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29/02/2024
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Infinity Lithium deal to target green Spanish benchmark

Infinity Lithium subsidiary Extremadura New Energies has entered into a joint venture (JV) with Spanish energy firm Enalter to potentially deliver low-cost green energy to its San José lithium project in Spain.

The creation of the “Extremadura Energy H2 Hub (EEHH)” allows a first right to secure a long-term green energy power purchase agreement for the San Jose project.

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The latest deal is a progression of a previously-revealed memorandum of understanding between the two entities in November last year. Infinity says EEHH has been established primarily for the availability of a secure source of localised and cost-effective green electricity and hydrogen for San José’s large-scale lithium chemical conversion plant and mineral extraction activities.

Enalter is a JV between leading Extremadura company Grupo Industrial CL’s subsidiary Alter Enersun and Spanish IBEX35 energy company Enagás’ subsidiary Enagás Renovable.

San José sits near the town of Cáceres in the region of Extremadura and boasts one of Europe’s leading JORC-compliant hard-rock lithium deposits, with a total indicated and inferred resource base of 111 million tonnes at 0.61 per cent lithium oxide.

Infinity plans to mine lithium ore and also refine it into lithium chemicals suitable for European battery makers. A 2021 scoping study estimated steady-state production on site, averaging 19,500 tonnes per annum of battery-grade lithium hydroxide in a 26-year period.

Extremadura New Energies chief executive officer Ramón Jiménez said: “Our plant in Cáceres will be the final consumer of the electricity and hydrogen generated by the Extremadura Energy H2 Hub renewable energy plants, which also consolidates the commitment of this project to the highest standards of environmental sustainability.”

The hydrogen plant is expected to have a maximum capacity of up to 180 MW, while the solar park will have a maximum capacity of up to 350 MW.

Management says the advancement of large-scale industrial projects for both renewable energy and lithium chemical conversion places Cáceres at the forefront of energy transition in Europe and provides significant opportunities for highly-skilled employment in the region.

Earlier this month, battery training and development programs offered through Extremadura New Energies were declared a “strategic” qualification by the local regional government. The Extremadura Public Employment Service (SEXPE), part of the Regional Government of Extremadura, will now provide grants through public funding in coming months to advance the company’s training initiatives.

Management has been working closely with local authorities and newly-elected officials to advance its lithium project, which will use renewable electricity sources to reduce its environmental impact.

With its latest JV partnership, Infinity says it will have the opportunity to secure long-term and low-cost green energy prices, mitigate pricing volatility and eliminate costs for grid access and transmission, providing a robust position for the advancement of San José.

 

Source: Business News

 

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