- Syrah Resources (SYR) approves the final investment decision (FID) for the installation of a solar and battery hybrid power system at its Balama graphite project in Mozambique
- Construction of the solar battery system (SBS) will be delivered under a 10-year build-own-operate-transfer (BOOT) arrangement with a Mozambique incorporated project company owned by CrossBoundary Energy (CBE)
- Funding for the project is being provided by CBE, who will via the project company build, own and operate the SBS across the BOOT term
- Operation and ownership of the Balama SBS will then be transferred to Syrah at no cost at the end of the 10-year BOOT period
- Syrah says the SBS is scheduled to be commissioned and operating before the end of the March 2023 quarter
- SYR shares down 3.24 per cent to $1.65
Syrah Resources’ (SYR) board has given the final investment decision (FID) go-ahead for the installation of a solar and battery hybrid power system at its Balama graphite project in Mozambique.
Construction of the solar battery system (SBS) will be carried out under a build-own-operate-transfer (BOOT) arrangement, comprising a 10-year operating lease and an operating and maintenance contract with a Mozambique incorporated project company owned by CrossBoundary Energy (CBE).
Funding for the project is being provided by CBE, who will via the project company build, own and operate the SBS across the BOOT term.
Operation and ownership of the Balama SBS will then be transferred to Syrah at no cost at the end of the 10-year BOOT period.
Syrah selected a 11.25 MWp solar photovoltaic (“PV”) installation combined with an 8.5 MW/MWh battery energy storage system to be integrated with Balama’s existing diesel power generation plant.
The company said the SBS was scheduled to be commissioned and operating before the end of the March 2023 quarter.
“The installation of a large-scale solar and battery hybrid power system is expected to reduce operating costs at Balama and further strengthens the ESG credentials of Balama’s natural graphite products,” Syrah Managing Director and CEO Shaun Verner said.
“This project represents an initial step in reducing the global warming potential of Balama.
“The project is forecast to generate an attractive return on capital due to the low up-front capital costs, fixed costs payable by Syrah under the 10-year BOOT arrangement and the significant cost savings from reduced diesel consumption.”
Syrah said the SBS was tipped to derive C1 cost savings about US$8 (A$10.55) per tonne at a 15,000 tonnes per month production rate.
SYR shares were down 3.24 per cent to $1.65 at 1:59 pm AEST.