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How can green energy investment be reduced to achieve true sustainability in battery manufacturing?

Enhancing green investment in battery manufacturing: A key to true sustainability

Securing sustainable battery manufacturing extends beyond the factory walls; it demands not only an active investment in green energy but also a commitment to reducing the CO2 footprint of battery production. As the demand for renewable sources significantly outstrips supply, manufacturers that rely on green energy are tasked with a dual responsibility. They must not only integrate green energy into their operations but also contribute to expanding its availability. Failing to enhance the green energy infrastructure risks diminishing its availability, potentially increasing reliance on fossil fuels in other areas and indirectly escalating CO2 emissions related to battery production.

For gigafactories to truly embody sustainability, they must aim to:
  • Conserve energy and improve energy efficiency.
  • Utilise readily available renewable energy sources.
  • Expand the availability of green energy to offset the energy consumed from scarce renewable sources.

CASE STUDY: HOW A 40 GWH PLANT CAN SAVE 48 MIO€ + 10,2 MIO€/YEAR

Sustainable battery manufacturing requires incorporating renewable energy and energy-saving technologies! 

Cotes' analysis of a concrete 40 GWh battery plant reveals that they can save 68 GWh, by using Cotes Exergic Technology®.

We've analysed our Cotes solution's performance in various projects, and based on our findings, there is a potential electric savings ranging from 1.2 to 1.7 GWh for every gigawatt-hour of battery production capacity. For this case in a 40 GWh factory, the total estimated savings would be 68 GWh (1.7 GWh x 40 GWh).

This translates into a potential €47,872,000 reduced investment in green energy production (see below). So, there is no doubt that the higher initial cost of the technology is worth it, seen from a broad environmental perspective.

The 3-rotor option, paired with a high-temperature CO2 heat pump, involves a higher initial investment than a 1-rotor alternative. However, when considering the overall cost over the long term, including both upfront Capex and Opex, the higher Capex of the 3-rotor solution can be recouped within one to two years. 

LET US ELABORATE

Our calculations are based on a comparison between a 3-rotor and 1-rotor solution. Due to the reliability, maturity, and significance, we use energy from offshore wind turbines in our calculations.

The total Capex of offshore wind energy is £2,370,000 per megawatt (MW) or €2,780,000 per MW1

The capacity factor for offshore wind, typically documented at 42%2, takes a leap to 45% in our calculations, aligning with the efficiency of modern turbines. 

For a 1 MW turbine, the annual electricity output is calculated at 3,944 MWh (1 MW x 8,765 hours x 45%), resulting in a cost of €704 per MWh (€2,800,000/3944 MWh).

For the above mentioned 68 GWh electric saving, an investment of 48 MIO€ (68 GWH x 704€/MWh x 1000)  can be spared.

Looking at it from a factory's point of view, our technology makes good business sense. It can save you around €10.2 million annually in energy costs (based on an energy price of €150/MWh x 68 GWh). With such significant savings, you can expect to recover your investment in just about two years.

Conclusion

To clarify, achieving the same level of sustainability comes down to two options:

  1. Conventional Approach: Requires a 48 MIO€ investment in sustainable electricity production.
  2. More Efficient Option: Invest a bit more upfront, avoid the 48 MIO€ external investment, and obtain an annual energy cost saving of 10 MIO€.

LOOKING BEYOND A SINGLE GIGAFACTORY

Cotes' energy-efficient solutions can drastically reduce energy usage in battery manufacturing. This not only leads to direct cost savings but also lessens the need for large-scale investment in green energy production, aligning operational efficiency with true environmental stewardship.

Battery manufacturers must consider the wider environmental and financial impacts of their energy choices. Selecting suppliers that offer energy-efficient technologies is crucial. By doing so, they can reduce direct operational costs and play a pivotal role in expanding renewable energy sources, thus achieving a truly sustainable operation.

 


Sources:

1 BVG Associates: https://guidetoanoffshorewindfarm.com/wind-farm-costs)

2 Statista: https://www.statista.com/statistics/1368679/global-offshore-wind-capacity-factor/)

3 Electricity costs per MWh in Germany