Altech Batteries’ (ASX: ATC) unique CERENERGY battery project has been formally assessed at the highest possible rating category by Standard & Poor’s Global Ratings.

Altech reports that S&P has rated CERENERGY in the “Dark Green” category.

Under S&P’s Shades of Green methodology, products falling into this category “correspond with the long-term vision of a low-carbon climate-resilient future.”

Green bond finance

Managing director Iggy Tan said the positive assessment confirms that Altech’s CERENERGY project aligns with International Capital Market Association (ICMA) green bond criteria and is therefore suitable for financing via green bonds.

“The project can now be accessed by investors that participate in the green bond market, the size of which is approaching US$250 billion (A$397b) annually, a large portion of which is present in Europe,” Mr Tan said.

“The CERENERGY project’s green shading score does not affect bond pricing; rather, it provides a transparent mechanism by which green bond investors can categorise their investment in terms of climate risks and impacts,” he added.

Ratings methodology

Eligible projects under the S&P green bond framework are assessed based on their environmental benefits and risks using the Shades of Green methodology.

S&P’s assessment of the project highlights the importance of battery storage in the transition of the power and industrial sectors and the CERENERGY battery’s contribution to the development of alternatives to lithium-ion and cobalt-free batteries.

The product’s comparatively low expected emissions and fossil-free direct production process are also a factor.

Sodium chloride battery

The CERENERGY battery is a solid-state sodium chloride battery featuring sodium, alumina and recycled nickel derivatives that is considered safer than lithium-based batteries.

While lithium-based batteries are expected to remain the dominant battery technology, sodium-based batteries are anticipated to play an increasing role, particularly in the stationary storage market.

In the International Energy Agency’s Stated Policies (STEPS) scenario, for example, sodium-based batteries account for around 10% of the annual capacity additions by 2030.

Analysts are forecasting a shift to sodium-based batteries because they require no critical mineral or metal inputs such as lithium, graphite, copper or cobalt.