Australian Vanadium Ltd. and its subsidiary VSUN Energy have entered into an agreement with Alcoa of Australia to evaluate installing a utility-scale vanadium flow battery system at Alcoa’s Western Australian refinery operations.
Under a non-binding 18-month memorandum of understanding (MoU), the companies will conduct a scoping-level study to assess the technical and financial viability of a 50 to 80-megawatt vanadium flow battery (VFB) energy storage system.
Designed to provide six to eight hours of storage, with the potential to extend further, the system aims to support heavy industrial operations, optimise power usage during peak demand periods, and accelerate the integration of renewable energy.
Under the agreement, AVL and VSUN Energy will lead the preliminary assessment. Their scope of work includes system design, technical specifications, project costings, electrolyte supply logistics, financing structures, and identifying potential government grant programs. Alcoa will provide operational and site support throughout the process.
Potential deployment locations include Alcoa’s existing refinery sites and surrounding landholdings across Western Australia.
If the study yields positive results, both parties may proceed to further feasibility studies and explore commercial frameworks, such as energy offtake agreements.
The collaboration leverages AVL’s V-NOMAD electrolyte technology platform alongside VSUN Energy’s Lumina utility-scale development platform, highlighting the company’s strategy of participating across the vanadium value chain.
AVL CEO Graham Arvidson said the partnership underscores the growing importance of long-duration energy storage for heavy industry.
“This MoU with Alcoa represents an important opportunity to demonstrate the value of vanadium flow batteries in utility-scale industrial applications,” Arvidson said.
“Long-duration energy storage will play a critical role in enabling industrial electrification and increasing the utilisation of renewable energy.”
He added that collaborating with an established global industrial operator provides a valuable platform to evaluate how VFB technology can support operational flexibility, manage energy costs, and advance decarbonisation goals.