third party owned microgrid for >50% cost savings
TRANSCRIPT
Third Party Owned Microgrid for >50% Cost Savings
2ViZn- Confidential
Presenter: Mike Grunow
VPofMarketing,ViZnEnergy
14Yearsofexperienceincleanenergy:wind,solar&storage
GEWind:300MWto6GWAnnuallyTrinaSolar:250MWto1.3GWAnnually
EducationBSMEWashingtonUniversityinSt.LouisMBAinFinance,ColumbiaUniversity
3Boys(5/7/9)
OpenWaterSwimmer
kW & kWh Concerns of Remote Mines
4ViZn- Confidential
High Operating Cost of Conventional Energy
• Energy=LargepartofMiningOPEX• Criticalpowerapplications• Power&Energyintensive• Longfuelsupplychains.• 24/7gensetoperationrequiresconstant
maintenance• Loud,Dirty• DeepMineTemperatureè 60Cè Kill
Workersiftheoutageismorethan30mins.• OutageanddowntimelossinMillionsof$’s.• GHGEmissionRegulations.
Cheapendlessenergynolongercomesfromtheground.Costofenergyofwindandsolarreducedby40%since2013.
5ViZn- Confidential
Economic Life of Mine (LoM)
• 70%ofmineshaveaLoMof<7years.• Productionphaseispowerandenergy
intensivecomparedtoanyotherphaseofmining.
• Renewables/EnergyStorageiscompetitiveforminecenterswithlongerLoM.
• PVprojectscanalsobeleftbehindforthelocalcommunitytouseoncethemineisclosed.
6ViZn- Confidential
Renewables Integration Challenges
VariableandNotDispatchable
TheftandVandalism
RemoteSite
Reliability
Rewards….
• Upto50%energysavingsperyear• Upto50%emissionsreduction• Quiet&Clean• Criticalloaddowntimeelimination• 20+yearsystemforlocal
community• Safe,non-toxic,non-explosive
ViZn & CMI’s Versatile Turnkey Solution
8ViZn- Confidential
ViZn… The Best Solution For a BIG Problem
• 10YOCommercializedtechnology• Buildinglargestflowbatteriesineachlocation:NorthAmerica,CentralAmerica,India&Europe
• CommodityMaterialsà Lowcost• 20Yearsw/zerofadeà LowOPEX• Power&energyservicesinoneà upto1.5Xthe$/MW/Y
• Tier1partnersà turn-keysolutionsandglobalfulfilment
9ViZn- Confidential9
BestGridScaleNonLi-IonTechnologyintheglobalmarket
IndustryRecognized
2017
10ViZn- Confidential
Energy & Power Services From One Versatile Platform
EnergyOR PowerServicesFor7 - 10Years
EnergyAND PowerServicesFor20Years
11ViZn- Confidential
Battery Versatility is Critical for Microgrids
MicrogridRequirements:1.Stabilizing2.Spinningreserves3.Powerquality4.Standaloneoperation5.Smoothing6.Shaving7.Shifting8.Seamlesstransfer
RemoteMicrogridsRequireLongDurationEnergyandHighPowerServices
Source:ABBMay2016
Li-Ion
12ViZn- Confidential
A Battery That Can Truly Go Anywhere
SimplifiedSiting,Permitting,Insurance,TransportandEndofLifeRecycling
Li-Ion
“Black&VeatchbelievesthattheViZnbatteriesoutperformsystemswithlithiumbasedchemistriesathighambienttemperature duetothefactthattheViZnEnergyStorageSystemrequiresasmallerHVACload.”
Source:"NFPA704:StandardSystemfortheIdentificationoftheHazardsofMaterialsforEmergencyResponse
13ViZn- Confidential
CMI: Turnkey Solutions For Global Industries
• 200yearsold.• PrivatelyOwned,International
Group.• US$1.3BillioninSales• 4,500employees• Rapidlygrowing.
14ViZn- Confidential
ViZn & CMI - Turnkey Solution
FeasibilityStudy
ProjectDevelopment Engineering Procurement&
Manufacturing Construction O&M
• InputDataCollection
• Customerneedsanalysis
• Businesscasestudy• Risk&Opportunity
analysis• ConceptProposal
• SystemSizing• ESSProducts
Selection• EMSIntegration• DetailedSolution
Proposal• Sourcing• Technical&
CommercialOffer• Financing
• ProjectManagement
• Procurement• Manufacturing• Delivery• CivilWork• Construction• ESSIntegration• ESSIntegration• BOP• Testing
• OnsiteReliabilityRun
• Commissioning• Start-up• EMSmonitoring• Maintenance
EnergyStorageSolution
EPCProjectE
xecutio
n
Commission
ing,O&M
Techno
-Econo
micAna
lysis
15ViZn- Confidential
CMI & ViZn Project PV- 2MWp,1.85GWh
MiRISPlant
PVPanels
PVInverters
Substation+Transformer
Batteries
BatteriesPCS
PVDClines(toinv.)
MVACmainline(toCMImainsubstation.
FB- 2x500kW,4h
Case Study
17ViZn- Confidential
Mining Case Study Assumptions
• Year:2019• Location:NorthAfrica• PVTrackerCAPEX:$1.3/Wp• TurnkeyBatteryCAPEX:$500/kWh
for1MW/4MWh• 3%DieselPriceescalation,6%
DiscountRate• 7%UnleveredIRR
18ViZn- Confidential
Diesel Run Gold Mine in Burkina Faso
• SystemShutdownbetween15minsto2hoursformorethan5timesaweek.
• VeryhighOperatingCostduetohighdieselconsumption.AnnualOperatingCost=$4.48MM.
ISSUES
PROPOSEDSOLUTION
• 4.2MWPV+1.2MW4hourViZnBattery($9.5M)
• ImproveReliabilityby100%
• ReduceDieselConsumptionandCarbonEmissionsby54%.
• ReduceOPEXby55%.
19ViZn- Confidential
Diesel Run Gold Mine in Burkina Faso
DieselGensetSiteLoad PV
Diesel+PV
20ViZn- Confidential
Diesel Run Gold Mine in Burkina Faso
SiteLoad PV DieselGenset BatteryCharge BatteryDischarge
Diesel+PV+ES
21ViZn- Confidential
Diesel Run Gold Mine in Burkina Faso
Specifications DieselOnly Diesel+PV Diesel+PV+ESS
PV(MW) -- 3MW 4.2MW
ES(MW/MWh) -- -- 1.2MW,4.8MWh
AnnualFuelSavings$ -- $1.46MM $2.28MM
EstimatedSystemCAPEX$ $2.26MM $5.62MM $9.56MM
AnnualSiteLoad 14,965MWh
PeakLoad 2.6MW
AnnualFuelExpense $4.48MM
Avg.DieselBurnt/Day 11,200Liters
DieselReduction,EmissionReduction,Fuel$Savings
0% 36% 54%
22ViZn- Confidential
Blended PPA Rate for 7% Unlevered IRR
>7yearcontractrequiredtomakebatteryviable.
0.33 0.32 0.32 0.32 0.320.300.27
0.26 0.24 0.23
0.32
0.270.24
0.21 0.20
0.000.050.100.150.200.250.300.350.40
5Years 7Years 10Years 15Years 20Years
PPARate($/kWh)Sensitivity@Diesel$/ltr =$1.0/ltr
DieselOnly Diesel+PV Diesel+PV+ESS
23ViZn- Confidential
Blended PPA Rate for 7% Unlevered IRR
5yearcontractrequiredtomakebatteryviable.
0.62 0.61 0.61 0.61 0.61
0.49 0.46 0.44 0.43 0.420.450.40
0.37 0.34 0.33
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
5Years 7Years 10Years 15Years 20Years
PPARate$/kWhSensitivity@Diesel$/ltr=$2.0/ltr
DieselOnly Diesel+PV Diesel+PV+ESS
24ViZn- Confidential
Summary
ViZn
20YearSystemLife üMicrogridPower+Energy Services ü
Safe&Non-ToxicChemistry ü
ZeroBatteryCapacityFade ü
Benefits:
• Upto50%energysavingsperyear
• Upto50%emissionsreduction• Quiet&Clean• Criticalloaddowntime
elimination• 20+yearsystemforlocal
community• Safe,non-toxic,non-explosive
