Incubated by Full Vision Capital, local energy storage startup Luquos Energy launches the first demonstration project using a sulphur-based flow battery energy storage system in Shenzhen. The system, installed at an electric vehicle (EV) charging station, is expected to reduce electricity costs by nearly 70% during peak usage hours and alleviate strain on the power grid.
As the first application demonstration project, the LEAPLUG energy storage system has a capacity of 20 kilowatt-hours. It charges and stores electricity during off-peak hours when electricity rates are lower, then discharges during peak hours when rates are higher for use by the charging points, thereby saving nearly 70% on electricity costs. The system also helps reduce peak power load, and widespread use of such systems can enhance overall grid stability.
Professor Lu Yi-chun, Co-founder and Chief Scientist of Luquos Energy, said the sulphur-based flow battery is the result of over a decade of research and development by the team, “The system’s launch marks the completion of pilot-scale technology implementation for sulphur-based flow batteries, entering the fast track to industrialisation. Our team plans to begin large-scale production by 2027.”
Professor Lu pointed out that lithium-ion batteries, which are mainly used in the energy storage market, carry a risk of overheating and catching fire. In contrast, sulphur-based flow battery technology uses water-based solutions and sulphur as raw materials, making it safe and non-flammable. Moreover, the abundance of sulphur on Earth contributes to its low cost. Compared to traditional flow batteries that use precious vanadium as a raw material, sulphur-based batteries cost only one-twentieth as much. The overall cost is also half that of lithium-ion batteries. Additionally, sulphur-based batteries are non-toxic and do not cause environmental pollution.
Dr Simon Wang Zengyue, CEO of Luquos Energy, added that the LEAPLUG system uses newly developed ion-exchange membranes to improve power generation efficiency. With a lifespan of 15 years, it outlasts lithium-ion batteries, which typically last only a few years. The system has potential applications beyond EV charging stations, including factories, hospitals, data centres and village houses.
Regarding this collaboration with Luquos Energy, Mr Alan Chan Ying-lung, Towngas Executive Director and Chief Investment Officer and Managing Partner of Full Vision Capital, expressed delight at seeing the project come to fruition. “As countries worldwide continue to expand into new energy sources, there’s an urgent demand for environmentally friendly, safe and low-cost energy storage technologies. We look forward to this initial project with Luquos Energy using the sulphur-based flow battery energy storage system to provide safer, more stable and affordable power supply for charging stations, with potential for wider application across Towngas Group’s various scenarios in the future.” He noted that Luquos Energy was one of the outstanding projects in the inaugural TERA-Award Competition which was empowered by Full Vision Capital. To help accelerate the implementation of their technology, Towngas not only made a strategic investment but also opened up application scenarios. Mr Chan emphasised that the TERA-Award is more than just a technology competition; it’s a platform for incubating innovation and accelerating growth. Full Vision Capital is delighted that Towngas will continue to leverage its professional expertise in the energy sector to support the development and implementation of technologies from zero-carbon innovative enterprises.
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