Recently, South African vanadium producer Bushveld said it has received funding for the engineering, procurement and construction of a hybrid microgrid project that will provide energy for its Vametco mine operations in South Africa.

The hybrid microgrid project will provide vametco with approximately 10.7% of its electricity, while demonstrating the technical and commercial feasibility of hybrid microgrids using solar panels and full vanadium redox flow cells (VRFBs).

Bushveld Energy Ltd, bushveld's 84%-owned energy subsidiary, has completed development and financial settlement, which will provide Vametco with a 3.5 MW solar PV and a 1MW/4MWh VRFB hybrid microgrid project that will operate as an independent power producer.

Bushveld Energy and South African investment firm NESA have agreed to become strategic equity partners to jointly develop and finance hybrid microgrid projects under special purpose companies. NESA holds a 60 percent stake, while Bushveld Energy holds 40 percent.

"NESA Investment Holdings and NESA Power Group are proud to partner with Bushveld Energy to develop their iconic renewable energy project for bushveld Minerals' Vametco vanadium mine," said Percy Ying, director of NESA Investment Holdings.

"In addition to bringing long-term positive benefits to the mine, the project will be one of the first renewable energy projects in South Africa to adopt vanadium battery energy storage technology and demonstrate its commercial viability on a large scale."

The total cost of the project is estimated at R113 million (approximately £5.8 million).

ABSA affiliate banks have approved a loan of R64 million to partially fund the construction.

The project is now fully funded and is expected to be completed in the first half of 2023.

Fortuna Mojapelo, CEO of Bushveld Minerals, said: "In the future, we expect the demand for projects that combine solar PV and VRFB technologies to increase, especially in regions with similar challenges as South Africa. ”

The project will help Bushveld's mining and processing activities reduce their carbon footprint. CO2 emissions will be reduced by more than 8,000 tonnes per year and more than 200,000 tonnes of CO2 over the life of the project.