Date: Wednesday, 10 March 2021
Wednesday, 10 March 2021
Clean energy zero carbon SOP
Danakali Limited (ASX: DNK, LSE: DNK, Danakali or the Company) is focused on the development of the Colluli Sulphate of Potash Project (Colluli or the Project). The Project is 100% owned by the Colluli Mining Share Company (CMSC), a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO). The Company is continuing the process of evaluating its renewable energy options of solar, wind and geothermal energy with a view to becoming zero carbon in the production of Sulphate of Potash (SOP).
Solar and Wind
The early assessment work on the solar and wind energy potential of Colluli has been completed and this has confirmed that both of these renewable energy sources can be incorporated into the future generation of power for the Project. The Company will now work with its preferred power provider, Aggreko (LSE:AGK) on further developing these solutions. Aggreko announced on 26 January 2021 its ambition to be carbon net zero, aligning with the Paris Climate Agreement, by helping its customers meet their sustainability targets.
Colluli is located in the Danakil depression which lies within the East African Rift Valley, one of the world's most geothermally endowed rifts. Significantly, the mining license area is in close proximity to known geothermal gradients including at Alid, located on the axis of the Danakil depression, between the Red Sea and the Afar Triple Junction. Alid has been recognised by the Eritrean Ministry of Mines and Energy (MoEM) as a potential high geothermal resource due to the evidence of various surface manifestations and the presence of underground magma.
In 1996, detailed geological and geochemical work funded by USAID and conducted by United States Geological Survey (USGS) and MoEM identified a high temperature reservoir at Alid. Samples collected indicate a reservoir temperature of a hydrothermal-convection system likely to be in the range of 250 ° -300 ° C2, which is extremely promising as a geothermal power source. Follow up work in 2015 demonstrated structural trends and temperature permeability that are very favourable for an electric grade geothermal resource.
The importance of geothermal and other renewable energy sources is set out in Eritrea's national renewable energy policy and development framework. Danakali will utilise the impressive body of work already conducted in Eritrea to develop its plans and further its commitment to carbon neutral SOP production.
Executive Chairman of Danakali, Seamus Cornelius, said: "We are determined to embrace renewable energy and run our business in a way that delivers positive environmental impacts for Eritrea and the world. Our initial goal is to create a responsible, environmentally friendly, zero carbon, premium fertilizer business that clearly links Colluli SOP with the production of nutritious crops, bolsters global food and nutrition security, and improves millions of lives. We know very well that with an asset like Colluli, the extensive studies we have done to date provide us with a useful baseline and the ceiling won't even be glimpsed until after many decades of growth."
For more information, please contact:
Corporate Broker - Canaccord Genuity
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Announcement authorised for release by the board of Danakali.