Infinity Lithium’s renewables partnership could lower San José costs
Infinity Lithium has formed a partnership with a major Spanish industrial and energy consortium to assess a renewable energy project, aiming to deliver cost savings to its San José project.
The binding memorandum of understanding between the company’s subsidiary Extremadura New Energies and Enalter for the development of a photovoltaic (solar), methane and green hydrogen project takes advantage of the vast renewable energy opportunities in the Extremadura region.
It will allow Infinity Lithium’s (ASX:INF) San José lithium project to benefit from reduced energy costs while meeting its renewable electricity and green hydrogen requirements.
“The partnership with Extremadura’s preeminent and progressive company further reinforces the positive momentum and complementary opportunities aligned to San José following the initiation of the permitting process last month,” managing director Ryan Parkin said.
“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.”
Enalter is a joint venture between leading Extremadura company Cristian Lay Grupo Industrial’s subsidiary Alter Enersun and Spanish IBEX35 energy company Enagás S.A subsidiary Enagás Renovable (Enagas).
Alter Enersun chief executive officer José Luis Morlanes said his company’s objective is to offer renewable solutions to decarbonise the industry’s activity and in this specific case – to help the planned San José lithium hydroxide plant be neutral in greenhouse gas emissions.
His counterpart at Enagas, which has a portfolio of more than 50 specific projects in Spain in the field of renewable gases and decarbonisation, Antón Martínez said that “collaboration between companies is essential to efficiently channel and maximise investment capacity and successfully develop a hydrogen ecosystem linked to renewable energies”.
Their planned renewable energy 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.
Phase 1 of the MoU has established the terms and conditions under which Extremadura New Energies and Enalter will study the technical and economic feasibility, opportunity and profitability of the project.
Once authorisations are obtained, they will then establish the framework to execute a Power Purchase Agreement (‘PPA’) for the supply of green energies to San José.
All surpluses of energies not covered in the PPA will be owned by the Renewable Project JV.
This article was developed in collaboration with Infinity Lithium, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.