Interviews – Assembly the demand for battery power storage: An interview with Tom Jensen, CEO of Freyr
In January this 12 months, Freyr signed an settlement to supply Honeywell with 19 GWh of battery cells from 2023 via 2030 to be used in quite a lot of power storage techniques purposes. Deliveries will initially be comprised of the corporate’s first Gigafactory in Norway, however as demand ramps, different Freyr Gigafactories within the US and different international locations may additionally get entangled.
It’s the third massive deal that Freyr has struck for the reason that firm went public final summer time. In October, the corporate signed a JV settlement with Koch Strategic Platforms (KSP) for 50 GWh of battery cell manufacturing and in December it signed a deal to supply 31 GWh of battery cells to a number one world power storage system supplier.
Are you able to inform me extra about Honeywell and Freyr, a little bit of background?
Freyr Battery is a developer of unpolluted battery options that goals to play a key position within the world transformation from carbon-based know-how to renewable, inexperienced power techniques. We imagine that clear batteries – to be used in electrical automobiles (EVs) and in power storage techniques (ESS) – are a essential part in expediting the transition to sustainable power.
Norway is a number one nation in adopting inexperienced know-how – greater than 98 p.c of the nation’s electrical energy is renewable – and Freyr has an ambition to deploy that experience throughout Europe and the US. We’re planning to develop as much as 43 and 100 GWh of battery cell manufacturing capability by 2025 and 2030 in Europe and as much as 50 GWh of battery cell manufacturing by 2030 within the US along with Koch Strategic Platforms
Freyr is effectively positioned in that we’re utilising a know-how developed by 24M, a US-based spin-off from MIT, that reduces the variety of steps required to fabricate battery cells whereas nonetheless using present provide chains for typical lithium-ion batteries.
Freyr’s most up-to-date deal includes a partnership with Honeywell to supply battery cells for his or her cutting-edge power storage options to handle the wants of a variety of business and industrial prospects. As a part of the collaboration, Freyr intends to supply Honeywell with 19 GWh of battery cells from 2023 via 2030 for a large number of power storage system purposes.
The Honeywell settlement was the third massive deal that Freyr has signed since going public in July 2021. We signed a JV settlement with Koch Strategic Platforms (KSP) for a possible 50 GWh of battery cell manufacturing within the US in October 2021 and a conditional settlement to supply 31 GWh of battery cells with a number one world ESS supplier in December 2021.
What’s the present scenario with the worldwide power storage sector in the mean time and the way does this collaboration hyperlink into this?
On condition that we’re within the midst of a world power disaster, exacerbated by geopolitical tensions, the necessity to create and retailer renewable power is of paramount significance. If the US, European Union, Norway, and different international locations around the globe are going to fulfill the necessities outlined within the Paris Settlement, we imagine that these international locations want to chop CO2 emissions in half by 2030.
Presently, the US derives solely round 20 p.c of its power from renewable sources. If we don’t recommit to decarbonisation and the implementation of renewable power, we is not going to get there.
At Freyr, we imagine that ESS will play a pivotal position in decarbonisation and creating a dependable power grid that may be utilised when the wind doesn’t blow and the solar doesn’t shine. Creating native provide chains and gigafactories can even higher place the US and Europe to solidify power safety and independence.
The partnership with Honeywell demonstrates the rising significance of power storage on each an industrial and industrial scale. Fortune 500 corporations are starting to see that the power transition is now not a alternative however a matter of survival for his or her companies.
Are you able to say a bit extra about these Honeywell know-how choices that Freyr can be utilizing? Notably the built-in automation, subject instrumentation and safety integration options.
Honeywell has greater than a decade of expertise in offering automation, software program, and numerous equipment into the lithium-ion battery business.
The battery cells produced via this mission will be utilised by “behind-the-meter” or industrial places, in addition to “front-of-the-meter” places like massive photo voltaic and wind renewable energy era websites.
By teaming up with Honeywell, Freyr will not be solely supplying them with decarbonised battery options, but additionally leveraging their present footprint and competence in creating equipment for superior software program within the battery business. This can permit Freyr a possibility to supply much more price aggressive options for the decarbonising power sector within the US and Europe.
Stanford College revealed a analysis paper outlining that the US energy grid may attain one hundred pc renewable energy penetration by 2050. This new price aggressive electrical energy combine would rely largely on photo voltaic, wind and hydro growth in addition to power storage know-how. In that context, we see that the Battery ESS know-how growth is important to the continued decarbonisation of world energy techniques.
Are you able to give us any particulars of how the storage options developed by the collaboration can be used and potential prospects? Which markets? Simply within the US or into Europe or globally?
This settlement represents one of many first gigascale developments of a US based mostly know-how that can assist make sure the scale-up of decarbonisation of power techniques throughout each the US and Europe. Having Honeywell as a associate is a core a part of that technique.
Honeywell is ready to use the cells in power storage techniques for industrial, industrial and utility-scale prospects, together with tasks coupled with renewable power tasks.
Are you able to say extra in regards to the deliberate manufacturing unit at Mo i Rana Norway? And in addition about different websites in Finland and the US?
In 2021, we commenced building of our Buyer Qualification Plant (CQP) in Mo i Rana, Norway. The CQP is meant to help the fast growth of Freyr’s preliminary manufacturing capability and validate and enhance the know-how, supplies, and cell design as the corporate prepares for commercial-scale manufacturing at its deliberate Gigafactories.
The CQP is now being constructed on the quay in Mo Industrial Park inside an present 13,000-square-meter constructing that was beforehand used for manufacturing pipes. It’s going to allow industrial-scale implementation of the 24M know-how, testing of supplies and battery cells, and the availability of samples to present and potential prospects. The beginning of the operations is focused for the second half of 2022.
The strategic location of the CQP will profit from entry to dependable and cost-competitive renewable power to energy our operations, and a extremely expert workforce whereas offering essential coaching on a real industrial scale facility earlier than replicating this resolution at multi GWh scale throughout an growing variety of services.
Along with the CQP that’s already being constructed, now we have additionally introduced potential growth of GWh industrial-scale battery cell manufacturing in Mo i Rana, in addition to in Vaasa, Finland, and the USA.
What’s going to the sector seem like in say ten years’ time?
Worldwide demand for battery cell manufacturing is projected to achieve 9 terawatt-hours (“TWh”) in 2030, which can exceed the anticipated annual world manufacturing at the moment. Presently, the world’s battery provide will not be on monitor to fulfill the Intergovernmental Panel on Local weather Change’s carbon situation for limiting world warming to not more than 1.5 levels Celsius.
The hole between provide and demand will solely widen in subsequent years except the battery business makes main strides within the subsequent decade. Future demand will stem primarily from the EV market, in addition to from the stationary storage and industrial mobility sectors. Assembly world wants on the trail to internet zero would require a fast acceleration of battery manufacturing, addressing regional provide necessities via clear and sustainable sourcing and manufacturing, pushed by the progressive use of know-how to make sure velocity and scalability.
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