Syrah signs MoU for solar in Mozambique

Australian listed Syrah Resources’ Balama graphite project in Mozambique. Credit: Syrah Resources.

08 January 2021 – Australian company Syrah Resources has signed a Memorandum of Understanding (MoU) to install solar and battery power at its Balama graphite project in Mozambique.

Australian listed Syrah Resources’ decision to install solar and battery power is expected to substantially reduce CO2 emissions at the company’s graphite project in Mozambique. Furthermore, the decision to install solar and battery power will significantly lower the cost of production. Syrah Resources signed the MoU with UK based Solarcentury Africa.

According to Solarcentury Africa the solar and battery storage hybrid power system will work in conjunction with the existing diesel generation power plant at Balama in Mozambique. According to Syrah’s managing director and CEO Shaun Verner, the solar and battery storage system aims to reduce CO2 emissions and operating costs at Balama.

“Progression of a large-scale solar and battery installation will reduce the operating cost base at Balama. In addition, it will further strengthen the Environmental Social and Governance (ESG) credentials of Balama’s natural graphite supply and the future supply from our vertically integrated battery anode material project in Vidalia, USA,” says Verner.

Verner explains that Solarcentury Africa and Syrah have undertaken technical design and pricing analysis through 2020 for several solar and battery options at Balama. “Syrah has chosen its preferred solution of 11.2Mw solar with an 8.5Mw battery, subject to final design. The solar and battery installation will work in conjunction with the existing 15Mw diesel generation power plant at Balama, which was chosen as a low-risk power generation option for the initial establishment of operations at Balama,” says Verner.

The MOU establishes the terms and conditions under which Syrah and Solarcentury Africa will continue with the development of the design, funding, construction, and operation of a solar and battery installation under a build, own, operate and transfer (BOOT) arrangement.

 

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