Swedish Stirling and Glencore have signed a letter of intent regarding discussions on a potential electricity generation facility at Glencore’s Lion smelter situated in Steelpoort, South Africa, comprising a possible installation of up to 88 PWR BLOKs corresponding to 35 MW.

The parties will now enter into negotiation and the letter of intent does not place any obligation on either party to fulfil the contemplated project unless and until a definitive agreement in writing in respect of the contemplated project has been reached and signed by the parties. Glencore’s Lion smelter is one of the world’s largest ferrochrome smelting facilities.

It comes a month after Swedish Stirling and Richards Bay Alloys (RBA) entered into a letter of intent regarding sales and installation of 18 PWR BLOK units to generate 7.2 MW. At completion, the value of the potential transaction is estimated at $18 million.

RBA is a privately owned ferrochrome smelter facility in Richards Bay, South Africa. The company is currently finalising financial close to secure funding for the recommissioning of their two 38 MVA closed submerged arc furnaces. The modifications will ensure the facility’s competitiveness. The installation of 18 PWR BLOKs would further reduce RBA’s production costs as well as reduce RBA’s carbon dioxide emissions by 63,000 t/year and offset their carbon taxation.