Canada Nickel Company (TSXV: CNC) is reporting that it has had a successful run of its carbon storage pilot project at its Crawford Nickel project in Ontario.
The pilot project is said to have successfully demonstrated the value of its in-process tailings, or IPT, carbonation carbon storage process. A total of seven tonnes of tailings is said to have been processed, confirming the design parameters that will be incorporated into a feasibility study set to be released on October 12.
More significantly, the process is said to have been successfully used with material from a third party project as well, opening up opportunities for the IPT carbonation process to be commercialized for other projects.
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The significance of the success of the carbon capture program is that Canada Nickel is operating under the premise that it can reasonable expect to receive $25 per tonne of CO2 captured in the form of storage fees based on current carbon pricing and policies in place. The figure was provided by a “leading strategy house,” who also reported that there is a “potential requirement” for more than 20 million tonnes of annual CO2 storage from over 150 carbon emitters, a third of which are clustered within Sudbury, Sault Ste Marie, Toronto, and Sarnia.
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“Our successful pilot plant results, coupled with this study, confirm the significant value potential of the Company’s IPT Carbonation process. The potential demand for more than 20 million tonnes annually of CO2 storage is well in excess of the 1 million tonne capacity for Crawford, which supports our Company’s belief that our Timmins Nickel District can anchor a Zero Carbon Industrial Cluster in the Timmins-Cochrane region,” commented CEO Mark Selby.
The utilization of the IPT Carbonation process is expected to enable Canada Nickel to become eligible for certain carbon capture and storage refundable investment tax credits on its capital expenditures, which ranges from 37.5% to 60% for 2022 to 2030, and from 18.75% to 30% for 2031 to 2040.
Canada Nickel last traded at $1.15 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
