I agree there’s a lot left out of this announcement and to me the brevity belies the fact the highly acclaimed Wood group (which already knew the AVL side very well) has actually been working on this for five long months.
So this flat news suggests to me that they’ve hit a spanner somewhere.
CEO, Graham Arvidson commented, “We are excited to deliver this update on the Australian Vanadium Project.
By focusing on the most promising sections of the orebody and conducting a comprehensive analysis to select the optimal location for the downstream processing plant, we have now finalised the key foundations from which the remaining OFS activities can fully define a ‘stronger for longer' version of the Project which has been unlocked through the recent merger.
The team will now execute the remaining OFS scope to maximise project definition and bankability, while minimising project execution risk.
In parallel to ongoing OFS works, AVL continues to assess opportunities to utilise Federal grant funding which provides options for activities such as detailed engineering and acceleration of project schedule by proceeding with long lead equipment orders.
“Timely delivery of the Project is a key objective for the Company in anticipation of growing demand for vanadium flow batteries, which will cornerstone the essential long duration energy requirements of the net zero carbon energy transition.
We expect product from the Project will largely report to the electrolyte market, primarily in Australia through AVL subsidiary VSUN Energy.”
As I read Graham’s comment, AVL team wants to progress the project but (given the EPA block and no certainty of tax credits?) it has no firm commitment from funding parties, and expects it will be dependant on more money coming through (from NAIF?) to even make a start on “
acceleration of project schedule by proceeding with long lead equipment orders” …. And maybe there’s been some negativity from others in the sector about AVL potentially competing outside the Australian market
Not with a bang but a whimper as far as Phase One goes…
*ouch*
(20min delay)