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METAL BULLETIN MAGAZINE’S INTERVIEW WITH AQUA METALS CEO STEPHEN CLARKE
Published with kind permission of Metal Bulletin.
by Andrea Hotter, Special Correspondent
New York, January 07, 2016 – 02:10 GMT
For years, lead smelting has been the bad boy of the metals world, attracting the ire of environmentalists for being one of the world’s five worst polluting industries. But that is about to change, if California, USA-based Aqua Metals has anything to do with it.
The US firm has developed new recycling technology to eliminate the inefficiency, costs and toxic waste associated with conventional smelter-based recycling of lead acid batteries.
Known as AquaRefining, the process produces almost no emissions and consumes significantly less total energy than smelting.
“The real opportunity with AquaRefinery is for the lead industry to become the gold standard for recycling and environmental sustainability,” said Stephen Clarke, company Chairman and CEO.
Aqua Metals is in the process of building its initial commercial lead production AquaRefining facility in the Tahoe-Reno Industrial Center in Nevada.
The company has already broken ground in Reno, with the refinery slated to be up and running in the second quarter of 2016.
Initial production will be 80 tonnes per day of mixed primary and secondary lead which should generate around $50 million revenue. Aqua Metals recently closed a $10 million US Department of Agriculture-backed loan from Green Bank, which it plans to use to start the expansion of Reno to 160 tpd by 2018.
“Our Reno facility was planned to be a relatively modest operation with the primary objective of demonstrating that our AquaRefining technology works at the commercial scale,” Clarke told Metal Bulletin in an interview.
“In a year’s time, our goal is to have proven that and be in the position to announce the location of our next North American AquaRefining facilities. We are also exploring the supply of AquaRefining modules to third parties for their own use,” he said.
The company has already raised in excess of $50 million, including $37 million at IPO. Its focus will be to use debt and equipment provision to fund its expansion.
AquaRefining
According to Clarke, one of the advantages of AquaRefining is that it can be cost effective at a smaller scale than is possible with smelting and is much less challenging to obtain permits. Consequently, AquaRefining can be placed closer to battery collection and/or battery production, he said.
“We believe that expanding AquaRefining within North America would eliminate the need to send batteries offshore for recycling,” he added.
There are two routes Aqua could go down with its technology: build, own and operate (BOO) or provide its equipment to third parties. The latter could be based on sales of equipment, licensing or “fee for service” models, Clarke said.
The company has started with a BOO model, primarily to demonstrate the effectiveness and advantages of its technology. It expects to transition into providing its process to established battery companies and lead suppliers who are seeking alternatives to smelting.
Lithium-ion
The lead industry has been subject to a high level of environmental and regulatory scrutiny for many decades, meaning that the manufacture, transport and recycling of lead acid batteries is subject to control and oversight at every stage.
In part, this has resulted in near 100% recycling rates, higher than any other material and far higher than any other battery type. But the lead industry has learned some painful lessons along the way and some market participants argue that it has become over-regulated in some respects as a result.
These lessons are only beginning to emerge in younger, less regulated battery technologies, such as lithium-ion, which have minimal oversight when compared with lead acid batteries, Clarke told Metal Bulletin.
“The hazardous and potential environmental impact posed by the electrolytes and other materials inside a lithium-ion batteries are every bit as challenging as lead and sulphuric acid, but as yet they remain unregulated and lithium-ion batteries are not commercially recycled,” Clarke said.
“This lack of focus on the risks associated with the materials used and poor recyclability could negatively impact the lithium-ion batteries industry. Lithium batteries have been associated with a well-documented catalogue of accidents and fires; it is an industry that is potentially ‘running with scissors’ in a rush to get to scale,” Clarke added.
Industry reception
The company says there has generally been little pushback from within the North American lead industry, with which it has held discussions.
“The lead industry is aware it needs to collectively realise cheaper, smarter ways to produce lead. It is passionate about doing the right thing, but it needs to make money doing it,” Clarke said.
In the USA, many lead smelters have failed to meet environmental standards. In less regulated countries, smelters operate with limited environmental safeguards.
“Smelters smelt because they’re lead guys, not for religion. I believe they would swap to new a technology if we prove it works; they know how difficult and costly it is to make a smelter meet emissions standards,” he added.[/vc_column_text][/vc_column][vc_column width=”1/3″][/vc_column][/vc_row]
