Nusaned Investment and SCHMID Group have closed the JV transaction in Saudi Arabia focusing on manufacturing and technology development in the field of Vanadium Redox Flow Batteries (VRFB).
Nusaned Investment (an investment company owned by SABIC) and SCHMID Group announced today that they have successfully closed their JV transaction focusing on manufacturing and technology development in the field of Vanadium Redox Flow Batteries (VRFB) after receiving all required regulatory approvals and satisfying all closing conditions. The agreement to establish (Advance Energy Storage System Investment Company) (the “JV”) was signed and announced in May 2019. During the next 2 to 3 months, The Riwaq Industrial Development Company will join the JV as additional investors and shareholders.
The JV aims to become a global technology leader and champion in the fast-growing utility-scale energy storage segment, supporting the Kingdom’s Vision 2030 economic diversification objectives. With R&D facilities in Germany and Saudi Arabia, the JV plans to set-up a GW scale
manufacturing facility in the Kingdom, expected to be in production in 2021. The JV’s strategy for developing value chain integrated production will allow it to achieve global cost leadership.
Fuad Mosa, CEO of Nusaned Investment said: “The JV marks a milestone for Saudi Arabia in its quest to localize manufacturing for technologies in emerging industries, and marks another major step in SABIC’s NUSANEDTM program that seeks to build partnerships and enable local content creation”. Christian Schmid, CEO of the Schmid Group said: “The new JV will aim to establish a leadership position in the rapidly developing energy storage market and both companies are fully committed to realizing our joint vision for the project.”
The JV will produce energy storage systems for use alongside utility-scale renewables projects, telecom towers, mining sites, remote cities and off-grid locations. The systems will be utilized for renewables capacity grid integration, establishment of mini grids at remote locations, optimization of diesel generator capacity, and power back-up. The JV’s products will be offered under the EVERFLOW brand.
The JV will directly contribute to the Kingdom’s renewable ambitions. As per the new energy mix announced this year, Saudi Arabia will aim to install 57.5 GW of renewable capacity in the Kingdom by 2030. Utility-scale stationary energy storage systems will be critical to ensure that the new renewable capacity is stabilized and connected reliably to the grid. The Kingdom could also leverage this technology in the upcoming mega-projects in the Kingdom.
