RNT-EP and Minbos power supply agreement progresses

Minbos Resources Limited has received a formal resolution from RNT-EP (Angola’s electricity network operator) of its intention to enter an agreement with Minbos for the supply of hydroelectric power from the Pólo Agroindustrial de Capanda (Capunda Hydroelectric Dam).

The Zero-Carbon Power is proposed to be delivered to the company’s project site where the company plans, based on its preliminary work completed to date, to build a green ammonia production facility with capacity to produce nitrogen fertilizer.

While the final terms are still to be negotiated and agreed in the MOU, the key commercial terms that have been proposed between the parties to date are:

• Initial 100MW at $US0.004 (0.4c) per kilowatt hour for 5 years then $US0.008 (0.8c) per kilowatt hour for 20 years.
• Subsequent 100MW at $US0.015 (1.5c) per kilowatt hour for 25 years.

Hydropower ringfences the company’s Green Ammonia Project from the “perfect storm” created by a surge in gas prices to near record levels in Europe and Asia with a shortage of ammonium nitrate caused by the shuttering of grey, brown and blue hydrogen/ammonia projects globally.

Even if gas prices were to normalise to long term averages, the company’s’ Green Ammonia Project will remain one of the most compelling, globally protected from any impacts associated with global carbon pricing and without substantive capital investment required in new renewable energy production.

The Capunda Hydroelectric Dam is located on the Kwanza River, in the Malange Province of Angola. The facility generates power by utilizing four turbines and 130 MW (170,000 hp) each, with an installed capacity to 520 MW’s.

CEO Lindsay Reed stated, “Over the recent period we have seen significant publicity around the development of green hydrogen and green ammonia as they are the bedrock to sustainable agriculture and food security.”