Perth, Australia, Mar 18, 2020 - (ABN Newswire) - Altech Chemicals Limited (ASX:ATC.AX - News) (HAM:A3Y.F - News) is pleased to announce that it has been advised by Frankfurt Stock Exchange listed Altech Advanced Materials AG (HAM:AMA1) (AAM), that AAM has recently appointed the Centre of International Climate and Environmental Research (CICERO) associated with the University of Oslo (Norway), to complete an independent determination that Altech's high purity alumina (HPA) project supports a low-carbon and climate resilient future - i.e. confirmation of the projects green credentials (refer ASX announcement of 28 February 2020 for details).
CICERO's determination is formally termed a Second Opinion. A Second Opinions is typically valued by ethical investors, such as those seeking to equity invest, or lend, to projects that are deemed environmentally friendly, reduce emissions and/or support a lower carbon society. CICERO is one of the world's leading providers of independent, research based evaluations, and for a third year running in 2019 CICERO received an award for being the best provider of external assessments for the green bond market.
As announced on 30 January 2020, an engagement agreement has been executed between AAM and a Swiss international investment bank to act as Placement Agent in relation to the issuance of equity or other equity instruments (securities) by AAM via private placement. This is scheduled to follow the re-introduction of the rights offer to AAM shareholders that was approved at a meeting of its shareholders on 12 March 2020. A positive Second Opinion for Altech's HPA project would potentially enhance the project's suitability for the large pool of European green investor funds, such as those that may participate in the green bond market for example.
Altech intends to produce HPA to be used for the production of synthetic sapphire for the manufacturing LEDs, and used in lithium-ion batteries required for electric vehicles. On 28 February 2020, the Company published results from its detailed "mine to gate" study that compared the greenhouse gas emissions and energy consumption of Altech's disruptive single step kaolin - HPA production method, to the incumbent bauxite - refinery - smelter - alkoxide HPA production process. The results of the study were that Altech's kaolin-alumina process was estimated to release 46% less greenhouse gas per tonne of HPA compared to the alkoxide process. In addition, Altech's HPA production process was estimated to reduce energy consumption by 41% per tonne of HPA.
The Company's process plant in Malaysia is designed to international environmental standards and to satisfy the Equator Principles for lenders, as is required by senior lender - German government owned KfW IPEX-Bank.
About Altech Chemicals Ltd:
HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.
Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.
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