Isimba Hydroelectric Power Station, Uganda

Wedoany.com Report-Feb 25, Blencowe Resources Plc has finalized an initial hydropower study for its Orom-Cross Graphite Project in Uganda, verifying access to affordable, renewable energy from the national grid. This development supports the company’s aim to create a sustainable, net-zero graphite operation.

The study indicates that two high-capacity transmission lines from the Bujagali and Isimba Hydroelectric Dams on the Nile River link to the regional grid near Orom-Cross, ensuring a steady supply of clean energy. It also notes Uganda’s competitively low hydropower rates compared to other African nations, potentially making Orom-Cross one of the most cost-effective graphite producers worldwide. Uganda’s hydropower capacity exceeds 1000MW, with further projects in progress, sufficient to meet the project’s needs—starting at 12MW in Phase 2 and increasing to 40MW at full output.

Blencowe is now negotiating a long-term Power Purchase Agreement (PPA) with the Uganda Electricity Transmission Company Limited (UETCL) to secure this energy supply. Utilizing fully renewable power enhances the project’s potential to achieve net-zero status and positions it as an environmentally sound graphite initiative. This advantage is expected to aid in obtaining financing and sales contracts, particularly with partners in Europe and North America valuing sustainable sourcing.

Stable, low-cost energy is vital as Blencowe targets initial production in 2026. The study confirms that hydropower will support Phase 2 operations with minimal environmental impact, aligning with global environmental, social, and governance (ESG) expectations. This strengthens the project’s attractiveness to buyers and investors seeking eco-friendly options.

A distinctive feature of Orom-Cross involves a planned beneficiation facility near the Karuma Power Station, about 190 km from the site, developed with a prominent spheronised purified graphite (SPG) producer. This facility will refine small fines graphite concentrate to 99.95% SPG, boosting its value. The energy-intensive SPG process, which avoids acid leaching, becomes viable due to the reliable hydropower supply, offering both economic and ecological benefits.

Blencowe is engaging with UETCL and Ugandan authorities to finalize the PPA and integrate renewable energy into its ongoing Definitive Feasibility Study (DFS). Further assessments will evaluate power needs as production scales up.

Cameron Pearce, Executive Chairman of Blencowe, stated: “Access to abundant, low-cost hydropower directly from Uganda’s national grid represents a major strategic advantage for Orom-Cross. This will enable us to operate sustainably with one of the lowest carbon footprints in the graphite sector while keeping production costs highly competitive.”

He also remarked: “We are committed to building one of the world’s most ESG-friendly graphite projects, and securing clean energy is a critical milestone towards that goal. With work now progressing to formalize a PPA, we are ensuring a long-term, sustainable power solution that aligns with our development timeline.”

The use of hydropower reinforces Blencowe’s plan to deliver a cost-efficient, high-quality, net-zero graphite operation. As the company advances its DFS and funding talks, this energy strategy enhances Orom-Cross’s appeal to international stakeholders. Blencowe will share updates on the PPA process as it develops.