Big batteries, real big batteries: How is this market developing?
Michael Hierholzer: The market is developing great, I must say. We really see a strong growth trajectory, double-digit growth for the next years to come with even energy storage capacity reaching 350 gigawatt-hours in terms annual installed capacity in 2030. So quite promising.
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And what are the technological trends? Where does the journey goes to?
For this decade, I would say we really see lithium-ion storage as dominating storage technology for these areas. We see a clear shift, though, from NMC technology or chemistry towards LFP technology.
What's the reason for that?
Predominantly pricing factors. So LFP is slightly cheaper than NMC, but then also further advancements now with LFP technology and an added safety feature.
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What storage systems does Rolls-Royce offer in this business?
We really offer a wide variety. As you see, we brought it all today. We have started with the smallest models because they're too big to get into the hole. This, realistically, is a 10-ft container. Reaching up to 625 kilowatt-hours in capacity it is small, really compact, and can be relocated.
Do you offer larger systems, too?
On the other side we have our slightly larger unit, the Energy Pack QL, a 40-ft shipping container, walk-in possibility, really for harsh environments so that the technicians can go inside. A really large scale utility solution is our MTU Energy Pack QG, which we can really scale up to the gigawatt-hours.
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Is it a larger commercial and utility system?
It's both. You can expand That's the advantage that we bring as a company. We have for industrial customers, smaller or mid-size products, and then, of course, for the utilities, a large scale product or solution, That scales up to whatever the customer requires.
In which segments of the market the demand is highest? Is it grid connected, utility scale or more commercial applications?
It is both, and that's why we play in both. On the industrial side, we really see a lot of customers seeking energy independence, trying to lower their cost of electricity, lower emissions. On the utility scale the utilities continue to integrate renewables for which you need the battery. The battery is needed to balance that, as well as to offer grid services, for instance frequency regulation, frequency response, and such.
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That's all included in one system, correct? So one system fits all and it's expandable according to the wishes of your customers?
Correct. It's really a turnkey, customizable solution. We talk with the utility, what are the requirements technologically, but also on-site, what needs to be integrated, what capacity do I need, and then we really do everything from end-to-end.
What are the main markets for you at the moment?
Main markets at the moment is the EMEA region, that means Europe, Middle East, Africa. We also have some exposure towards Asia. At the moment, we're not too focused on China due to price competition.
They make that business themselves, right? It is a closed shop.
We also lay strong focus for the next month on the US market. It is the largest microgrid and also battery energy storage market globally.
Rolls-Royce is a famous brand. Everybody expects high value and reliability. What do you offer, especially for your customers, which is unique Rolls-Royce?
Our strength is really that we are one-stop shop to our customers, a solution provider. We are there for the customer right from the get-go, doing the consulting, doing the simulation of a project, and then really delivering that turnkey to the customer. Then after that is done, we're not leaving the customer alone, but we are there with a holistic service approach and concept for many years to come. It's 20, 30 or 40 years. That's our ambition.
Interview by Heiko Schwarzburger
To get more information about MTU storage solutions of Rolls-Royce, please refer to the website.
