Expanding energy-storage equipment field facilitates the large-scale implementation of new energy storage projects
(8 November 2022, Hong Kong) — CIMC Enric Holdings Limited ("CIMC Enric") and its subsidiaries (collectively, the "Company") (Hong Kong stock code: 3899.HK) are pleased to announce that its subsidiary, Shijiazhuang Enric Gas Equipment Co., Ltd. ("Shijiazhuang Enric"), signed an agreement with Exa Energy Technology (Shenzhen) Co’s ("Exa New Energy" or the "Customer") whereby the Company will supply batches of liquid carbon dioxide storage vessels and heat exchange vessels to the world's first carbon dioxide compression energy storage demonstration project ("Wuhu Energy Storage Project") located at the Wuhu Conch Cement Plant. As China’s first ever carbon dioxide compression energy storage system to be commissioned, this demonstration project will pioneer energy storage in terms of technical innovation and applications and large-scale implementation in the field, laying a solid foundation for the Company’s continued expansion into the new energy storage equipment field.
With an energy release power of 10MW, the project has an energy storage duration of 8 hours and energy release duration of 8 hours. Upon completion, it will deliver one of the longest energy release times of any Chinese energy storage project.
In mid-June this year, Shijiazhuang Enric provided Carbon Dioxide energy storage and heat exchange vessels for the customer's Carbon Dioxide energy storage technology verification system (with an energy storage duration of 2 hours) which has operated flawlessly. Wuhu Energy Storage Project is a longer-duration energy storage project that follows on from the system’s operational stability being verified. Carbon dioxide energy storage systems offer a wide range of power levels and capacities together with geographical flexibility. They also offer significant economic benefits for large-capacity and long-term energy storage, especially for 10MW, 100MW and 1000MW-class long-term energy storage systems.
Carbon dioxide energy storage systems harness the fact that carbon dioxide rapidly expands by nearly 400 times when it changes from a liquid to a gaseous state at room temperature. The basic principle is to utilize surplus power during low periods of electricity consumption to compress carbon dioxide gas into a liquid at normal temperature and normal pressure, thereby storing the thermal energy generated during the compression process. During peak electricity consumption, the stored thermal energy is used to heat liquid carbon dioxide, transforming it into a gaseous state to drive turbines for power generation.
Liquid carbon dioxide storage vessels are key to this world's first energy storage system. Customers have comprehensive technical specifications and set strict parameters for their energy storage vessels. The stringent product-quality requirements are a major test for any vessel manufacturer’s R&D capabilities. The Company's custom-made carbon dioxide energy storage vessel for this project offers various advantages such as the ability to handle high pressures, large volumes at low cost. And the vessels are also easily mounted, with all these advantages, they can economically address a wide range of industry applications.
Winning this tender to provide batches of equipment for the customer's Wuhu Energy Storage Project once again demonstrates the customer's high regard for the Company’s products.
By precisely matching the peaks and troughs of electricity consumption in Anhui Province, the project can reduce pressure on the power grid allowing for load-leveling. This reduces electricity costs for consumers and increases the proportion of new energy electricity consumption. The project will demonstrate the feasibility of high-power, long-duration energy storage applications.
As new energy electricity continues to provide an increasingly larger share of China’s overall electricity production, energy storage has become a major challenge in achieving the country’s “Dual Carbon” goal. Existing energy storage technologies suffer from insufficient exploitable resources as well as flammability and pollution risks. This has meant that energy-storage construction has failed to keep pace with demand for new energy electricity. From a technical perspective, introducing new carbon dioxide compression energy storage systems can address these pain points.
Mr. Ju Xiaofeng, Deputy General Manager and Head of Energy Equipment & Engineering Business Centre at CIMC Enric said, “During the 14th Five-Year Plan, energy storage has become increasingly prominent as a key component in China's new energy system construction. In China, multiple new energy storage projects have been successfully commercialized and there is enormous potential for further industrialization. In recent years, CIMC Enric has rapidly expanded into the field of new energy storage and is committed to providing customers with a full range of gas energy storage equipment and one-stop solutions. These will facilitate the commercial operation and large-scale implementation of various new energy storage projects.
