Peter Roberts
21 May 2024 01:39
Aluminium chemicals company Alpha HPA has committed to a $500 million second stage development of its battery metals precursor plant at Gladstone, Queensland.
The development, which follows the successful development of a Stage 1 plant, will see the construction begin in FY24 utilising the latest in process control systems and automation of a facility capable of producing 10,000 tonnes of HPA equivalent per year.
Stage 1 is capable of producing 500kgs per week of HPA at greater than 99.995 percent purity.
Alpha’s Managing Director, Rimas Kairaitis said: “This decision to proceed with the commercialisation of Stage 2 of the HPA First Project and the successful project financing represents a major step-change in our business growth.
“We are delighted to have received comprehensive financing support from the Australian government and from new and existing shareholders.
“The feasibility study and financing represent a comprehensive endorsement of the company’s technology and business strategy and allows for Alpha to establish Australia’s first, large scale commercial capability to manufacture high purity aluminas and related products to support key high technology growth sectors and the global energy transition.”
Alpha HPA has now taken a Final Investment Decision (FID) in respect of Stage 2 of the HPA First Project, supported by compelling Definitive Feasibility Study (DFS) outcomes and credit approval for $320 million in project debt and an $80 million cost overrun facility from the Northern Australia Infrastructure Facility (NAIF) and Export Finance Australia (EFA).
“Alpha will immediately commence project execution for Stage 2 having advanced a number of key elements of the Stage 2 project implementation, with construction to commence mid CY2024 on the existing HPA First Project site at Yarwun, near Gladstone, Queensland.”
The Stage 2 DFS and FID build upon:
An extensive 4 year product marketing campaign to over 200 end-users and parallel product development effort, to maximise Alpha’s process capability and margins
The successful construction, commissioning and 16 months of operation of Stage 1 of the HPA First Project
And a comprehensive re-design and re-engineering of the Stage 2 facility to capture process refinements and expanded product range.
The government debt facilities, government grants and a planned $120 milion share placement and share purchase paln are part of a broader funding package Alpha is progressing to fully fund the HPA First Project Stage 2.
Further reading:
Alpha HPA progresses battery metals precursor production
Picture: Alpha HPA