Highest S&P green rating opens funding door for Altech salt battery

Altech Batteries has been awarded “Dark Green” certification, the highest rating offered by global ratings agency Standard & Poor's, for its Cerenergy salt battery project, opening the door to funding from the massive green bond market.

The company believes the accolade has underscored the project’s potential to redefine battery technology and shines a light on what it says is possibly the greenest battery technology available today. 

With the prized accreditation now under its belt, Altech has opened the door to potential funding from the massive global green bond market, which has exploded to US$250 billion (A$400 billion) per year.

The dark green shading does not necessarily improve the cost of debt funding. It does, however, open up a completely new market of potential suitors, who otherwise may not have been able to invest in the company because of mandate restrictions.

Altech says Cerenergy has the lowest carbon footprint and supply chain requirements of any battery, which will likely help it standout in a crowd. Its primary component, sodium chloride - the basic ingredient in table salt - further reinforces its green status, as it is one of the world’s most environmentally friendly raw materials for energy storage technology.

Altech’s Cerenergy battery uses a cutting-edge solid-state sodium chloride system recognised for its remarkably low scope 1, 2 and 3 carbon emissions of just 14 kilograms of carbon dioxide per kilowatt hour (kg CO2/kWh). 

In comparison, a recent study by the IVL Swedish Environmental Research Institute concluded that lithium-ion batteries for vehicles emitted between 61-106kg CO2/kWh from initial manufacture through to recycling. 

Altech’s green credentials were further burnished by its plans to power its manufacturing facility entirely by renewable energy after recently closing a deal to directly source solar energy. Its design also eliminates the need for critical metals such as lithium, cobalt and graphite, making it a sustainable alternative in the battery industry.

Altech Batteries managing director Iggy Tan said: “The positive project assessment confirms that Altech’s CERENERGY project aligns to ICMA green bond criteria. The project can now be accessed by investors that participate in the green bond market, the size of which is approaching US$250 billion annually.”

Adding to its green credentials, the battery is designed for longevity and resilience and will operate efficiently in extreme conditions for more than 15 years. 

Cerenergy batteries can be fully recycled at the company’s production plant. Management says by employing mechanical methods rather than using chemical processes to reuse the battery components, Altech can further significantly reduce emissions and energy consumption.

The company expects to receive strong interest for its product from a range of industries, including powering industrial microgrids, as back up in data centres, logistical hubs and in hospitals. It also sees future potential in supplying the heavy industry sector for steel and chemical production.

In highlighting significant market opportunities, Altech believes its batteries could become an ideal long-term solution for grid storage, effectively balancing grid stability by smoothing intermittent renewable energy sources like wind and solar and managing peak loads.

A potentially low-cost but large-scale version may also become critical for energy price arbitrage, by flattening out electricity pricing volatility – which currently can be extreme - during these periods.

In another venture, Altech is pushing forward with its Silumina anodes project, which adds high-capacity silicon into lithium-ion batteries for the electric vehicle market. The company says the technology delivers lighter, more energy-dense batteries with reduced greenhouse gas emissions.

With the prized Dark Green gong under its belt, a 120mWh production facility shortly planned for construction in Germany and two offtake deals for more than 300MWh over five years, Altech Batteries appears poised to become a key player in the energy storage sector.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au