Alzenau, Germany – The global demand for large-scale energy storage is surging as nations seek reliable power sources for when renewable energy production fluctuates. But traditional lithium-ion battery technology relies on critical raw materials – lithium, nickel, and cobalt – often sourced under questionable conditions. Now, a German startup, CMBlu Energy, is poised to disrupt the market with a novel approach, securing a significant deal with energy giant Uniper to supply at least five gigawatt-hours of battery storage capacity.
The recently finalized framework agreement, extending through 2037, will see Uniper commence receiving battery systems in tranches of at least 100 megawatt-hours starting next year. While the precise financial terms remain undisclosed, sources indicate the price could be around €100,000 per megawatt-hour, slightly higher than the average cost of conventional lithium-ion batteries. “This agreement is an important milestone for the industrial scaling of our technology,” stated Constantin Eis, CEO of CMBlu Energy.
All Components from Germany
CMBlu’s product is described as a “biological Solid-Flow” battery, combining Redox Flow technology with solid-state storage materials. In simpler terms, it integrates both liquid and solid components within a single battery. “The basic idea comes from nature,” Eis explained. “There are organic molecules in nature that can store and release energy. That’s exactly what we’re leveraging.”
The batteries utilize water-based, organic electrolytes to store energy within a solid material. This design, according to Eis, increases energy density by a factor of four to five compared to traditional Redox Flow batteries, making it significantly more economical. Crucially, CMBlu’s technology avoids the apply of rare earth elements and lithium altogether. “All components can basically come from Germany itself,” Eis noted, adding that this allows the company to reduce its reliance on global supply chains.
Beyond material sourcing, CMBlu highlights additional advantages over conventional batteries. The materials are non-flammable, and the batteries’ stackable design reduces the overall footprint required for comparable performance. Unlike lithium-ion batteries, CMBlu’s technology fully decouples capacity and power. “With us, the amount of energy can be easily increased by enlarging the tank including its contents, without having to touch the power electronics,” Eis said. “This has enormous economic advantages, especially when long storage durations are needed.”
Storage for More Than Ten Hours
While lithium-ion batteries are currently experiencing a boom in demand, they typically store electricity for two to four hours before discharging. These are often used for arbitrage in the energy market – profiting from price differences between periods of high and low renewable energy generation – and for providing grid stabilization services. “Our battery is competitive from around five hours of storage duration, and we are superior to lithium-ion – both in terms of price and space requirements – from ten hours onwards,” Eis asserted.
Uniper could potentially utilize the batteries to stabilize the power grid or market them within the upcoming capacity market. Scientists recognize the potential of CMBlu’s technology, though questions remain regarding the potential complexity of system maintenance. Uniper itself describes the technology as “promising,” while likewise acknowledging that “its performance and economic viability in large-scale use still need to be further confirmed.”
This framework agreement builds upon an existing development collaboration between the two companies, marking a transition from development to commercial scaling. Mercedes-Benz is also reportedly utilizing CMBlu’s batteries at its Rastatt plant to balance peak loads.
Eis acknowledged that securing customers hasn’t been easy, noting that energy providers and grid operators are traditionally risk-averse. The batteries are currently manufactured at a facility in Alzenau, near Frankfurt, with a production capacity of one gigawatt-hour per year. Additional production sites are planned in Athens, Greece, and the United States. The company, which has invested approximately €250 million to date and is not yet profitable, currently employs 250 people. CMBlu Energy intends to “significantly expand” its shareholder base, which currently includes a large German family office and the Austrian construction company Strabag.
The development of alternative battery technologies like CMBlu’s is crucial as the world transitions towards renewable energy sources. The reliance on ethically sourced and sustainable materials will be a key factor in the long-term viability of energy storage solutions. The success of CMBlu’s technology could represent a significant step towards a more sustainable and secure energy future.
Looking ahead, CMBlu Energy will focus on scaling up production and demonstrating the long-term reliability and cost-effectiveness of its batteries in real-world applications. The partnership with Uniper represents a critical validation of their technology and a major step towards commercialization.
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