Orica has expanded its strategic relationship with Alpha HPA Limited, including acquiring a 5% equity interest and establishing a non-binding Memorandum of Understanding (MoU) to investigate the feasibility of establishing a new high-purity aluminium (HPA) manufacturing facility in North America.
The funds from the equity investment will be used to accelerate final engineering and product marketing for the full-scale HPA First Project at Gladstone, Queensland, and to advance feasibility studies on the potential of an additional HPA manufacturing facility in North America, with the remaining funds used for general working capital.
The non-binding MoU, meanwhile, will see the comapanies mutually investigate the technical and commercial feasibility of establishing a new manufacturing facility in North America to produce HPA products for the rapidly expanding future-facing industries in the region. The facility would seek to leverage and replicate the chemical process synergies that have been successfully established between Orica and Alpha HPA in the development of the HPA First Project at Gladstone. This would include the supply of process reagents and the offtake of process by-products to/from Alpha HPA’s and Orica’s manufacturing facility, supporting circularity between the two parties.
Orica and Alpha HPA previously executed binding, definitive agreements with each other related to the supply of process reagents and the offtake of process by-product to/from Alpha HPA’s First Project and Orica’s Yarwun manufacturing facility (pictured) within the Gladstone State Development Area in north Queensland.
Alpha HPA’s First Project represents the commercialisation of the production of circa-10,000 t/y equivalent of HPA and related products using the company’s proprietary licensed solvent extraction and HPA refining technology. The technology provides for the extraction and purification of aluminium from an industrial feedstock to produce 4N (>99.99% purity) alumina for the intended use within the lithium-ion battery and LED lighting industry.
Orica Managing Director and Chief Executive Officer, Sanjeev Gandhi, said: “Building on our successful partnership with Alpha HPA in Australia, we are thrilled to further expand our relationship and explore opportunities for growth and circularity in North America. The Alpha HPA First project in Queensland has demonstrated how industrial partnerships can optimise resource use, simultaneously creating value and reducing waste.”
Alpha HPA Managing Director, Rimas Kairaitis, said: “Having established a strong working relationship in developing our HPA First Project, the mutual ambition to expand our relationship into North America and establish Orica as a strategic shareholder in our company is a welcome progression of our relationship. Importantly, we see these initiatives as a strong endorsement of the ongoing development of our business.
“Orica has a detailed understanding of our process technology, the advanced nature of our marketing activities, and a strong appreciation of our commitment to building a sustainable business to help decarbonise critical future-facing industries. We welcome Orica as a new shareholder in our company and look forward to taking this exciting next step in our development together.”