Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
The DMG is "self sustaining" because it uses a percentage of the syngas that it produces to continue to heat the chamber. So it only needs to use natural gas for a short time to start the system and bring it up to the heat level required. After that it uses it's own gas, so to that extent it is self sustaining.
Of course the "fuel" is the feedstock.
I agree mja, I would expect more than one contractor to be involved for the various aspects of the buildings and plant. I was just thinking of the statement in the RNS:
" Peel NRE has shortlisted two potential contractors for the construction works and is currently seeking the necessary finance."
I expect they are just referring to contractors for the construction of the actual buildings.
Oh yes, I should also have said a waste management company who is separating recyclable waste plastic from end-of-life waste plastic, and has to dispose of the latter. And of course at Protos these two facilities are next door to each other, so no transport costs, or very little.
mja: Those who currently have to pay landfill tax for end-of-life plastics that they cannot get rid of by any other means e.g. local authorities. And of course they can no longer ship their rubbish to the Far East to be dumped on beaches or thrown into the rivers and ocean. I believe that landfill tax is in the region of £100 per ton, plus cost of transport to the landfill site, so a DMG operator could perhaps charge up to £80 per ton to take it off their hands?
aandi, that is absolutely NOT what the ownership of the SPV is about. The SPV is the JV company that will develop, build manage and operate the DMG system. The SPV JV company will receive payment of the gate fees for accepting the waste plastic as feedstock, and will sell the electricity and hydrogen that is produced by the DMG. I believe there is already an offtake agreement for the hydrogen with Element2.
Peel and PHE will be 50/50 shareholders in the SPV JV company, and will share the profits and dividends from the SPV on a 50/50 basis.
There has been no mention of any intention by Peel or PHE to sell on the SPV JV company to another party at any point in the future. I believe that is EQT's business model, but it is not PHE's business model.