Reclaim Finance encourages financial institution to support research and development as well as investment in this sector and will examine the subject as it evolves.
On short-term storage:
Reclaim Finance recommend investing in both li-ion and hybrid flow batteries as they are fundamental to the energy transition. In the shorter term, li-ion batteries are the most mature and will be a key element before 2030 to ensure a rapid transition.
Due to critical materials present in batteries, financial institutions should conduct a robust due diligence to ensure sustainable production of batteries all along the value chain, including the monitoring of environmental damages, respect of human rights – including acceptable working conditions, and transparency. The development of recycling must also be endorsed to improve the collection and reuse of critical materials and other key components.
On long-term storage:
Reclaim Finance recommend investing in mechanical and thermal storage as they are fundamental to the energy transition. A combination of these technologies will be necessary, as the choice of a particular technology will depend on system preferences and design parameters, among other considerations. Similarly, monthly and seasonal storage needs will change according to several variables, including climatic and regional conditions.
Mechanical and thermal power storage technologies are still in the early stages of development and adoption. The faster their development, the less need there will be for legacy thermal power plants and hydrogen-based energy storage, freeing up hydrogen for other sectors where its use could be more efficient.