Lead-carbon batteries feature in Chinese BESS

There is no doubt that a huge increase in the capacity to generate and store renewable electrical energy is required over the next quarter century if efforts to reduce substantially the use of fossil fuels and to approach the goal of net-zero are to be achieved.? While forecasts may vary, the implied increase in battery capacity, even by the end of the current decade, is staggering.? Batteries will be needed to power electric vehicles (EVs), store and deliver renewable energy and to be an integral part of power transmission and distribution networks that will have to adapt to new sources of, and much increased overall demand for, power.? While battery makers, many new to the industry, but also some well-established producers, are expanding capacity to meet the anticipated demand, it is also apparent that supplying enough of the raw materials, such as lithium, that will go into the new batteries may prove very challenging.? For now, all attention is on satisfying the lithium battery demands of auto makers even though there is also a pressing need to beef up power grid infrastructure in line with the growing needs of EVs and increasing generation of wind, solar and other sources renewable energy.

A recent webinar hosted by Eurobat highlighted the potential growth opportunities for battery energy storage in Europe over the next decade or so.? While the range in forecast outcomes is large, there is no doubt that a very significant investment in battery energy storage will be required to facilitate the expansion in renewable energy generation and to meet targets for phasing out the use of fossil fuels.? Moreover, forecasts for battery installations in the Americas and, especially, in Asia exceed those for Europe.? For example, Rystad Energy anticipates annual global BESS installation will exceed 400GWh by 2030, up from only 43GWh in 2022.? Over half of new systems in 2030 are forecast to be in Asia.

This means that developments in BESS installations in Asia, in particular in China where the most significant increase is forecast, are of critical interest.? CNESA, in its 2023 “Energy Storage Industry White Paper”, identifies 100GW of energy storage projects planned or under construction in China even though the target for capacity in 2025 set by the relevant authorities is only 30GW.? In recent years new projects have largely specified lithium batteries with CNESA estimating that, excluding pumped hydro and molten salt thermal storage, 94% of installed energy storage in China at the end of 2022 comprised lithium-based batteries, with lead batteries accounting for 3.1%, compressed air 1.5%, flow batteries 1.2% and other technologies making up the balance.? While the share of lead batteries in the total mix has fallen steeply over the past three years, so great has been the expansion of energy storage overall in China, the installed capacity of lead batteries has almost tripled between 2019 and 2022.?

Unlike in many other parts of the world where almost all new BESS installations favour lithium batteries with only a handful of exceptions, China is pressing ahead with lead batteries in a variety of settings and capacities, alongside lithium and other battery chemistries.? There appears to be a recognition that growth of lithium mine supply may well fall short of projected demand over the next decade, especially if the ambition to phase out the sale of gasoline-fuelled autos in most markets between 2035 and 2040 is to be met.? This provides an opening for lead battery makers in China to exploit opportunities in energy storage utilising raw materials sourced domestically, with a robust supply chain and recycling infrastructure already in place.?

A key to the successful deployment of lead batteries in BESS installations in China over the past year or two has been the improvement in performance offered by lead-carbon batteries compared to conventional lead batteries in terms of energy density, charge acceptance, depth of discharge and cycle life.? In addition, support from provincial authorities has helped the manufacturers of lead carbon batteries to build demonstration projects at scale which can then provide accurate costings and operational experience for the next phase of projects.?

The first phase of the world’s largest lead-carbon BESS installation was commissioned and connected to the grid in March 2023 in Huzhou, Zhejiang province (和平共储100MW/1GWh共享储能电站).? This facility has been designed primarily to offer “peak shaving and valley filling” power management to local energy intensive industries to reduce their electricity costs and will also be used for grid frequency modulation.? Once the second phase is completed the total storage capacity will be 1.1GWh and it is estimated will have required almost 13,000 tonnes of lead to make the batteries.? The value of the investment is understood to be around US$140M.

Another large lead-carbon battery energy storage facility was connected to the grid in August this year in Jiangsu.? Ordered by the Jiangsu Changqiang Steel Company at a cost of a little over US$30M this installation has a capacity of 243MWh.? In June 2023, the Jiyang Green Storage 200MW/ 400MWh shared energy storage power station project in Yinchuan and the Zhongwei City Saishang Jiangnan 200MW/400MWh shared energy storage demonstration project, both in Ningxia, announced that lead-carbon batteries had been chosen for these projects.? It is not clear when construction will begin.? In awarding the tenders cost was cited as a major factor, less than half that of lithium batteries, and the fact that a well-established recycling infrastructure already exists for lead batteries.? One of the advantages of these batteries which helps to offset shorter cycle lives compared with lithium batteries is that up to 50% of the original cost of lead batteries can be recovered when they are sold for recycling.

In December last year the first phase of a 100MWh “user side” energy storage system was successfully connected to the grid in the Chaowei Langshan Industrial Zone, Changxing County, Huzhou City, Zhejiang Province.? The project was funded and built by Jidian Electric, a division of Jidian Corporation.? The construction period was only three months.? Another project in Zhejiang is the new energy “Digital Intelligence Sharing" centralised energy storage demonstration project of Tongxiang Rongxiang Dyeing and Finishing.? Work began on the 300MWh facility in December last year.? Also in Zhejiang, work began in April this year on a 49MWh lead-carbon BESS facility, the first such project by Yunnan International.?

In May 2023 a major new development in Chayou Zhongqi, Inner Mongolia, was announced.? A 10GWh BESS is planned which will also support the construction of a local lead carbon battery manufacturing industry.? The project will be developed over three phases with final completion in 2026.?

Tianneng has been involved in providing so-called smart energy storage solutions since 2016.? In November 2020 it completed the first, and at that time, largest grid-side lead-carbon BESS (12MW/48MWh) for the State Grid in Zicheng in northern Zhejiang.? A smaller 500kWh facility in Quzhou city in western Zhejiang has also been installed.? We estimate that a little over 800 tonnes of lead was used in the batteries in the Zicheng BESS.

The examples described above are some of the lead-carbon BESS installations that have been completed or are currently under construction in China.? These are of varying capacity and typically “behind the meter” and are designed to cut power costs to consumers by minimising the use of power from the grid at peak rates.? With facilities up and running there is an opportunity to gain operating experience which will help in improving future designs, both with regards to technical efficiency and costs.? In particular, these projects will help in promoting the wider use of lead-carbon batteries, not only in China but elsewhere, as the global power industry grapples with the need to expand energy storage to accommodate renewable generation and meet soaring demand for electricity overall.?

In my presentation to the 20th Asian Battery Conference held in Cambodia in early September, I speculated that if lead batteries could capture only 5% of forecast BESS installations through to 2030 this could mean 1.7Mt of additional lead demand.? With lead carbon batteries demonstrating the ability to meet some of the key elements of grid storage, both in terms of performance and life-cycle cost, a 5% share of this rapidly expanding market is well within reach, and may well be surpassed.