Alpha HPA Limited provided an update on HPA First Project’s operations, representing the commercialisation and production of crucial high-purity aluminium (HPA) products driving decarbonisation.
The Stage 1 Precursor Production Facility (PPF) is producing 5N purity aluminium nitrate precursors, with plans to expand to produce Alpha’s full product portfolio.
According to Alpha, it focuses on product sales, offtakes, and project financing while simultaneously completing the remaining criteria before the full-scale Project Final Investment Decision (FID).
Alpha and Ebner Industrueofenbau GmbH and Ebner subsidiary Fametec GmbH, Ebner-Fametec, have been discussing prospective collaboration on the commercial roll-out of Ebner-Fametec’s sapphire growth process using HPA raw material from Alpha since mid-2022.
The parties have signed a series of agreements allowing for a staged entry by Alpha into the production of synthetic sapphire using Alpha’s HPA feed material, specifically focusing on supplying the LED lighting industry. This follows a process of mutual due diligence, mutual site visits, and production testing of sapphire glass growth using Alpha’s custom HPA tablets in Ebner-Fametec’s sapphire growth units.
The agreements include Commercial and Technical proposals, Technology Licence Agreement, and Letter of Intent (LOI).
Combined, Alpha said the agreements call for Alpha to buy a start-up pair of crystal growing units to be installed in the Stage 1 PPF (Phase A). These units will be used, with help from Ebner-Fametec, to certify Alpha’s sapphire with specific end-users and establish its ultra-high purity HPA tablets as a premium raw material feed to downstream end-user markets.
The initial two growth units will cost about AUD$3.4 million to purchase, install, and commission. This amount also includes the cost of supporting utility connections.
The initial growth units are planned to be delivered in January 2024, with sapphire qualification expected in July 2024. Ebner-Fametec will offer technical oversight during the installation, commissioning, and qualification phases under the terms of the Licensing Agreement and LOI.
Upon successful Phase A qualification and approval by Alpha’s Board, the LOI envisions a two-stage (Phase B and C) extension to up to 100 growth units by the end of 2025.
On commercially agreed terms, Phase B consists of 48 further growth units and Phase C consists of 50 additional growth units. An Alpha subsidiary will invest, and the location of the Phase B and C roll-out will be decided based on an assessment of the most advantageous logistics, including access to renewable energy.
“The Company is delighted to announce this new collaboration arrangement with Ebner-Fametec. Having recognised present supply dynamics in the sapphire growth market and the enormous growth potential for premium sapphire product across the LED and optics markets, Ebner-Fametec’s propriety crystal growth technology and established industry relationships makes them an ideal collaboration partner for Alpha. We see Alpha’s intended entry into the downstream market segment as highly complementary to our existing operations and a unique opportunity to broaden our exposure to the sapphire glass industry supply chain,” Managing Director Rimas Kairaitis said.
According to Kairaitis, Alpha and Ebner-Fametec are both committed to delivering new technology to realise higher grade materials more sustainably.
“This collaboration provides further endorsement of the quality of our HPA material and Alpha’s capacity to construct and operate a high technology facility. The collaboration was also considerably assisted by the additional capacity being delivered through Alpha’s deployment of the A$15.5M Australian Government CMDP grant,” Kairaitis added.
