Canada Nickel releases carbon storage plan update

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Canada Nickel Company Inc. [CNC-TSXV] on Thursday said test work for its novel carbon storage process, in-process tailings (IPT) carbonization, is demonstrating results that are significantly above expectations.

Canada Nickel is aiming for the incorporation of carbon capture and storage into its flagship Crawford nickel sulphide project near Timmins, Ont.

Carbon capture test work confirms that the company could store one million tonnes of carbon annually.

 In a press release, Thursday, the company said the Crawford project has the potential to achieve 7.0% of Canada’s 15-megatonne carbon removal goal.

In addition, Canada Nickel said it has received approaches from several large multinational companies seeking carbon storage solutions.

It went on to say that the latest test results have validated the decision to incorporate IPT Carbonization into an integrated feasibility study, which is expected to be announced in September, 2023.

Canada Nickel’s Crawford Project is hosted in ultramafic rock, which naturally absorbs and sequesters CO2. The company said the potential to actively capture and sequester carbon was a key consideration in its acquisition of the 42 square kilometres of target ultramafic rocks in the Timmins, Ont., region, which, it says, could anchor a zero-carbon industrial cluster in Timmins.

Canada Nickel said it has developed a simple active process that utilizes tailings as generated in the milling process and injects a concentrated source of C02 for a brief period of time. “This novel process for accelerated mineral carbonization is called In Process Tailings Carbonation or IPT Carbonation, which fixes C02 geologically while the tailings are still in the processing circuit, rather than after they have been finally deposited.”

The company believes that successful incorporation of IPT Carbonation could potentially allow a portion of the company’s project capital expenditures to become eligible for carbon capture and storage refundable investment tax credits of 37.5% to 60% from 2022-30 and 18.75% to 30% from 2031-40 as announced in 2022 federal budge documents.

“We believe the IPT Carbonization process has transformative potential for the company,’’ said Canada Nickel CEO Mark Selby. “Our test work demonstrates the ability to efficiently store one million tonnes of C02 annually when the project is fully ramped up utilizing a process plant design of only 6.5 hours of residence time versus an initial design target of 12-24 hours. “These results can help contribute to delivering the solution at relatively low capital and operating costs,’’ Selby said.

He said Crawford is poised to be a leader in the energy transition through the large-scale production of critical minerals, including nickel and cobalt, and to become the sole North American producer of chromium, while also supporting Canada’s climate objectives through large scale carbon capture and storage and providing an anchor for a zero-carbon industrial cluster in the Timmins-Cochrane region.

On June 7, 2023, Canada Nickel shares closed at $1.29. The shares are currently trading in a 52-week range of $2.20 and $1.18.

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