RNS Number : 9454O
Savannah Resources PLC
06 February 2023
6 February 2023
Savannah Resources Plc
(AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah' or the
Barroso Lithium Project Decarbonisation Update
Preliminary Results and Studies Move to Next Phase
Savannah Resources plc, the European lithium development
company, is pleased to provide an update on its decarbonisation
strategy for the Barroso Lithium Project (the 'Project') following
the completion of the initial study phase by ECOPROGRESSO , the
Portuguese e nvironment, s ustainability, and c limate c hange
consultants and part of the Quadrante Group.
The goals of the initial study were as follows: to update the
pre-decarbonisation estimate of the Project's greenhouse gas
inventory; identify and investigate opportunities to reduce
greenhouse gas emissions at the Project; and to create a
preliminary decarbonisation strategy to reach net zero Scope 1 and
Scope 2 emissions over the life of the Project.
-- Confirmation that Battery Electric Mining Equipment will
provide the most effective and flexible means to reduce Scope 1
emissions at the Project to zero. Scope 1 emissions represent 68%
of the Scope 1 and 2 total.
-- The estimate of Scope 2 baseline emissions has been reduced
by 54% from the original 2019 forecast, based on the potential for
a reduction in the estimated power requirement of the Project's
plant and a 41% reduction in the emissions associated with
Portugal's grid power.
-- In 2021, 62.2% of Portugal's grid power was generated from renewable sources.
-- A number of viable options are available to secure 100%
renewable energy supply to the Project including regional solar and
wind generation, on market purchase, via direct Power Purchase
Agreements, or a combination of these. Use of 100% renewable energy
would reduce the Project's Scope 2 emissions to zero.
-- Future work will include:
o More detailed analysis of these and other initiatives as part
of the Definitive Feasibility Study on the Project; and
o Studies with a number of mining equipment OEMs to determine a
site specific solution for a transition to battery operated mining
fleet and associated charging infrastructure.
Dale Ferguson, CEO of Savannah said: " I am extremely encouraged
with the results from the initial decarbonisation study work and
the clear path it helps to define for further carbon reduction
throughout the Project's life. Firstly, it is positive that the
Project's carbon footprint, prior to execution of our
decarbonisation strategy, is going to be smaller than initially
estimated back in 2019, due to a potential 54% reduction in Scope 2
emissions. This in turn is due to a possible reduction in the power
requirement of the plant, which could be achieved through greater
efficiencies, and a 41% reduction in the emissions associated with
Portuguese grid power as the contribution of renewable energy
increased to over 60% in 2020 and was maintained above this
threshold in 2021.
"Together with our technical partners, including ABB, we have a
particular focus on either eliminating or significantly reducing
the potential impacts of the Project, both locally and more
generally in terms of emissions. Our initial work with the OEM's
suggests that we will likely have access to both electric road
haulage trucks and mine haul trucks early in the Project's life,
which will significantly reduce our Scope 1 and 2 emissions. We are
also exploring other ways to increase our percentage of renewables
in the power mix to further reduce our Scope 2 emissions.
"As part of our DFS study we will complete further detailed
analysis to continue to drive our goal of achieving a net zero
carbon emission Project."
Further Details on the Study
Early in 2022, Savannah commissioned ECOPROGRESSO to identify
and investigate opportunities to reduce greenhouse gas emissions at
the Barroso Lithium Project and create a preliminary
decarbonisation strategy to reach net zero Scope 1 and Scope 2
emissions over the life of the Project.
Throughout the year, the study progressed through the following
-- Phase 1: Baseline and Ambition - reviewing the initial
greenhouse gas ('GHG') inventory estimate from the 2019 study which
was used for the 2020 Environmental Impact Assessment ('EIA') to
identify improvements, and to validate our emission reduction goals
by reviewing national goals, specific EU legislation , and con
ducting a benchmark analysis of the industry peers.
-- Phase 2: Market studies and Strategy - identification of
decarbonisation initiatives currently available in the market or
under near term development through consultation with OEMs and
suppliers, and determining those with both the greatest GHG
reduction impact and technical viability.
-- Phase 3: Roadmap for Implementation - aligning the Project's
development strategy with the available initiatives to ensure
decarbonisation objectives are met.
Suitable emission reduction initiatives were determined in three
-- Operation Engineering : initiatives which address
technological solutions for emissions reduction in the Project,
either through replacement of conventional fossil fueled equipment
or through process optimisation aiming at reducing energy
-- Energy : initiatives aimed at guaranteeing the supply of 100%
renewable energy to the Project.
-- Environment : initiatives aimed at offsetting residual
emissions, i.e., emissions that were not possible to exclude due to
the implementation of operation engineering initiatives and energy
A number of scoring methodologies were then applied to determine
a short list of initiatives based on their technical feasibility,
potential environmental impact and potential economic impact. These
initiatives were then modelled to assess the Total Cost of
Ownership per tonne CO(2) equivalent ('tCO(2) e') abated of each
initiative on an annualised basis. Various combinations of
compatible initiatives were then modelled into scenarios to produce
GHG abatement cost curves, based on the best available data. These
scenarios will now be the subject of more detailed analysis as part
of the Project's Definitive Feasibility Study.
The highlights of the preliminary findings include:
-- Confirmation that Battery operated electric mining equipment
will provide the most effective and flexible means to reduce Scope
1 emissions to zero . Through engagement with a number of leading
manufacturers of mining equipment, we have assessed that a
transition to fully electric mining equipment will be possible
during the life of the Project. Annual Scope 1 baseline emissions
were assessed to be 27.7 ktCO(2) e during the life of the Project,
representing 68% of total Scope 1 and 2 emissions. The adoption of
a battery operated mining fleet would remove the bulk of these
emissions, assuming 100% renewable energy is sourced for the
-- Scope 2 baseline emissions have reduced by 54%. The most
recent information available for the proposed plant has shown that
our annual baseline energy consumption is 21% lower than original
estimates, equivalent to 80,158 MWh (compared with 101,616 MWh from
the 2019 assessment). Further, the carbon dioxide equivalent
('CO(2) e') emission factor for electricity production in mainland
Portugal, provided by APREN, the Portuguese Renewable Energy
Association, was updated based on the 2020 value of 162 kgCO(2)
/MWh, a reduction of 41% in comparison to the 2018 value of 275
kgCO(2) /MWh used in the 2019 study. In combination, these
revisions result in an annual reduction to the baseline Scope 2
emissions of 15.0 ktCO2e due to the consumption of 21,458MWh less
energy per year, and the growing contribution of renewable energy
to the national grid.
-- Additional plant optimisation and operational efficiencies
have been identified for further study . Specific electricity
consumption savings of between 5-10% in each of the areas of
crushing, griding and floatation were identified as possible with
greater energy efficiency and/or improved operational performance,
with associated cost benefits.
-- A number of options are available to secure 100% renewable
energy supply to the Project. Preliminary assessments were made of
the viable alternatives available to reduce emissions and the
associated capital and operating costs. These were assessed in
isolation and in combination and included:
o On site or regional solar power generation.
o On site or regional wind power generation.
o The use of battery storage units on site.
o Purchasing 100% green energy on market with guarantees of
o Direct long term Power Purchase Agreements for 100% renewable
During the course of this study, Savannah agreed to enter an
'Article 16' phase in the review of the Project's EIA with
Portugal's environmental regulator, Agência Portuguesa do Ambiente
('APA'). This additional review phase has resulted in enhancements
to the Project's design to further reduce its environmental impact.
These enhancements are presently being incorporated into a revised
EIA submission to APA, as advised most recently via the Company's
announcement dated 20 December 2022. If the proposed revised
Project is approved by APA, those decarbonisation initiatives that
are compatible with the final design will be further analysed for
incorporation into the Definitive Feasibility Study process.
In the meantime, Savannah is commencing further studies with a
number of mining equipment OEMs to determine a site specific
solution for a transition to battery operated mining fleet and
associated charging infrastructure, including options for priority
access to these new machines at the earliest opportunity.
About ECOPROGRESSO - Quadrante Group
Founded in 2002, ECOPROGRESSO - CONSULTORES EM AMBIENTE E
DESENVOLVIMENTO, LDA is a Portuguese consulting company providing
Environmental, Sustainability, Climate Change and Resources
Management services, with focus on sustainability strategies.
ECOPROGRESSO was the first-mover in Portugal focusing on carbon
management and climate change business. Currently the company
offers a wide range of services, which includes carbon management,
sustainability, climate support projects, public policies, green
investments and carbon compensation projects, ensuring its clients
' carbon neutral status with its own brand Carbonfree(R).
As a QUADRANTE Group company, ECOPROGRESSO combines forces with
a global Engineering, Architecture, Environment and Sustainability
Services Group, with offices in three continents (Europe, Africa
and Latin America) and extensive experience in Special Projects,
Transport Infrastructure, Energy and Industry, Buildings and Urban
Development, Waste and Water Utilities, Environment and
Construction Management and Supervision. The types of Environmental
services provided by QUADRANTE Group range from Environmental
Management Planning, Strategic Environmental Assessments, and
specific studies that integrate the environmental licensing of
projects and/or accompany the various phases of a project:
Environmental Due Diligence, Environmental Feasibility Study,
Environmental Impact Studies, Environmental Compliance Report of
the Execution Project, and Environmental Monitoring.
Scope 1-3 definitions
-- Scope 1 emissions relate to the direct GHG emissions that a
company produces from owned or controlled sources, for example from
running petrol or diesel vehicles
-- Scope 2 emissions relate to a company's indirect GHG
emissions from the generation of purchased electricity and other
forms of non-renewable power
-- Scope 3 emissions cover all other indirect emissions that
occur in a company's value chain, for example the transport of raw
materials and finished products
This Announcement contains inside information for the purposes
of the UK version of the market abuse regulation (EU No. 596/2014)
as it forms part of United Kingdom domestic law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").
Savannah - Enabling Europe's energy transition.
Follow @SavannahRes on Twitter
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For further information please visit www.savannahresources.com
Savannah Resources PLC Tel: +44 20 7117 2489
Dale Ferguson, CEO
SP Angel Corporate Finance LLP (Nominated Tel: +44 20 3470 0470
Advisor & Joint Broker)
David Hignell/ Charlie Bouverat (Corporate
Grant Barker/Abigail Wayne (Sales & Broking)
RBC Capital Markets (Joint Broker) Tel: +44 (0) 20 7653 4000
Farid Dadashev/ Jamil Miah
Camarco (Financial PR) Tel: +44 20 3757 4980
Gordon Poole/ Emily Hall
Savannah is the owner of the Barroso Lithium Project, located
close to key infrastructure in Northern Portugal which contains the
most significant spodumene lithium resource in Western Europe.
Following a positive Scoping Study which outlined a conventional
operation producing 175,000t of spodumene concentrate per annum,
Savannah is progressing the development and environmental licencing
of the Barroso Lithium Project.
The Company is listed and regulated on AIM and the Company's
ordinary shares are also available on the Quotation Board of the
Frankfurt Stock Exchange (FWB) under the symbol FWB: SAV, and the
Börse Stuttgart (SWB) under the ticker "SAV".
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(END) Dow Jones Newswires
February 06, 2023 02:00 ET (07:00 GMT)
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