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https://twitter.com/MetalNRGplc/status/1564183772584607744?t=AKmfsMy7zUI7PcdH02R5Yw&s=35
This is one sector that should be benefitting from the recent turmoil, just think how many waste to energy plants that could be built for the cost of a nuclear power station.
Hope it is not tomorrow as the market is set for a very bad day re US influence
News due this week! At least one RNS by Wednesday
" i do not see why Eqtec are not capitalising on this"
Because it takes 2 to tango.
What PI's who post here don't understand is that companies have a lock on their purse strings because of the recession (here, the EU, US, worldwide) that is only going to get much, much worse.
DP has been throwing our money around with gay abandon but not so his partners or funds or institutions or anyone with any financial acumen.
If they won't commit and sign contracts what is EQT supposed to do about it?
This is the macro climate we are in and there is not a lot that we or DP can do except batten down the hatches like everyone else ....
i agree with you on a personal point of view but companies globally, especially manufacturers, must be all seriously considering energy security for their business operations and how can then plan when energy prices are rising 400% . that will shut a lot of companies. companies want to know their costs and those that have lower energy costs will have a massive competitive advantage in the future. come on DP get some projects live and get sign agreements in place for deeside and southport etc. time to strike is now to lock in the high prices. surely going to investors with 400% increase in revenue from offtake energy agreements (assuming they are at least 5 years) should make the return for investors a game changer. i do not see why Eqtec are not capitalising on this and that the shareprice is not factoring this in. you n guarantee that if prices of energy were falling Eqtec shareprice would fall. capex costs will be higher but not considerably.
I am hoping the likes of Eqtec will bring energy prices down.
https://www.catalyst-commercial.co.uk/works/august-2022-energy-market-brief/
Problem being by the time DP gets anything close to being over the line the market will have changed and we will start the whole process again on the next rainbow he wants to chase.
Its a perfect storm for Eqtec energy agreements. In less than 12 months wholesale energy has risen 400%. What does that say about all our energy projects? It means revenue from future projects should be considerably higher than before and must make these projects masively attractive, especially where the inputs being used in our gassification we are paid to process. I am miffed why the market is not considering that out revenue from projects could be up to 400% more than it was 12 months, subject to agreement on energy offtakes. Appreciate we are not quite their but the market needs to factor in these changes.
Additional planning permission application can be tracked here.
https://www.developmentmanagement.stockton.gov.uk/online-applications/applicationDetails.do?activeTab=summary&keyVal=RBRTX6PK03400
It is awaiting an environmental assessment for the hydrogen and battery capacity. (this application is supplementary to the existing granted planning permission granted in January 2021 for heat and power)
Source:
https://my.hidrive.com/share/4-d-n-4npd#$
Made by RollonRetirement, thanks
Project specifics available from the Billingham data sheet on the projects section of eqtec.com
https://eqtec.com/wp-content/uploads/EQTEC-Billingham-Project-Fact-File-Aug-2022.pdf
Offtake agreement critical... Might need government intervention? Surely the revised planning application for the hydrogen and battery islands at Billingham will be fast tracked as soon as the environmental assessment is submitted.. If/when Petrofac complete FEED and if they become EPC, they will have a lot more clout to finish the project more quickly. Original project was to be started in 2023 and online 2024 https://www.power-technology.com/marketdata/billingham-energy-from-waste-plant-uk/
CF Fertilisers, Billingham:
August 24, 2022
At current natural gas and carbon prices, CF Fertilisers UK’s ammonia production is uneconomical, with marginal costs above £2,000 per tonne and global ammonia prices at about half that level. The current cost of natural gas at NBP is more than twice as high as it was one year ago, with the NBP forward strip suggesting that this price will continue to rise in the months ahead.
https://www.cfindustries.com/newsroom/2022/billingham-import-ammonia#
Off topic, multinationals buying parts on eBay due to supply chain issues... @7minutes
https://audioboom.com/posts/8139309-trader-s-cafe-with-zak-mir-howard-white-strategic-advisor-powerhouse-energy
me too, but i'd much rather have something positive drop in from Eqtec !! This week would be excellent.
I quite like aandi's positivity and all the info posted and I also agree some news would be welcome.
I'll stop ramping if either of those first two get me, or we get one of these-
http://www.alignresearch.co.uk/cpt-research/eqtec-initiation-of-coverage/eqtec-update/eqtec-valuation-update/eqtec/
Death/ Taxes/ Aandi ramping
Aandi - appreciate all the info as always but we need some news from the company. In particular, as has been said, a working MDC.
https://youtu.be/vym6pfUIi8M
The AGM video. From 14m to 21:30, some good info on Market Development Centres and the evolving nature of the business away from project developers into licensors of technology.
"complete construction" comes long before online/operational. A plant requires funding, foundations, utilities, construction, commissioning then testing before it becomes operational.
The power company PG&E appear to be the biggest delay to the project at the moment as they haven't fitted the power lines yet. I believe they are doing this work in exchange for access to cheap power for 15 years.
We need to get on the zoom call and ask these questions as I'm not entirely sure of the situation, it's all rather smoke and daggers. I imagine eqtec are maybe not very popular with the NCC due to their small investment and large equity stake.
Oh yeah and who remembers the court case in 2020-2021 with Aries when they tried to get access to the designs and claimed patent infringement!
From RollonRetirement-
There's some info regarding the next EQTEC equipped plant to be built in California, the 3MWe Blue Mountain Electric Company plant in Wilseyville, in this recently uploaded document......
BMEC and their partners the Sierra Business Council (a nonprofit organisation) are applying for a $500,000 grant from the Sierra Nevada Conservancy.....
Pages 73-74, 88-94
"Permits are in place to construct and operate the plant, which will be running within 18 months."
"Construction will be complete, and the facility will be operational in 2023."
"Project partners are in the final stages of securing funding and construction will begin in 2022."
"Total Project Cost: $32,899,462"
"The additional funding required for construction will be provided by Phoenix Energy from sources including a $25 million United States Department of Agriculture-backed loan and $7 million from the sale of tax credits."
"Estimated Project Completion Date: June 30, 2023"
Also,
"Phoenix Energy works exclusively on small, community-based biomass facilities and will complete construction on the 2-megawatt biomass facility in North Fork, California, in spring of 2022."
https://sierranevada.ca.gov/wp-content/uploads/sites/326/2022/02/B-22MAR-CompletePackage.pdf
'BMEC' (Blue Mountain Electric Company) which is the SPV for the Wilseyville project in California.
"The additional funding required for construction will be provided by Phoenix Energy from sources including a $25 million United States Department of Agriculture-backed loan and $7 million from the sale of tax credits."
And in addition they have received a $400K grant from the Sierra Nevada Conservancy and a $1M grant from California Department of Forestry and Fire Protection (CAL FIRE)
The Company and its local partners appointed EPC contractor Infinity Project Management Inc (IPM) as owners' representative for the Blue Mountain Electric Company LLC opportunity in Wilseyville, California (BMEC). The project is expected to complete front-end engineering design (FEED) in H2 2022, toward financial close in the same year. The BMEC plant will convert c. 24,000 tonnes of forestry waste per year into c. 2,400 tonnes of high-quality biochar and 3 MWe of power for the local community, whilst contributing to prevention of forest fires.
https://infinitypminc.com/
https://canaccordgenuity.bluematrix.com/docs/pdf/32b67918-76a6-43a9-938d-e69ed823405b.pdf?pdf
April 2022,
"2022 outlook
For 2022, we are making no change to our existing expectations of revenue €27mn
and EBITDA of €2mn, and year-end net cash of €9.2 mn. We see the key moving
parts for delivering this year as:
? Project revenue on MDC Italia, MDC Croatia, Almyros and Karlovac, all existing
confirmed projects – we estimate combined revenue on these in the range of
€6.5-7.5 mn
? Project revenue on biomass projects BMEC (US), in Greece, and in France – we
estimate combined revenue on these €11-13 mn – these are projects expected
to reach financial close in late 3Q / early 4Q
? Project revenue on UK RDF facilities, expected to be Southport and Deeside – we
expect combined revenue on these of €8-10 mn, with financial close anticipated
in 3Q
? Equity investment in those projects, notably the MDC facilities and Karlovac, and
refinancing of debt lent by EQTEC to those and other projects, including North
Fork
? Disposal proceeds from sales of equity stakes in projects, notably the UK RDFs
? Corporate overhead, including pace of recruitment
Our forecasts (shown on page 7) include a net inflow of €4mn from the disposal of
stakes in and repayment of loans to projects; we note that as of end 2021, the gross
book value of EQTEC’s stakes in projects was €12.6 mn.
We note that the group achieved a positive gross margin in 2021, despite EBITDA
continuing to be negative after G&A and other overheads. We expect the group’s gross
margin to expand further into 2022, reflecting the increasing proportion of high-
margin development payments and greater overhead recovery, which should drive
EBITDA positive for the group.
We believe that the chief risks to achieving our forecasts are the ability of the group
to secure external full funding into the current planned projects – and notably the UK
RDFs and French facilities – to be able to invoice the confirmed orders. We believe
the majority of these projects are likely to reach financial close in the second half of
2022. We also note that the cash inflow we assume is at this stage uncertain."
"The next 3MW BMEC project is due to cost $32m or that amount of funding is being secured"
DP always keen to move onto the next project, we need to see one finished first, before he starts spreading our cash elsewhere!