Danakali continues evaluating renewable energy options to become zero carbon in SOP production at Co

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Danakali Ltd (ASX:DNK) (LON:DNK) (OTCMKTS:SBMSF) (FRA:SO3) is continuing the process of evaluating renewable energy options of solar, wind and geothermal energy with a view to becoming zero carbon in the production of sulphate of potash (SOP) at its Colluli Project in Eritrea. 

Early assessment work on the solar and wind energy potential of Colluli has been completed and this has confirmed that both of these renewable energy sources can be incorporated into the future generation of power for the project. 

Danakali will now work with its preferred power provider, Aggreko PLC (LSE:AGK) (OTCMKTS:ARGKF) (FRA:4A4B) to further develop these solutions. 

Positive environmental impact

Danakali executive chairman Seamus Cornelius said: “We are determined to embrace renewable energy and run our business in a way that delivers positive environmental impacts for Eritrea and the world.

“Our initial goal is to create a responsible, environmentally-friendly, zero-carbon, premium fertilizer business that clearly links Colluli SOP with the production of nutritious crops, bolsters global food and nutrition security and improves millions of lives.

“We know very well that with an asset like Colluli, the extensive studies we have done to date provide us with a useful baseline and the ceiling won’t even be glimpsed until after many decades of growth.”

Geothermal energy

Colluli is in the Danakil depression, which lies within the East African Rift Valley, one of the world’s most geothermally endowed rifts.

The mining licence area is close to known geothermal gradients, including at Alid, on the axis of the Danakil depression, between the Red Sea and the Afar Triple Junction.

Alid has been recognised by the Eritrean Ministry of Mines and Energy (MoEM) as a potential high geothermal resource due to the evidence of various surface manifestations and the presence of underground magma.

In 1996, detailed geological and geochemical work funded by United States Agency for International Development (USAID) and conducted by United States Geological Survey (USGS) and MoEM identified a high-temperature reservoir at Alid.

Samples collected indicate a reservoir temperature of a hydrothermal-convection system likely to be in the range of 250°-300°C, which is extremely promising as a geothermal power source.

Follow-up work in 2015 demonstrated structural trends and temperature permeability that are very favourable for an electric grade geothermal resource.

The importance of geothermal and other renewable energy sources is set out in Eritrea’s national renewable energy policy and development framework.

Danakali will utilise the impressive body of work already conducted in Eritrea to develop its plans and further its commitment to carbon neutral SOP production.

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