Altech Batteries (ASX:ATC) has been granted €46.7 million ($83.45 million) from Germany’s Ministry of Economic Affairs and Energy for its CERENERGY Battery Project in Saxony, Germany passing the second stage of government approval.
The STARK Program grant is offered to add value to the total capital expenditure by 30%, not including working capital, financing cost, and construction interest.
The program is initiated by the German Federal Government and supported by the European Union, created with the intention of pushing projects towards an ecologically, economically, and socially sustainable economic structure.
Grants offered by the European Union, state of Saxony, and state of Brandenburg are focused on supporting renewable energy projects, with the STARK Program highlighting the transition from coal to renewable energy sources.
This is a part of a global transition streamlined by the United Nations to reach net zero by 2050 to mitigate the more damaging effects of climate change.
The United Nations reports that fossil fuels currently account for around 60% of electricity generation, with the annual electricity capacity of renewables jumping by around 2,600 gigawatts between 2015 and 2024, marking a 140% increase.
The German Sodium Chloride CERENERGY Solid State Battery Project in Schwarze Pumpe, Saxony is a joint venture with German battery institute Fraunhofer IKTS, which the company is focused on commercialising an output of 120 megawatt-hour.
Altech Batteries will hold a 75% stake in the project through its joint venture company Altech Batteries GmbH.
Write to Maddison Elliott at Mining.com.au
Images: Altech Batteries
