Swedish molten aluminium storage firm signs a conditional order with MPG Built

Azelio, a Swedish molten aluminium storage firm specialising in thermal energy storage with dispatchable power, signed a conditional order with the Australia-based real estate developer Molnar Property Group (MPG Built Pty Ltd or MPG Built). The contract calls for the company to deliver an energy-as-a-service (EaaS) model utilising five of its TES.POD storage devices in conjunction with solar energy. 

Per the order, Azelio will install solar power and its long-duration energy storage technology for clean, affordable power per the conditional order through a Special Purpose Vehicle (SPV). Following the contract conditions, the SPV will implement, own, and run the power system and supply energy to MPG Built. MPG Built will resell the energy to the grid in its capacity as a business. The 20-year contract is anticipated to be profitable for both SPV and Azelio. The anticipated first-year revenue ranges from EUR 300,000 to EUR 400,000.

“Delivery of the energy storage system, and start of operation of the complete power system, are expected in 2024,” said Azelio.

“As Australia has excellent market conditions for our long-duration energy storage solution, I am very happy to take this important step on the Australian market. This can help pave the way for a broader introduction of our technology in the region, and I am convinced that long-duration energy storage solutions, such as ours, can play a great role in increasing the use of renewable energy in this part of the world”, said Azelio’s CEO Jonas Wallmander.

An SPV is a separate legal organisation created to carry out a particular commercial purpose or activity; therefore, it appears that Azelio plans to make a subsidiary to conduct business in Australia. Azelio wants to make energy storage in molten aluminium commercially viable. Its TES.POD product appears to function in four stages.

First, it is charged with energy from a renewable source, which is then stored as heat in a recycled aluminium alloy, going through a phase shift at 600 C. A Stirling engine, a closed-cycle regenerative heat engine with a permanently gaseous working fluid, is then used to transfer the heat. The engine produces power that may be used whenever needed and useable heat with a temperature range of 55 to 65 C.