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Highlights
- Project Lumina lowers energy storage costs to A$214/MWh
- Australian Vanadium targets five-state deployment across Australia
- Design enables scalable utility-scale flow battery storage
Australian Vanadium Ltd (ASX:AVL) is gaining attention with its flagship energy storage venture, Project Lumina, after reporting a significant reduction in the levelised cost of storage (LCOS). The project, spearheaded by AVL’s subsidiary VSUN Energy, has brought down LCOS estimates for an eight-hour vanadium flow battery (VFB) to A$214 per megawatt-hour (MWh) from a prior A$251/MWh—making it a strong contender in the long-duration storage segment, especially when compared to traditional lithium-ion alternatives.
VSUN Energy is progressing with the development of a utility-scale battery energy storage system (BESS) with modular capabilities. Collaborating with partners such as GenusPlus Group, Sedgman, and Cellcube Energy Storage GmbH, the team is focusing on a scalable, locally sourced design that can support national grid needs.
The system is designed around modular 15 MW arrays that can be expanded into configurations like a 90 MW BESS by combining six arrays. Each array includes its own power and electrolyte storage units, power conversion systems, cooling infrastructure, and control units. This modular approach supports faster deployment, cost efficiency, high local content usage, and simplified future expansions.
The improved LCOS figure was achieved by optimizing design and utilizing Australian-sourced materials wherever possible. Assumptions used in the cost modelling include an operating life of 30 years, 78% round-trip efficiency, and a vanadium pentoxide (V₂O₅) price of US$10 per pound, all based on Australian Energy Regulator benchmarks.
Project Lumina is strategically aligned with government initiatives backing long-duration energy storage, critical minerals development, and renewable energy integration. VSUN Energy is actively exploring opportunities across five Australian states, aiming to contribute to proposals like the 500 MWh BESS project in Kalgoorlie.
As part of this momentum, detailed engineering design is expected to be finalised by Q3 2025. Future steps involve securing land, advancing offtake arrangements, and exploring funding models, including Build-Own-Operate (BOO) structures.
These developments come at a time when investors are increasingly tracking emerging sectors within the ASX300, and companies like Australian Vanadium may also draw attention from those interested in sustainable infrastructure among ASX dividend stocks.
With Australia's energy sector shifting toward eight-hour-plus storage solutions, Project Lumina positions Australian Vanadium (ASX:AVL) as a potential key player in supporting the country’s clean energy transition through innovative and cost-effective energy storage architecture.
