Altech Chemicals’ battery materials coating plant project receives ‘green’ status

Altech Chemicals ASX ATC Centre of International Climate and Environmental Research CICERO coating plant
Altech Chemicals’ proposed coating plant in Germany is considered suitable for future green bond financing.

Emerging high purity alumina (HPA) producer Altech Chemicals (ASX: ATC) has announced its battery materials coating plant project in Germany has been awarded a “medium green” rating by the independent Centre of International Climate and Environmental Research (CICERO).

This positive project evaluation, formally termed a “green bond second opinion”, confirms that the proposed project would be suitable for future green bond financing.

The assessment was part of a preliminary feasibility study (PFS) being undertaken by Altech’s 75% owned subsidiary Altech Industries Germany GmbH (AIG) for a proposed battery materials coating plant at Schwarze Pumpe Industrial Park in Saxony.

The plant is being designed with a specific focus on minimising environmental impact, and in accordance with prevailing German, European and international environmental standards.

Project aligns with green bond principles

In determining the overall project framework rating of “medium green”, Norway-based CICERO assessed the proposed governance procedures and transparency as “good” and confirmed the project aligns with green bond principles.

CICERO declared the plant has “near zero scope one and two emissions as the plant’s processes, including steam generation, are fully electrified, and it will use renewable electricity sourced from on-site solar panels and renewable energy certificates”.

Although Altech’s project is still in the development phase, CICERO encouraged the company to “implement and enforce a robust supply chain sustainability policy, as well as engage with its suppliers to address their sustainability impacts” given that more than 90% of the plant carbon footprint is attributable to plant feedstock such as graphite and silicon.

A carbon footprint assessment of the proposed 10,000-tonnes-per-annum plant determined that, compared to the incumbent lithium-ion battery technology that uses a graphite-only anode, coated silicon anode material could result in a carbon emissions reduction of: about 19% where 5% coated silicon is used in a battery anode; and up to about 52% if 20% coated silicon is used.

Altech managing director Iggy Tan said CICERO’s independent assessment is an important inclusion in the current PFS.

“It certainly adds credibility to this proposed project,” he added.

“The PFS continues to progress, and Altech anticipates that results will be available during the first quarter of 2022,” Mr Tan said.

Recent capital raising

Earlier this month, Altech announced its completion of an $8.1 million share placement and the launch of a $4 million share purchase plan to advance its battery materials development.

The funds have been earmarked for the purchase of land at Schwarze Pumpe and the subsequent construction of its proposed 10,000tpa HPA pilot plant.

It will also be used to complete the PFS and a following definitive feasibility study.

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