Canada Nickel Company Inc. (TSXV:CNC) (OTCQX:CNIKF) announced that it has successfully completed its carbon storage pilot plant, demonstrating the value of its novel carbon storage process, In-Process Tailings (“IPT”) Carbonation.
Press Release Highlights
- Carbon storage pilot plant confirms the prior feasibility study design parameters, proving the Crawford Nickel mine will be potentially the lowest emmission source of nickel in the world.
- Expected to generate $25/ton of storage fee revenue with initial capacity to store 1 million tons a year, generating $25 million of incremental, high margin revenue for the company.
- Company can now qualify for over C$100 million of government grants to fund initial startup capex of US$1.2 Billion, potentially avoiding any equity funding requirements (new shares) to bring the project online.
- IPT Carbonation worked on third party tailings as well, confirming the technologies’ commercialization potential.
- Canada Nickel estimates 20mtpa of storage demand vs its ability to store 1mtpa initially, meaning there is potential to ramp up storage revenue as Crawford production expands.
Additional Test Details
The Company processed more than 7 tonnes of tailings and confirmed the engineering design parameters for IPT Carbonation for incorporation in the Integrated Feasibility Study (“IFS”) expected to be released on October 12, 2023. The pilot plant also was utilized to successfully apply the IPT Carbonation process to material from a third party’s project, demonstrating the potential to commercialize the process for other projects including the Company’s regional nickel properties in the Timmins Nickel District.
In addition, a study by a leading strategy house confirms that the Canada Nickel Crawford project could reasonably expect in excess of C$25 per tonne of CO2 in storage fees from its IPT Carbonation process based on publicly known storage fees and given communicated carbon price & policy status. The study also confirmed the potential requirement for more than 20 million tonnes of annual storage capacity of CO2, given communicated carbon price & CCUS ITC status, from a population of approximately 150 potential emitters, with approximately 50 emitters concentrated in four distinct clusters in Sudbury, Sault
Ste. Marie, Toronto and Sarnia.
IPT Carbonation Process
Canada Nickel’s Crawford Project is hosted in ultramafic rock, which naturally absorbs and sequesters CO2. Canada Nickel has developed the novel IPT Carbonation process which involves injecting a concentrated source of CO2 into tailings generated by the milling process for a brief period of time. This simple process captures CO2 geologically in the tailings while they are still in the processing circuit, rather than after they
have been finally deposited.
Carbon Capture, Utilization Storage and Tax Credit
The Company believes that the successful incorporation of IPT Carbonation could potentially allow a portion of the Company’s project capital expenditures to become eligible for the carbon capture and storage refundable investment tax credits of 37.5% to 60% for years 2022-2030 and 18.75% to 30% for years 2031-2040, as announced in the 2022 federal budget. The interest received from multiple large multinational companies pursuing carbon storage solutions further supports the Company’s belief that the mineral sequestration utilized by the Company may be considered an effective carbon storage
approach that would meet Environment and Climate Change Canada requirements.
Feasibility Study Conference Call
Canada Nickel will be hosting a webcast and conference call on Thursday, October 12, 2023 at 11:00 a.m. Eastern Time to discuss the Feasibility Study.
Conference Call Details:
Date: Thursday, October 12, 2023
Time: 11:00 a.m. ET
Participants may join the webcast and call as follows:
Audience URL: https://app.webinar.net/0Nly476d2WO
Dialing local Toronto: 416-764-8688
Dialing North American Toll Free: 888-390-0546
Dialing International Toll Free:
South Africa: 0800994942
UK (England): 448006522435
For those unable to participate, a web-based archive of the conference call will be available for playback at the same Audience URL used to access the live webcast.
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