And nice Kenny to hear from Strebs and 98889 who understand this industry, Reassuring to know of others who have larger investments - I should have topped up my investment of 1/4m @ 2.2.p - if I could have done so at under a penny but have now put any spare dosh on more AFC
I have around a million shares . You are evidently a much bigger player than me and waste destruction is a perceptive choice .
What areas other than waste destruction do you see potential in ?
Alter Nrg are suffering because their shareholders are looking too short term and , in my opinion also because the share price fell so low .
The attitude of the managers over there is that if shareholders had supported the share price by buying up loose shares the price would not have fallen so much and the opportunistic offer would have to have been a lot better .
I'll raise a glass to dividends .
Returning to Powerhouse , there are lots of customers who will not be able to afford a $15m system but who would jump at the chance of a $5m system . Powerhouse may even be able to take minority equity stakes in facilities to generate recurring revenue .
Powerhouse's solution should be better than plasma at this scale .
Surplus syngas could be used for combine heat and power . In the case of a hospital , blended with the natural gas used by the heating system .
In the case of a 1,000 tpd facility , the gasifier may account for $60m of an overall spend of $900m , i.e. around 7% of the overall cost .
These huge systems are typically financed by banks , infrastructure funds etc and require guarantees that the govt subsidies will continue and 20 year waste supply contracts to have been signed .
They require a completely new industrial site and consequently planning permission for a new industrial site .
Small turn key units are typically financed from the balance sheet . They are usually installed at existing industrial facilities so only require permission to be obtained for site modification .
Alter Nrg now have factory sized turn key units which sell for $15-20m per unit !!!! and they've got orders for 6 straight away . The sales cycle is much quicker and they are getting a much larger chunk of the total spend .
Powerhouse should be able to do the same for much lower unit cost / higher margins . The microwave gasification should be more efficient than the plasma at this scale .
The money comes from reduction of tipping fees , in the case of hazardous waste reduction in handling and authorised transportation .
If Powerhouse manage to connect a genset to a system as small as 5tpd and generate enough to sustain the gasification process so it does not need connection to the grid then that would be better than anyone else has done . If it generates a surplus which can be sold to the grid then that would be an out of this world bonus .
Industrial waste often includes valuable contents such as metals which need to be recovered so needs it's own gasifier . It should be more uniform too so need less sorting than municipal solid waste .
A couple of sales would finance expansion . Roll on the demonstrations in Sydney . Wonder if there will be fund managers there as well as prospective customers ?
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