Swedish Stirling signs agreement with Glencore Merafe Venture
Swedish Stirling AB ("Swedish Stirling") and
Glencore Operations South Africa Proprietary Limited ("Glencore"),
acting on behalf of the Glencore Merafe Venture, have signed an energy
conversion service agreement for an installation of 25 PWR BLOK 400-Fs (10MW)
at the Glencore Merafe Lion ferrochrome smelter.
The PWR BLOK 400-F is a product developed by Swedish
Stirling which enables the conversion of industrial residual and flare gases
into 100% carbon-neutral electricity.
In August 2020, clean-tech company, Swedish Stirling entered
into a letter of intent with Glencore regarding discussions on potential energy
conversion services at the Lion smelter in South Africa comprising the possible
installation of up to 88 PWR BLOK 400-Fs.
Today, the parties announce the signing of an energy
conversion service agreement for the installation of 25 PWR BLOK 400-Fs (10MW)
at the Lion smelter. The term of the agreement is 8 years from the date on
which the last PWR BLOK achieves commercial operation, with an option for the
Glencore Merafe Venture to extend the term by 7 years. The estimated present
value for the initial term of the agreement for Swedish Stirling is 700 MZAR
(49 MUSD).
The energy conversion service agreement is subject to
certain conditions precedent including financial close. During the contract
period, the installation is estimated to offset the carbon dioxide emissions
from the Lion smelter by over 500,000 tonnes. The first PWR BLOK is expected to
be delivered to Lion in 2022. The facility will be owned and operated through a
special purpose vehicle, established and controlled by Swedish Stirling.
"The Lion smelter is one of the world's largest
ferrochrome smelters. For Swedish Stirling, this development is recognition
that the PWR BLOK is a key solution for energy recovery in the metallurgical
industry, and is the starting point for a large commercial roll-out, said
Gunnar Larsson, CEO of Swedish Stirling."
"We are excited to implement this project which we hope
will reduce both our production costs and carbon dioxide emissions. This
project is part of Glencore's ambition to achieve net-zero total emissions by
2050, said Japie Fullard, Head of Ferroalloys Industrial Assets at
Glencore"
Comments
Post a Comment