The first 100 MWh EVx system has been in the works since March 2022, and aims to support grid resilience and the delivery of renewable energy to the Chinese national grid. The leader in sustainable grid-scale energy storage solutions, Energy Vault Holdings, NRGV, NRGV WS) (“Energy Vault”), announced on Friday that it will make the first installation of the EVx™ in China. Check out the official announcement.
The 100 MWh gravity-based EVx system is being built adjacent to a wind farm and national grid site in Rudong, Jiangsu Province, located outside of Shanghai, to augment and balance China's national power grid through the renewable energy supply State Grid Corporation of China (SGCC).
SGCC is the world's largest utility and supplies power to more than 1.1 billion Chinese citizens in 26 provinces, autonomous regions and municipalities, covering 88% of Chinese national territory. The start of construction of the EVx follows the previously announced license and royalty agreement for renewable energy storage in partnership with Atlas Renewable LLC (“Atlas Renewable”), based in Houston, Texas, and its majority investor China Tianying, a corporation international environmental management and waste remediation company involved in smart urban environmental services, recycling and resource recovery, and zero-carbon clean energy technologies.
The project is the first utility-scale gravity-based storage deployment between a China and US company and has been approved by the city government and the provincial government, with support from the central government agencies of the People's Republic of China.
The EVx deployment received unprecedented accelerated preliminary approval on March 12 at a conference of intergovernmental agencies including the National Development and Reform Commission, Ministry of Information and Technology Industry, Ministry of Ecology and Environment, Chinese Academy of Sciences , Chinese Academy of Engineering, National Department of Energy, National Power Grid and National Electric Power Planning Institute, as well as some of China's leading scientists, academics and engineers, to accelerate and advance their state-mandated environmental policy, commonly referred to as the “30 -60”. This policy has a stated target of Peak Carbon by 2030 and Carbon Neutrality by 2060.
On April 26th, Three Gorges Construction Group, Professional Energy Investment Committee of China Investment Association, Atlas Renewable China Construction New Energy Shanghai (7th Unit) and China Tianying held an online seminar to discuss the deployment of energy storage by gravity in China.
The parties held exchanges and communications on gravity energy storage technology and the deployment of Energy Vault's EVx system in Rudong, Jiangsu Province. Representatives from all parties expressed their fervent support for the project and full confidence in the future of gravity energy storage technology in China.
Both Three Gorges Construction Engineering Group and China Construction New Energy Shanghai (7th Unit), two major global energy and construction companies, pledged to participate in the in-depth cooperation with Atlas Renewable and China Tianying on Energy's gravity energy storage projects. Vault and promote the implementation of the project in China.
Energy Vault and Atlas Renewable have signed a US$ 50 million licensing agreement for the use of Energy Vault's proprietary gravity-based energy storage technology and its suite of technology-agnostic energy management and asset optimization software on the market. of Chinese energy.
The agreement also includes terms governing volume-based deployment royalties and covers maintenance, monitoring and beneficial reuse of waste materials in Energy Vault's composite blocks. The payment of the license fee of US$ 50 million is scheduled to be completed in 2022.
Energy Vault's partnership with Atlas Renewable and China Tianying, and the deployment of the EVx, is directly in line with the US-China Joint Glasgow Declaration on Enhancing Climate Action in the 2020s, US-China Glasgow Joint Declaration on Improving Climate Action in the 2020s, published at COP26 in November 2021.
The Declaration states that the US and China intend to expand their combined efforts to accelerate the transition to a net-zero global economy through cooperation on policies to encourage decarbonization and electrification of end-use sectors; key areas related to the circular economy, such as green design and the use of renewable resources; transmission policies that encourage the efficient balance of electricity supply and demand across broad geographies; and distributed generation policies that encourage the integration of solar, storage and other clean energy solutions closer to electricity users, among other initiatives.
“China is rapidly expanding its use of renewable energy, along with annual energy storage mandates, in order to meet its decarbonization targets. We are delighted that EVx and our energy management software platform have already received local regulatory approval and are now being deployed as a critical enabling technology to support China's energy transition and carbon neutrality goals. In 2021, China produced more metric tons of greenhouse gases than the world's four largest countries combined and, as currently planned, will continue to increase emissions through 2030. We must act quickly to reverse this trend, and with local partners China Tianying and Atlas Renewable, we will do just that,” said the main CEO of the Energy Vault project.