Perth, Mar 22, 2024 AEST (ABN Newswire) - Altech Batteries Limited, an Australian company, reveals outstanding outcomes from the Definitive Feasibility Study (DFS) conducted for its groundbreaking CERENERGY(R) project. Planned for construction on Altech's land in Saxony, Germany, the project sets a new standard in sustainable energy solutions, boasting an annual capacity of 120 1MWh GridPacks.
In collaboration with joint venture partner Fraunhofer IKTS ("Fraunhofer"), a research institution affiliated with the German government, the DFS results highlight the project's compelling economic viability. With a conservative investment estimate of EUR156 million, the NPV9 stands impressively at EUR169 million or A$280 million, demonstrating robust returns on investment. Moreover, the project anticipates generating a substantial net cash flow of EUR51 million annually from operations, with an estimated Internal Rate of Return (IRR) of 19%, ensuring a rapid capital payback period of just 3.7 years.
CERENERGY(R) batteries, integral to the project, revolutionise energy storage with fire-proofing, double lifespan, and adaptability to various climates. Free from critical minerals, they ensure resource sustainability and minimise supply chain risks, aligning with global sustainability goals. With enhanced safety, longevity, and environmental responsibility, CERENERGY(R) batteries offer industries a reliable and eco-friendly solution for energy storage needs.
"The results of the Definitive Feasibility Study reinforce the economic soundness and potential of our CERENERGY(R) project," said Iggy Tan, CEO of Altech Batteries Limited. "We are excited about the positive trajectory and are fully committed to advancing to the funding phase to realise this innovative venture."
The project's economics remain compelling, with an EBITDA margin of around 47%, even at its initial production capacity. This aligns with the projected growth of the grid storage market, estimated at a remarkable 28% Compound Annual Growth Rate (CAGR). Additionally, the project offers a low lifetime levelised cost of storage at EUR0.06/kWh, compared to EUR0.149/kWh for lithium-ion batteries, further enhancing its competitive advantage."
Altech Batteries Limited is actively pursuing grant applications and engaging in equity and mezzanine financing discussions to propel the project forward. Offtake arrangements for five years of production are also in progress, reflecting the growing confidence and interest in the CERENERGY(R) project.
Watch video of Cerenergy Battery DFS Announcement
https://youtu.be/LLb6DxlHTws
About Altech Batteries Ltd
Altech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns.
The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.
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