Infinity Lithium Corporation Ltd (ASX:INF)’s wholly-owned subsidiary has signed a binding Memorandum of Understanding (MoU) with a major Spanish Industrial and energy consortium for a photovoltaic, methane and green hydrogen project aligned to the San José Lithium Project.
The MoU, signed by subsidiary Extremadura New Energies, will enhance San José’s potential to take advantage of the renewable energy opportunities in Extremadura, including lower cost and localised green energy whilst increasing industrial benefits to the Spanish region of Extremadura.
Extremadura New Energies will partner with Spanish IBEX35 company Enalter to establish the renewables project JV company once an initial scoping phase is completed.
Enalter was established as a joint venture between leading Extremadura company Cristian Lay Grupo Industrial (CLG) subsidiary Alter Enersun, S.A and Spanish IBEX35 energy company Enagás S.A subsidiary Enagás Renovable, S.L.
The flowsheet below outlines the relationship between all parties:
A project of significance
The JV partners aim to deliver a project of regional and national significance.
This will be which heavily aligned and conditional on the successful development by INF of San José.
There are two phases to the MoU. The first will see the establishment of terms and conditions under which Extremadura New Energies and Enalter will study the technical and economic feasibility, opportunity and profitability of the Renewable Project.
Subject to obtaining the authorisations, they will then establish the framework to execute a Power Purchase Agreement (PPA) for the supply of green energies to San José.
Note that all surpluses of energies not covered in the PPA will be owned by the renewable project JV and the PPA must be executed prior to the commencement of phase 2 of the MoU.
Infinity managing director and CEO Ryan Parkin said: “The partnership with Extremadura’s pre-eminent and progressive company further reinforces the positive momentum and complementary opportunities aligned to San José following the initiation of the permitting process last month.
“Extremadura New Energies welcomes the opportunity to advance this complementary and mutually beneficial project in Extremadura in concert with the significant momentum at San José”
Alter Enerson’s objectives
Alter Enersun is focused on the promotion of renewable electricity generation facilities.
Extremadura Gas, another wholly-owned subsidiary of CLG, is the primary supplier of natural gas to Caceres and the region of Extremadura.
Enagas has a portfolio of more than 50 specific projects in Spain in the field of renewable gases and decarbonisation, making it one of the largest European platforms for renewable gas projects.
Extremadura New Energies is assessing the potential to blend green hydrogen with natural gas as an essential energy source for the pyrometallurgical process in the conversion of lithium-bearing mica to battery-grade lithium chemicals. There is also the potential to use green hydrogen for other energy applications on site.
There is great synergy between the partners.
“Alter Enersun's objective is to offer renewable solutions to decarbonise the industry's activity and, in this case, to help the lithium hydroxide plant to be neutral in greenhouse gas emissions,” Alter Enersun CEO José Luis Morlanes said.
Enagás Renovable CEO Antón Martínez indicated that "collaboration between companies is essential to efficiently channel and maximise investment capacity and successfully develop a hydrogen ecosystem linked to renewable energies".
Renewable alignment
The renewable project is aligned to the production of critically required battery-grade lithium chemicals whilst also being aligned with the decarbonisation objectives of the EU’s RePower EU plan, Spain's renewable hydrogen roadmap and the region of Extremadura to establish an industry to potentially export green energy to the EU and capitalise on Spain’s vast renewable energy potential.
Extremadura New Energies Battery Academy provides training and development programs in collaboration with EIT InnoEnergy for the lithium-ion battery and renewable energy sectors.
An important goal is to continue to align social and economic development opportunities to the locality of Cáceres and Extremadura in conjunction with the commitment to energy transition.