Ferrovan A Unique Vanadium Recycling Opportunity

Transcription

1

2 Ferrovan A Unique Vanadium Recycling Opportunity Project at a Glance To be located in the Raahe port in Finland Slag to be sourced from 3 SSAB steel plants Offers an environmentally friendly solution for recovering Vanadium from Slag Proven technology adopted for steel slag and based on extensive R&D and pilot plant testing Key recovered products include: 5.5Ktpa of Vanadium Metal as Ferrovanadium (FeV80), a precious alloy for high-strength steels (~7% of global Vanadium supply) 51Ktpa of high purity steel which has a premium value over scrap and is used in the steel industry and foundries 252Ktpa of clean slag for use in the cement industry as a substitute for lime Industry leading cash cost of $15/Kg (1) of V Metal Run rate EBITDA of c. 190m per annum (c.70% margin) (2) Low-cost steel slag processing plant to recover Vanadium Project capex of 375m (3) from 2018 to 2021 and an annual sustaining capex of c. 0.5m (4) Key environmental permit application submitted in November 2017 and on pace for a 2H 2018 approval Project Timeline Agreement with SSAB Construction to begin Production to begin Achieve 100% production capacity Plant Overview Norway Oslo Sweden Luleå Luleå Stockholm Raahe Oxelösund Finland Simplified Process Overview (% Vanadium Content) LD-Slag 2.2%V Smelter Helsinki V-Slag 20%V Plant Location SSAB Steel Plant LD-slag supply lines to Raahe port Refinery FeV 80%V 2015 Nov 16 Apr 18 Dec 18 Sep 20 Dec 20 Jun 21 Jun 22 Project conception; access to SSAB slag Feasibility Study completed Plant commissioning to begin Achieve 70% production capacity High Purity Steel Clean Slag Source: Final Company Feasibility Study - April2018. Note: (1) Post by-products credits. (2) Based on Vanadium price forecast per Metal Bulletin. 3 (3) Including contingency reserves of 32m. (4) 6.4m p.a. of maintenance and spare parts costs included in production cost.

3 Production Process Highly efficient recycling process proven during testingperiod. Smelting and Selective Oxidation Pyrometallurgical Front-end Vanadium Process Leaching and Precipitation Back-end Aluminothermic Refining LD-Slag Quartzite Anthracite CO2 Iron Oxide Oxygen Sodium Carbonate Oxygen Process Water Aluminium Sulphate AmmoniumSulphate Sulphuric Acid Scrap Lime Aluminium Hot Metal V-Slag V-Slag Roasted V-Slag V-Solution V-Solution Vanadate V 2 O 3 FeV80 Roasting Leaching Silica Precipitation Vanadium Precipitation Rotary Kiln Aluminothermic Furnace Smelting Reduction Selective Oxidation Leaching Residue Silica Precipitate Barren Solution High Purity Steel Process Desulphurisation Dephosphorisation Mg-powder Iron Oxide Lime Burnt Lime FeSi Internal Scrap FeSi Oxygen Hot Metal Hot Metal Hot Metal High Purity Steel Ca-Si-Slag Desulphurization Dephosphorization de-s Slag de-p Slag Source: Final Company Feasibility Study - April

4 Vanadium as Key Material for Energy Storage Jukka Pitkäjärvi CEO 4

5 5

6 6 Pig Iron

7 7 Pig Iron

8 8 Pig Iron

9 Vanadium Industry Value Chain Vanadium Sources Vanadium Products End Products End Markets Steel Slag 74% Ferrovanadium HSLA Steel Transport Vanadium Pentoxide Full Alloy Steel Oil and Gas Primary Route 14% Secondary Route 12% Vanadium Nitrides Vanadium Metal and Alloys Vanadium Chemicals Vanadium Electrolyte Carbon Steel Other Steel Non-ferrous Alloys Construction Engineering and Industry Chemical Aluminium Slag ~% Secondary Materials Revert Scrap Catalysts Vanadium Redox Flow Batteries Household Power Generation & Storage Source: MetalBulletin. 29

10 Use of Vanadium in Batteries: The Untapped Potential Due to its strongly attractive properties Vanadium battery solutions is forecasted to grow rapidly over the next yearsas commercial deployment continues to gain momentum. Use of Vanadium in Batteries Vanadium redox flow batteries (VRFBs) (1) were developed in the 1980s, but have only seen commercial deployment since the early 2000s Illustration of the Original Vanadium Redox Flow Battery Power load AC/DC inverter Vanadium properties make it an attractive solution for power storage applications In VRFBs, energy is stored chemically in different valence forms of vanadium in a dilute sulphuric or hydrochloric acid electrolyte Anolyte tank V 2+ V Catholyte tank V 5+ V 4+ Since 2011, VRFBs have been deployed more frequently and on a larger scale VRFBs are likely to have a significant impact on the vanadium market in coming years with expected vanadium consumption of 7ktpa through to 2030 Charge Discharge V2+ V3+ V4+ V5+ Charge Discharge Consumption of Vanadium in Redox Batteries is expected to grow by a CAGR of ~11% between E in the base case Larger scale gigafactories such as those proposed by Rongke Power could consume several dozens of kilotonnes of vanadium, underpinning a considerable larger market potential Power Storage Systems Applications Peak Shifting and Load Levelling Grid Management Pump Pump Consumption of Vanadium in Vanadium Redox Flow Batteries (Kt) Ancillary Services Reserve Power Base Case Upsde Case Source: Metal Bulletin Vanadium Industry Report, Note: (1) The name redox refers to the chemical reduction and oxidation reactions that store and discharge energy. 41

11

12 12 Vanadium Redox Flow Battery

13 Rongke Power China Pig Iron 13

14 14 Pig Iron

15 15 Pig Iron

16 16 Pig Iron

17 17 Pig Iron

18 18 Pig Iron

19 Clean Slag Project Contact Information Jukka Pitkäjärvi Mika Seitovirta CEO Chairman of the Board Markku Blomberg CFO Ferrovan Oy Asemakatu 37B, FI Oulu, Finland 19