Saudi Basic Industries Corporation (Sabic) subsidiary Nusaned Investment and Germany-based Schmid Group have finalised the joint venture (JV) that aims to manufacture and develop Vanadium Redox Flow Batteries (VRFB) in Saudi Arabia.
The JV, Advance Energy Storage System Investment Company, plans to set up a gigawatt-scale manufacturing facility in Dammam Third Industrial City.
Sabic said Saudi-based The Riwaq Industrial Development Company has also joined as investor and shareholder.
The JV aims to become a global technology leader in utility-scale energy storage and support Saudi Arabia’s Vision 2030 economic diversification objectives.
The firm aims to start the construction of the manufacturing facility in the first half of 2020 with production expected to begin in 2021.
The facility will have an annual production capacity of 3GWh.
It will be built under a build-to-suit lease agreement with Modon.
It is understood the planned manufacturing facility will produce energy storage systems for use alongside utility-scale renewables projects, telecom towers, mining sites, remote cities and off-grid locations.
The company’s strategy for developing value chain integrated production will allow it to achieve global cost leadership, Sabic said.
“The systems will be utilised for renewables capacity grid integration, establishment of mini grids at remote locations, optimisation of diesel generator capacity and power back-up,” the statement continued.
These products will be offered under the Everflow brand.
(c) MEED