The Anonymous Widower

When Will Energy Storage Funds Take The Leap To New Technology?

This article on the Motley Fool is entitled 3 UK Dividend Shares To Buy Yielding 6%.

This is a paragraph from the article.

The first company on my list is the Gore Street Energy Storage Fund (LSE: GSF). With a dividend yield of just over 6%, at the time of writing, I think this company looks incredibly attractive as an income investment. It is also an excellent way for me to build exposure to the green energy industry.

Just as everybody has a fridge in their house to stop food being wasted, electricity networks with a lot of intermittent resources like wind and solar, needs a device to store electricity, so that it isn’t wasted.

Gore Street Energy Storage Fund is being very safe and conservative at the current time, often using batteries from one of Elon Musk’s companies.

You can’t fault that, but they are only barely making a dent in the amount of batteries that will be needed.

If we are generating tens of GW of wind energy, then we need batteries at the GWh level, whereas at the moment a typical battery in Gore Street’s portfolio has only an output of a few megawatts. They don’t state the capacity in MWh.

There is this statement on their web site, about the technology they use.

Although the projects comprising the Seed Portfolio utilise lithium-ion batteries and much of the pipeline of investments identified by the Company are also expected to utilise lithium-ion batteries, the Company is generally agnostic about which technology it utilises in its energy storage projects. The Company does not presently see any energy storage technology which is a viable alternative to lithium-ion batteries. However, there are a number of technologies which are being researched which if successfully commercialised, could prove over time more favourable and the Company will closely monitor such developing technologies.

They say they are agnostic about technology and are looking around, but they are sticking with lithium-ion technology.

That technology works, is safe and gives a good return.

But they are at least thinking about moving to new technology.

In the rail industry, it is common for rail leasing companies to get together with train manufacturers or remanufacturers to develop new trains.

As an example, Eversholt Rail and Alstom formed a partnership to develop a hydrogen-powered train for the UK, which I wrote about in Alstom And Eversholt Rail Sign An Agreement For The UK’s First Ever Brand-New Hydrogen Train Fleet.

Worldwide, there are probably upwards of a dozen very promising energy storage technologies, so I am very surprised that energy storage funds, like Gore Street and Gresham House have not announced any development deals.

Conclusion

Energy storage funds could benefit from using some of the financing methods used by rolling stock leasing companies.

December 13, 2021 - Posted by | Energy, Energy Storage, Finance | , , , , , , ,

1 Comment »

  1. Flow batteries can store electricity longer than lithium ion batteries, there are even hybrid lithium ion and flow battery farms.

    Comment by jason leahy | December 14, 2021 | Reply


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: