Jun 22, 2017

Lyon launches first utility-scale battery storage market services tender

Solar
Renewable Energy
Green Energy
Nell Walker
2 min
Artist's impression of Nowingi
Lyon Group is launching a brand new market-driven approach that will determine the services provided...

Lyon Group is launching a brand new market-driven approach that will determine the services provided by its portfolio of large-scale battery storage projects.

The company is seeking interest from businesses wanting battery storage in Victoria, South Australia, and Queensland. Included in Lyon Group’s capabilities is a new $660 million combined large-scale solar and battery storage project at Nowingi in north-west Victoria. Construction is set to commence soon and around 250 workers will be employed.

Lyon’s offering is called its Battery Storage Market Services Tender and is an opportunity for electricity retailers and generators, according to Partner David Green.

“Lyon is able to offer multiple services from the same battery system, and flexibility in contract size to accommodate various users,” Green said. “Lyon will enter into commercial contracts for real services provided by physical assets. This is not a theoretical exercise.”

The tender’s outcome will influence the final design of the battery storage systems, an approach which is believed to be a world first. The projects within the tender, besides Nowingi, are Queensland’s Cape York and South Australia’s Riverland.

Green continued: “These projects are working through development consultation and approvals. The land has been secured, technology and other commercial arrangements are in place, and the required network capacity analysis and consultations are well advanced. Lyon’s projects are 100 percent equity financed.

“Projects like these are the heart of Australia’s energy transition, allowing for substantially higher levels of variable, low emissions generation, while strengthening the resilience of the system.”

The recent Finkel report, which details the future of the nation’s electricity market, highlighted the role of large-scale battery storage and how that need is likely to evolve.

“Lyon’s Battery Storage Market Services Tender is a reflection of the new energy world the Finkel Report describes. It is real and it is happening.

“Large-scale battery storage will be integral to meeting the Energy Security Obligations recommended by Dr. Finkel.”

Green added: “The Finkel Report highlighted the importance of fast frequency response, which is delivered by large-scale battery storage more effectively than any other alternative.

“As the cost of large-scale solar with storage has fallen, the interest of international investors has risen considerably.

“Nowingi Solar Storage will improve the security and reliability of a stretched part the grid and put downward pressure on electricity prices.”

Lyon is developing a number of new and innovative battery storage products that it will release to the market in the near future. Green concluded: “Lyon identified the need for large-scale battery storage some five years ago. We’ve been working with governments, market bodies and utilities for an extended period.”

For more information about Nowingi Solar Storage or Lyon’s Battery Market Services Tender, visit www.lyonbatterystorage.com.au

Share article

Jun 7, 2021

Trafigura and Yara International explore clean ammonia usage

Shipping
fuel
Decarbonisation
ammonia
Dominic Ellis
2 min
Commodity trading company Trafigura and Yara International sign MoU to explore developing ammonia as a clean fuel in shipping

Independent commodity trading company Trafigura and Yara International have signed an MoU to explore developing ammonia as a clean fuel in shipping and ammonia fuel infrastructure.

Reducing shipping emissions is a vital component of the fight against global climate change, yet Greenhouse Gas emissions from the global maritime sector are increasing - and at odds with the IMO's strategy to cut absolute emissions by at least 50% by 2050. 

How more than 70,000 ships can decrease their reliance on carbon-based sources is one of transport's most pressing decarbonisation challenges.

Yara and Trafigura intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain. Under the MoU announced today, Trafigura and Yara intend to work together in the following areas:

  • The supply of clean ammonia by Yara to Trafigura Group companies
  • Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
  • Development of new clean ammonia assets including marine fuel infrastructure and market opportunities

Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said the agreement is a good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. "Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," he said.  

There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential, according to Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.

Ammonia has a number of properties that require "further investigation," according to Wartsila. "It ignites and burns poorly compared to other fuels and is toxic and corrosive, making safe handling and storage important. Burning ammonia could also lead to higher NOx emissions unless controlled either by aftertreatment or by optimising the combustion process," it notes.

Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.

Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually and employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe.

It recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.

Share article