MARKET - TEXEL

MARKET

The Energy Storage Market

Low carbon electricity is a central part in tackling climate change. Electricity generation is responsible for about 30 percent of the global greenhouse gas emissions every year. Excess supply of generated energy by solar and wind on sunny, windy days, overpowers the electric grid with so much electricity that the price turns negative – in other words, operators of solar and wind plants must pay to get rid of the overproduced electricity. It has come to a critical point where adding more solar and wind power to the grids does not increase the renewable energy supply without an energy storage solution to match it. The need for energy storage is growing and with it the market for storage is growing faster than any market before. According to Bloomberg New Energy Finance (BNEF) the global energy storage market, excluding pumped hydro, is expected to attract 1.2 trillion US dollars in investment from now until 2040.

Producing energy with solar technologies like photo voltaic (PV) creates huge production mid-day when the sun is shining, which pushes the price of energy down because of peak supply – production greater than demand. To avoid power cuts from cloud interruptions, energy is produced in the grid at the same time as oil, gas & coal, which pushes down prices down as well. Peak demand issues shown by the Duck Curve below is pushing the demand of energy storage.

The TEXEL battery technology provides a unique possibility to steer away from fossil fuels and at the same time be able to increase the solar and wind production without overproduction issues. This new TEXEL battery technology in combination with existing solar and wind installations does not only become cheaper but will compete with existing distribution of electricity 24/7-365.

California stands in the forefront as an early adopter of the development of CO2-free electricity generation. This by legislation to achieve a CO2-free electric grid in California by 2045 as well as reaching for a generation of 60 percent CO2-free renewable electricity already by 2025 in Los Angeles. California’s decision to become CO2-free was made at the same time as their development of wind and solar energy had reached its critical point. The investment needed for energy storage is calculated to approximately 350 billion US dollar, in California alone. Among the technologies to make this transformation possible are pumped hydro, compressed air, concentrated solar towers and lithium-ion batteries. The TEXEL battery technology is not only cost-competitive compared to these other solutions, but also scalable to decentralized grid solutions, microgrids, as well as independent residential solutions.

The rest of the world is following in California’s footsteps. The European Union has the aim of becoming climate neutral by 2050 in accordance with EU Green Deal and IPCC’s (The Intergovernmental Panel on Climate Change). In 2018, Australia was the first country to take a large step by installing a 129 MWh Tesla produced lithium-ion battery installation, by that time the largest battery park in the world. Later that same year Southern California Edison ordered a 195 MWh lithium-ion installation to replace a gas plant. Germany is also getting closer to the same critical point and will not be able to install more wind and solar without including an energy storage solution. This is happening even though lithium-ion batteries are up to 10 times more expensive than the TEXEL Battery technology.

Market Segments and Applications

The battery and energy storage market has many segments and applications. From the smallest battery devices to huge energy storage parks to store MWh grid size energy. TEXEL is focusing on the large-scale energy storage market. TEXEL’s large-scale battery modules combined with the Gas Hybrid option takes the technology far beyond any existing battery technology by providing no need for backup systems and creates a secured grid.

The TEXEL battery is the perfect solution to create fully independent residential storage and energy production, or to secure energy production 24/7365 in a microgrid. Connecting many residential storage units with AI, creates a dynamic grid or microgrid. By using the TEXEL battery in this application, the overall energy efficiency is increased to 90 percent (50 percent heat and 40 percent electric).

The high energy density of the TEXEL battery is opening up potential in the electric vehicle (EV) market. This market is growing fast, and TEXEL battery could in the future be used to reduce battery costs for cars, trucks, buses, trains, ferries, etc. TEXEL has been approached by the EV market and is considering this segment as a future possibility.

Market Opportunities in the U.S.

TEXEL and Arizona State University signed a co-operation agreement in 2020 to bring the TEXEL battery technology towards commercialization in the US. .ASU has analyzed and evaluated the TEXEL technology’s competitiveness to other energy storage technologies, in different market applications in the US, like solar with storage peaker plants, microgrids, critical public infrastructure, and commercial and residential buildings.

ASU concludes that an economically viable and circular energy storage technology is needed to be able to create the change in future energy production and distribution needed to reach the future goals and legislations. The ASU report highlights an opportunity in the Power Purchase Agreement market when coupled with solar generation citing a 4-hour lithium-ion storage plus solar PPA currently yielding a blended LCOE of $43 per MWh, whereas one using the TEXEL technology could offer $26 per MWh.