The Queensland Pacific Metals Ltd [ASX:QPM] shares are rising after life cycle analysis shows the TECH Project is carbon negative.
An updated Life Cycle Assessment (LCA) interim report for QPM’s TECH Project showed it to be the ‘first ever truly net carbon neutral or net carbon negative battery grade nickel manufacturing plant’.
QPM shares are currently trading at 24 cents per share, up 9.30%.
Source: Tradingview.com
The QPM share price is up 550% in the last 12 months.
First truly carbon-neutral nickel plant?
QPM aims to develop its TECH Project into a sustainable producer of critical chemicals for the emerging lithium-ion battery and electric vehicle sector.
QPM will import nickel ore from New Caledonia and transport it to TECH’s Lansdown site in Queensland.
Inching closer to its goal, today QPM released an updated LCA interim report for the project.
Conducted by a ‘leading‘ specialist in life cycle analysis, Minviro, the report indicates the TECH project could be the first net carbon-neutral or net carbon-negative battery-grade nickel manufacturing plant.
As part of its analysis, Minviro incorporated QPM’s energy strategy of sourcing gas from a combination of underground and open cut metallurgical coal mines.
While admitting there will be direct CO2 emissions and impacts from the project, QPM nevertheless thinks ‘this will be more than offset by the mitigated environmental impact from its gas sourcing strategy’.
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TECH to reduce Australia’s carbon emissions
According to the updated report, the TECH Project won’t just be net zero-carbon. TECH is calculated to actually reduce Australia’s carbon emissions by the equivalent of 14.9 kg CO2 for every kilogram of nickel in nickel sulfate.
QPM believes the TECH project ‘boasts by far the best ESG credentials in the world for all nickel projects — existing and planned‘.
QPM Managing Director and CEO, Dr Stephen Grocott, commented:
‘For 20 years I have been working on mineral projects that attempt to minimize greenhouse gas emissions. Never have I been able to work on one which can, not just reduce, but reverse emissions.
‘Off takers are demanding strong ESG credentials for battery metal production and QPM ticks all the boxes.
‘The TECH Project will be a global leader in sustainability with net carbon negative nickel production, minimal waste and environmental footprint and developed world labor laws.
‘Our goal is to ensure that when our customers are buying our products, they will know that they are the cleanest and most environmentally attractive in the world.’
QPM share price outlook
The updated LCA report is certainly promising. But it is only an interim study.
It will now be subject to a critical review by an independent party, in accordance with ISO standards.
The optimist’s advice is to never doubt human ingenuity.
And in the face of rising climate change concerns, human ingenuity will play a large role in designing ways to curtail humanity’s environmental footprint.
Carbon neutral tech in manufacturing plants is one among many possible solutions.
But others abound too.
Our senior editor Murray Dawes recently profiled seven stocks pioneering new technology and business models.
One of these stocks aims to chemically ‘crack’ fossil fuel and transform it into clean energy.
Here’s the link to Murray’s full report if you’re interested.
Regards,
Kiryll Prakapenka,
For Money Morning
PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here
