Altech Chemicals Ltd’s (ASX:ATC) high purity alumina (HPA) project has been formally assessed as ‘green’ by the independent Centre of International Climate and Environmental Research (CICERO) based in Oslo, Norway.
This positive project assessment, formally termed as a ‘second opinion’, confirms that Altech’s HPA project is suitable for finance through green bonds.
The project can now be considered by investors that participate in the green bond market, the size of which is approaching US$250 billion annually and a large portion of which is active in Europe.
Governance score of “Good”
The CICERO evaluation was initiated in mid-March 2020 and involved an overall assessment and review of the project’s Green Bond framework and documentation, including both governance and transparency considerations.
In its Green Bond Second Opinion Report, a copy of which is available on Altech’s web site, CICERO assessed the project’s overall framework as a Light Green shading and assessed a governance score of Good.
CICERO also noted that “a (higher) Medium Green project shading could be achieved if renewable energy solutions at some scale are implemented”, which is something that the company is investigating.
The project assessment was initiated by Frankfurt stock exchange-listed Altech Advanced Materials AG (AAM), of which Altech is a 29.9% shareholder.
Managing director Iggy Tan said: “The second opinion report formalises the view that Altech’s single step HPA process is an energy-efficient green process – a real game-changer in terms of environmentally friendly, energy-efficient and consequently lower-cost production of high purity alumina.
“It should be of considerable assistance to AAM and will open up a new group of potential investors for this exciting project.”
Shares have been almost 18% higher to 5.4 cents intra-day.