Extremadura New Energies, a subsidiary of Infinity Lithium Corporation Ltd (ASX:INF), has shaken hands with a major Spanish industrial consortium to establish a green energy hub in Cáceres, Spain.
The INF arm is teaming up with Enalter — a joint venture between the subsidiaries of a leading Extremadura company, Alter Enersun, and Spanish energy company Enagas — to form a Spanish renewable energy entity.
The Extremadura Energy H2 Hub will establish a secure source of localised and cost-effective green electricity and hydrogen — good news for Infinity’s San José Lithium Project, where a large-scale lithium chemical conversion plant and extraction technology will harness the long-term, low-cost green energy.
Thanks to a memorandum of understanding (MoU) between Extremadura and Enalter, the San José project now has first rights to a power purchase agreement that solidifies its development options.
Establishing reliable green energy
Infinity believes a reliable green energy source is crucial if it wishes to develop an environmentally, socially and economically credentialled industrial project in Europe. This is even more important against a backdrop of competitive energy availability issues, spurred on by energy pressures felt across the EU.
But thanks to the Extremadura and Enalter MoU, Infinity’s San José project is leveraged to long-term and low-cost green energy prices, thereby mitigating pricing volatility and eliminating grid access and transmission costs.
The Extremadura Energy H2 Hub will kick off development with a green hydrogen plant (maximum capacity of 180 megawatts) and a photovoltaic solar park (maximum capacity of 350 megawatts) in Cáceres, directly aligned to San José.
The large-scale development could provide excess green energy for other end users, which may attract other opportunities for industrial investment in Cáceres (provided they align with local and regional government strategies).
Extremadura New Energies CEO Ramón Jiménez said the consortium’s participation indicated that plans for an industrial lithium processing plant were solid.
“Our plant in Cáceres will be the final consumer of the electricity and hydrogen generated by the Extremadura Energy H2 Hub renewable energy plants, which also consolidates the commitment of this project to the highest standards of environmental sustainability.”
A regional focus
Local and regional governments are invested in developing Cáceres’ industrial capabilities, as indicated by recent funding for Infinity’s battery training and development programs.
What’s more, a recent resolution — issued by the regional government of Extremadura — recognises the Extremadura project is of special interest for the region, primarily thanks to its employment and industrial development upside.
The government also recognised that Extremadura, in its continued collaboration with EIT InnoEnergy, is the only group carrying out technical training plans in lithium technology in the region.
Extremadura has been working closely with local and regional stakeholders to bring these opportunities to the locality, and it's keen to continue working with authorities to provide investment and employment opportunities.