(Sharecast News) - Ironveld announced on Monday that its Ironveld Energy subsidiary has signed a letter of intent with BurnStar Technologies, to move forward with a binding agreement for BurnStar's 'Guilt-Free Hydrogen' technology.
The AIM-traded firm said the technology would be used to process liquefied natural gas (LNG) on site at Ironveld's Rustenburg smelter, with the potential to significantly reduce carbon consumption and enable the production of premium priced 'green metals' in South Africa.
It said BurnStar holds a patent-pending technology protected in more than 45 countries, which allows it to produce hydrogen from various hydrocarbons, including LNG, flare gas, LPG, and naphtha.
BurnStar would supply and install a commercial plant at its own cost at Ironveld's Rustenburg smelter facility.
The use of hydrogen as a reducing agent in Ironveld's smelting process had the potential to significantly reduce total carbon consumption, reduce production costs, and enable the production of premium-priced 'green metals', Ironveld's board explained.
A binding agreement between Ironveld Energy and BurnStar was expected to be signed within the next two months.
"This is a hugely significant step for Ironveld - our partnership with BurnStar will allow us to benefit from an on-site supply of hydrogen at extremely attractive prices, which has the potential to virtually eliminate carbon consumption from our production process and achieve 'green metal' end products," said chief executive officer Martin Eales.
"This may lead to Ironveld having the ability to certify its end products, ensuring that their sustainability credentials are reflected in their market value.
"We look forward to finalising the formal legal agreement with [BurnStar CEO] Johan Brand and his team in the coming months."
At 1123 BST, shares in Ironveld were flat at 0.39p.
Reporting by Josh White for Sharecast.com.
Ironveld (IRON)