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LG Chem realizes largest ESS project in the world with STEAG

29.03.2016

LG Chem realizes largest ESS project in the world with STEAG
From 2016, large-scale solar batteries will supply power to 10,000 households

The energy revolution is gaining ground. In the months to come, LG Chem, one of the leading manufacturers of
energy storage systems, will be integrating six large-scale batteries in STEAG power plants. As part of the
world`s largest ESS (energy storage systems) project "STEAG GBS (Großbatterie-Systeme)" plants belonging
to the German power supplier in North-Rhine Westphalia and Rhineland Palatinate will be modernized. With
140 megawatt hours of power, the storage systems deliver enough energy to supply 10,000 households per day
with electricity. With this major project, LG Chem is further expanding its international business. The company
is planning to realize further projects in Germany in the future.

LG Chem`s storage systems are due to be commissioned in STEAG`s power plants in Herne, Lünen and
Duisburg-Walsum as well as in Bexbach, Fenne and Weiher from the middle of 2016 until the start of 2017.
The large-scale lithium-ion batteries from the South Korean company have a power capacity of 90 megawatts.
STEAG is thereby rapidly increasing its reliability of supply in the regions mentioned. Integrating the energy
storage systems will enable several thousand households to be supplied with energy every day.

The major project STEAG GBS is being realized through collaboration between LG Chem and Nidec ASI, an
expert in electrical motors and generators. The ESS storage systems, consisting of batteries from LG Chem
and the PCS and EMS solutions from Nidec ASI, are being used by STEAG to generate primary balancing
power. This energy storage capacity is used to offset short-term, unforeseen fluctuations on the grid.
The six systems will be operated independently of the STEAG power plants. Thanks to the ESS technology,
power will be automatically taken off the grid within a few seconds ever there is an over-supply of energy.
Conversely energy will be fed into the grid to keep the frequency constant at 50 Hz.

New potential for the German energy market
With the STEAG GBS project, LG Chem is intensifying its business activities in Europe. Germany will have a
special part to play in this process. "The German energy market is the largest in Europe with annual
consumption of around 550 terawatt hours and a production capacity of 125 gigawatts. Due to the political
developments in the energy industry in recent years, the need for ESS solutions is enormous", explains
Santiago Senn, Director of Energy Storage Systems at LG Chem Europe GmbH. "With more than 200
projects implemented around the world, such as currently in Hokkaiso, Japan, we have both the technology
and the expertise to make a considerable contribution to this market." According to the market research
company Navigant Research, the ESS market is set to grow from its current level of 1.02 billion euros to
6.98 billion euros within the next five years. LG Chem`s plan is to help shape this development through
its partnership with Nidec ASI in the German market.

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