Battery Energy Storage Systems: Make an Environmental Impact

As we journey toward a greener and more sustainable future, battery energy storage systems (BESS) have become the backbone of renewable energy integration. These systems allow us to store energy generated by sources like wind and solar, ensuring that electricity is available even when the sun isn’t shining or the wind isn't blowing. But as with all technology, it's important to examine the full picture—including the environmental impact of these systems.

What Are Battery Energy Storage Systems?

BESS are systems that store energy in batteries for later use. Unlike the batteries in your phone or laptop, these systems can be very large and capable of storing electricity for entire neighborhoods, cities, or regions. Lithium-ion batteries, the same technology that power e-vehicles, are currently the most common type of batteries used in BESS due to their efficiency, scalability, and energy density.

The Positives: How BESS Supports Renewable Energy and the Environment

1. Maximizing Renewable Energy Usage: Solar panels and wind turbines don’t generate electricity consistently. Solar energy is only available during the day and wind energy is dependent on weather conditions. Battery energy storage systems can store excess power generated when conditions are favorable, making that energy available later when renewable sources are less productive. This smooths out the supply-demand balance, enabling renewable energy to meet more of our energy needs.

2. Reducing Reliance on Fossil Fuels: Traditionally, we’ve relied on fossil fuel power plants, such as coal and natural gas, to provide "baseload" power—the consistent energy needed to keep the grid stable. BESS can reduce this dependency by providing stored renewable energy during peak demand times, cutting down the need for dirty, carbon-emitting plants. This results in less air pollution and fewer greenhouse gas emissions.

3. Improving Grid Stability: Renewable energy sources can sometimes make the electricity grid unstable due to their variability. BESS helps balance these fluctuations, providing a more resilient grid. This is crucial in preventing blackouts or brownouts and maintaining a reliable energy supply—something that becomes even more important as we transition to more renewable sources.

The Advantages: Why 2nd-Life Batteries in BESS Are Environmentally Friendly

1. Reducing Waste and E-Waste Pollution: When EV batteries reach the end of their life cycle in vehicles, they have historically been recycled or disposed of. Recycling lithium-ion batteries is still a challenging and resource-intensive process and improper disposal could lead to environmental hazards due to toxic chemicals leaching into soil and water. Repurposing these batteries for BESS reduces the immediate need to recycling or disposal, keeping them out of landfills for several more years. This dramatically reduces the amount of e-waste we produce and minimizes environmental risk.

2. Minimizing the Need for New Raw Materials: The production of new batteries requires significant amounts of raw materials like lithium, cobalt, and nickel—elements that are obtained through energy-intensive mining processes. These mining operations can have a damaging effect on ecosystems, contribute to water and air pollution, and lead to resource depletion. By utilizing 2nd-life batteries, we decrease the need for the extraction of new raw materials, thereby reducing the demand for mining and its associated environmental impacts.

3. Lower Carbon Footprint: The carbon footprint of manufacturing new batteries is substantial due to the energy required to extract raw materials and produce the batteries. When 2nd-life batteries are used, we avoid the carbon emissions associated with manufacturing new batteries for energy storage systems. Since the batteries have already been produced for their original purpose, repurposing them extends their life without adding to the emissions burden.

4. Cost-Effective and Scalable Energy Storage: 2nd-life batteries tend to be less expensive than newly manufactured batteries, making large-scale BESS projects more financially viable. This affordability encourages wider adoption of energy storage systems, facilitating the transition to renewable energy at a faster pace. The more accessible BESS becomes, the greater the opportunity for reducing reliance on fossil fuels and cutting greenhouse gas emissions.

The Path Forward: Making Second-Life Batteries More Sustainable

The use of 2nd-life batteries in BESS is an exciting development in our push for more sustainable energy solutions, but there’s still work to be done to maximize their environmental benefits.

Leveraging More Effective Recycling: While 2nd-life batteries extend the usability of EV batteries, eventually, they will need to be recycled. Currently, recycling technologies for lithium-ion batteries are improving, but still face challenges in cost-effectiveness and efficiency. By investing in more advanced recycling techniques, we can recover valuable materials from old batteries and reduce the need for new mining.

Standardizing Battery Design: One of the challenges with repurposing 2nd-life batteries is that EV batteries are not standardized, meaning they vary widely in size, chemistry, and performance characteristics. Creating more standardized battery designs could make it easier to repurpose and integrate them into BESS, ensuring better compatibility and efficiency.

Policy and Regulation Support: Governments and policymakers have an important role to play in supporting 2nd-life battery use. By providing incentives for companies that repurpose EV batteries, funding research into recycling technologies, and setting clear regulations for safety and environmental standards, we can accelerate the transition to 2nd-life BESS solutions.

New Partnership: Circunomics x encore | DB

Partnerships are the backbone to ongoing growth and success. At Circunomics, we strive to find synergies between our marketplace sellers and buyers. By connecting supply and demand, we are able to foster business relationships and be a catalyst for maximized circularity within the battery industry.

“We are pleased to partner with encore | DB, which has the same goal as we do. Together we seek the sustainable use of battery packs, modules and cells in a 2nd-life application. This reduces the carbon footprint of the battery and uses fewer of the valuable raw materials. No new batteries need to be produced for a 2nd-life applications. Additionally, the delivery of batteries to a professional recycling facility after their second use ensures that more recyclates are used in the production of new batteries,” says Felix Wagner, CEO and Co-Founder of Circunomics.

Engaging with encore | DB is a privilege. We look forward to providing them with the highest quality product and to bringing their BESS solutions to the Circunomics Marketplace.

For more information, pop over to the Circunomics Newsroom you will find our official press release!