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Beyond Catalytic Converters: Slow Platinum Demand Drives SA Fuel Cell Tech Innovation

Beyond Catalytic Converters: Slow Platinum Demand Drives SA Fuel Cell Tech Innovation

In an effort to stimulate demand for platinum beyond jewelry and catalytic converters, the world’s No. 2 platinum producer said today it plans within two years to power its 22-megawatt refinery using fuel cells, which contain the precious metal.

Slowing industrial demand and increased recycling have pushed platinum prices down more than 50 percent since their peak in 2008, Bloomberg reported.

Impala Platinum Limited (Implats) today unveiled a prototype hydrogen fuel cell forklift and refueling station at its Impala Refining Services in Springs, outside Johannesburg.

The technology was developed in partnership with the University of the Western Cape, BizNisAfrica reported.

The project cost $812,000 US (12 million rand) and focused on building local skills to develop hydrogen and fuel cell products such as the prototype forklift and refueling station.

Implats said it plans to use hydrogen fuel cell technology as its main source of energy for underground mining equipment and material handling, BizNisAfrica reported.

The technology represent major milestone achievements for South Africa, according to a report in MiningReview.

A year ago, South Africa’s Chamber of Mines launched the country’s — and Africa’s –first 100 kilowatt commercial building base load platinum fuel cell using low pressure natural gas. Its office in the Johannesburg central business district continues to be powered by a platinum fuel cell.

Southern Africa is home to around 80 percent of the world’s platinum so the potential is huge for platinum-based fuel cells to drive economic development, said Terence Goodlace, Implats group CEO.

“The fuel cell industry has the potential to revolutionize the way power is delivered to all areas of our lives including cars, mobile phones, computers, homes and workplaces.”

Fuel cells are a collection of technologies that produce power using electro-chemical processes rather than combustion. They generate power from hydrogen with water and heat as waste products. The technology is valued for its ability to reduce heat, reduce noise, and reduce emissions underground, Goodlace said.

Catalytic converters have been instrumental in reducing harmful gases from combustion vehicles, Goodlace said. In the longer term, fuel-cell vehicles offer the potential to match that.

“Developing a viable fuel cell industry in South Africa has several advantages for the country such as economic development, sustainable job creation and social good,” Goodlace said. “As the world’s largest platinum supplying region there is a guaranteed supply of the metal as well as the potential to increase global platinum demand.”

Over the last few years, Implats has invested significantly in energy conservation programs with a key focus on fuel cell technology. A fuel cell forklift has been in operation since October 2015 in the dispatch area at the Base Metals Refinery at Impala Refining Services in Springs.

“South Africa is beginning the difficult but important journey towards a hydrogen economy, and this partnership is an important step in that direction,” said Frans Swanepoel, vice chancellor for at University of Western Cape for research and innovation.

Fuel cell technology is not yet commercially viable, but it should become cheaper in time as more companies adopt it, Goodlace told reporters Thursday, Bloomberg reported.

Implats hopes to build on the prototype and generate 8 megawatts of electricity to power the refinery by the end of 2016, plus another 1.2 megawatts in 2017, Goodlace said. Impala already uses hydrogen to refine nickel, Bloomberg reported.

Fuel cells use about 30,000 ounces of platinum a year — just a small portion of the total 8.5 million ounces used, according to Paul Finney, Impala’s group executive for refining. That’s expected to grow to about 300,000 ounces within 10 years, he said.