LG Chem seals battery deal in Germany

LG Chem, Korea’s largest chemical company, said yesterday that it has been selected to supply lithium-ion batteries to German renewable energy company Energiequelle for its energy storage system (ESS) project in Feldheim, Germany.

The 10.8 megawatt-hour batteries that LG Chem will install in Energiequelle’s microgrid are the largest in Germany and are capable of providing electricity to about 2,000 households a day within the region of Feldheim, which is about 80 kilometers (49 miles) southwest of Berlin, the company said.

The microgrid is the next generation of electrical grids and is usually powered by solar, wind and other renewable energy sources. These power sources often generate electricity on an irregular basis depending on the weather.

The affiliate of LG Group said that the main application of LG Chem’s batteries will be to stabilize and regulate power frequency to save energy into the ESS and deliver it to the microgrid when it is needed. LG Chem plans to install all of the batteries by the first quarter of next year.

Feldheim, with a population of 130 people, is a model for a zero-emission future in Germany. The small village is an energy self-sufficient community free of fossil fuels, which its inhabitants are proud of, according to LG Chem.

Feldheim consumes only 1 percent of the electricity produced annually by its wind turbines, biomass and solar park, and the remainder is sold back to the market.

“Winning this project is very meaningful because the future of energy is showcased through LG Chem’s battery,” said LG Chem President Kwon Young-soo, head of its battery business. “We will try our best to make sure LG Chem batteries are installed at every ESS in the world.”

According to U.S.-based market researcher Navigant Research, the global ESS market is expected to grow to 58 trillion won ($55 billion) by 2020, expanding an average of 53 percent per year.

BY JOO KYUNG-DON [kjoo@joongang.co.kr]