The new flow battery energy storage solution will generate and store electricity by combining hydrobromic acid and hydrogen.
Funded by the European Union, the project aims to optimize the existing 50kW flow battery prototype designed by EnStorage to a 150kW demonstration module.
Under the agreement, Areva and Schneider will test the flow battery technology under real conditions.
Areva will lead the project, manufacture, integrate and install the storage solution while Schneider Electric will design, manufacture and install the complementary power conversion system.
Areva Renewables CEO Louis-François Durret said: "The energy storage market is fast-moving and highly competitive. In order to meet the energy needs of tomorrow AREVA is diversifying its technology portfolio with the flow battery technology and broadening its cooperation agreement with its partner, Schneider Electric."
Schneider Electric energy business EVP Frédéric Abbal said: "This storage technology will provide the flexibility and stability needed to facilitate renewable integration."