TIDMIRON
RNS Number : 0223V
Ironveld PLC
03 April 2023
Ironveld Plc
LOI signed with BurnStar Technologies for Hydrogen
Production
Ironveld plc ("Ironveld" or the "Company"), the AIM quoted
mining development company, is pleased to confirm that its
subsidiary, Ironveld Energy (Pty) Limited ("Ironveld Energy"), has
signed a Letter of Intent ("LOI") with BurnStar Technologies (Pty)
Limited ("BurnStar"), to proceed towards a binding Legal Agreement
(the "Agreement") under which BurnStar will, implement its
patent-pending 'Guilt-Free Hydrogen' (TM) technology, to process
Liquefied Natural Gas ("LNG") on site at Ironveld's Rustenburg
smelter.
Under the Agreement, BurnStar will produce hydrogen as a furnace
reductant gas which could significantly reduce Ironveld's carbon
consumption and enable Ironveld to produce premium priced 'green
metals' in South Africa.
Highlights
-- BurnStar has a patent-pending protected technology in more
than 45 countries which can produce hydrogen from various
hydrocarbons including flare gas, LPG, naphtha and LNG. BurnStar
owns and applies the trade name 'Guilt-Free Hydrogen' (TM);
-- BurnStar will supply and install a commercial plant at its
own cost at Ironveld's Rustenburg smelter facility;
-- Use of hydrogen as a reducing agent within Ironveld's
smelting process has the potential to significantly reduce total
carbon consumption, reduce production costs, and enable the
production of premium priced 'green metals';
-- Binding Agreement expected to be signed within two months.
Martin Eales, CEO of Ironveld, said : "This is a hugely
significant step for Ironveld. Our partnership with BurnStar will
allow us to benefit from an on-site supply of hydrogen at extremely
attractive prices, which has the potential to virtually eliminate
carbon consumption from our production process and achieve 'green
metal' end products. This may lead to Ironveld having the ability
to certify its end products, ensuring that their sustainability
credentials are reflected in their market value. We look forward to
finalising the formal Legal Agreement with Dr Brand and his team in
the coming months."
Dr Johan Brand, CEO of BurnStar, said : "Our technology produces
"Turquoise Hydrogen" which stands apart from 'grey' and 'blue'
hydrogen because no CO(2) is produced during pyrolysis of the LNG.
Furthermore, all the carbon produced can be sold as a bio-char
replacement in fertilizer and will therefore become permanently
sequestered. The plant is scheduled to be installed before year end
and will demonstrate 'Guilt-Free Hydrogen' (TM) commercialisation
at a large-scale industrial facility."
Details of the LOI
The LOI states that Ironveld Energy and BurnStar intend to enter
into the binding Agreement under which BurnStar will supply and
install, at its own cost, a plant at Ironveld's Rustenburg smelter
capable of producing hydrogen from LNG at the rate of five
kilograms ("kg") per hour.
The Agreement will be conditional on Ironveld Energy finalising
its supply of LNG to the smelter, negotiations for which are
already underway to feed the solar-hybrid power generation plant
currently being installed.
Ironveld process and 'Green Metals'
A reducing agent ("reductant") is used in the smelting process
to change the oxidation state of metal ore (to 'decompose' it),
driving off unwanted elements, such as gasses or slag, and leaving
the metal base behind. Typically, the reducing agent used is a form
of carbon, for example anthracite, which in Ironveld's process is
mixed with the magnetite ore inside the furnaces.
Much research has been undertaken into the possibilities of
using hydrogen as a reducing agent in smelting processes, including
iron ore and scrap iron and steel. Iron and steel makers are
actively developing processes and technologies to replace
carbon-based reductants with hydrogen. The first green steel
produced using hydrogen was shipped from Sweden by Hybrit (a joint
venture between steelmaker SSAB, Vattenfall and LKAB) in August
2021.
Once the BurnStar plant is established at the Rustenburg
smelter, and is producing hydrogen, Ironveld intends to evaluate
its use as the reducing agent in its smelting process. The hydrogen
will be supplied by BurnStar at costs at or below current market
rates. If successfully applied to Ironveld's production, this will
enable the Company to significantly reduce its carbon consumption
over and above the benefits of the solar-hybrid power plant, due to
be commissioned in Q3 2023. This will also reduce overall
production costs and, crucially, enable production of 'green
metals', which command premium pricing in the market.
Information on BurnStar
BurnStar has developed a novel and proprietary process with
patent applications filed in more than 45 countries. The liquid
metal bubble column system produces 'turquoise hydrogen' from
various hydrocarbons including flare gas, LPG, naphtha and LNG with
the registered Trade Name of 'Guilt-Free Hydrogen' ä . BurnStar has
successfully completed testing of its pilot plant and has secured
all funding to design, build, own and operate a commercial sized
unit and to demonstrate production of up to five kg of hydrogen per
hour.
'Turquoise hydrogen' is a generic term for hydrogen in which no
greenhouse gas (CO(2) ) is produced or emitted to the atmosphere
during the production phase as all the carbon is separated in a
solid form and sold as a fertilizer additive.
BurnStar is backed by specialist South African venture capital
and incubator fund, Savant.
Further information on BurnStar and Savant is available at
www.burnstar.co.za and www.savant.co.za
Timetable
Ironveld and BurnStar envisage signing the binding Agreement
within two months.
For further information, please contact:
Ironveld plc c/o BlytheRay
Martin Eales, Chief Executive Officer 020 7138 3204
finnCap (Nomad and Broker)
Christopher Raggett
Charlie Beeson 020 7220 0500
Turner Pope (Joint Broker)
Andy Thacker
James Pope 020 3657 0050
BlytheRay
Megan Ray
Tim Blythe 020 7138 3204
NOTES TO EDITORS
Ironveld (IRON.LN) is the owner of Mining Rights over
approximately 28 kilometres of outcropping Bushveld magnetite with
a SAMREC compliant ore resource of some 56 million tons of ore
grading 1,12% V2O5, 68,6% Fe2O3 and 14,7% TiO2.
In 2022 Ironveld agreed to acquire and refurbish a smelter
facility in Rustenburg, South Africa, in which it can process its
magnetite ore into the marketable products of high purity iron,
titanium slag and vanadium slag. This transaction became
unconditional in March 2023.
Ironveld is an AIM traded company. For further information on
Ironveld please refer to www.ironveld.com .
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
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