Long-duration energy storage (LDES) company ESS Tech signed a deal with German energy provider LEAG to install a 50MW/500MWh iron flow battery energy storage system (BESS) at the Boxberg Power Plant site in eastern Germany.
It is due to be commissioned in 2027. The pair said the BESS is expected to become a standardised building block in LEAG’s plan to deploy 2-3 GWh of storage in the transformation of LEAG’s power plant locations. Different technologies will be deployed according to service, according to LEAG. Around half will be put in place by 2030 and the remainder by 2040.
LEAG plans to invest €200 million ($217 million) with further support anticipated from additional investors and stakeholders, it said.
ESS’ long-duration energy systems have already been deployed in commercial microgrid systems. Utility-scale projects are underway in the US and Australia.
Eric Dresselhuys, CEO of ESS, said its partnering with LEAG will develop the model for utilities and communities worldwide as they transition from coal to renewable energy.
When fully operational, LEAG expects its full-scale energy system to replace baseload coal generation with short- and long-duration energy storage, as well as hydrogen to replace natural gas for grid balancing.
Rainer Schiller, project lead for stationary large-scale storage at LEAG, said the first project consists of four main phases: 380 kV grid connection, buildings and infrastructure, hydrogen applications and the battery park.
In terms of cost, he said they currently only use general estimations for the different technologies. For example, lithium-ion 100 MW/100 MWh will cost around €100 million ($109 million). For all other things, it estimates it will come in at around €300 million ($327 million).