Euro Manganese Inc (ASX:EMN, TSX-V:EMN, OTCQX:EUMNF) is pursuing a long-term renewable energy supply for its Chvaletice Manganese Project with Europe’s largest renewable energy generator.
The battery materials stock has inked a non-binding Memorandum of Understanding (MoU) with Norwegian hydropower company Statkraft, kickstarting discussions on a carbon-free renewable energy supply agreement to power EMN’s cornerstone project.
The MoU stems from EMN’s recent collaboration with Baringa Partners, which set out to identify strategic partners that could supply long-term, economically viable green energy for Chvaletice.
If both parties dot the I’s and cross the T’s on a concrete agreement, Statkraft’s power supply should kick off between 2026 and 2027.
Advancing “an important step”
Commenting on the MoU today, Euro Manganese president and CEO Dr Matthew James said he looked forward to partnering with Statkraft as both parties moved towards a definitive deal.
“Procuring long-term, green energy to power the Chvaletice project is an important step for us to deliver on our commitment of producing low-carbon, high-purity manganese products,” he explained.
“While the environmental credentials of the Chvaletice project are already strong, power is a large input in our process and sourcing 100% renewable energy reduces the carbon footprint of our project by approximately 50%.
“This not only demonstrates our commitment to operating responsibly but also gives us a competitive advantage in discussions with potential customers who are focused on the carbon footprint and environmental, social and governance (ESG) credentials of their supply base.
“We are proud to be part of the energy transition, not only in using renewable energy to make our products but also in how our products are used in EV batteries.”
What’s the bigger picture?
Ultimately, Euro Manganese believes its MoU lays the foundation for a strategic cooperation with Statkraft to support the Chvaletice processing plant’s net-zero objectives.
The aim is to establish a long-term corporate power purchase agreement to provide carbon-free power to the project, in coordination with Statkraft’s renewable power supply portfolio.
Interestingly, Euro’s collaboration comes soon after it released its Chvaletice life cycle assessment, which highlighted the net benefit derived from sourcing power from carbon-free sources — a move that could reduce the project’s net global warming potential by half.
Speaking to the work with EMN to date, Statkraft’s senior vice president of trading and origination Carsten Poppinga said his company wanted to support its partners as their projects get underway.
“The ability to source competitively priced and green electricity is a key component of investment decisions made by energy-intensive industries wishing to establish new business ventures,” he explained.
“Across Europe, we want to empower our partners and support their entrepreneurial endeavours to create positive business cases.”