Lithium-ion batteries looking to store the green revolution, not just to drive it

By Adam Page
Published: Wednesday, 24 December 2014 on indmin.com

California is following Hawaii’s lead in using lithium-ion phosphate batteries to storage its energy. The Golden State is aiming to install 1.3GW of storage by 2040 and CODA Energy is taking the first steps with this.

US-based CODA Energy’s behind-the-meter lithium-ion phosphate energy storage system in the Los Angeles basin is now interconnected and operational. The 1,054kWh/510kW system is comprised of electric vehicle (EV) battery cell packs.

"CODA Energy set high goals for this year. We now have proven solutions that cover the full spectrum of our commercial and industrial customers’ needs for peak power and energy," said Peter Nortman, CODA Energy’s COO and CTO.

The project was developed under a contract with South Coast Air Quality Management District (AQMD) and co-funded by California’s Self-Generation Incentive Program (SGIP). The project hopes to demonstrate the scalability of CODA Energy’s peak shaving product architecture by managing demand charges for its facility headquarters in Monrovia, California.

Light up the sky: CODA Energy will be powering the Los Angeles basin with an energy storage system powered by Li-ion phosphate batteries.

"Our behind-the-meter active and interconnected storage systems range from a 40kWh UL listed energy storage appliance to this 1,054 kWh scaled and tailored aggregation solution," he added.

The system is comprised of two networked and aggregated multi-tower systems that can operate in concert or deliver independent services. CODA hopes its scalable hardware and proprietary networking software gives its system configuration ample flexibility and the potential to operate across a local or regional level.

New storage market

At this year’s Battery Show in Michigan, speakers underlined the importance of diversifying the use of lithium-ion (Li-ion) batteries, like those being used by CODA. Enersys’ president, Dave Shaffer, insisted that battery producers must be geographically and technically adaptable to preserve the future sustainability of the market.

John Gagge, vice president for reserve power sales and service at EnerSys Americas, highlighted the growing energy demands of major cities and emphasised that there was a major opportunity for energy storage providers.

Archan Padmanabhan, stationary energy storage specialist for EV maker Tesla Motors Inc., spoke of the company’s drive to develop stationary energy solutions that will allow Tesla to meet its target of enabling widespread, sustainable transportation.

"It’s not just important to have EVs on the road, but to have them charged by cleaner sources of energy," said Parbmanabhan.

French battery maker Saft is currently developing a Li-ion energy storage system for the Hawaiian island of Kauai to regulate its electricity supply from renewable sources. The rest of Hawaii is seeking to transform its energy distribution system by 2017.

At the Battery Show, Kamen Nechev, chief technology officer at Saft, said that while performance advantages and storage ability remain key determinants of battery demand it will ultimately be costs that define whether the technology is viable.

The high cost of R&D and the varying demands of the technically multifaceted industrial sector are major obstacles that need to be overcome for projects to be workable. As a result, new sources of raw material are likely to be needed to prevent price inflation as demand from the battery sector grows.

FMC Corp.records higher minerals revenue and earnings in Q4 2014

By Adam Page
Published: Thursday, 05 February 2015

FMC has been a leading global producer of lithium and soda ash for several years. With the sale of its soda ash arm it has now concentrated its mineral focus onto lithium which it believes will enjoy an uptake in prices as interest in energy storage picks up.

US-based FMC Corp. has reported record soda ash production for the final quarter of 2014, while its lithium operations continue to improve, despite the challenges it faces at its facilities in Argentina.

According to its full year 2014 results, released late yesterday, FMC’s minerals segment recorded earnings of $166.7m in 2014, a 30% rise on 2013. During Q4 2014, earnings reached $47.9m, a 32% rise compared to Q4 2013.

Lithium revenues for the three months ending December 2014 were 3% lower when compared to Q4 2013. However, revenues for the full year were up 15% and earnings in the business were up approximately 125%, due to strong operational performance and higher volumes.

Last year, restructuring cost the lithium segment $9.1m, while the continued work at an environmental site incurred a corporate charge of $6.2m.

Speaking during a conference call today, Pierre Brondeau, CEO of FMC, said that its lithium portfolio had been "mixed" in 2014. He stated that there was an increasing interest in lithium, leading to a "tightening in carbonate supply and demand."

FMC did not disclose its lithium and soda ash production levels in its quarterly results.

Overall, the company posted revenue of $1.1bn in Q4 2014, a 3% decline on the previous year.

Shifting focus

With the agreed sale of its Alkali Chemicals business — the largest natural soda ash producer in the world — to Tronox, FMC will change its name to FMC Lithium.

Brondeau said that this was part of a wider company strategy to create "a more focused portfolio."

"In Lithium, we are optimistic that demand for downstream products, particularly for energy storage applications, will continue to grow rapidly," said Brondeau.

FMC anticipates higher prices for lithium hydroxide and carbonate based on the fact that the energy storage sector is growing at double digit rates. It expects earnings to be in the range of $15m to $25m in 2015.

The company produces a variety of lithium chemicals at its Hombre Muerto operation in northern Argentina. It noted that operational costs have been hit by Argentina’s import restrictions, which make it difficult to deliver certain critical engineering components.

"Despite strong underlying performance in our lithium business, we are unable to produce consistent results across multiple years due to the challenges of operating in Argentina's high-inflation environment," Brondeau said.

"We want to reduce costs as much as possible," Brondeau added, noting that, "adverse currency conditions in Argentina could be a significant headwind to earnings".

Brondeau also said that FMC would continue to take an interest in the electric vehicles (EVs) market despite a decline in energy prices.

"Gas prices are not the drive when you decide to buy a Telsa; it is part of it but it is not the driver," Brondeau said, pointing out that those who were likely to be interested, "will look beyond one year gas prices".

FMC expects the agreed sale of Alkali Chemicals and the agreed purchase of Denmark-based agricultural supplier Cheminova to be completed in Q1 2015. FMC believes that the sale can cut its debt pile following its $1.8bn purchase of Cheminova in September 2014.