ALCORE Advances Pilot Plant with $5.69m Grant Drawdown, Faces $2.53m Repayment
ABx Group’s ALCORE subsidiary updates on the status of its $7.58 million Federal Government grant, revealing repayment negotiations while advancing its innovative pilot plant in Tasmania.
- ALCORE awarded $7.58m under Federal Modern Manufacturing Initiative
- Received $5.69m used for pilot plant development in Bell Bay
- Unused $2.53m grant funds deemed repayable by government
- Negotiations underway to structure repayment without disrupting project
- Continuous pilot plant construction progressing with key equipment ordered
Federal Grant Supports Groundbreaking Industrial Chemistry
ABx Group Limited’s subsidiary ALCORE Limited has been at the forefront of pioneering a proprietary process that transforms aluminium smelter bath waste into hydrogen fluoride and other valuable industrial chemicals. This innovation, supported by a $7.58 million grant from the Australian Federal Government’s Modern Manufacturing Initiative (MMI), aims to boost Australia’s sovereign manufacturing capabilities and establish a new industry hub in Bell Bay, Tasmania.
Grant Utilisation and Project Progress
Since receiving the grant in 2022, ALCORE has successfully drawn down $5.69 million in two instalments. These funds have underpinned critical laboratory testing and the development of both batch and continuous pilot plants. The continuous pilot plant, currently under construction at a Rio Tinto-leased facility in Bell Bay, is a key milestone towards commercialisation, with all major equipment orders placed and commissioning anticipated in the near term.
Repayment of Unused Grant Funds and Government Collaboration
As the MMI grant program concluded at the end of March 2025, the Department of Industry, Science and Resources (DISR) approved $7.44 million in actual and committed project expenditure. However, this leaves $2.53 million of the grant funds unused and subject to repayment. ALCORE and DISR are actively negotiating a repayment schedule designed to minimise any adverse impact on the project’s momentum. Importantly, DISR has expressed strong support for ALCORE’s continued development, signalling a collaborative approach to ensure the technology’s success.
Strategic Importance and Future Outlook
This project represents a significant step in Australia’s industrial chemistry landscape, potentially creating a new domestic supply chain for critical minerals and chemicals. ALCORE’s ability to convert waste into valuable products aligns with broader environmental and economic goals, including sustainable manufacturing and regional development in Tasmania. The company’s gratitude towards Federal support underscores the importance of government-industry partnerships in commercialising cutting-edge technologies.
Looking ahead, ALCORE’s progress with the continuous pilot plant will be a critical indicator of commercial viability. The resolution of the grant repayment terms will also be closely watched by investors, as it may influence the company’s financial flexibility and project timelines.
Bottom Line?
ALCORE’s innovative project advances steadily, but repayment terms for unused grant funds remain a pivotal factor to watch.
Questions in the middle?
- What repayment schedule will ALCORE and DISR agree upon, and how will it affect cash flow?
- When is the continuous pilot plant expected to be fully commissioned and operational?
- Could further government or private funding be secured to accelerate commercialisation?
