Queensland Pacific Metals Ltd (ASX:QPM) has confirmed that its TECH Project in North Queensland will not only be net-zero carbon but also a significantly net-carbon negative battery-grade nickel manufacturing plant.
A Life Cycle Assessment (LCA) of the TECH Project undertaken by industry life cycle analysis specialists Minviro, incorporates the anticipated energy strategy of sourcing gas from a combination of underground and open-cut metallurgical coal mines.
Based on the planned waste gas sourcing strategy, production from the TECH Project will far exceed the best environmental alternative for any nickel production globally.
Promisingly, for every tonne of nickel in nickel sulphate produced, the TECH Project will reduce greenhouse gas emissions by 14.9 kg CO2 eq/kg nickel in nickel sulphate.
“Global leader in sustainability”
QPM managing director Dr Stephen Grocott said: “For 20 years I have been working on mineral projects that attempt to minimise greenhouse gas emissions.
“Never have I been able to work on one which can not just reduce, but reverse emissions.
“Offtakers are demanding strong ESG credentials for battery metal production and QPM ticks all the boxes.
“The TECH Project will be a global leader in sustainability with net-carbon negative nickel production, minimal waste and environmental footprint and developed world labour laws.
"Our goal is to ensure that when our customers are buying our products, they will know that they are the cleanest and most environmentally attractive in the world.”
QPM shares have been as much as 14% higher this morning to A$0.245 while market cap was approximately $291.5 million before trading.
“Cradle-to-gate” approach
The LCA report adopts a 'cradle-to-gate' approach on the TECH Project and is fully compliant with the ISO Life Cycle Analysis Standard, meaning that the assessment of carbon emissions starts from the point of natural resource extraction to the end-gate.
The TECH Project LCA also includes all greenhouse gas emissions associated with electricity, ore mining and transport to the site, as well as the supply and consumption of all reagents and utilities for the site.
Based on the outcomes of the LCA report, QPM believes that the TECH Project boasts by far the best ESG credentials in the world for all nickel projects – existing and planned including:
- Net negative carbon nickel production that will be achieved by repurposing a greenhouse-intensive waste gas for commercial use, rather than buying carbon credits in the open market or applying for intercompany carbon credits;
- All electricity requirements will come from renewable sources;
- Western world labour standards (and mining laws for sustainable mining practice) with ore supply coming from New Caledonia (French law and performance standards) and with the operation of the TECH Project being under Australian law;
- Zero process liquids discharge;
- Minimal environmental footprint with project residue representing about 20% of original ore mass and a potential to reduce this footprint to zero; and
- 'Industrial ecology' - maximising the value of ore that is mined - all major metals contained within the laterite ore will be extracted and refined into a commercial product rather than disposed of as tailings.
Minimal environmental footprint
The annual reduction in Australia's greenhouse gas emissions as a result of the TECH Project is estimated at 238,000 tonnes CO2-equivalent, the equivalent of about 52,000 typical passenger vehicles.
TECH Project will utilise waste mine gas from the Bowen Basin which would be either flared or directly emitted to the atmosphere as a fugitive emission of methane which has a global warming potential factor of 25 times that of carbon dioxide.
This will have dual benefits of capturing and consuming gas that would otherwise contribute significantly to Global Warming and manufacturing battery-grade minerals to support the ongoing electrification of the automobile industry.
The TECH Project has now established itself as a leader in sustainable nickel production with net negative carbon nickel production combined with minimal environmental footprint given no tailings dam or zero process liquids discharge.