Euro Manganese signs MoU with Statkraft to establish a Renewable Energy Supply Agreement for the Chvaletice Manganese Project

Euro Manganese Inc. has signed a non-binding Memorandum of Understanding (“MoU“) with Norwegian state-owned company Statkraft for the long-term supply of carbon-free renewable energy for Euro Manganese’s flagship Chvaletice Manganese Project (the “CMP” or the “Project“) in the Czech Republic. Statkraft is Europe’s largest generator of renewable energy.

The Company has been working with Baringa Partners LLP (“Baringa“) over the last year on establishing long-term power pricing forecasts within the European Union, as well as identifying strategic partners from which to procure long term, economically viable, green energy for the CMP. The MoU is one result of this ongoing process.

The MoU lays the foundation for the strategic cooperation between Euro Manganese and Statkraft to support the ongoing net-zero objectives of the Project’s proposed processing plant. The aim is to establish a long-term corporate Power Purchase Agreement to provide carbon-free power to the Project, in coordination with Statkraft’s renewable power supply portfolio. Power supply is planned to commence between 2026 and 2027, according to the current estimated construction and commissioning timeline of the CMP.

The Company’s recently released Life Cycle Assessment results for the CMP highlighted the net benefit derived from sourcing power from carbon-free sources, whereby the net global warming potential is reduced by half.

Euro Manganese’s President and CEO, Dr. Matthew James, said, “We look forward to partnering with Statkraft and working towards a definitive, long-term power purchase agreement. Procuring long-term, green energy to power the Chvaletice Project is an important step for us to deliver on our commitment of producing low-carbon, high-purity manganese products. While the environmental credentials of the Chvaletice Project are already strong, power is a large input in our process and sourcing 100% renewable energy reduces the carbon footprint of our project by approximately 50%. This not only demonstrates our commitment to operating responsibly, but also gives us a competitive advantage in discussions with potential customers who are focused on the carbon footprint and ESG credentials of their supply base. We are proud to be part of the energy transition, not only in using renewable energy to make our products, but also in how our products are used in EV batteries.”

Statkraft’s SVP Trading & Origination, Carsten Poppinga, said, “The ability to source competitively priced and green electricity is a key component of investment decisions made by energy-intensive industries wishing to establish new business ventures. Across Europe, we want to empower our partners and support their entrepreneurial endeavours to create positive business cases.”

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