Minbos (ASX:MNB) back Capanda green hydropower
April 11, 2023Minbos Resources have claimed its green ammonia project as one of the most promising globally after the results of a technical study affirming the feasibility of a carbon-free facility producing from the Capanda Hydroelectric Dam in Angola.
The study confirms Capanda will produce economically viable green hydrogen, combined with nitrogen, producing zero-carbon ammonia product for use in fertiliser and mining explosives.
Minbos’ technology partner Stamicarbon say unique existing hydropower offers one of the most competitive tariffs, with minimised operating costs in an ideal location to capture the ‘African Inland Premium’ for nitrogen fertiliser and explosives.
Stamicarbon Director of Technology Licensing David Franz said it is a well-conceived project from both a
technical conceptual basis and an economic standpoint.
“As expected, the extremely low committed renewable energy cost that the project will enjoy is a key driver, as is the dual-market redundancy of serving both the mining sector in the Democratic Republic of the Congo and Zambia as well as the growing agricultural sector in Angola,” he said.
Minbos Chief Executive Lindsay Reed said the company is developing a project with a strong competitive advantage, including the market access recognised as the gold standard for viable green hydrogen projects.
“One of Capanda’s biggest opportunities is to capture ~$200/t African Inland Premium for nitrogen products,” he said.
“We will continue to develop projects that not only grow value for shareholders, but continue to build the country of Angola, from the ground up,” he said.
The race is truly on for green ammonia and its untapped potential as a sustainable energy carrier, eyed as a fuel for power generation and transportation as well as a feedstock for industrial production, and several nations and companies have laid their plans to increase production and use in the coming years, including Fortescue Future Industries which is modifying its own ammonia facilities in Queensland to run on green hydrogen.
Minbos have claimed an early victory in the race and will now begin its pre-feasibility study, having already started offtake and financing talks with several high-quality project partners and debt providers.
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