Green Hydrogen: What It Is, Why It Matters, and Who Is Producing It

By Michael Kern - Aug 06, 2024

• Green hydrogen is a clean and sustainable source of energy that can help reduce carbon emissions in various industries.
• 
  
• The production of green hydrogen involves using renewable sources such as solar, wind, or hydropower to electrolyze water and separate hydrogen from oxygen.
• 
  
• While the technology for green hydrogen production is still developing, it has the potential to revolutionize the energy industry and play a significant role in achieving global sustainability goals.
• 
  
• 
  

The world is rapidly transitioning towards renewable energy sources in order to reduce carbon emissions and combat climate change. And one of the most promising technologies in 2024 is green hydrogen, which has the potential to revolutionize the energy industry.

What is Green Hydrogen?

Hydrogen is an abundant element found in water, natural gas, and other organic compounds. It can be used as a fuel source or as an energy carrier in various applications such as transportation, heating, and electricity generation.

Green hydrogen is produced through electrolysis, which involves splitting water molecules into hydrogen and oxygen using electricity from renewable sources such as solar or wind power. The resulting hydrogen gas is then compressed and stored for use as a clean energy source.

Unlike traditional hydrogen production methods, which rely on fossil fuels like coal or natural gas, green hydrogen production emits no greenhouse gases and has zero carbon footprint.

Why is Green Hydrogen Important?

Here are a few reasons why green hydrogen is so important in the energy transition: 

Renewable Energy Storage

One of the major challenges faced by renewable energy sources like solar or wind power is their intermittency. They generate electricity only when there is sufficient sunlight or wind, making it difficult to provide reliable 24/7 power supply.

Green hydrogen offers a solution to this problem by acting as a storage medium for excess renewable energy generated during peak periods. This stored hydrogen can then be used later during periods of low renewable energy output to generate electricity on demand.

Decarbonization of Heavy Industries

Heavy industries like steel manufacturing, cement production, and chemical processing are difficult to decarbonize due to their high reliance on fossil fuels. However, green hydrogen can replace these fossil fuels as an alternative feedstock for these industries without compromising their productivity.

For example, using green hydrogen instead of coal in steel manufacturing significantly reduces carbon emissions while maintaining the same quality as steel products.

Clean Transportation

Transportation accounts for a significant portion of global greenhouse gas emissions due to its reliance on fossil fuels like gasoline and diesel. Green hydrogen-powered vehicles offer a cleaner alternative with zero tailpipe emissions.

Moreover, unlike electric vehicles, which require long charging times and limited range due to battery constraints, green hydrogen-powered vehicles can refuel quickly and have longer driving ranges similar to traditional gasoline-powered cars.

Energy Independence

Green hydrogen production does not rely on imported oil or natural gas resources from other countries, making it an attractive option for countries seeking greater energy independence while reducing their carbon footprint at the same time. There is no doubt that green hydrogen will transform geopolitics. 

Job Creation

The growth of green hydrogen technology will create new job opportunities across various sectors including engineering, manufacturing, construction, research & development among others.

Challenges Facing Green Hydrogen Adoption

While green hydrogen holds great promise for a sustainable future, it still faces several challenges that need to be addressed before widespread adoption can take place:

1. High Production Costs: Currently, electrolysis technology used for green hydrogen production remains expensive compared to traditional fossil fuel-based methods.
2. Limited Infrastructure: In order for green hydrogen-powered transportation or industrial processes to become widespread, there needs to be significant investment in infrastructure such as refueling stations or pipeline networks.
3. Efficiency Losses: During the electrolysis process, energy losses occur, leading to lower overall efficiency compared with traditional fossil fuel-based technologies.
4. Safety Concerns: Hydrogen gas has explosive properties if not handled properly, leading some people to question its safety, especially regarding transport & storage.
5. Limited Supply Chain: The current supply chain for green hydrogen remains limited, meaning that scaling up production may prove challenging until more suppliers enter the market.

Green Hydrogen represents one of the most promising solutions for achieving a sustainable future powered by renewable energies free from harmful greenhouse gas emissions. The technology provides numerous benefits, including reliable renewable storage options, cleaner transportation alternatives, and decarbonizing heavy industries. However, given its high cost, limited infrastructure & supply chains, along with safety concerns need further attention before we see widespread adoption across various sectors globally.

Top 10 Countries Leading the Green Hydrogen Charge

The global green hydrogen race is heating up, with countries around the world recognizing its potential to revolutionize the energy landscape. While China currently leads the pack, the distribution of green hydrogen production is far from concentrated. Let's take a closer look at the top 10 countries with the most green hydrogen capacity that's operational, under construction, or has secured financing, according to the International Energy Agency:

1. China: As the world's largest hydrogen producer and consumer, China is making significant strides in green hydrogen. Although most of its current hydrogen is fossil-fuel based, ambitious plans are underway to decarbonize sectors like steel and chemicals through green hydrogen production.

2. Saudi Arabia: Home to the world's largest green hydrogen project currently under construction, Saudi Arabia is poised to become a major player in this field. The ambitious facility aims to produce over 200 kilotonnes of green hydrogen annually, dwarfing the capacity of existing plants.

3. Sweden: With its largest electrolyzer facility opened last year, Sweden is positioning itself as a leader in green hydrogen production. The country's commitment to renewable energy and technological innovation is driving its efforts in this space.

4. United States: The Inflation Reduction Act of 2022, with its generous clean hydrogen subsidies, has sparked a wave of investment in green hydrogen production in the US. The country's vast renewable energy resources and technological expertise position it for rapid growth in this sector.

5. United Kingdom: Supported by its own set of clean hydrogen incentives, the UK is actively promoting green hydrogen adoption across various sectors. With a focus on both production and utilization, the UK is establishing itself as a frontrunner in the green hydrogen revolution.

6. Germany: Recognizing green hydrogen's potential to decarbonize heavy industries, Germany has committed significant funding to research, development, and infrastructure. The country's strong industrial base and commitment to sustainability make it a key player in the global green hydrogen landscape.

7. Vietnam: With its abundant solar and wind resources, Vietnam is emerging as a potential hub for green hydrogen production in Southeast Asia. The country is actively attracting investment and developing projects to harness its renewable energy potential for green hydrogen.

8. Australia: Boasting vast land areas and abundant solar and wind resources, Australia is well-positioned for large-scale green hydrogen production. The country has several projects in development, aiming to become a major exporter of this clean energy source.

9. Oman: With its strategic location and favorable conditions for renewable energy generation, Oman is exploring green hydrogen as a key component of its energy diversification strategy. The country has launched several initiatives to develop green hydrogen production and infrastructure.

10. France: As a member of the European Union, France is actively participating in the bloc's ambitious green hydrogen targets. The country is investing in infrastructure and research to integrate green hydrogen into its energy mix and industrial processes.

While the world currently produces a modest amount of green hydrogen, the pipeline of projects under construction and in development promises a significant increase in capacity by 2030. The race to lead the green hydrogen revolution is well underway, with far-reaching implications for the global energy landscape and the fight against climate change.

FAQ

What is green hydrogen and how does it work?

Green hydrogen is a type of hydrogen that is produced by splitting water into hydrogen and oxygen using renewable electricity. This process, known as electrolysis, uses an electric current to separate the water molecules into its two components. The resulting hydrogen can then be used for various applications, such as fuel cells and transportation.

The benefits of green hydrogen are numerous. It has zero emissions, meaning it does not contribute to global warming or air pollution. Additionally, it is a renewable energy source that can be used to power homes and businesses without relying on fossil fuels. Finally, green hydrogen can be stored for long periods, making it an ideal energy source when other sources may not be available.

What is green hydrogen made from?

Green hydrogen is made from water, which is split into two components – hydrogen and oxygen – using an electrolyzer powered by renewable energy sources such as wind, solar, or hydropower. The electrolysis process involves passing an electric current through water, which causes the molecules to break apart and the hydrogen molecules to bond with each other, forming hydrogen gas.

This process is commonly referred to as "water splitting," and the resulting hydrogen gas can then be used as fuel for a wide range of applications, from power generation to transportation. Unlike traditional methods of hydrogen production, which rely on fossil fuels, green hydrogen production does not generate greenhouse gas emissions, making it a clean and renewable energy source.

Why is green hydrogen the future?

Unlike traditional hydrogen production methods, which rely on fossil fuels, green hydrogen is produced by using renewable energy sources such as wind, solar, and hydropower. This makes it an ideal solution for our society's transition to a cleaner, low-carbon energy future.

Green hydrogen can be used for a wide variety of applications across many industries, including fuel cell vehicles, power grids, and chemical manufacturing, among others. Its versatility makes it an attractive alternative to traditional energy sources and allows for the development of innovative new technologies.

Is green hydrogen a good investment?

Investing in green hydrogen can be a good long-term strategy for people who wish to support renewable energy, promote sustainability, and potentially earn a return on their investment. However, like any investment, it involves risks and uncertainties that should be carefully considered.

One of the biggest factors to consider is the current cost of green hydrogen production, which is still relatively high compared to traditional hydrogen production methods. Despite this, many experts predict that the cost of green hydrogen will continue to fall as the technology becomes more efficient. Some countries, such as Germany and Australia, are already investing heavily in expanding their green hydrogen infrastructure, indicating strong support for this technology and could drive demand in the coming years.

By Michael Kern for Oilprice.com

Graphite One taking a leading role in loosening China’s tight grip on the US graphite market





2024.05.29

North American graphite producers got a boost earlier this month, with President Biden announcing that US tariffs on imports of Chinese electric vehicles and battery parts will increase significantly.

The tariff on EVs from China will quadruple from 25% to 100%, while for Chinese EV batteries and battery parts, including graphite used in the battery anode, it will rise to 25%.

The move is the result of a review of tariffs first put in place by President Trump in 2018. Industries in the government’s crosshairs include electric vehicles, batteries and solar cells. It also follows Biden’s call last month to hike tariffs on Chinese steel and aluminum.

In total, the new levies are expected to affect $18 billion worth of Chinese imports.

Bloomberg notes that President Xi Jinping’s strategy of ramping up manufacturing to arrest an economic slowdown at home has triggered alarm abroad. US and European Union leaders have scolded Beijing over state support that they say has fueled a deluge of cheap exports that threaten jobs in their markets.

The Inflation Reduction Act aims to grant incentives to companies that source their battery materials within the US and outside of China.

Passed by the Biden administration in 2022, the IRA provides US consumers tax credits of up to $7,500 per electric vehicle, provided the parts or materials are sourced from the United States, or from countries with which the US has a free trade agreement. This includes graphite, lithium, cobalt and other critical minerals.

As well as offering consumer incentives, the IRA subsidizes up to 30% of manufacturing costs related to battery cell assembly and battery pack production, helping to encourage carmakers and battery suppliers to invest in US-based supply chains.

The dilemma facing the US government is it wants to create a US-centered electric vehicle supply, but by imposing restrictions on China, which dominates the mining and processing of most metals needed for vehicle electrification, it is making things a lot tougher for EV- and battery-makers to source the raw materials, because the rest of the world doesn’t mine enough of them, process them into usable materials, and manufacture the necessary components.

On April 26, the Biden administration gave electric-vehicle makers a two-year extension to shore up sources of graphite and other critical minerals considered difficult to trace to their origin.

Starting in 2025, plug-in cars containing critical minerals from companies controlled by US foes, including China, will be ineligible for up to $7,500 in tax credits.

But automakers will have until 2027 to curb the use of materials from so-called “foreign entities of concern” (FEOCs), provided they submit plans to comply with the rules after the two-year transition.

Critics of the tariff increases say that while they will protect US jobs, they will do nothing to alleviate the obstacle to higher rates of EV adoption in the United States (and Canada): high sticker prices.

According to Reuters, automakers say that without access to low-cost batteries and battery materials made in China, EVs will be too expensive for consumers.

(According to the Kelley Blue Book, the average price of a new EV is more than $65,000, compared to $48,000 for gas-powered cars. Restricting foreign mineral inputs like graphite, and assembling cars in North America, could make them even more costly.)

This in turn may imperil the Biden administration’s clean energy agenda. The government wants half of all new vehicles sold in the US in 2030 zero emissions. It has also set a goal of 500,000 charging stations.

Moreover, the cost of Biden’s plan to keep Chinese electric vehicles out of the States is being borne by US taxpayers.

“Electric vehicles (EVs) may be the most subsidized product in America. Federal taxpayers shell out $7,500 every time a new eligible electric vehicle is purchased (usually by wealthy buyers). State and local taxpayers chip in an additional $1,500 for each EV purchase,” writes

David Williams, president of the Taxpayers Protection Alliance. He argues, “It’s time for President Biden and lawmakers to ditch protectionism and finally end EV subsidies.”

Still, there is an argument to be made that without government help, US automakers and battery manufacturers will be pushed out by China, which owns both the EV market and the battery supply chain.

China’s dominance

The International Energy Agency (IEA) estimates that two-thirds of global battery cell production is in China, while the United States accounts for only about 10%.

A BBVA Research report suggests China’s dominance is in part due to a national strategy that prioritizes the development and adoption of EVs. The Chinese government has implemented policy initiatives to support the production and purchase of EVs, such as tax exemptions, subsidies, and investments in charging infrastructure. Additionally, foreign automakers, such as Tesla, have been allowed to build up their factories in China. (BBVA Research)

In line with BBVA’s report, China Briefing reports the country has more than 600,000 NEV (“new energy vehicle”)-related enterprises, with major industry players including BYD Auto, Tesla China, SAIC-GM-Wuling, Aion, and Changan Automobile.

Source: Visual Capitalist



The briefing also says China holds a dominant position in the EV supply chain, with over three-quarters of the world’s battery production capacity. The country houses more than half the world’s processing and refining capacity for graphite, lithium and cobalt. It boasts 70% of the global production capacity for cathodes and 85% for anodes.

Moreover, China’s EV manufacturing industry has a 20% cost advantage over US and European markets. This is due to government policies that support the EV industry, including subsidies and tax incentives, at the national and regional levels.

Graphite

China is by far the biggest graphite producer at about 80% of global production. It also controls almost all graphite processing, establishing itself as a dominant player in every stage of the supply chain.

After China, the next leading graphite producers are Mozambique, Brazil, Madagascar, Canada and India. The US currently produces no graphite, and therefore must rely solely on imports to satisfy domestic demand.

Source: USGS

Heavy reliance on Chinese graphite mine supply. Source: Kearney



In October, Beijing said it will require export permits for some graphite products — retaliation against the United States and the European Union for widened curbs on Chinese companies’ access to semiconductors.

China initially imposed export controls on gallium and germanium, two critical inputs for semiconductors and renewable energy, then moved on to graphite.

Under the new graphite restrictions, which took effect December 1, 2023, exporters must apply for permits to ship two types of graphite: synthetic graphite, and natural flake graphite and its products.

A recent article in Barron’s notes that the relaxed sourcing rules (the above-mentioned two-year extension) will allow US automakers to keep sourcing Chinese graphite until 2027, and their vehicles will continue to be eligible for tax credits, as long as they can explain how they plan to comply with the Inflation Reduction Act rules after 2027.

But author Cullen Hendrix, a senior fellow at the Peterson Institute for International Economics, and fellow at the Payne Institute for Public Policy at the Colorado School of Mines, says the rules will make developing a long-term strategy for diversifying supply chains more difficult. That’s because the IRA incentivizes companies to source from the US or from countries that have a US free-trade agreement.

The problem is that there are few countries outside China that produce graphite, pushing companies to deal with “fringe producers” such as Mozambique.

Hendrix notes there is currently only one non-Chinese, IRA-compliant producer, Australia’s Syrah Resources, which has an off-take agreement with Tesla to ship graphite from its mine in Mozambique to a processing facility in Louisiana.

The African mine has its own set of challenges, though. As Hendrix states,

The Balama mine is located in Cabo Delgado, where troops from Mozambique, Rwanda, and a coalition of regional states are fighting a vicious insurgency being waged by the local Islamic State franchise. In June 2022, roadside attacks by those militants led Syrah to temporarily suspend logistics and personnel movements at the mine, though mining and processing activities were unaffected, according to Reuters.

Operations were temporarily suspended again, and staff evacuated in November due to nearby violence. Though the insurgency is on its heels, this state of affairs doesn’t exactly scream security of supply.

Speaking of supply, deficits are expected to kick in by 2025 as new graphite mines fail to keep up with surging demand from automakers.

According to a Benchmark Mineral Intelligence (BMI) analysis, graphite demand is likely to grow by a factor of eight by 2030 over 2020 levels (4.2 metric tons over a supply of 3.0), and 25 times by 2040. That translates into a predicted supply shortfall of 30% for graphite, compared to 11% for lithium (2.4 over 2.1), 26% for nickel (1.5 over 1.1), and 6% for cobalt (0.32 over 0.30).

EV demand will absorb all graphite output at this rate. Source: Kearney


By then, the world’s graphite supplies will not even be able to cover demand for EVs, let alone all end-use sectors, BMI projections showed.

BMI has said as many as 97 average-sized graphite mines need to come online by 2035 to meet global demand. That’s about eight new mines a year — a daunting challenge considering the time it takes to develop graphite deposits into mines.

Fortunately, the current US government has recognized the problem and is making funds available to US graphite producers. Stockhouse recently reported that mining projects focused on extracting critical minerals like graphite, lithium, and cobalt are eligible for federal loan guarantees worth $72 billion.

Also, a 25% tariff will be applied to Chinese natural graphite imports starting in 2026. The fact that the $7,500 Clean Vehicle Credit is not available to “foreign entities of concern” including Iran, Russia, North Korea, and China, which produces 70% of the world’s graphite, while only 2% of global mine production of EV battery minerals like graphite, cobalt and nickel came from the US and its free-trade-agreement partners in 2023, shows the urgency of the need to develop more home-grown graphite.

Graphite One (TSXV:GPH, OTCQX:GPHOF)

This is good news for companies like Graphite One (TSXV:GPH, OTCQX:GPHOF), which is addressing the domestic graphite shortfall by not only developing a graphite mine in Alaska, but building the first links of a domestic (North American) graphite supply chain.

To be eligible for the loan guarantee, a project must be energy-related and located within the United States. Graphite One ticks all the boxes for this kind of support. The company has already received two major grants from the US Department of Defense.

Last July, the DoD awarded GPH with a technology investment grant of up to $37.5 million under Title III of the Defense Production Act.

Graphite One Awarded $37.5 Million Department of Defense Grant Under the Defense Production Act


The company subsequently entered into a one-year $5 million loan agreement with Taiga Mining Company, its largest shareholder. On December 27, 2023, the company settled the loan and accrued interest when Taiga exercised its option to acquire a 1% NSR. The settlement of the loan leaves the company debt-free.

Graphite is included on a list of 23 critical metals the US Geological Survey has deemed critical to the economy and national security.

Graphite One’s Graphite Creek mine is situated along the northern flank of the Kigluaik Mountains, Alaska, spanning 18 kilometers.

Graphite Creek in early 2021 was given High-Priority Infrastructure Project (HPIP) status by the Federal Permitting Improvement Steering Committee (FPISC). The HPIP designation allows Graphite One to list on the US government’s Federal Permitting Dashboard, which ensures that the various federal permitting agencies coordinate their reviews of projects as a means of streamlining the approval process.

In other words, having HPIP means that Graphite Creek will likely be fast-tracked to production.

The USGS has cited Graphite Creek as the country’s largest known graphite deposit, and “among the largest in the world.”




On March 13, 2023, Graphite One updated its resource estimate, which showed an increase of 15.5% in measured and indicated tonnage with a corresponding increase of 13.1% in contained tonnes of graphite.

Measured and indicated resources now stand at 37.6 million tonnes at 5.14% graphite, with an inferred resource of 243.7 million tonnes at 5.07% graphite.




According to the PFS, the mine is expected to produce, on average, 51,813 tonnes of graphite concentrate per year during its projected 23-year mine life.

The company itself is anticipated to produce about 75,000 tonnes of products a year, of which 49,600 tonnes would be anode materials, 7,400 tonnes purified graphite products and 18,000 tonnes unpurified graphite products.

In October, Graphite One announced the completion of the 2023 drill program along with a selection of assay results. With the infusion of DoD funds, G1’s program quadrupled the scope of 2022’s, with 57 holes completed for a total of 8,736 meters — the largest drill program in Graphite One’s history. Of the 57 holes, five were geotechnical and the remaining 52 all intersected visual graphite mineralization and continued to demonstrate exceptional consistency of a shallow, high-grade graphite deposit that remains open both to the east and west of the existing mineral resource estimate.

Subject to financing, Graphite One plans to invest $435 million to build a graphite anode manufacturing plant in Trumbull County, Ohio, between Cleveland and Pittsburgh.

Through its subsidiary, Graphite One Alaska, the Vancouver-based company has selected Ohio’s Voltage Valley as the site for a graphite anode manufacturing plant by entering into a 50-year land-lease agreement on 85 acres. The deal also contains a right to terminate the lease and an option to purchase the property once known as the Warren Depot, part of the National Defense Stockpile infrastructure, until the brownfield site was processed through the Ohio EPA Voluntary Action program a decade ago, certifying that the land does not need further cleanup.

Graphite One plans to start construction within the next three years, as part of the company’s strategy to become the first vertically integrated producer to serve the US EV battery market. Its supply chain strategy involves mining, manufacturing and recycling, all done domestically.




The Ohio facility represents the second link in Graphite One’s advanced graphite materials supply chain; the first link is Graphite One’s Graphite Creek mine in Alaska, which is currently working toward completion of its feasibility study in the fourth quarter of 2024, on an accelerated timetable, with the $37.5 million Defense Production Act grant provided in July 2023.

Subject to financing and other contingent events, the plant will manufacture synthetic graphite until a source of natural graphite becomes available from the company’s Graphite Creek mine, located near Nome, Alaska, according to the March 20 news release.

Graphite One’s activities should be considered a bolt-on to what is already happening in northwestern Alaska with respect to the building of the first deepwater port in the US Arctic region.

The U.S. Army Corps of Engineers and Alaska’s Department of Transportation have chosen two sites for a deepwater port facility: Nome and Port Clarence. Nome has received $600 million in government grants and appears to be well on its way to doubling the size of its existing port to accommodate the world’s largest commercial and military vessels. Work is expected to start this year.

Developing America’s largest graphite deposit coincides with major port expansion at critical juncture of the Bering Strait – Richard Mills

CEO Anthony Huston recently traveled to Washington, DC to meet with President Joe Biden. The meeting was between the President and a select group of executives invited to the White House to discuss investment and job creation.

Hours before the event, Biden signed an executive order establishing a 25% tariff on Chinese imports, including graphite.

The White House tariff statement noted that “Concentration of critical minerals mining and refining capacity in China leaves our supply chains vulnerable and our national security and clean energy goals at risk.”

“I was honored to represent everyone at Graphite One in the meeting with President Biden,” Huston said in the May 15 news release. “We appreciate his support for the renewable energy transition and G1 is excited to continue pushing forward to create a secure 100% U.S.-based supply chain for natural and synthetic graphite. The White House meeting underscores that projects like Graphite One’s are important in so many ways — from industrial investment and job creation to the renewable energy transition, technology development and national security.”

Graphite and Critical Mineral Mining Boosted by $72B Fund

Click here for a link to the public broadcast, and here for the White House tariff statement.

Graphite One CEO and President, Anthony Huston, Invited by President Biden to White House Investment and Job Creation Session; White House Sets 25% Tariff on Chinese Graphite

In other Graphite One news, the company said it completed the initial planning sessions earlier this month at the Ohio site chosen for its battery anode active material production plant, and continues to progress its two Department of Defense grant projects.

A week prior to Huston’s participation in the White House jobs and investment forum, Graphite One senior management took part in a Defense Logistics Agency (DLA) visit to G1 project partner Vorbeck Materials’ facilities in Maryland. The DLA site visit took place at the half-way point in the $4.7 million DLA-funded project to develop a graphite and graphene-based foam fire suppressant as an alternative to Perfluoroalkyl and Perfluoroalkyl Substances (PFAS) fire-suppressant materials, as required by US law.

In its May 2024 project review session with the DoD project team overseeing Graphite One’s $37.5 million Defense Production Act Title III grant to accelerate completion of G1’s anticipated National Instrument 43-101 feasibility study (FS), Graphite One senior management outlined plan for the 2024 field season at Graphite Creek. Work remains on schedule to complete the FS as planned by December 2024 subject to financing. “As we near completion of the FS, we can now say that DoD’s support has cut about two years off of our initial feasibility study timeline,” said Huston.

The Slowdown in US Electric Vehicle Sales Looks More Like a Blip

“For every sign of an EV slowdown, another suggests an adolescent industry on the verge of its next growth spurt. In fact, for most automakers, even the first quarter was a blockbuster. Six of the 10 biggest EV makers in the US saw sales grow at a scorching pace compared to a year ago — up anywhere from 56% at Hyundai-Kia to 86% at Ford. A sampling of April sales similarly came in hot.” Tom Randall, Bloomberg

Conclusion

Graphite One has received strong support from the US government for developing its “made in America” graphite supply chain anchored by Graphite Creek, the largest graphite deposit in the country and one of the biggest in the world. Two DoD grants have been awarded, one for $37.5 million, the other for $4.7 million.

In addition, G1 qualifies for federal loan guarantees worth $72 billion.

The company has already received and settled a $5m loan from its largest shareholder, Taiga Mining. The Bering Straits Native Corporation has pledged its support for the project including a $2 million investment with an option to increase that to $10.4 million.

The project isn’t near a salmon fishery and it has the backing of local communities such as Nome, which has a long history of resource extraction.

The company has help from the highest political offices in Alaska — the governor, both senators and Alaska’s single House member. They clearly see an investment to increase domestic capabilities for graphite as money well spent.

Graphite One could supply a significant portion of the amount of graphite demanded by the United States, currently.

Consider: In 2023, the US imported 83,000 tonnes of natural graphite, of which 89% was flake and high-purity, suitable for electric vehicles.

Based on the prefeasibility study, the Graphite Creek mine is anticipated to produce, on average, 51,813 tonnes of graphite concentrate per year during its projected 23-year mine life.

We see Graphite One taking a leading role in loosening China’s tight grip on the US graphite market by mining feedstock from its Graphite Creek project in Alaska and shipping it, either through Nome or Port Clarence, to its planned graphite anode manufacturing plant in Voltage Valley, Ohio.

The new 25% tariff on Chinese graphite imports will help G1 to develop a home-grown graphite supply chain. Automakers have until 2027 to figure out how they will source graphite outside of China. After that, EVs with graphite and other battery components originating in China or other foreign entities of concern will no longer be eligible for subsidies, making them more expensive.

Graphite is essential to an electric car; it is the largest component in batteries by weight, with no known substitutes. While EV sales have recently slowed, that is expected to be temporary.

The International Energy Agency estimates that US sales of fully electric vehicles will soar to 2.5 million in 2025, from 1.1 million last year, Bloomberg reported on Tuesday.

Graphite One Inc.
TSXV:GPH, OTCQX:GPHOF
2024.05.28 share price: Cdn$0.89
Shares Outstanding: 129.0m
Market cap: Cdn$122.4M
GPH website

Richard (Rick) Mills
aheadoftheherd.com

Big Oil Doubles Down on LNG as Renewables Falter

ANY EXCUSE WILL DO

By Irina Slav - Aug 06, 2024Supermajors are scaling back renewables projects and investments due to poor returns compared to LNG.

• 
  
• Big Oil prioritizes growing its LNG business, seeing strong demand for natural gas in the medium to long term.
• 
  
• Renewables commitments falter as European oil and gas firms focus on energy security amid the energy crisis and skyrocketing prices.
• 
  

The supermajors continue to bet on LNG while scaling back renewables projects and investments as oil and gas returns continue to trump the poor profits from renewables.   

The world’s top international oil and natural gas firms are sanctioning new LNG projects and buying stakes in new developments as they see demand for natural gas growing in the medium to long term.  

Bound by the pledges to return more cash to shareholders, Big Oil is betting on growing its much more lucrative LNG business than on wind, solar, or biofuels, where returns have been poor for years and haven’t really taken off despite soaring global capacity additions. 

In recent years, LNG trading has reaped a lot of profits for the European majors, while nearly all of them have had to take impairment hits on renewables projects in Europe and the U.S. 

The LNG market is set to see a wave of new supply from 2026 and could be oversupplied from 2026-2027 until the end of the decade. Yet, Big Oil is confident that demand will be there and that their trading strategies and the moves to lock in customers from LNG projects will pay off. 

Renewables Commitment Falters

At the same time, Europe’s top oil and gas firms haven’t seen improved market and business conditions to warrant the major push into renewables they had pledged before the energy crisis and skyrocketing prices in 2022 upended plans and shifted the focus onto energy security. 

BP, for example, booked a pre-tax impairment charge of $540 million in the third quarter last year related to U.S. offshore wind projects. BP and Equinor’s filing to renegotiate the power purchase agreements associated with the Empire Wind 1 and 2 and Beacon Wind 1 wind farms off the coast of New York was rejected. 

BP said in June that it was scaling back this year’s plans for the development of new sustainable aviation fuel (SAF) and renewable diesel biofuels projects at its existing sites, pausing planning for two potential projects while continuing to assess three for progression. 

“This is aligned with bp’s drive to simplify its portfolio, focusing on value and returns,” the UK-based supermajor said. 

Weeks later, the other UK-based giant, Shell, said it was pausing on-site construction work at a biofuels plant in Rotterdam amid weak market conditions, taking a $780-million impairment charge for the second quarter for this. 

The pause at the 820,000 tons-a-year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in the Netherlands was needed “to address project delivery and ensure future competitiveness given current market conditions,” the company said. 

LNG Bet 

At the same time, both Shell and BP, as well as France’s TotalEnergies, are looking to further grow their LNG portfolios by raising their own liquefaction volumes and gaining access to additional third-party volumes. 

“In our Integrated Gas business, we said we would continue to grow our LNG portfolio by increasing both our liquefaction and access to third-party volumes,” Shell’s CEO Wael Sawan said last week when the company reported better-than-expected earnings for the second quarter. 

Shell has extended existing partnerships in Oman, invested in backfills in Manatee in Trinidad and Tobago, and agreed to acquire Pavilion Energy in Singapore to increase portfolio length, the executive of the world’s top LNG trader added. 

Shell also leads the LNG Canada joint venture project in Kitimat, British Columbia, where it is “working hard to achieve first production” by the middle of 2025, Sawan said.  

In addition, Shell, BP, TotalEnergies, and Japan’s Mitsui have just signed a deal with Abu Dhabi’s ADNOC to take 10% each in the Ruwais LNG project in the UAE as international partners.  

BP works towards building an LNG portfolio of 30 million tons by 2030, up from 23 million tons of long-term LNG portfolio last year. The company is looking at long-term contracts and at short-term market opportunities, Carol Howle, EVP, trading and shipping at BP, said on the earnings call last week. 

TotalEnergies has also been busy sanctioning LNG projects in recent months. The French group gave the green light to the Marsa plant in Oman, Marsa LNG, as well as the Ubeta gas project in Nigeria, which will supply Nigeria LNG.  

“These projects will not only contribute to the objective to grow our upstream by 2% to 3% per year in the next five years, but they will also boost the underlying free cash flow generation and ultimately shareholder distributions,” CEO Patrick Pouyanné said on TotalEnergies’ earnings call. 

“I think there is a fundamental structural demand coming from India, and we are convinced that the Indian market will take the relay I would say, for the traditional, Korea, Japan, and even China,” Pouyanné added. 

LNG demand in China is becoming more seasonal as Beijing is “moving very quickly on these renewables, continuing to increase its coal production,” the executive noted. 

Big Oil is positioning for a major boost in global LNG demand as a way to earn more money from their core business amid low or negative returns in the renewable energy industry.  

By Tsvetana Paraskova for Oilprice.com

An Indian billionaire has an audacious plan to take down part of China's economic master plan

Story by habraham@insider.com (Hannah Abraham) • 20h • 


Karan Adani, the CEO of Adani Ports, plans to take over the operation of a growing number of seaports in the Middle East, Africa, and Southeast Asia. NOAH SEELAM/Getty Images© NOAH SEELAM/Getty Images

The Indian billionaire Karan Adani announced plans to challenge Chinese dominance in global seaports.

Adani Ports has received "in-principle" approval for a $2 billion project in Da Nang, Vietnam.

Adani Group has plans for ports in the Middle East, Africa, and Southeast Asia, Bloomberg said.

Karan Adani, the son of one of Asia's richest men, wants to loosen China's grip on seaports and transform India into a major trading hub.

"We are working on making India the center point of the overall supply chain from east to west," he said in an interview with Bloomberg for its "Inside Adani" series.

Adani, the CEO of Adani Ports, said that the company had received an "in-principle" approval from the Vietnamese government for a $2 billion greenfield project in Da Nang.

This would be the latest addition to the Adani Ports' portfolio. In 2022, it won a joint bid on the Israeli government's tender to buy the Haifa Port for $1.2 billion.

It also owns port assets in Colombo, Sri Lanka, and the Port of Dar es Salaam in Tanzania.
Loosening China's grip

India has long had fears over China surrounding it with ports. The trade infrastructure in the Indian Ocean is often referred to as China's "string of pearls."

China's Belt and Road Initiative (also referred to as the New Silk Road) involves buying up multiple ports across the world to build a sea route running from the coast of China through the major transit route of the Indian Ocean and the busiest maritime points of the Middle East, and ending in Europe.

The Washington Post reported the majority of investments in Chinese-owned ports had been made by companies owned by the Chinese government, which would make the Chinese Communist Party the biggest operator of the ports that fuel global supply chains.

The Council on Foreign Relations says that China operates or has ownership stakes in at least one port on every continent except Antarctica. Ninety-two out of the 101 ports were active as of 2023.

The Financial Times cited a report by the Qianzhan Industrial Research Institute saying that China invested at least $40 billion in coastal port infrastructure between 2016 and 2021.

The outlet also said that China had 76 port terminals able to support large ships carrying more than 14,000 20-foot containers, while southern and southeastern Asian countries had just 31 between them.

Fortune India reported that 75% of India's transshipped cargo was handled by ports outside the country.

The Adani Group wants to change that.

Making India the world's factory

The company has openly aligned its business interests with Indian Prime Minister Narendra Modi's development agenda of making India the world's factory.

Earlier this month, it welcomed the first mother ship in the first phase of its port in Vizhinjam harbor, a project undertaken with the state government of Kerala in India.

Expected to be completed in 2028, the seaport aims to handle up to half of India's container-transshipment needs.

According to the Bloomberg Billionaires Index, Adani Enterprises, the group's main company, reported revenue of $11.6 billion in 2024, and Adani's father, Gautam Adani, owns a 75% stake.

The 62-year-old is worth over $80 billion and announced his succession plan on Monday — naming his sons, Karan and Jeet, and nephews Pranav and Sagar as heirs to the Adani Group.

The Adani family has previously faced scrutiny for its close ties to Modi and allegations of preferential treatment from the Modi government.

The Adanis frame the association as a desire to improve the country, with the chairman's message on the Adani Group website promising to "foray into sectors where the country needs to establish a foothold" and affirming that it will "look at these opportunities as part of our national duty."

PowerMaster launches tech to help remediate mine tailings

Published by Jane Bentham, Editorial AssistantGlobal Mining Review, Monday, 05 August 2024 

PowerMaster has announced the launch of its Revolution technology, which, it says, efficiently crushes materials, remediates mine sites, and reprocesses valuable tailings.

The Revolution is an eco-friendly gyroscopic grinder designed to process various materials, from large rocks to fine tailings. The technology is billed as cutting the cost of processing by half and reducing the environmental impact of mining operations by reclaiming valuable minerals, cutting emissions, and minimising waste.

“The world is running out of space for safe and sustainable waste disposal, while the mining industry faces significant challenges with tailings management and site remediation, all while aiming to keep costs and environmental impacts low,” Haiku York, President of PowerMaster, said. “With millions of tonnes of tailings produced daily, effective waste management is critical. At PowerMaster, we’re committed to addressing these challenges with our Revolution technology, which efficiently crushes materials, turns waste into valuable resources and reduces environmental contamination.”

By eliminating excess moisture from tailings, the Revolution processes waste into dry material, minimising groundwater leaching. Additionally, the technology excels in primary, secondary, and tertiary crushing, enabling sustainable ore processing from various materials optimising resource recovery, the company says. The Revolution can be custom programmed for all types of materials and is adjustable for any output size.

“There’s really no other machine like it,” added Lila York, Director of Special Projects of PowerMaster. “Our product is half the price of other machines, one-tenth the maintenance cost, has virtually no downtime, and when something gets in it that shouldn’t be there, it doesn’t blow up like other machines do. In fact, the Revolution is the safest machine on the market today. Once people realise how much it reduces both waste and costs, we expect to see a huge market demand.”

Royal Mint opens new factory to recover gold from e-waste

Up to 4,000 tonnes of Printed Circuit Boards from items like laptops and TVs will be processed by The Royal Mint per year.

Royal Mint opens new factory to recover gold from e-waste (Matthew Horwood/The Royal Mint)

Nina Massey   THE INDEPENDENT  Aug  6, 2024

The Royal Mint has opened a new factory to remove gold from old computers and phones and turn it into jewellery and collectables.

The facility provides a sustainable source of precious metals and reduces reliance on mining.

Up to 4,000 tonnes of printed circuit boards (PCBs) from e-waste like old laptops and TVs will be processed by The Royal Mint per year.

It takes around 600 mobile phones to create one of the rings from the Mint’s 886 collection, weighing approximately 7.5g – similar to the weight of a £1 coin.

Some 4,000 tonnes of circuit boards contain half a tonne of gold, 1,000 tonnes of copper, 2.5 tonnes of silver and 50kg to 60kg of palladium.

On average, one tonne of circuit boards produces 165gm of gold, equating to around £9k.

Mark Loveridge, business unit director at Precious Metals Recovery, told the PA News Agency the factory processes were a “world first”, adding that the Mint is very good at taking things “from a beaker to an industrial scale”.

He also said: “If we look at e-waste generated the UK is the second worst offender in terms of the amount we produce per capita.

“It’s the equivalent of about 25 kilos a person. And that’s the equivalent to about a 50-inch TV, just to give you an idea in terms of what that kind of translates into.

“We all have our jar at home where we put our coins into. It’s the same with our electronic devices.

“You have probably got a couple of mobile phones sat in a drawer and TV in the back bedroom or the garage or something that needs to come back into that supply chain so it can be recycled and those materials recovered.”

The silver and gold are used by the official maker of British coins to produce jewellery and commemorative coins.

The non-precious metal that is recovered (copper, tin, steel, aluminium) is sent to other companies as a raw material to turn them into products such as sheets/bars/rods to manufacture new products.

The idea is that recovered, high-purity gold will reduce the dependence on traditional mining activity and encourage more sustainable industry practices.

As things stand, The Royal Mint receives the circuit boards, which are then processed in a newly built specialised plant, which separates all the components and metals.

The Royal Mint is transforming for the future, and the opening of our Precious Metals Recovery factory marks a pivotal step in our journey

Anne Jessopp, chief executive at The Royal Mint

The pieces containing the gold are then sent on to a second facility on the South Wales site, which uses world-first patented chemistry from Canadian cleantech company Excir to remove the metal.

Unlike other gold extraction processes that require extremely high temperatures, and take a lot of time, the new process at the Mint uses a washing machine-style spinning drum that washes the gold-containing parts in a special acid mix that dissolves the precious metal in just four minutes.

It also does this at temperatures of just 20C to 25C, using a lot less energy than other gold extraction methods.

The factory is powered by electricity, and there are wind turbines and a solar farm on site.

Everything from the process is recycled, or reused, from the plastic on the circuit boards to the acid used to dissolve the gold.

Anne Jessopp, chief executive at The Royal Mint, said: “The Royal Mint is transforming for the future, and the opening of our Precious Metals Recovery factory marks a pivotal step in our journey.

“We are not only preserving finite precious metals for future generations, but we are also preserving the expert craftsmanship.

“The Royal Mint is famous for creating new jobs and reskilling opportunities for our employees.

“We have ambitious plans, and I am proud that we are safeguarding The Royal Mint for another 1,100 years.”

As well as recycling the circuit boards it receives, The Royal Mint is also working towards receiving the entire items – computers, mobile phones, server equipment – so it can be involved in the full process.

Gold price surpasses $2,500 for first time ever

Published by admin on 05/08/2024



Gold surpassed $2,500 per ounce for the first time in history on Friday in the wake of rising geopolitical tensions and new data indicating a weakening US economy.

Gold contracts for December delivery reached an all-time high of $2,522.50 in the early trading hours, before shedding its gains to trade at $2,475.90 an ounce by 11:00 a.m. ET.

Sign Up for the Precious Metals Digest

Spot gold posted a marginal loss of 0.5% at $2,432.86 per ounce, having hit as high as $2,477.10 — just within grasp of its all-time peak of $2,483.73 set earlier this month.

Current AUD dollar prices for pure bullionGold AUD $ 3749.21
Platinum AUD $ 1498.65
Silver AUD $ 43.83

Ranking: Topmost Canadian Miners In Terms of Market Cap


Incidentally, Agnico Eagle operates the country’s biggest gold mines in terms of output- Detour Lake and Canadian Malartic.




SEATTLE (Scrap Monster): Agnico Eagle topped the list of Canada-based miners by market cap. The market cap of the company stood at C$51.4 billion as of late-July this year. Incidentally, Agnico Eagle operates the country’s biggest gold mines in terms of output- Detour Lake and Canadian Malartic.

The company was second in the ranked list of Canadian miners by net income in 2023. With a net income of $1.9 billion, it stood second to Barrick Gold Corporation, whose annual net income totalled $1.95 billion during the previous year.

Ammar Al-Joundi, President and CEO, Agnico Eagle commented that the company continues to remain focused on capital discipline. The company is currently advancing the former Hope Bay gold mine project in Nunavut. Also, it plans to undertake a $1 billion underground expansion at Detour Lake, which is expected to boost its annual output to 1 million ounces, he added.

In second and third place were Barrick Gold and Wheaton Precious Metals, with market cap of C$44.7 billion and C$37.9 billion respectively. The other miners in the top ten list along with their market cap in billion Canadian dollars are as follows: Nutrien (34.5), Franco-Nevada Corp. (33.3), Teck Resources (32.6), Cameco (27.7), Ivanhoe Mines Ltd. (24.8), Fist Quantum Minerals (13.7) and Kinross Gold (15).

Indian gold industry forms self-regulatory body with WGC backing

Reuters | August 6, 2024

Image: Pixabay

India’s gold industry, with the support of the World Gold Council (WGC), has established a self-regulatory organization in a bid to increase consumer confidence and restore trust, the WGC said on Tuesday.


The newly-formed Indian Association for Gold Excellence and Standards (IAGES) aims to promote fair, transparent and sustainable practices in the bullion industry, along with regulatory compliance, a code of conduct, and an audit framework, said Sachin Jain, CEO of WGC’s Indian operations.

India is the world’s second-biggest gold consumer after China, but the industry has a trust deficit with consumers and even the government due to poor practices by a small section of the business, he said.

“The purpose of this association is to provide accreditation based on a very strict audit. After the audit, the member will earn the IAGES logo, which they can display,” Jain told Reuters, without specifying details of the audit framework.

Industry bodies such as Indian Bullion and Jewellers Association (IBJA), All India Gems and Jewellery Council of India (GJC) and Gem and Jewellery Export Promotion Council (GJEPC) would be part of the IAGES, Jain said.

The WGC would take the initiative to popularize IAGES among retail consumers and would also finance the campaign, he added.

India’s gold demand in the June quarter fell 5% from a year ago, but consumption in the second half of 2024 is set to improve due to a correction in local prices following a steep reduction in import taxes, the WGC said last month.

(By Rajendra Jadhav; Editing by Varun H K)

IAMGOLD reaches commercial production at Ontario gold mine

Published by Jane Bentham, Editorial Assistant
Global Mining Review, Tuesday, 06 August 2024 

IAMGOLD Corporation has announced that the Côté Gold Mine has reached commercial production.

Côté Gold is located in Ontario, Canada and is operated as a joint venture between IAMGOLD, as the operator, and Sumitomo Metal Mining Co., Ltd. Commercial production is defined as the achievement of reaching a minimum of 30 consecutive days of operations during which the mill operated at an average of 60% of nameplate throughput of 36 000 tpd.

“I would like to commend our teams at Côté Gold who have come together to achieve another great milestone as we progress and ramp up what we believe will be one of Canada's largest gold mines and a model for modern mining in Canada,” said Renaud Adams, President and Chief Executive Officer of IAMGOLD. “Since achieving the first pour of gold on 31 March 2024, our teams have spent the last four months methodically and iteratively testing and ramping up all facets of the mine. This process has required remarkable commitment, ingenuity and teamwork to bring all the systems online together to achieve this milestone.”

“With commercial production behind us we continue to focus on improving plant availability towards our goal of Côté exiting the year at 90% of nameplate throughput. Further, in May we completed our equity financing which has positioned us well to repurchase the 9.7% interest in Côté this November and return to 70% ownership thereby gaining more exposure to this foundational and keystone asset for the benefit of all our stakeholders.”

The ramp up of the plant continues to progress, with all major equipment demonstrating the capability to operate at or above design levels. After the initial pour, focus early in the second quarter was on testing the processing circuits to handle nameplate loads. The primary components of the overall plant responded well achieving at or above nameplate throughput, though availability of the dry-side of the processing facilities was limited, in particular in the crushing and screening circuits. The Company is planning a multi-day shutdown in September to address and mitigate the impact of traditional wear and tear on availability of the circuits, in support of the goal to ramp up throughput to 90% by the end of the year.

 

Calibre Announces Receipt of the Federal Environmental Assessment Approval for the Berry Pit at the Valentine Gold Mine,

VANCOUVER, British Columbia, 

Aug. 06, 2024

GlobeNewswire

 (GLOBE NEWSWIRE) -- Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF) (the "Company" or "Calibre") is pleased to announce that the Honorable Steven Guilbeault, Minister of Environment and Climate Change Canada, has approved the addition of a third open pit, the Berry Deposit (“Berry Pit”), at its 100% owned Valentine Gold Mine (“Valentine”). In August 2023, an environmental assessment update was submitted to the Impact Assessment Agency of Canada (“IAAC”) regarding proposed changes to Valentine to include the Berry Pit, and associated infrastructure changes. Following IAAC’s thorough analysis of the submitted update, including the results of consultation with Indigenous groups, communities, stakeholder organizations, and reviewing the results of IAAC’s public comment process, Minister Guilbeault signed an Amended Decision Statement approving the addition of the Berry Pit.

Darren Hall, President and Chief Executive Officer of Calibre, stated: “I am pleased to announce that we have obtained Federal Environmental approval for the development of the Berry Pit at Valentine. With this approval and the recent issuance of Provincial mining and surface leases for Berry and associated infrastructure, we now have the major approvals required for the three-pit mine plan included in the 2022 Feasibility Study."

“Since acquiring Valentine in January, we have progressed engineering to 98%, advanced construction from 50% to 77%, and employed an experienced operations team, positioning us to deliver first gold in Q2, 2025.”


To view the Amended Decision Statement and IAAC’s Analysis of the Berry Pit Expansion, please click the links below:

Link 1 – Amended Decision Statement

Link 2 – Analysis of Marathon Gold Corporation Proposed Changes to the Valentine Gold Project

About CalibreCalibre is a Canadian-listed, Americas focused, growing mid-tier gold producer with a strong pipeline of development and exploration opportunities across Newfoundland & Labrador in Canada, Nevada and Washington in the USA, and Nicaragua. Calibre is focused on delivering sustainable value for shareholders, local communities and all stakeholders through responsible operations and a disciplined approach to growth. With a strong balance sheet, a proven management team, strong operating cash flow, accretive development projects and district-scale exploration opportunities Calibre will unlock significant value.

ON BEHALF OF THE BOARD


“Darren Hall”

Darren Hall, President & Chief Executive Officer

For further information, please contact:

Ryan KingSVP Corporate Development & IRT: 604.628.1012E: calibre@calibremining.comW: www.calibremining.com

Calibre’s head office is located at Suite 1560, 200 Burrard St., Vancouver, British Columbia, V6C 3L6.

X / Facebook / LinkedIn / YouTube

The Toronto Stock Exchange has neither reviewed nor accepts responsibility for the adequacy or accuracy of this news release.

NEWS RELEASE TRANSMITTED BY Globe Newswire