- Energy metal specialist Lithium Australia (LIT) is teaming up with Northern Minerals (NTU) to help the Browns Range mine go green
- Browns Range currently relies on diesel for all of its power, meaning high costs and a large carbon footprint
- Through Soluna, a Lithium Australia joint-venture project, the companies will transition mining operations to renewable energy
- Lithium Australia’s lithium iron phosphate energy storage systems will help reduce costs and provide renewable energy
- Shares in Lithium Australia are trading eight per cent higher today, currently worth 5.4 cents each
- Meanwhile, Northern Minerals is trading over four per cent lower with shares worth 2.2 cents
Energy metal specialist Lithium Australia (LIT) is teaming up with fellow ASX-listed Northern Minerals (NTU) to build a renewable-energy facility in WA.
Lithium Australia is taking on the project through its recently-established clean-energy division, Soluna Australia.
Together, Soluna and Northern Minerals will work together to create the renewable-energy and battery-storage facility for Northern Minerals’ Browns Range mining came in the Kimberley region of Western Australia.
The purpose of the plant is to reduce the carbon footprint of the entire Browns Range mining operation, while simultaneously lowering operating and maintenance costs.
Soluna is a 50-50 joint venture between Lithium Australia and China-based DLG Energy.
The energy storage plan
Lithium Australian said the Browns Range mining facility is currently reliant on diesel for all of its power generation — a trait typical of remote mining operations.
Today’s plan, which is outlined in a letter of intent (LoI) signed between Soluna and NTU, is to evaluate the reduction in diesel consumption through the use of renewable energy and the subsequent reduction of carbon dioxide emissions.
The companies will also work out the degree to which not having to rely on diesel for power will lower operating costs.
As part of the deal, Soluna will install a solar generator and Energy Storage System (ESS) without any capital costs to Northern Minerals.
The first step for the companies will be to revamp the energy needs of the accommodation camp at Browns Range. Lithium Australia said the long-term goal is to reduce the fossil fuel output across the entire operation.
Lithium iron phosphate appeal
Lithium Australia said Northern Minerals was drawn to Soluna due to its lithium ferrophosphate (LFP) battery-powered energy storage systems.
Lithium Australia Managing Director Adrian Griffin said there is a growing demand for off-grid and “fringe-of-grid” hybrid energy systems in Australia.
“Renewable energy won’t work without reliable storage and Soluna offer economical and sustainable solutions,” Adrian said.
“We look forward to Browns Range becoming a successful renewable-energy case study. Current levels of interest are a good indicator that Soluna will grow significantly as Australia heads to a greener future.”
Lithium Australia shares are trading eight per cent higher today, currently worth 5.4 cents each.
Meanwhile, Northern Minerals shares are red by 4.35 per cent and worth 2.2 cents each.