Provaris Energy’s Capital-light Shift Unlocks Growth in Hydrogen and CO₂
The November 2024 base case Feasibility Study (the “Feasibility Study”)iii, which was based on two HPMS vessels, indicated a NPV7% of US$262iv million based on current market pricesv,vi and US$503 million based on forecast pricesvii. With the inclusion of the third HPMS vessel for an incremental capital cost of circa US$7 million, the Feasibility Study indicated a NPV7% of US$279 million based on current market prices and US$593 million based on forecast prices.
Julian Treger, CoTec CEO commented: “The potential expansion of HyProMag USA is compelling from a value perspective as the modular design of the production hubs is expected to allow for significant upfront cost savings and optimization opportunities could result in even higher returns than the strong economics shown by the Feasibility Study. Additionally, it will also play a key role in supporting the US strategy of reshoring manufacturing capability, reducing dependance on foreign magnets and rare earths.
The increased production capacity could also allow the flexibility to produce a wider range of products and specialist magnets, further improving both financial returns and the company’s ability to become a supplier of choice.”
Will Dawes, Mkango CEO commented:“The HyProMag USA Feasibility Study highlighted the strong economics of the Project, with significant opportunities for further expansions, coupled with ancillary developments to add value, broaden the product suite and strengthen the competitive positioning.”
The Feasibility Study included the Texas Hub, and two pre-processing facilities located in South Carolina and Nevada respectively. It is envisaged that additional expansion capacity and downstream development could be added at either the Texas Hub and / or the two pre-processing facilities, which will be evaluated during the concept studies, as well as the potential to process additional primary feed if required to initially support the expansion. The modular nature of the production design should allow duplication with limited design adjustments and should benefit from the construction and ramp-up learnings of the Texas Hub, and commissioning of the UK and Germany operations. With the increased production capacity, the Project will generate additional NdFeB co-products suitable for long loop chemical processing. The opportunity to develop an integrated long loop chemical processing plant will also be evaluated during the concept studies.
Both long-loop and short-loop recycling technologies are underpinned by the HPMS technology, which liberates magnets from end-of-life scrap streams in a cost effective and energy efficient way to produce a recycled NdFeB alloy powder, which is manufactured into a magnet (via the short loop process) or into a rare earth carbonate or oxide (via the long loop chemical process). In March 2025, HyProMag USA announced the results of an independent ISO-Compliant product carbon footprint study which confirmed an exceptionally low CO2…
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