Hello Mr Berdasco Balbuena, serious price increases and supply bottlenecks are currently making it difficult for many companies to purchase commodities: What materials are needed to manufacture the ThermalBattery™? Are there any particular procurement challenges here?
The design of our ThermalBattery™ is basically based on two main components. The first is the so-called steel cassette, which forms the heat exchanger for the ThermalBattery™. The second component is HEATCRETE®, a specially developed concrete from our partner Heidelberg Materials. Compared to conventional construction concrete, HEATCRETE® is characterised by its optimised thermal properties, in particular its improved heat storage capacity.
Put simply, our ThermalBattery™ consists of steel and concrete. As these commodities are available almost everywhere, local production close to our customers is possible, thus avoiding bottlenecks in the supply chain.
Can you explain the ThermalBattery™ manufacturing process in detail?
The production of our ThermalBattery™ begins with the manufacture of the steel cassettes, which are built according to our specifications and in-house design. This essentially involves welding work and the manufacture of the pipework. At the end of the process, various tests are carried out, such as a main pressure test to rule out possible leaks.
At the same time, the HEATCRETE® is produced by Heidelberg Materials in Germany. Both components – steel cassettes and concrete – are then transported to Rotterdam. There, our main production hub is located directly at the harbour, where the ThermalBattery™ is manufactured in collaboration with Mebin, the Dutch subsidiary of Heidelberg Materials.
In the casting process, the steel cassettes are set up vertically with the help of cranes and filled with HEATCRETE®. The modules then remain in an upright position for around a week so that the HEATCRETE® can harden and set. After this step, the ThermalBattery™ modules are ready for delivery to our customers.
What is the lead time for a ThermalBattery™ from order to delivery to the customer, especially given the various production and transport processes?
The entire process can take between five and six months for a smaller order of around 20 MWh. The delivery time depends largely on the production of the steel cassettes, as this requires a lot of manual work such as welding. For this reason, we are working closely with our main supplier to automate these processes – for example by using welding robots. This is particularly important in view of a possible scaling of production.
Another critical step is casting in Rotterdam. Although this process is generally less time-consuming, it plays a central role in ensuring the necessary thermal properties of HEATCRETE®. Various tests are carried out to guarantee quality. The entire process is carefully monitored on site by qualified personnel from ENERGYNEST and Heidelberg Materials.
Arrived at the customer: What does the installation of the ThermalBattery™ look like on site?
The installation of the ThermalBattery™ on site usually runs smoothly. After completion, the modules are transported to the construction site and installed on a prepared foundation at a height of four to five modules. The modules are then connected using pipework and various instruments, such as temperature sensors, are installed. Finally, the modules are insulated with insulating material.
The entire assembly phase usually takes two to three months for a smaller order. The work is carried out by local installation companies who are very familiar with the local building standards. The installation is supervised by ENERGYNEST employees on site to ensure the highest quality.
In light of stricter emissions regulations and ambitious climate targets, sustainability is becoming increasingly important in the supply chain. How is this being implemented in the ThermalBattery™ supply chain?
Together with our main investor Infracapital, we are intensively committed to the topic of sustainability – not only as an overarching mission of our company, but also in concrete terms along the entire supply chain. To this end, we receive quarterly reports from our main suppliers involved in the production of our ThermalBattery™ and jointly develop measures to reduce CO2 emissions.
One example of this is Heidelberg Materials, a partner that has set itself the goal of becoming climate-neutral by 2030. To this end, they are conducting intensive research into alternative binding agents for cement production, among other things. Another example is the production of our steel cassettes: Here, we are pursuing the goal of increasingly using green steel – steel that is produced using electric furnaces instead of traditional blast furnaces. Green steel is currently still more expensive than conventional steel, but we are working closely with our main supplier to reduce costs in the long term.
The pandemic and geopolitical crises have shown how vulnerable supply chains are to external disruptions. What steps have been taken to strengthen the resilience of your supply chain?
Global logistics have become much more challenging since the outbreak of Covid, as there are many potential bottlenecks in the supply chains. We therefore attach great importance to producing our ThermalBattery™ as close to our customers as possible in order to become more independent. This concept is called nearshoring.
We have already gained positive experience with this as part of a major project in Spain. Here, HEATCRETE® was manufactured on site using local concrete aggregates and in close cooperation with Heidelberg Materials for the customisation of its main components. The co-operation with local partners was equally successful, whether in the production of the steel cassettes or in the operation of the concrete plants required for casting. By producing locally, we can dispense with the so-called ‘last mile’, which not only reduces potential supply bottlenecks, but also enables considerable cost savings.
Another key focus of our work is the diversification of our supplier portfolio in order to avoid dependency on individual suppliers (single sourcing). This enables us to better compensate for potential shortfalls and ensure the stability of our supply chains. In this context, we have already succeeded in significantly expanding our supplier portfolio in our target markets in Europe, particularly in Germany and Spain. Our pipeline for key components such as HEATCRETE®, electric heating systems (e-heaters) and thermal oil systems is also located in these countries.
In conclusion: What are your future plans for the further development of your ThermalBattery™ supply chain? Have you planned any specific measures?
We have set ourselves ambitious targets for the coming years up to 2030. At the beginning of 2023, we launched our cost-down strategy to sustainably reduce the total cost of our ThermalBattery™ solutions. To achieve this, we are focusing on various measures, such as developing more efficient designs, working with new suppliers and promoting local production facilities. The first steps of this strategy have already proven successful and we expect an average annual cost reduction of five per cent by 2030.
Another important aspect of our scaling plans is mass production. To realise this, we are preparing our supply chain in a targeted manner. In particular, through strategic collaboration with our suppliers in the production of steel cassettes, we are creating the conditions for realising large-scale projects based on series production in the coming years. The introduction of series production goes hand in hand with optimised stockholding. This means that we are creating a buffer in our supply chain, which will enable us to deliver large projects faster and more efficiently.
The third important topic is, of course, sustainability, which plays a major role at ENERGYNEST and will become even more important in the coming years. When selecting suppliers in particular, we will not only consider price, quality and delivery time, but also how sustainable their production processes are and whether they work with green steel, for example.
Thank you very much for talking to us!
