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Solar and wind parks are disadvantaged because of their insufficient base load capacity. This shortcoming can be remedied using smart batteries. And that is where VoltStorage GmbH’s iron-salt technology has found an extremely promising niche.
November 22, 2022
There's no question about what the world needs: energy from renewables that is available everywhere. Solar and wind are ideal renewable energy sources. "The problem is that solar and wind are not available 24 hours a day," says Michael Peither, discussing the world of energy storage. There are solutions for this, but none that meet every need. A one-size-fits-all approach doesn't work here.
The CTO and co-founder of VoltStorage GmbH categorizes the various challenges and solutions based on the charging and discharging duration of the battery. Proven storage solutions like super caps (super capacitors), flywheel energy storage, and lithium-ion batteries are available for situations that require a duration of a few hours. For energy storage of more than 100 hours, the conversion of electrical power into gas or liquid fuel (power-to-gas, power-to-liquid) is another practical technology that is currently available.
When it comes to energy storage, the greatest challenge is finding batteries with a discharging duration of between ten and 100 hours. From a purely technical perspective, lithium-ion batteries – the kind that are found in every smartphone – can provide this level of storage. However, this solution is impractical. Lithium is in short supply and the costs are far too high. Until now, the only option has been pumped-storage plants, which only work in mountainous regions.
We are very pleased to share that the Credit Investments Group (CIG) has announced the final close of its Private Credit Opportunities Fund (PCO), CIG's first direct lending-focused fund, with USD 1.67 bn in capital commitments.
PCO seeks to generate attractive risk-adjusted returns primarily by providing private debt financings across the capital structure, including secured first- and second-lien loans, unitranche financings, and preferred equity made directly to upper middle market companies in North America and Europe. To date, PCO has deployed approximately half of the fund which will have more than USD 3 bn of deployable capital including leverage.
As one of the largest and most experienced providers of leveraged finance solutions in the industry, managing approximately USD 65 bn in primarily sub-investment-grade credit assets, CIG has maintained a disciplined approach and demonstrated leading experience in sourcing and servicing credit relationships for more than 20 years through various market cycles. CIG's industry-leading position is well recognized, as demonstrated by its recent success in the Creditflux awards, in which it was named "CLO Manager of the Year" for a record fourth time and for the second consecutive year.
Private credit is a natural extension of CIG's business as a leading provider of capital solutions to sub-investment grade companies in North America and Europe issuing in the broadly syndicated market. The successful close of PCO is a significant milestone for Asset Management as we work to build out our private market capabilities.
"The anticipated growth on the global markets for energy storage is clearly exponential – exactly what every investor wants to see."Michael Peither, CTO and co-founder of VoltStorage GmbH, Thematic Flagship ETH Conference 2022,
Long-duration batteries are energy storage systems and storage technologies that take more than ten hours to charge or discharge. With regard to storing renewable energy generated from solar and wind parks, the focus is less on shortening charging cycles, and more on achieving a longer discharging duration. This will make it possible to close the supply gap during periods of low wind and low sun, and secure the base load supply. And it's where VoltStorage and their long-duration batteries come into play.
The long-duration battery is based on revolutionary iron-salt technology, which works in accordance with the proven redox flow method. Iron-salt technology offers significant benefits for long-duration storage compared to conventional storage technologies: It can make power from renewable energies available 24 hours a day. The raw materials required to produce long-duration batteries are not only environmentally friendly, but also inexpensive and available around the globe. This allows solar and wind park operators to generate significant cost advantages, while providing a storage solution that is also exceptionally robust and versatile.
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The market for long-duration energy storage demonstrates a great deal of growth potential. The installed storage capacity is expected to exceed two terawatts between 2035 and 2040. In terms of installed energy capacity, significantly more than 100 terawatt hours are anticipated by 2040. That corresponds to a cumulative battery storage capacity of two billion electric cars. Investments are expected to reach USD 3 trillion by 2040.
Sources: Net-zero power: Long-duration energy storage for a renewable grid, LDES Council, McKinsey & Company, November 2021. Available at https://www.mckinsey.com/capabilities/sustainability/our-insights/net-zero-power-long-duration-energy-storage-for-a-renewable-grid
VoltStorage GmbH was founded in 2016 by Jakob Bitner, Michael Peither, and Felix Kiefl. Their mission is simple: make renewable energy available 24/7 for a green, sustainable, and fair future.
In just a few years, VoltStorage has become the technology leader for stationary flow batteries. For its next-generation lithium-free battery, the company uses iron-salt technology. Thanks to the unparalleled low cost and widespread availability of the iron-based storage medium, this technology boasts enormous potential. VoltStorage is headquartered in Munich and has around 60 employees.
VoltStorage is a company that fits well with the investment profile of the Credit Suisse (Lux) Environmental Impact Equity Fund1. The fund allows investors to invest in pure-play companies that have a positive impact on the environment through their products and services.
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