Australian Vanadium and Alcoa open 18-month scoping study for 50-80 MW flow battery at WA alumina refineries

Australian Vanadium Limited (AVL) and Alcoa of Australia signed a non-binding memorandum of understanding on 4 August 2026 to scope a 50-80 MW, 400-640 MWh vanadium flow battery at Alcoa's alumina refinery operations in Western Australia^[1]. The agreement has an initial term of 18 months and does not commit either party to a commercial arrangement.

What the scoping study covers

Under the MoU, AVL and its wholly owned subsidiary VSUN Energy will undertake a scoping-level study to assess the financial and technical merits of a vanadium flow battery energy storage system with a nominal power output of 50-80 MW and a storage duration of 6-8 hours, extendable beyond 8 hours. The study scope includes:

• System design, technical specifications and cost estimates
• Electrolyte supply considerations - potentially drawing on AVL's Perth electrolyte plant
• Project financing options
• Assessment of potential government funding opportunities^[1]

If the findings are favourable, the partners may proceed with more detailed feasibility work and begin discussions on commercial arrangements, including possible energy offtake agreements. The study is expected to draw on AVL's V-NOMAD electrolyte technology platform and VSUN Energy's Lumina utility-scale vanadium flow battery development platform.

The industrial load case

Alcoa operates three alumina refineries in Western Australia at Kwinana, Pinjarra and Wagerup, as well as the Huntly and Willowdale bauxite mines in the Darling Range. Note that Kwinana was curtailed in 2024, leaving Pinjarra and Wagerup as the active refining sites. Alumina refining is an energy-intensive process, and Alcoa has committed to reducing its Scope 1 and 2 emissions by 30% by 2030, relative to a 2015 baseline, as part of a broader decarbonisation programme.

Australia's six alumina refineries collectively use more than twice the energy consumed by the state of Tasmania each year, and alumina refining is responsible for up to 3% of Australia's annual emissions. The assessment will examine how long-duration energy storage could support Alcoa's operations, optimise energy use during peak demand periods and increase the use of renewable energy.

The industrial context is sharpening. Alcoa's proposed acquisition of South32's Western Australian alumina and bauxite assets - valued at up to US$5.6 billion - would expand its Australian bauxite market share from 30% to 50% and, according to IEEFA analysis, could transform Alcoa into Australia's second-largest corporate net energy consumer, behind only AGL. A larger refining footprint would amplify the commercial case for behind-the-meter long-duration storage.

AVL's electrolyte supply position

A distinctive feature of the MoU is the electrolyte supply angle. The study will examine "electrolyte supply considerations," which may include sourcing from AVL's 33 MWh/yr vanadium electrolyte plant in Perth. AVL's Wangara facility, completed in December 2023, has an annual production capacity of 33 MWh of high-purity vanadium electrolyte - a fraction of what a 400-640 MWh system would require, but a domestic supply anchor that could underpin a local content argument in any government funding application.

Kalgoorlie bid running in parallel

The Alcoa MoU was announced just over a week after AVL submitted its Stage Two proposal for the Western Australian government's Kalgoorlie Vanadium Battery Energy Storage System (VBESS) project^[1]. The Kalgoorlie VBESS is a 50 MW / 500 MWh, 10-hour-duration project backed by A$150 million in state government funding, targeting commercial operation in 2029 under a build-own-operate model^[1]. The VBESS is expected to play a critical role in reinforcing power system security and reliability across Kalgoorlie and the Eastern Goldfields, while accelerating the deployment of long-duration energy storage technologies in Western Australia.

AVL is therefore simultaneously pursuing a government-funded grid project and a behind-the-meter industrial contract - two distinct revenue structures for the same core technology. Whether the Alcoa scoping study produces a bankable project will depend on the outcome of the Kalgoorlie procurement process and on how Alcoa's broader WA asset strategy evolves over the 18-month study window.