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The amount of energy generated from green sources (such as wind turbines and solar panels) continues to increase year after year. And in a world that wants to gradually move away from fossil fuels, this is much needed. But because the sun doesn't always shine and the wind doesn't always blow, there is an urgent need for energy storage. That energy can then be "released" when green power generation is impossible. Ruud Nijs, CEO of the Dutch company Giga Storage, is developing super batteries that can provide households with renewable power at inconvenient times. How does Nijs view the future of energy distribution?

What was your motivation for starting Giga Storage?

"Because of the energy transition, our energy market is actually changing from demand-driven to supply-driven. With fossil energy, it's simple: when the toaster irons come on, turn up the gas plants. But in a renewable energy system, you can't turn up the windmills. So you're left with the question: how do we get the right amount of energy, at the right time, in the right place?"

"There are a number of methods to do that. For example, by reinforcing the grid; the grid operators are already doing a lot of that. You can also explore options for asking large consumers to use less energy at peak times. A third option is batteries. These are crucial for moving away from coal and gas. We saw that batteries were not the standard in Europe, while they were in the rest of the world."

How did that happen?

"We were actually surprised by that as well. I think it has to do with the fragmented political landscape in Europe. There's a lot of talk about the energy transition, but nobody was really striving to take ownership of that sustainability transition. In other countries that was a little easier."

How much power can be stored with your batteries?

"We have installed two batteries so far. At the time we connected them, they were the most powerful in the Netherlands. The first has an output of 12 megawatts, with a capacity of 7.5 megawatt hours. In about 37 minutes it charges and discharges. That battery is particularly suitable for the frequency market - to keep the grid at 50 hertz - and in the imbalance market."

"In 2022, we launched a second battery. That one has a capacity of 25 megawatts, with a capacity of 50 megawatt hours, so it charges and discharges in two hours. That's much longer, which allows you to deploy it in other markets. We currently have the second battery fully leased to Eneco."

"The technical and economic life of the batteries are different. We finance the batteries at 15 years, and think we can use them economically up to 20 years. Technically it might be possible for longer, that depends a bit on what other technologies are going to come up."

You are currently working on a major project in Delfzijl. What's going to happen there?

"Our current battery projects are placed at medium-voltage substations. But at TenneT, for example, there is a great need for large-scale energy storage at high-voltage substations. We think we (as Giga Storage, ed.) can add a lot of value there. We are therefore also going to focus on such large-scale projects, of more than 100 megawatts, in the Netherlands and in Belgium. And later also in other European countries."

"In October last year, news reached us of the bankruptcy of Aldel, an aluminum plant in Delfzijl. There is a very large energy connection there, which is needed for the production of aluminum. That connection is very interesting for us. We therefore bid for the factory building and eventually won. We want to build batteries there next year, about fifteen soccer fields in size. I think construction will take about a year and a half, and my guess is that we will not be able to be operational until 2025 at the earliest."

"Compared to our current projects, the project in Delfzijl will be about 20 times larger. It will involve hundreds of megawatts of energy storage. We also want to start ensuring that the battery will charge and discharge in 4 hours. Because if you look at weather patterns, sometimes you have longer periods without power generation that you have to bridge, for example if it's windless for a long time."

You keep talking about "a battery. Is it actually one big device?

"We actually speak of an energy storage project. Such a project consists of many small batteries, which can also switch independently of each other. Therefore, we can also offer capacity to several parties at the same time. And it offers other advantages. Batteries are a fire hazard. You want to prevent that, of course. By compartmentalizing, in case of fire we can limit the damage to a small part. Then not the whole project is lost."

How many batteries are needed to shut down coal and gas plants?

"Netbeheer Nederland has calculated that we need about 60 gigawatts of battery storage in the Netherlands by 2050, and around 30 gigawatts by 2030. For the idea: there is much less than one gigawatt now. So there is a huge opportunity there for us and our competition (for battery projects, ed.). In Europe some 600 gigawatts are needed by 2050."

"We calculated approximately how much money that will cost. In Europe, 1.2 trillion euros is needed to achieve the ambition of 600 gigawatts in 2050. Those are mind-boggling numbers. In the Netherlands we are talking about almost 100 billion euros to be invested in this industry. My appeal to the financial sector is therefore, although fortunately it is almost no longer necessary, to pay attention to this."

Is there room in the Netherlands for so many, and such large battery parks?

"We do indeed have to compete for square meters. That's just incredibly difficult. We don't need as much space as solar and wind farms, but still space. And we are also faced with CO2 emissions during construction and nitrogen issues. But our preference is for industrial land. We prefer places like Delfzijl, where hardly anyone lives, or Pernis, for example. In principle, we can sit anywhere there are high-voltage substations nearby."

November is election time. The BoerBurgerBeweging (BBB), a party that advocates the preservation of farmland, is high in the polls. What could a potential BBB win mean for you and battery projects in general?

"That's the big question. Left or right, a reorganization of the agricultural sector is happening anyway. There are many young farmers who want to do things differently, there is a lot of innovation going on, and maybe there are also farmers who want to stop altogether. They can then get a serious price for their land if we can take it over. So I honestly don't know if that would have a negative or positive effect."

Do you think the scarcity of raw materials will throw a spanner in the works for battery makers?

"We mainly use lithium-ion batteries. In them there is an anode and a cathode. The anode in our first battery is made of nickel, manganese and cobalt. These are indeed scarce raw materials. In addition, with cobalt, which comes from Congo, the extent to which child labor is involved is uncertain. Therefore, we are pleased that the anode from our second battery is made of iron phosphate. That is widely available and has a much higher burn rate."

"With lithium there is not so much a risk of running out, but rather geopolitical risks. 95 percent of lithium supply comes from China. China could suddenly decide in trade policy to do something different with its supply. Lithium mines do open in many other places around the world, but they will never be finished in time if China suddenly stops its exports."

"But our biggest challenge is actually the shortage of transformers and inverters. A battery actually consists of three parts: the battery itself, a transformer that brings the voltage down, and an inverter that turns alternating current into direct current. The whole world needs those transformers and inverters. If you order a big transformer now, it's a year and a half to two years away. The developers just can't handle the work."

In that light: how do you look to the future? Are we going to meet the battery goals of 2030 and 2050?

"I actually don't think so. I think the energy transition, the way we want it, is not going to happen. As Giga Storage, we did decide to go full throttle and take on big projects, but the supply chain and laws and regulations will still become an obstacle. I really don't know if we can turn the tide in time."

So doesn't your commitment feel like mopping up with a faucet?

"I don't believe so. I still feel that we can really get coal and gas plants out with our initiatives. Minister Jetten also announced that as a goal. If we could get that done in the Netherlands, I would think that would be really fantastic."

"Whether the world will do well next, I think is more of a philosophical question. For me, that problem is too big to really understand anything about. And actually I don't want to understand it either, because then I become a pessimist. I like to see the glass half full. I don't want to be distracted from what we're doing."

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