London-listed Blencowe Resources has completed an initial hydropower study for its Orom-Cross graphite project, in Uganda.

The study confirms the availability of abundant, low-cost and renewable hydropower from the Ugandan national grid, providing a strategic advantage for the project's future mining and processing operations.

The company says this marks a major step towards Blencowe's commitment to sustainability and its ambition to deliver a net-zero graphite operation.

Key findings of the hydropower study include plentiful renewable energy, whereby two high-capacity power transmission spurs extend to the regional grid near to Orom-Cross, one from the Bujagali hydroelectric dam in Jinga and the other from the Isimba hydroelectric dam, both located on the Nile river.

This ensures a reliable supply of renewable energy to Orom-Cross, including redundancy, says Blencowe.

Additionally, the study shows that Uganda's hydropower tariffs are significantly lower than regional African comparisons, positioning Orom-Cross as one of the lowest-cost graphite producers globally.

Moreover, the study indicates that Uganda currently has over 1 000 MW of installed hydropower capacity, with additional hydropower projects under way.

Blencowe says Orom-Cross's power demand of 12 MW, which will increase to 40 MW at full production, can be comfortably met.

The company notes that it is now working towards securing a long-term power purchase agreement (PPA) with Uganda Electricity Transmission Company Limited (UETCL) to formalise the supply of low-cost hydroelectricity for the project.

Further, the study also indicates that access to 100% renewable energy strengthens Blencowe's ability to achieve net-zero production, making Orom-Cross one of the most environmentally responsible graphite projects globally, a critical factor for funding providers and offtake partners in Europe and North America.

Blencowe says reliable, green and cost-effective energy is a major advantage as the company moves towards first production in 2026.

DOWNSTREAM BENEFICIATION

Blencowe says a key differentiator for Orom-Cross is Blencowe's plan to develop a beneficiation facility near the Karuma power station – 190 km from site – in partnership with one of the world's leading spheronised purified graphite (SPG) producers.

This facility will upgrade 96% small fines graphite concentrate to 99.95% SPG, significantly increasing value and returns.

A low-cost, high-capacity power source is essential for this process.

Blencowe says it intends to leverage its SPG partner's proven thermal purification technology which requires considerable energy. This technology eliminates the need for acid leaching and avoids associated environmental concerns.

The availability of abundant, cost-effective hydropower makes this downstream processing strategy viable and highly competitive, reinforcing Orom-Cross's position as a premier graphite supplier, the company says.

Blencowe will continue discussions with UETCL and the Ugandan government to finalise a PPA and integrate renewable-energy planning into the ongoing definitive feasibility study (DFS).

Additional studies will be conducted to assess potential power demand scenarios as Orom-Cross scales up production.

"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.

"We are committed to building one of the world's most environmental, social and governance-friendly graphite projects, and securing clean energy is a critical milestone towards that goal.

“With work now progressing to formalise a PPA, we are securing a long-term, sustainable power solution that aligns with our development timeline,” says executive chairperson Cameron Pearce.

As the company advances its DFS and project financing discussions, securing sustainable energy further enhances Orom-Cross's appeal to global investors and end-users.