(Alliance News) - Ironveld PLC said on Monday its subsidiary, Ironveld Energy Ltd has signed a letter of intent with BurnStar Technologies Pty Ltd to produce green hydrogen.
Ironveld is a South Africa-focused mining company based in Caerphilly, Wales.
The company said the letter of intent will proceed towards a binding legal agreement, under which BurnStar will produce green hydrogen by processing liquefied natural gas with its its patent-pending 'Guilt-Free Hydrogen' technology.
Ironveld explained that BurnStar will produce hydrogen as a furnace reductant gas which could "significantly reduce" Ironveld's carbon consumption. It would also allow Ironveld to produce premium priced green metals in South Africa at a reduced price.
BurnStar Chief Executive Officer Johan Brand said its technology uses "turquoise hydrogen", distinctive as it does not produce carbon dioxide during pyrolysis of LNG.
BurnStar would carry out this process at Ironveld's Rustenburg smelter facility, producing hydrogen from LNG at a rate of five kilograms per hour. As part of the agreement, BurnStar will supply and install a commercial plant at its own expense. Brand said the plant is scheduled to be installed before the end of the year.
Ironveld said the binding agreement is expected to be signed within the next two months.
Ironveld CEO Martin Eales said the agreement is a "hugely significant step" for the company, adding that "this may lead to Ironveld having the ability to certify its end products, ensuring that their sustainability credentials are reflected in their market value."
Ironveld shares were down 2.5% at 0.38 pence in London on Monday afternoon.
By Sabrina Penty; Alliance News reporter
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