The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

South Korean flow battery maker H2 building 330MWh factory


H2 Inc, a South Korean vanadium flow battery company, has begun construction of a factory with 330MWh annual manufacturing capacity.

Scheduled to become operational next year, the production plant’s construction in the city of Gyeryong-si was announced yesterday, by H2 Inc founder and CEO Shin Han on social media networking site LinkedIn.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The company has developed Enerflow, a vanadium redox flow battery (VRFB) based on proprietary technology, claiming that a high level of vertical integration will make its products affordable for large-scale, long-duration energy storage (LDES) applications.

In October last year, H2 raised US$15 million in a Series B funding round, bringing its total funding raised to US$38 million.

Then, in December, the company announced that it is building a 5MW/20MWh project in California, which by megawatt-hours would be the biggest VRFB project in the US to date – although bigger projects are planned to supersede it.

The US’ current largest vanadium flow battery project, also in California, is a 2MW/8MWh demonstration project in the service area of utility SDG&E. In fact, as the first US state to introduce legislation to support LDES deployment, California appears likely to be the first major market in the country for VRFBs and other LDES technologies.

A community energy organisation, Central Coast Community Energy is contracting for three flow battery projects including one of 16MW/128MWh, expected to be operational in 2026.

ESS Inc, a manufacturer of flow batteries using a different electrolyte based on iron and saltwater as opposed to vanadium, recently scored a deal with California energy supplier SMUD for up to 200MW/2GWh of its systems.

On a related note, the California Energy Commission (CEC) just made its first payout from a US$380 million fund to support LDES, committing US$31 million funding for a microgrid project that will pair a 1MW/10MWh VRFB with a 35MWh zinc hybrid cathode battery storage system.

Shin Han of H2 said the company’s California project will be “the first noteworthy” VRFB system manufactured at the Gyeryong-si plant.

The CEO added that an important part of H2 Inc’s strategy is to market VRFBs as a fire-safe alternative to lithium-ion batteries, referring to 37 documented fires at Korean battery storage facilities within the past five years.

H2 Inc’s is the latest in a series of vanadium flow battery factory announcements, as well as announcements around raw materials extraction and processing and electrolyte manufacturing to feed those factories.

Most recently, plans for a possible VRFB gigafactory in Saudi Arabia were revealed by Indian flow battery company Delectrik and its Saudi partner, Tdafoq earlier this month. In October, Japanese energy company Idemitsu invested into a vanadium extraction plant in Australia, with various entities looking to establish extraction, electrolyte production and manufacturing capabilities in the country.

Access to vanadium and electrolyte to make finished products with may be the key limiting factor for VRFBs once market demand picks up.   

Read Next

May 30, 2024
The European Council has formally adopted the EU’s support package for its clean energy manufacturing industry, the Net-Zero Industry Act (NZIA), amidst mixed fortunes for local battery gigafactory projects.
May 29, 2024
Some of the current market prices for lithium-ion batteries are below cost and will not last forever but Europe still needs to be more cost-competitive, the CEO of one of Europe’s first large-scale manufacturing facilities told
May 28, 2024
RWE will proceed with an 8-hour duration large-scale battery storage project in New South Wales (NSW), while a tender for more long-duration resources has launched in the state.
May 28, 2024
National Battery Strategy aims to make Australia a “globally competitive producer” of batteries and battery materials by 2035.
May 22, 2024
The former prime minister of Australia, Malcolm Turnbull, delivered a keynote speech to open the second day of the Energy Storage Summit Australia 2024.

Most Popular

Email Newsletter