- RNT-EP, Angola’s electricity network operator, has confirmed its support for a longterm offtake agreement with Minbos for Zero-Carbon hydro electrical power.
- Zero-Carbon Power to underpin the Company’s Green Hydrogen & Ammonia Project in Angola which seeks to address world shortage of nitrogen fertilizer.
- Green ammonia is critical to global food production in a carbon constrained world.
- The Company to immediately commence both feasibility studies & technology partner search.
Minbosis pleased to announce it has received a formal resolution from RNT-EP, Angola’s electricity network operator, that it intends to enter into an agreement with Minbos for the supply of hydroelectric power from the Pólo Agroindustrial de Capanda (Capunda Hydroelectric Dam).
At a meeting held last week, the RNT-EP also confirmed a draft MoU will be exchanged between the parties to formally confirm the arrangement, expected mid-May 2022.
The Zero-Carbon Power is proposed to be delivered to the Company’s project site where the Company plans, based on its preliminary work completed to date, to build a green ammonia production facility with capacity to produce nitrogen fertilizer.
As part of the proposed production process, the Company plans to convert the Zero-Carbon Power first into green hydrogen which in turn will be converted into green ammonia (ammonium nitrate).
While the final terms are still to be negotiated and agreed in the MoU, the key commercial terms that have been proposed between the parties to date are:
- Initial 100MW at US$0.004 (0.4c) per kilowatt hour for 5 years then US$0.008 (0.8c) per kilowatt hour for 20 years.
- Subsequent 100MW at US$0.015 (1.5c) per kilowatt hour for 25 years.
Upon execution of the MOU, the Company anticipates that the Zero-Carbon Power offtake arrangement will deliver:
- a weighted average cost of power of $USD0.011 (1.1c) per kilowatt hour – c.90%1 cheaper than Australian power grid pricing and c.55%2 cheaper than natural gas prices (most common power input into current hydrogen and ammonia production);
- long-term power security (25-year offtake);
- long-term power price stability (no risk of increased costs associated with potential carbon pricing regimes);
- and no upfront capital costs required to establish power generation (versus the capital intensive development of solar and wind power infrastructure).
By 14 May, RNT-EP will provide a letter to the Company outlining technical clarifications required for the supply of power to the Project. This will include the despatch voltage options from the Capunda substation commensurate with the power needs of the Project, and the allocation of the practical, legal and financial responsibilities of maintaining the power lines and substation at the green ammonia plant. Angola’s hydroelectric potential is enormous and is key to a project like the Company’s Green Ammonia Project being successful.
Hydropower ringfences the Company’s Green Ammonia Project from the “perfect storm” created by a surge in gas prices to near record levels in Europe and Asia with a shortage of ammonium nitrate caused by the shuttering of grey, brown and blue hydrogen/ammonia projects globally. Even if gas prices were to normalise to long term averages, the Company’s’ Green Ammonia Project will remain one of the most compelling, globally protected from any impacts associated with global carbon pricing and without substantive capital investment required in new renewable energy production.
The Capunda Hydroelectric Dam is located on the Kwanza River, in the Malange Province of Angola. The facility generates power by utilizing four turbines and 130 MW (170,000 hp) each, with an installed capacity to 520 MW’s.
The land allocation of 200 hectares is within 10km of the Capunda Hydroelectric Dam, along an existing transmission corridor where the Company plans to build two green ammonia plants and is located within trucking distance to the Malange growing corridor and major regional mining projects, reducing transport costs and ensuring the Project’s cost advantage is maintained.
Commenting on the Formal Resolution, CEO Lindsay Reed stated: “I want to thank the Government and people of Angola for entrusting the Company with the development of Africa’s first truly Green Hydrogen & Ammonia Project. Over the recent period we have seen significant publicity around the development of green hydrogen and green ammonia as they are the bedrock to sustainable agriculture and food security. With our access to clean, carbon-free, cost-effective power, Minbos is uniquely positioned to capture value from one of world’s most prospective investment thematics. We look forward to progressing the project further and providing the market updates on one of the most attractive Green Ammonia Projects on the ASX.”
Read the article online at: https://www.worldfertilizer.com/environment/13052022/rnt-ep-affirms-support-for-minbos-zero-carbon-green-ammonia-hydrogen-project/
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