Enerji Limited (ASX:ERJ) Signs Memorandum of Understanding with Poseidon Nickel Limited (ASX:POS)
Under the MoU Enerji will provide assistance to Poseidon on aspects of its feasibility study relating to power generation and specifically the implementation of a waste heat recovery system based around an Opcon Powerbox. Following a successful feasibility study and subject to some site conditions being met, Enerji and Poseidon will enter into bona fide negotiations for a power purchase agreement. Construction of the powerhouse and the associated waste heat recovery system would commence in the second half of 2012.
The addition of an Opcon Powerbox will provide up to 700kW of fuel and emissions free power to Poseidon's Windarra powerhouse. This power will assist in meeting the additional power requirements for its recently announced plans to double mine throughput as well as reducing fuel consumption and green house gas emissions.
"Enerji is very pleased to be assisting Poseidon with the clean energy aspects of its substantial redevelopment of the Windarra mine. This is a text book application of our waste heat recovery system for a mine located in the Northern goldfields of WA where diesel is the only option for power generation" said Enerji CEO Greg Pennefather.
Poseidon's Chief Executive Officer, Mr David Singleton said "Poseidon is committed to applying innovative practices to developing the Windarra project. We believe that the Enerji solution to waste heat recovery will deliver real benefits to our shareholders and help to minimise our environmental footprint".
Poseidon is a nickel sulphide exploration and development company which is focussed on producing its first concentrate from the Mt Windarra mine in 2013. The Company is currently refurbishing the Mt Windarra mine and is completing the drilling and JORC resourcing of the Cerberus Nickel Deposit discovered in 2008. The Mt Windarra underground mine and the Cerberus deposit are contained in the same tenement package, which is located 260km NNE of Kalgoorlie in the northern goldfields of Western Australia. The total lease package covers approximately 290km2.
The directors and senior management of Poseidon, including CEO Mr David Singleton and Chairman Mr Andrew Forrest, have extensive knowledge of the WA Goldfields, exploration and project finance that will be used to develop the project and maximise shareholder returns.
About Enerji Limited
Enerji Limited (ASX:ERJ) is an emerging Perth-based green power utility focussed on commercialising the Opcon Powerbox in Australia.
The Opcon Powerbox cogeneration technology transforms waste heat into electricity and therefore creates significant energy cost and CO2 emissions savings for its customers.
Enerji has exclusive sales and distribution rights for the Opcon Powerbox in Australia and options for Malaysia, Thailand, Singapore and Sub-Saharan Africa.
The Opcon Powerbox, manufactured in Sweden by Opcon, represents a significant commercial opportunity through application to industrial, mining and power generation operations.
Enerji plans to maximise this opportunity and generate shareholder returns through long-term power purchase agreements.
Poseidon Nickel Limited