Core Lithium Ltd (ASX:CXO) (OTCMKTS:CXOXF) has signed a two-year power grid connection agreement with Power and Water Corporation (PWC) in the Northern Territory.
The two-year agreement allows Core to construct a physical link between the Finniss Lithium Project near Darwin and the PWC power grid network, securing a physical capacity of 5,000 kVA electricity, sufficient to meet the project needs.
This grid connection will also open an opportunity for Core to access lower-cost, lower-emission renewable and gas generated power for the Finniss Lithium Project.
PWC is an NT Government-owned corporation that transmits and distributes electricity, and provides water services, across the Territory.
Key infrastructure goal
Core Lithium managing director Stephen Biggins said connection to the PWC network was a key infrastructure goal of the project.
“However,” he said, “what is even more exciting is that once connected, the project will be able to participate in the NT Government’s retail contestability reforms that have been extended to large customers, such as Core.”
Simple connections agreement by PWC
Signing of the PWC agreement ticks another box on Core’s list of objectives to complete in the lead-up to the start of construction at the project, which is expected to begin before the end of 2021.
The agreement is considered a simple connections agreement by PWC, which allows Core to finalise the connection design and select a PWC approved contractor to construct the connection.
Once the grid connection is constructed the infrastructure is transferred (gifted) to PWC after which PWC will provide the project with a connection service.
Biggins said: “Having the ability to choose our electricity supplier and plug into green power is yet another demonstration of how the location of Finniss Lithium Project can reduce Core’s and our customer’s greenhouse footprint.”
Crucial milestones
The transferred works are to be constructed following the PWC approved design, specifications provided by PWC, and all applicable laws and applicable Australian Standards.
Biggins said: “Core is excited to continue accomplishing crucial milestones for the project as we prepare to commence construction before the end of 2021, and deliver the first production in 2022.”
Aim to be one of lowest-cost producers
Once the connection is established, the project will then be connected to low-cost power and Core will have the right to choose an electricity supplier, as well as the opportunity to utilise low-emission renewable and gas generated power
Biggins added: “Access to grid power is a significant contributor to Core’s aim to be one of the lowest cost and lowest emitting lithium producers in Australia.”
Finniss has Federal Government Major Project Status and is also one of the most capital-efficient lithium projects in Australia and has arguably the best logistics chain to markets of any Australian lithium project.
The project lies within 25 kilometres of port, power station, gas, rail and one hour by sealed road to workforce accommodated in Darwin and importantly to Darwin Port - Australia’s nearest port to Asia.