International Graphite Ltd (ASX:IG6) has signed a non-binding Memorandum of Understanding (MoU) with ZEN Energy aimed at concluding binding agreements for the purchase of firmed renewable energy.
This MoU lays the foundation for cooperation aimed at reaching renewable energy supply agreements for International Graphite’s downstream processing plant in Collie, Western Australia.
The power supply agreement with ZEN would provide a renewables power source to drive the graphite technologies at Collie.
IG6 is looking to build commercial-scale graphite downstream processing facilities to produce battery anode materials for electric vehicles.
About ZEN
ZEN Energy, whose major shareholder is leading climate change economist Professor Ross Garnaut, is a renewable energy retailer which supplies the electricity needs of the South Australian Government, CSIRO's sites in the eastern states, a set of commercial and industrial businesses in the SACOME Buying Group, and 25 local councils in NSW.
The company is assessing the feasibility of building a 200 megawatt (MW), 600 to 800 MWh battery at Collie, south of Perth.
For perspective, the battery would be around four times the size of Tesla’s big battery in South Australia.
Development in Collie
International Graphite is developing processing facilities in Collie to undertake research and development activities and conduct pilot testing of graphite concentrates for purification and sphrerodising of graphite for Battery Anode Material (BAM).
The facilities will also produce micronised graphite. The company intends to expand the facility to commercial scale BAM production.
Looking ahead
The agreement with ZEN would provide a renewables power source that would help International Graphite achieve its targets for low carbon emissions and facilitate rapid production expansion in the future.
Both companies are supported by the Western Australian Government, who awarded International Graphite $2 million through the Collie Futures Industry Development Fund.
$1 million was also given to ZEN for the first stage of their big battery feasibility study.
International Graphite executive chairman Phil Hearse said access to renewable energy underpinned the company's ability to deliver highly ESG accredited products into global markets.
“A critical supply of green power gives International Graphite an important advantage, helping ESG and environmental objectives, as well as supporting a new supply chain that will bring jobs to Collie and opportunity to Western Australia.”
ZEN Energy CEO Anthony Garnaut said there were additional benefits that a large battery would bring to the Western Australian grid.
“It will support the continued investment of West Australian households in roof top solar by providing the ability to soak up excess solar energy, reducing the need to curtail residential solar production.”
Watch: International Graphite signs non-binding MoU with ZEN energy to power its operations with renewables
- By Duncan Bailey