Altech Batteries’ CERENERGY solid-state salt batteries have received the highest possible “Dark Green” rating, opening up access to the Green Bond debt market. Pic: Getty Images
Tech
Special Report: Altech Batteries has stuck a big feather in its cap after its CERENERGY solid-state salt batteries were formally assessed as having the highest possible green rating category.
The “Dark Green” accreditation by the Independent Centre of International Climate and Environmental Research – owned by Oslo-based Standard and Poor’s Global Ratings – that ranks it as one of, if not the greenest battery technologies available today.
S&P had based its decision on the importance of battery storage in the transition of the power and industrial sectors, the contribution to the development of alternatives to lithium-ion and cobalt-free batteries as well as the relatively low expected emissions and fossil fuel-free direct production process for CERENERGY® batteries.
Altech Batteries (ASX:ATC) says the production of CERENERGY® batteries, which use common table salt (sodium-chloride) and ceramic solid-state technology whilst not requiring critical minerals like lithium, nickel and cobalt, is expected to generate one third of the emissions (or 14kg of CO2 per kilowatt hour) required to produce lithium-ion batteries.
Of this amount, ~10kgCO2/kWh comes from Scope 3 emissions, which are the result of activities from assets not owned or controlled by Altech. This is based on data provided by large suppliers, transportation emissions, and conservative estimates for more minor suppliers.
The direct production process for CERENERGY® batteries will be powered entirely by renewable energy with the company having entered into a power purchase agreement for the direct provision of solar energy, complemented by on-site solar installations.
One of the key takeaways of the accreditation is that it allows Altech to tap into the Green Bond debt market – one of the debt financing options being considered for the CERENERGY® project.
Whilst fundamentally the same as conventional bonds, which are a loan made by an investor to an organisation to finance a project with the expectation of receiving the principal amount and interest payments at the end of the loan’s life, green bonds are issued exclusively to finance projects that positively impact the environment.
They may also offer tax incentives such as tax exemption and tax credits to attract investors.
“The project can now be accessed by investors that participate in the green bond market, the size of which is approaching US$250 billion annually and a large portion of which is present in Europe,” Managing Director Iggy Tan said.
“The CERENERGY® project’s green shading score does not affect bond pricing, rather it provides a transparent mechanism by which green bond investors are able to categorise their investment in terms of climate risks and impacts. We are very proud of achieving this significant milestone.”
With advantages including being completely fire and explosion proof as well as being able to operate in all but the most extreme of climate conditions, the batteries could be used in industrial micro grids, or support systems in data centres, logistics centres and hospitals.
Grid storage is also expected to be a major user of CERENERGY® batteries to support grid reliability and stability.
This article was developed in collaboration with Altech Batteries, 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.
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