ASX-listed graphite developer International Graphite and Ross Garnaut-backed renewable energy firm ZEN Energy have joined forces in an MoU that will support a low carbon graphite processing facility in Collie.
International Graphite (ASX:IG6) has laid the foundation for renewable energy supply agreements with ZEN Energy, which is seeking to build and operate a big battery four times the size of the Tesla Big Battery in South Australia in Collie.
It comes amid the town’s shift from its legacy coal mining industry to renewable energy and critical minerals production as part of a $100 million strategy being put in place by the WA Government.
IG6’s facility in Collie will undertake research and development activities and conduct pilot testing of graphite concentrates for purification and spheroidising graphite.
That is a key step in refining graphite for battery anode materials which go into lithium-ion batteries. IG6 also wants to produce micronized graphite and intends to expand the facility to commercial scale production.
ZEN is assessing the feasibility of building a 200MW, 600-800MWh battery at Collie to Perth’s south.
Running on green energy
The power supply agreement would provide a renewable power source for the graphite technologies IG6 plans to develop at the Collie downstream processing facility.
That will help the company achieve low emissions targets that will bolster its ESG credentials and facilitate rapid future expansions.
IG6 executive chairman Phil Hearse said renewable energy will underpin its ability to deliver ESG accredited graphite products to 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,” he said.
The big battery will help manage wholesale risk in the program to supply renewable energy to new and existing industrial projects in Collie and is expected to be a major part of the Collie Battery and Hydrogen Industrial Hub Project.
Both projects are of strategic importance to WA’s State Government, which awarded IG6 $2m through the Collie Futures Industry Development Fund and issued $1m for the first stage of ZEN’s big battery feasibility study.
“We are committed to creating practical energy supply solutions for customers seeking to grow their business on a sustainable footing,” ZEN CEO Anthony Garnaut said.
“Successful cooperation with International Graphite strengthens the commercial case for a big battery in Collie and provides a practical demonstration of how Australia can become a renewable energy superpower.
“There are additional benefits that a large battery will bring to the Western Australian grid. For example, 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.”
The non-binding MoU has been inked with the plans to conclude binding agreements for the purchase of firmed renewable energy from ZEN Energy by International Graphite.
This article was developed in collaboration with International Graphite, 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.