Minbos Resources (ASX:MNB) has signed a non-binding collaboration agreement with energy technology company Talus Renewables to develop the Capanda Green Ammonia Project in Angola.
Both companies will work together and use their combined resources to optimise the deployment of Talus’ green ammonia technology to efficiently match local inputs with local markets.
Under the agreement, Talus will deploy its technology, TalusAg, which is a first-to-market green ammonia system that enables sustainable and cost-effective ammonia production. The technology extracts hydrogen from water and combines it with atmospheric nitrogen to produce liquid ammonia.
Minbos, which has a market capitalisation of $43.25 million, says Talus’ technology has the potential to transform the company into one of the most “unique” investment opportunities on the ASX.
The company says this is driven by a combination of primary phosphate production, a low-cost renewable power feedstock, large inland premium, a modular green ammonia approach, access to a fast-growing agricultural market with no primary fertiliser production, and support from the Angolan Government.
Talus can also supply modular and scalable ammonia production facilities on a build-own-operate (BOO) basis, with Minbos investigating the aqueous ammonia produced from zero-carbon hydropower as a standalone product and the addition of downstream processing to produce a range of nitrogen fertilisers and blasting materials for the agriculture and mining markets.
Minbos says the modular approach will reduce capital costs for engineering design, procurement and construction management, and civil foundations. As a result, this will enable Talus to deliver ammonia competitively while ensuring a return on capital.
Minbos Managing Director Lindsay Reed says the technology and BOO model is likely to reduce the funding required to produce nitrogen fertilisers in Angola.
“Talus offers an accelerated path to green ammonia production, flexible low capital solution that can be deployed at a range of scales in different locations, to produce different products,” he says.
“The technology neatly matches Angola’s opportunities with its markets. There is much more to come in this story.”
Under the BOO model, Talus will fund the capital costs of ammonia production in return for a long-term offtake agreement.
Talus CEO Hiro Iwanaga says the company believes it can materially impact food security and carbon emissions in Angola and the wider region through Minbos’ renewable energy concession and its other mineral assets.
“We are thrilled to partner with Minbos to locally manufacture fertilisers essential for agriculture and chemicals crucial to modern mining operations,” he says.
“Talus’ containerised green ammonia solutions decrease the cost and increase the sustainability of reliability of ammonia.”
Talus Renewables offers new pathways to chemicals, fertilisers, and fuels with its green ammonia production technology. Its distributed green ammonia systems profitably serve existing markets today while building a platform for emerging applications tomorrow.
The company is also collaborating with a farming cooperative based in Iowa, Landus, to introduce green ammonia to the state. It also partners with mining firms that seek to employ green ammonia for their blasting operations.
Write to Aaliyah Rogan at Mining.com.au
Images: Minbos Resources
