Blencowe Resources Plc has completed an initial hydropower study for its Orom-Cross Graphite Project in Uganda, which confirms the availability of low-cost, renewable hydropower from the national grid. The study represents a significant step forward for the company’s commitment to sustainability and its goal of establishing a net-zero graphite operation.
According to the study, two high-capacity power transmission lines from the Bujagali and Isimba Hydroelectric Dams, both located on the Nile River, connect to the regional grid near Orom-Cross. This infrastructure guarantees a reliable supply of renewable energy to the project. The study also highlights Uganda’s significantly lower hydropower tariffs compared to other African countries, positioning Orom-Cross as one of the lowest-cost graphite producers globally. With more than 1000MW of installed hydropower capacity in Uganda and additional projects underway, the country’s energy infrastructure is capable of meeting the power demand for Orom-Cross, which will start at 12MW in Phase 2 and rise to 40MW at full production.
Blencowe is now working to secure a long-term Power Purchase Agreement (PPA) with the Uganda Electricity Transmission Company Limited (UETCL) to formalize the power supply for the project. Access to 100% renewable energy enhances the company’s ability to achieve net-zero production and positions Orom-Cross as one of the most environmentally responsible graphite projects in the world. This is expected to be a key factor in securing financing and off-take agreements, particularly with partners in Europe and North America, where sustainable supply chains are increasingly prioritized.
Reliable and affordable energy is crucial as Blencowe progresses toward first production in 2026. With power costs being a critical factor for Phase 2 commercial-scale production, the study confirms that Orom-Cross can operate with a low carbon footprint, meeting global environmental, social, and governance (ESG) standards. The access to hydropower further strengthens the project’s appeal to potential customers and investors looking for sustainable alternatives.
A unique aspect of the Orom-Cross project is Blencowe’s plan to develop a beneficiation facility near the Karuma Power Station, approximately 190 km from the site, in partnership with a leading spheronised purified graphite (SPG) producer. This facility will upgrade small fines graphite concentrate to 99.95% SPG, significantly increasing value and returns. The study’s confirmation of a reliable and cost-effective energy supply makes this downstream processing strategy feasible. The SPG technology, which eliminates the need for acid leaching, requires considerable energy, and the availability of hydropower makes the process both economically and environmentally competitive.
Blencowe is continuing discussions with UETCL and the Ugandan government to finalize the PPA and incorporate renewable energy planning into its ongoing Definitive Feasibility Study (DFS). Additional studies will be carried out to assess power demand scenarios as Orom-Cross ramps up production.
Cameron Pearce, Executive Chairman of Blencowe, commented: “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 added: “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 integration of hydropower into the Orom-Cross development plan reflects Blencowe’s strategy to establish a low-cost, high-purity, and net-zero graphite operation. As the company advances its DFS and project financing discussions, securing sustainable energy further strengthens Orom-Cross’s appeal to global investors and end-users.
Blencowe remains focused on delivering a world-class graphite project with strong sustainability credentials and will provide updates as the PPA process progresses.
