Quantum plots thermal power via graphite energy cells

Unlike traditional participants in the energy technology space Quantum Graphite plans to extract value from its Uley mine located on the Eyre Peninsula in South Australia through the manufacture of thermal storage media for its joint venture partner's Thermal Energy Storage, or “TES” cells that could ultimately replace coal in thermal power plants.

The work stream is all part of a 50-50 joint venture agreement with Melbourne-based Sunlands Company that will see the duo under the “Quantum Sunlands Partnership” brand establish a major downstream energy business by manufacturing the critical thermal storage media – the Uley Media - for TES cells using graphite sourced from the company’s Uley 2 mine.

Media made from Uley-sourced graphite was put through its paces at a major German university where test work results confirmed the media’s heat storage capacity and operational range was sufficient to drive utility-scale steam turbines – attributes which means it could readily be used to fuel thermal power plants.

The plants are generally powered by coal or gas however Quantum believes its Uley Media could offer an inexpensive pathway to retrofit the traditional facilities.

Thermal power plants are typically comprised of three key components: a heat source, boiler and turbine. Quantum says its Uley Media can be used as a heat source instead of coal and also argues the process to retrofit the facilities is a reasonably simple and economical exercise.

The tests also indicated thermal purification could be used to process the company’s Uley flake graphite up to a standard suitable for use in the lithium-ion battery anode space.

Under the agreement with Sunlands, Quantum will be the exclusive supplier of flake graphite products for the partnership, whilst the joint venture will be the sole manufacturer and supplier of graphite storage media for Sunlands’ thermal energy storage battery cells.

Thermal energy storage is the temporary storage of power that can be utilised for power generation at a later period. It is often used to stabilise fluctuating energy demands and generation linked with intermittent renewable energy sources such as wind and solar.

Studies by the International Renewable Energy Agency, an inter-governmental body assisting countries in their sustainable energy ambitions argue the technology could bring flexibility and stability to the overall energy ecosystem system. A welcome development for companies working up thermal energy operations such as Quantum.

Management says the high-purity natural flake graphite from Uley 2 is vital for Sunlands’ downstream processing technology that is being used to create Uley Media and the TES battery cells.

Uley 2 boasts an impressive 6.3 million tonne resource going 11.1 per cent total graphite content for 697,000 tonnes of graphite.

Quantum has earmarked the Uley 2 deposit as the next stage of development of the historical Uley mine which is situated south of Port Lincoln in South Australia. In its prime the century old mine was reportedly one of the world’s highest-grade natural flake graphite deposits.

A 2019 definitive feasibility study or “DFS” evaluating the economics of a 55,000 tonne per annum mining operation at Uley 2 projected an eight-year operation with an impressive graphitic carbon grade of 11.89 per cent.

Quantum, along with Sunlands now plan to produce an updated DFS in 2023 that will incorporate a larger-scale operation. Data from the evaluation could shape the dynamics of the thermal energy storage business which is expected to kick off production in 2025.

A fresh report completed by Orior Capital and commissioned by Quantum Graphite indicates that the project could generate $307 million in its first three years in operation and deliver an internal rate of return of 63 per cent.

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