ALCORE Advances Circular Economy with New Pilot Plant in Tasmania
ABX (ABX) Share Update January 2025 Tuesday 14th
ALCORE Secures Facility for Innovative Pilot Plant in Tasmania
In a significant development for the circular economy, ALCORE Limited, a subsidiary of ABx Group Limited, has secured a facility in Bell Bay, Tasmania, to establish a pilot plant for its innovative process of producing industrial chemicals from aluminium smelting waste.
Instant Summary:
- ALCORE leases facility near Rio Tinto's Bell Bay smelter.
- Pilot plant to demonstrate production of hydrogen fluoride from waste.
- Potential to convert hydrogen fluoride to aluminium fluoride, reducing imports.
- Environmental and planning approvals underway.
- Orders for key equipment expected in Q1 2025.
Facility Lease and Strategic Location
ALCORE Limited has entered into a lease agreement with Rio Tinto Aluminium Limited for a facility adjacent to the Bell Bay aluminium smelter in northern Tasmania. This location is strategically chosen for its proximity to key infrastructure and local engineering services, which will facilitate the rapid development of ALCORE's pilot plant.
The facility comprises a 500 square meter building, which is well-suited for the pilot plant's requirements. The lease agreement includes favorable terms, including an option to purchase the site or extend the lease for up to 10 years, contingent on the pilot plant's success and subsequent commercial development.
Innovative Process and Environmental Impact
ALCORE's pilot plant aims to demonstrate a world-first proprietary process to produce hydrogen fluoride from waste generated during aluminium smelting. This process represents a significant step towards a circular economy, as it utilizes waste to create valuable industrial chemicals.
In the future, ALCORE plans to convert hydrogen fluoride into aluminium fluoride, a crucial chemical for aluminium smelting currently imported entirely into Australia. This development could significantly reduce reliance on imports, benefiting both the local economy and the environment.
Progress and Future Plans
The process for securing necessary environmental and planning approvals is already underway, with ALCORE expecting to place orders for most key equipment in the first quarter of 2025. These steps are crucial in advancing ALCORE's technology towards commercial production.
ABx Group's Managing Director and CEO, Mark Cooksey, emphasized the importance of this development, stating that the facility's location and the collaboration with Rio Tinto provide a strong foundation for the project's success.
This announcement is likely to have a positive impact on ABx Group's stock, as it demonstrates significant progress in ALCORE's innovative technology. The potential to reduce import dependency on aluminium fluoride could enhance investor confidence and market interest in ABx Group.
Investor Reaction:
Analysts are expected to react favorably to this announcement, recognizing the strategic importance of the pilot plant in advancing ALCORE's technology. The collaboration with Rio Tinto and the support from the Tasmanian Government further bolster the project's credibility.
Conclusion:
Investors should keep an eye on ALCORE's progress as it advances towards commercial production. The successful implementation of this pilot plant could position ABx Group as a leader in sustainable industrial chemical production, offering potential growth opportunities for investors.