Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Thanks topshot .
GGekko87, there won't be a specified time period all crcl have is an offer of grid connection, when /if they use it is down to them and when they are ready, there is nothing to relinquish, the network company will provide the connection to site when requested, there will be no connection on site until then.
Its the same as having a plot of land on which you intend to build a property, you contact the service providers to see if those services are available, before you buy / lease the site, ( if you've got any sense ) if they are you can go ahead and request them when you are ready.
and there in lies the issue with crcl, they, as far as we know, have not yet got a lease on the site.
best ts
Does anyone know how long they can keep the rights to the grid connection before they have to surrender it? Apologies if Im being dumb but can't seem to find reference to it's lifespan.
audible, absolutely correct, i've done it myself many years ago.
audible, absolutely correct.
Planning, you’d ask for an in principle decision before spending thousands of pounds on architectural drawings, permits, studies, etc. Planning officers know what will pass, what maybe pass, and most certainly what won’t gain planning permission without some sort of legal fight or gov intervention.
Obviously all of that does incur cost.
You cant apply for any planning without at least some costs ... and i am sure Corcel knowwhat they are doing and have a lease in place subject to certin conditions ... and it's share stupidity on any poster to say you can apply for planning without incurring any costs ...no matter how large or small these are ... and in the case of a site like Burwell you would have multple costs to pay before you get or have planning refused ... i was in the game for 35years...
sniper correct,but in any event you would have thought they would have had the lease signed before any announcement. the land owner has the whip hand now .thankfully we have several other projects to come.
rock, the fact is though they or anyone else can apply for outline planning consent without incurring those costs.
Sniper .. agree ...as per my last post.
Staffy ... whaty i mean about development costs .... architects, engineers, planning fees etc, etc. Anybody who is applying to develop any land bank that they do not own ...will and should have their legals in place with the third party they are buying of leasing from. No right minded individual or company is going to spend money on property they do not own unless they have all the ducks lined up and know that if successful in achieving a positive planning outcome , they will be able to proceed to lease or buy.
Staffy
I think the point Rock is making is that they will have paid an application fee (to put the planning application in) and whilst anyone can apply for planning permission anywhere, I’d imagine the process is reasonably lengthy and tedious for a commercial battery storage site, so it’s not the sort of thing you’d bother doing (investing time and effort) unless you had plans to get it to shovel ready stage.
Please see earlier post, the value of the land lies in its proximity to the grid connection and Corcel owns the last remaining connection, so I suppose there is your moat that no one else can take from them. If the land is worthless and is not in use, then I’d imagine the current/prospective buyer would wish to lease it onto Corcel as that sounds like it’s the most lucrative way forward for the land.
rock, you or anyone can apply for planning permission on any land without incurring development costs.
Q. What i’m struggling to understand is; if the landowner is selling the land or any potential new owner intends to lease out a parcel of the land, why would Corcel be best placed to get a lease deal agreed? There’s nothing to say the land is sold to a new owner and a housing application is in the pipeline, or Corcel just doesn’t offer the right price for the land? Essentially there’s no more chance of Corcel getting the land leased than me or anyone else acquiring the land?
A. That's really not the case here. Basically the NPV value of the lease to a landlord (which covers about a third of the total plot) is about the same as the value of the entire land itself. So the lease doubles in my view the value of the land. And it is the battery storage project which enables the lease at that level. Corcel has the grid connection for a good length of time so others can't easily copy what we are doing with our project or replicate our lease terms.
So whilst it is true that until we have a land lease we will not be able to bring our project to shovel ready, the landlord (new or current) needs to sign a lease with Corcel to enable the battery project otherwise the land sits there unused with no revenue for the landlord. Ive not heard of other projects like construction - the (only) attraction of this land is proximity to the grid. So I would expect in every eventuality that the lease gets signed. But you are right until it is there is risk and we shouldn't get ahead of ourselves.
They received planning last Sept for development along with the landlord receiving planning for other works. They must surely have agreed terms with the site owner before they went ahead and spent money on development fees etc , and also i would imagine that all terms with the owner including leasing etc were firmly established..whereby giving them long term commitmentto this project. On that basis how could the owner pull out of the deal ...ok they can sell on their interest to a third party but Corcel would still remain the leasee. As a retired property investor this is how i did deals in my many years in the game. This is just my opinion and i'm open to any clarification by other posters.