica de Temane (CTT) project in Mozambique, which aims to become operational in Q4 2021.

CTT will be a 450MW gas-fired power plant supplying low cost, reliable power to EDM through a 25-year tolling agreement. Gas supply will come from the PSA concession at the Pande-Temane Inhassoro fields operated by Sasol Petroleum Mozambique Limitada. Globeleq is the lead developer along with its partners EDM, Sasol Africa Limited and eleQtra. 

CTT will receive funding of up to US$200 million from the US International Development Finance Corporation (DFC) and up to US$50 million from the OPEC Fund for International Development (OPEC Fund) once execution of the loan agreements and other closing conditions have been finalised. The International Finance Corporation is expected to provide the balance of the required debt financing and is in the process of finalizing its approvals. Together with the gas supply and related value chain investment, the entire project will see an investment in excess of US$2 billion. 

Spanish contractor TSK has been selected to design and construct the power plant, which will use efficient and proven Siemens gas turbines. TSK has extensive experience in designing similar-sized combined-cycle power plants utilising Siemens turbines.

Around 40 per cent of Mozambique people have access to electricity through the grid or mini systems, according to the IEA. Countries with electrification rates of less than 80 percent consistently suffer from reduced GDP per capita, reports McKinsey.

"Mozambique faces one of the lowest electrification rates in the world," said Edward Burrier, DFC Executive Vice President for Strategy. "This project will reduce the cost of electricity, increase power generation, and address a critical development challenge for the people of Mozambique. We are proud of our partnership and look forward to this important project moving forward." 

Abdulhamid Alkhalifa, Director-General of the OPEC Fund, said it marks the third project it has co-financed in Africa where Globeleq is the sponsor. "Our private sector loan facility complements a public-sector term loan we recently extended to Mozambique's government to finance 563 km of associated transmission infrastructure. Once completed, the Temane initiative will increase the supply of efficient and affordable energy to households, businesses and industries contributing to social and economic development in Mozambique and the region."

Mike Scholey, CEO of Globeleq, said: "The Temane initiative is an absolute regional game-changer. It will ensure a reliable and affordable power supply - crucial elements for economic and social development.  CTT will provide electricity access to millions of people in the region."

CTT will anchor the development of the 563km high-voltage transmission line and associated transmission infrastructure (the Temane Transmission Project or TTP). An aerial view of the capital Maputo is pictured.

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Jul 26, 2021

Form Energy receives funding power for iron-air batteries

Energy
batteries
grid
Renewables
Dominic Ellis
3 min
Startup Form Energy receives $200 million Series D financing round led by ArcelorMittal’s XCarb innovation fund to further develop iron-air batteries

Form Energy believes it has cracked the conundrum of commercialising grid storage through iron-air batteries - and some of the biggest names in industry are backing its potential.

The startup recently announced the battery chemistry of its first commercial product and a $200 million Series D financing round led by ArcelorMittal’s XCarb innovation fund. Founded in 2017, Form Energy is backed by investors Eni Next LLC, MIT’s The Engine, Breakthrough Energy Ventures, Prelude Ventures, Capricorn Investment Group and Macquarie Capital.

While solar and wind resources are the lowest marginal cost sources of electricity, the grid faces a challenge: how to manage the multi-day variability of renewable energy, even in periods of multi-day weather events, without sacrificing energy reliability or affordability.

Moreover, while Lithium-ion batteries are well suited to fast bursts of energy production, they run out of energy after just a few hours. Iron-air batteries, however, are predicted to have theoretical energy densities of more than 1,200 Wh/kg according to Renaissance of the iron-air battery (phys.org)

The active components of Form Energy's iron-air battery system are some of the cheapest, and most abundant materials: iron, water, and air. Iron-air batteries are the best solution to balance the multi-day variability of renewable energy due to their extremely low cost, safety, durability, and global scalability.

It claims its first commercial product is a rechargeable iron-air battery capable of delivering electricity for 100 hours at system costs competitive with conventional power plants and at less than 1/10th the cost of lithium-ion and can be optimised to store electricity for 100 hours at system costs competitive with legacy power plants.

"This product is our first step to tackling the biggest barrier to deep decarbonisation: making renewable energy available when and where it’s needed, even during multiple days of extreme weather, grid outages, or periods of low renewable generation," it states.

Mateo Jaramillo, CEO and Co-founder of Form Energy, said it conducted a broad review of available technologies and has reinvented the iron-air battery to optimise it for multi-day energy storage for the electric grid. "With this technology, we are tackling the biggest barrier to deep decarbonization: making renewable energy available when and where it’s needed, even during multiple days of extreme weather or grid outages," he said.

Form Energy and ArcelorMittal are working jointly on the development of iron materials which ArcelorMittal would non-exclusively supply for Form’s battery systems. Form Energy intends to source the iron domestically and manufacture the battery systems near where they will be sited. Form Energy’s first project is with Minnesota-based utility Great River Energy, located near the heart of the American Iron Range.

Greg Ludkovsky, Global Head of Research and Development at ArcelorMittal, believes Form Energy is at the leading edge of developments in the long-duration, grid-scale battery storage space. "The multi-day energy storage technology they have developed holds exciting potential to overcome the issue of intermittent supply of renewable energy."

Investors in Form Energy's November 2020 round included Energy Impact Partners, NGP Energy Technology Partners III, and Temasek.

In May 2020, it signed a contract with Minnesota-based utility Great River Energy to jointly deploy a 1MW / 150MWh pilot project to be located in Cambridge, MN. Great River Energy is Minnesota's second-largest electric utility and the fifth largest generation and transmission cooperative in the US.

Last week Helena and Energy Vault announced a strategic partnership to identify additional opportunities for Energy Vault’s waste remediation technologies as the company begins deployment of its energy storage system worldwide. It received new investment from Saudi Aramco Energy Ventures (SAEV) in June.

Maoneng has revealed more details of its proposed 240MWp / 480MWh Battery Energy Storage System (BESS) on Victoria’s Mornington Peninsula in Australia (click here).

The BESS represents hundreds of millions of dollars of investment that will improve electricity grid reliability and network stability by drawing energy from the grid during off-peak periods for battery storage, and dispatching energy to the grid during peak periods. 

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