Australian Vanadium Limited (ASX:AVL) Advances Project Lumina with Improved LCOS
Project Lumina Progress
Australian Vanadium Limited’s subsidiary, VSUN Energy Pty Ltd, continues advancing Project Lumina. The project focuses on developing a scalable, turnkey, utility-scale battery energy storage system using vanadium flow battery technology for the Australian energy market. Early contractor involvement with GenusPlus Group, Sedgman, and CellCube Energy Storage GmbH has enhanced the design and costing of the VFB BESS product.
Financial Competitiveness
Continued work on Project Lumina has confirmed a levelised cost of storage (LCOS) of A$214/MWh (±30%) for an 8-hour duration VFB BESS, significantly improved from the initial estimate of A$251/MWh. This LCOS remains competitive with similar lithium-ion BESS products currently available in the market.
Executive Comments
CEO Graham Arvidson stated, “AVL and VSUN Energy’s vertical integration strategy was built on the conviction that long-duration energy storage would soon become a major market opportunity in Australia and globally. That moment has arrived with the Australian energy sector advancing multiple eight-hour plus utility-scale storage projects nationwide, and for the first time we are seeing VFB BESS identified as the preferred solution in some of these longer-duration projects. As Project Lumina nears investment readiness, VSUN Energy is actively pursuing utility-scale projects across five states, aligning with government policies supporting long-duration energy storage, VFB adoption, vanadium mining and domestic downstream processing of critical minerals. Project Lumina remains on track for detailed design by Q3 CY2025, aligning with the accelerating demand for long-duration energy storage.”
Future Outlook
VSUN Energy is actively pursuing utility-scale VFB BESS solutions across five Australian states. The next steps include developing a construction-ready detailed design, advancing partnerships with energy offtake partners, and progressing funding strategies involving debt and strategic equity. Project Lumina aims to position Australian Vanadium Limited as a globally competitive supplier of BESS solutions, supporting the Australian Government’s National Battery Strategy.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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