Technology Metals Australia (ASX:TMT), developing the ilmenite and vanadium producing Murchison Technology Metals Project (MTMP), revealed on Wednesday the company has received an indicative show of financial support from the Kingdom of Denmark.
With a focus on renewable energy projects, the investment financing arm of the Danish government has sent Technology Metals a Letter of Interest (LOI) outlining proposed support of A$150m.
Key conditions must be met if the Danish government proceeds with that payment. They are:
Sufficient economic interest for Denmark warranting loan
Acceptable credit risk around the deal
The loan must satisfy OECD export credit guidelines
ESG due diligence
Satisfactory “documentation and security”
The MTMP has landed on Denmark’s radar due to its implications for Battery Energy Storage Systems (BESSies).
BESSies are essentially grid-scale power storage assets that allow renewable energy to be stored for days at a time and dispatched quickly into electricity grids.
Technology Metals is progressing with research investigating the use of vanadium electrolyte (for those playing at home, vanadium pentoxide) refined downstream in BESSies to ultimately boost the ability of the technology to retain power.
The longer that excess power from wind and solar can be stored, the more realistic a complete departure from coal and hydrocarbons becomes.
“The TMT team is undertaking considerable work in progressing the MTMP funding strategy, including engagement with a range of institutions,” Technology Metals MD Ian Prentice said.
Denmark’s Export Credit Agency merged with Vaekstfonden (the Danish Growth Fund) and the Gronne Investeringsfond (Danish Green Investment Fund) at the start of January this year to become Denmark’s Export and Investment Fund (“EKF”).
The Danish Export Credit Agency is a financier of wind energy and solar energy products around the world.
Its merger with the Gronne Investeringsfond underscores the agency’s ESG-minded remit. Technology Metals noted the supplier of mining and industrial equipment for the MTMP, FLSmidth, is well known to the Danish entities.
“We are also very happy to be working again with EKF on this who has expressed interest in supporting Technology Metals with their financing arrangements for key items,” FLSmidth APAC President Tamer Eid added.
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