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Really useful summary and reminder to me why I have stayed in during recent SP volatility.
Would be good to get some positive project updates to give the SP some momentum again
Although burning is the wrong term, more roasting, seperating and cleaning then depending on the set up either storing, biofuel conversion or using as a fuel for power and heat the clean syn-gas.
https://mobile.twitter.com/AndrewMathieso3/status/1385667626752520193
I think its important to recognise that yes we still are burning the **** but in the most economical and environmentally friendly way we currently know how. Rdf left to digest by the earth would end up emitting methane and other gasses alone so the positive case for rdf syngas efw for me is clear, especially if it can upgrade and improve vastly on existing systems.
https://eqtec.com/eqtec-team/
The calibre of the staff to me screams out desires of ambition, drive, growth
I thought I was an optimist, now I am turning pessamisic!
~ " I’m more like the annoying politician with the megaphone, " ~
and ~
I’m more like the annoying cheerleader with a megaphone on the touchline !
Whatever your knowledge and information level , well done everyone , VERY exciting times ahead .
https://mobile.twitter.com/eqtec/status/1385482202083909633
Part of Bioenergy Europe? Wonder what the entry requirements are
Great commentary folks!
USA starting to sound better and better, seems as though funding is less of an issue, was the expression “shovel ready projects”
Great analysis Thankyou! Helps me remain long and strong here!
Or better “it’s nice to have”
You do it with more style Pickuzawinnah! I’m more like the annoying politician with the megaphone, yours more think tank PR department!
Would rather have the proper brains cheering us on instead of a wino like me :)
Aww shucks - thanks V111JAS. There's often so much to trawl through just to get that sense of where we are and where we're (probably) going. Especially when you've got to do it across nine or ten holdings.
aandi is the main cheerleader of course. I just wish the market reacted more positively to my summary (-4.9% !) lol.
~ Next 18 Months ~~~ Looking forward to next week !
We should get a very pleasant surprise soon .
GLA
Important to have a balanced summary , a great piece of work there .
Well done Pickuz !
Funding - I have recently been closely involved with a new business operating in the EV area. They have ideal environmental and community focused aims. Due to that, they have been able to attract funders. Funders look for returns but they take a long term view and with current interest rates around zero, money is readily available.
They are funding 100% of projects around the country. All the client has to do is permit the charging points and cabling to be installed.
There are similar funders operating in the green space across Europe. I know nothing of the States but guess they must have similar funders keen to invest.
For anyone interest in EV, the business I have been assisting is GreenDawn.co.uk (my son is a director there and so I make no apology for the advert!)
Its a huge vote of confidence and with Biden doubling down on climate change yesterday and Eqtec showing the US the way to create net zero energy from waste surely we can expect to see dozens more orders coming our way in the near future. Still cannot see any end to the exponential demand curve and the only real pinch points today are partners and assist with logistics and financial close. If Eqtec can find that big swinging financial partner and close more partners we can continue to grow exponentially. if we doubled order book in 6 months on projects Eqtec could properly review imagine what is possible when you crank up the partners and financial partners. Going to be an incredible year imo.
6th November 2019. Whole thing likely runs more smoothly when the inferior competition don't try any stunts (Aries!!)
The Company also notes that California Senate Bill 901, enacted in 2018, authorises US$200 million per year for five years from the state's Greenhouse Gas Reduction Fund for wildfire prevention, primarily in the form of hazardous fuel reduction projects. In addition, California Senate Bill 1122 stipulates that 20% of the additional 250 MW capacity outlined in the bill must come from projects that rely on forestry sources.
David Palumbo, CEO of EQTEC, commented:
"It has been a busy number of months with numerous work streams being progressed, with particular focus on introducing project funding options to our partner, Phoenix Energy. We are encouraged by the strong local support for the Project and the growing realisation that the Project will have such an important positive environmental impact, improving California's current critical situation with forestry wood waste. We are confident that this would be the first of many more projects in California with Phoenix Energy. California Senate Bill 901 authorises US$200 million per year for five years from the state's Greenhouse Gas Reduction Fund for wildfire prevention, primarily in the form of hazardous fuel reduction projects. We continue to progress conversations with Phoenix Energy to further our collaboration to address this crucial social and environmental appeal in the state.
Greg Stangl, CEO of Phoenix Energy, commented:
"Senate Bill 1122 was designed to combat the tree mortality crisis in the Sierra. The bill dictates that 20% of the additional 250 MW capacity outlined in the bill must come from projects that rely on forestry sources. There's a reason the state passed a law forcing PG&E companies to buy power from projects like ours. Our proposed plant in North Fork will help promote environmental sustainability and reduce forest waste - and the chances of future fires. This is a crucial mission that cannot wait. It is very encouraging for us to have a technology partner such as EQTEC which has not only addressed any engineering challenge that we have thrown at them, but also now are heavily involved assisting with the financial close of the Project."
There is a third one from that pipeline, "Wilseyville". It hasn't been published in an rns before, first time it appeared was the 20210419 RNS mentioned before. So we don't have further information, but "has already received indicative terms for funding" sounds good.
I expect it to have a similar size, max. 3 MW. I have read somewhere that small local power plants up to 3 MW are what they want in California and that there is some advantage in not exceeding 3MW, but don't know what kind of advanatge it is (Subsidies? Simpler approval process?). Can't find it right now... unfortunately, bookmarking postings is nearly impossible in the LSE boards.
If this 10 bags in the future then starts paying a 10% dividend, this means whatever you have invested today could potentially be returned to you as Dividends each year?!!!
DerSack - you seem to have an excellent grasp of EQT facts. I find your posts most informative; thanks.
Nice summary, thank you.
There was/is a second US plant in the Phoenix pipeline: NAPA
20200528 RNS Projects and Commercial Update:
"Full planning permit for the new location (initially to accommodate a larger 2MWe capacity power plant) is still under process with some delays attributable to COVID-19. The client is now evaluating the option of a larger installation and requested a full quote for an increased 3MWe plant. This was completed and provided by EQTEC.""
20210419 RNS Final Results for the year ended 31 December 2020
"[...] This project and a pipeline of others of similar size is being developed with US partners, Phoenix Biomass Energy LLC ("Phoenix") and a full planning permit is progressing for a second project with Phoenix in Napa, California. Technology due diligence has been completed successfully for the third project with Phoenix, in Wilseyville, California and has already received indicative terms for funding."
As a relative newby, I find your post very helpful as a summary of what is in the anvil.
I have so far drawn a blank in my simple efforts to get certainty on North Fork position. Hopefully everyone is simply too busy with finalising deals etc!
Just going back to test my original thinking when investing here, focusing on the financials.
Thought it worth A/ summarising stuff for anyone browsing with a view to investing, and B/ testing my thoughts against other more knowledgeable people. Brief caveat: while an optimist as a person, I tend to be conservative and focus on seeing what's there, not what COULD be.
As I see it, EQTEC currently has seven projects either in operation or committed AND in development:
1/ Thessalia and Larissa in Greece
2/ North Fork in California
3/ Southport, Deeside, and Billingham in the UK
4/ Ciudad Real in Spain
Only two projects reached financial close in 2020 and two more were delayed into 2021 as a result of slowdowns thanks to Covid.
Current MCAP is £150M on income of 2.2M Euros in 2020 and a loss of 5.8M Euros.
Guidance for 2021 is income of 15M Euros (650% increase) and profit.
Cash in December was 6.4M Euros, so probably around 5M Euros today.
Pipeline a year ago was about 40 projects. H2 2020 a further 17 projects were added to the pipeline. Q1 2021, a further 17 projects were added (same volume, half the time) suggesting acceleration, although two measures do not make a trend. Five-to-eight of these are anticipated to close in 2021, with contract values totalling 20-40M Euros, which presumably includes milestone payments and ongoing maintenance revenues, so this income won’t ALL happen in 2021 but will increase long-term stability. And profit.
Billingham, worth around 30M Euros may lead to two further similar sized UK projects in 2022.
Ireland will soon be added to the list of countries, with a 15M Euro bio-mass to bio-energy plant starting in 2021 – though revenues not likely ‘til 2022.
So, in summary:
2020 = £2M income and a loss.
2021 = guidance of £13M and a profit, but given the range of 5-8 projects, they’re clearly setting expectations on the low end with a view to beating them
2022 = somewhere in the region of £50-£70M ??? (two Billinghams and a smattering of other projects?) And that’s just counting what’s on the radar now in April 2021.
Let me know if I’ve missed something obvious.