Firm planning to extract silica from geothermal raises $9 million in private placement
Silica extraction plant near Wairakei, New Zealand (source: Geo40, formerly Environmentals Limited)
Alexander Richter
5 Nov 2017
NZ-based Geo40 has raised US$ 9 million to be used for building two commercial silica extraction plants in New Zealand. The silica will be extracted from geothermal fluids of geothermal power operators.
The stories on companies tapping into valuable minerals found in geothermal fluids are increasing. Earlier this year, we reported on a Australia-backed company is looking into extracting silica from geothermal production in New Zealand.
Geo40 (formerly named Environmentals Ltd), backed by a former mining boss and other individuals has been going through a private placement raising AU$11 million or around US$ 9 million.
The cash mostly derived from sophisticated investors and family offices, as reported by the West Australian, will help the company to fund the development of two commercial plants to extract silica from geothermal fluids.
From February 2014 to September 2015 an Geo40 pilot plant operated at the Contact Energy Wairakei (NZ) geothermal field where it processed over 25,000 tonnes of geothermal fluid supplied from the feed stream to the Wairakei binary power station. These trials produced over one tonne of colloidal silica product which has been shipped to potential customers in New Zealand, Japan and England. The feedback from potential customers was very positive with New Zealand customers stating that in trials, the samples performed as well as, if not better, than the colloidal silica they presently use.
The company has also operated pilots at the Kawerau geothermal operations by Norske Skog and Mercury, as well as in Japan.
With the commercial plants will demonstrate the validity of the Geo40 processing technology, as stated by CEO John Lea.
Geo40’s patented technology allows for the economic extraction of silica and other specialty minerals such as lithium and boron from the hot fluids harnessed by geothermal stations to produce electricity.
The market for colloidal silica is estimated at around USD 1.3 billion.
In a previous round the company already raised AU$10 million from management, directors and private investors.
Source: The West Australian
