Construction has officially started on the 1 GW/2 GWh Yantai Energy Storage Center, located in Yantai, a coastal city in Shandong province, eastern China. This project, valued at CNY 3.5 billion (approximately $490 million), is being spearheaded by the local company Lantian Dongfang (Laizhou) Energy Co., Ltd., and serves as a significant component of the Shandong Energy Bureau’s energy storage development plan for 2024. The initiative represents a major advancement in Yantai’s strategy to bolster energy storage deployment and enhance renewable energy utilization.
The project is primarily owned by the Yantai Energy Investment and Development Group, a state-owned enterprise, while Lantian Dongfang is managing the investment. The construction will be executed by a consortium that includes Lantian Dongfang and two additional state-owned enterprises.
Hybrid Storage Model
The development will unfold in two phases. The first phase is set to introduce 450 MW/950 MWh of storage capacity, starting with an initial investment of around CNY 292 million ($41 million) for a 100 MW/210 MWh batch. According to the planned timeline, the installation and commissioning of storage equipment are expected to be completed by April 2025, with grid connection to occur by May 30, 2025. Further installations will follow in this initial phase.
The facility will employ a hybrid storage model, with lithium iron phosphate (LFP) batteries constituting 95% of the system and vanadium redox flow batteries (VRFB) making up the remaining 5%. The first phase will see the installation of 95 MW/190 MWh of LFP batteries along with 5 MW/20 MWh of VRFB units, maintaining this ratio for future expansions.
Officials from Lantian Dongfang have noted that LFP batteries were selected for their high energy density, cost-effectiveness, and established production technology. Meanwhile, VRFBs are recognized for their enhanced safety, longevity (with a cycle life exceeding 20,000 cycles), and rapid response capabilities. When integrated into the grid, these features will significantly improve the system’s ability to manage peak loads.
A notable advantage of VRFBs is their operational range across extreme temperatures (from 5°C to 45°C), making them particularly suitable for Yantai’s humid winters and hot summers. These batteries can achieve a cold start in just two minutes when filled with electrolyte and can switch between charging and discharging states in as little as 0.02 seconds. This quick responsiveness enables them to complement LFP batteries by rapidly adjusting to grid demands, whether by supplying power to the grid or absorbing excess electricity.
Once fully operational, Lantian Dongfang anticipates that the project will generate annual revenues of CNY 330 million ($46 million) and a net profit of approximately CNY 190 million ($27 million), highlighting its robust financial prospects.
Shandong province, the first in China to exceed 100 GW of installed renewable capacity, primarily from wind and solar sources, faces an urgent need for flexible energy storage solutions. As reported by the Shandong Energy Bureau, the province aims to install over 6 GW of new energy storage capacity and 10 GW of pumped hydro storage by the end of 2025. In alignment with this strategy, Yantai plans to establish three large-scale independent energy storage hubs to support its targets of 9 GW of solar energy and 3 GW of offshore wind capacity.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/construction-begins-on-2-gwh-lithium-ion-redox-flow-battery-hub-in-shandong-china/
