Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc. Watch the full video here.
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www.islandmageestorage.com/index.php?option=com_content&task=category§ionid=15&id=66&Itemid=131
"Infa's gas storage project will be the only one to actually give money back to the community via a trust fund.
A committee of mostly locals will decide how this money will be spent"
Exactly what Sirius did, to create a charitable foundation that takes about 1% royalty on future sales, for disbursement to local projects by local representatives. Smart thinking through local engagement. Getting the local press on your side is the other point to bear in mind.
*woodburn
The new board will be aware of Woodbury! Infa have a local community Liason representative who lives on Islandmagee and she has been involved in the storage project for about 12 years. Judith is a key part of the project imo
Not a local. Just skim read through the previous years BB posts before investing. Nearly all of the opposition was directed at the wacky oil drill play in Woodburn. It was a car crash in local PR terms that current board would be well advised to read up on! Infratstrata may be new to them, but it's not well loved as far as I am aware. Maybe it's different in Larne, but Woodburn locals hated em and for good reason.
Interesting point Islandmagee is the site of Ballylumford power station, Moyle interconnector & Scotland to Northern Ireland gas pipe (SNIP) Infa's gas storage project will be the only one to actually give money back to the community via a trust fund. A committee of mostly locals will decide how this money will be spent
That's interesting, MegaTron. I take it that you are a local yourself rather than living far away as I do, in E Anglia. I don't know the extent and tenacity of the environmental groups opposing the project but can I just say from my many years of experience in seeing the Sxx NYNPA potash project get underway, that Infa needs to mount a stout but objective front foot. They should, and presumably are already, emphasising the minimal above ground footprint of the finished project, the benefits to the local economy in terms of job creation, the sympathetic construction plan to minimise upsetting the local fauna and flora etc etc. At the end of the day, Infa has its planning permission, which was hard won by sxx eventually. So I'm sure these factors weighed heavily in their favour at the time votes were cast in favour.
O and W, I'm long. Bought in before requisition, voted for AP and PW, watched sp go up and then down without taking profit. Sold at breakeven. Then bought back in at .24. and averaged up at .5. one risk that is very real and can be found by reading this very thread back to 2016-17 is local opposition, some environmental, some not on my doorstep.
As posted before some two weeks ago,anyone selling now for a short term profit is crazy....If Hindle & Co had not been ousted by our erstwhile leader we would still be drilling for water in the Lough Neigh basin and upsetting the neighbours at Woodbridge. Yes,we do need the Website to be improved and made more professional ( that is clearly in hand) but of all the AIM stocks available with a U.K. based project,this has to be the most exciting and productive.
We have all sorts of potential add ons....extra chambers,LNG terminal at Ballylumford and joint interest with other N.I. operators such as Celtic.
Or do we ??? ..The Big Boys are waiting and most of you will know that ...they will pounce as soon as current hurdles are achieved..watch for a speedy rise on Monday !! Excellent post by the way by Olderandwiser..aren't we all !!
I see Islandmagee as a strategic fit in Ireland's need for energy security. This is especially the case with the closure of the Kinsale gas storage facility, and Rough in the UKNS, there is a clear need for long-term (10 years and up) forward planning to replace these facilities that were supposed to offer greater flexibility and security of energy supplies. So I see very little political resistance to this project, in fact the reverse, a positive wish to endorse it. I also don't see any environmental lobbies shouting out against it going ahead. Licences and permits are in place. All good. Even Brexit can't damage the project as it already pre-qualifies for a UK government guarantee on the credit financing side.
Risks are:
That the FEED study runs into unexpected technical complications requiring more work to be done and missing the December deadline for submission to the EU relevant body.
A Brexit hard exit leads to uncertainty amongst potential buyers of the project until grants, loan guarantees, access to UK bank credit etc, are resolved.
Plans go ahead for a new oil terminal at Cork to hold US frakked oil go ahead, in a size that rivals Islandmagee's storage potential.
Any other risks?
Otherwise, it's a solid long term buy and hold into 2019, and thereafter, although I would reckon that the sp will spike into a "construction green light" decision and then cool off for quite some time until first gas is stored. But by then Infa will probably be long gone as an independent entity.
'4.4 The Minister for Energy and Industry (Richard Harrington) welcomes the inclusion of 23 PCIs involving the UK. These, he says, comprise 21 electricity and gas interconnection and storage projects and two carbon dioxide cross-border network projects. Previously, electricity and gas PCIs based in the UK have benefited significantly, he says, from CEF grant funding.
4.5 On Brexit, the Minister observes that the UK and EU have agreed that the UK will continue to participate in EU programmes financed by the current budget (2014–20), until their closure. The eligibility of UK organisations to apply to participate in EU programmes and receive EU funding will be unaffected by the UK’s withdrawal from the EU for the entire lifetime of such projects. This would apply to projects granted PCI status and those allocated CEF grants.'...
4.19 For gas, infrastructure is generally in good shape and resilient to a number of disruption scenarios. There are, however, pockets where significant action is still needed. These are primarily in the Eastern Baltic Sea area, the Central and South-Eastern part of Europe and in the Iberian Peninsula (links with France). UK-specific PCIs include Ireland-UK, Scotland-Northern Ireland and development of the underground gas storage facility at Larne.'
Explanatory Memorandum of 21 December 2017 (document (a))
4.26 In the context of the deal reached on the first phase of the withdrawal negotiations, the Minister says:
“UK organisations should continue to bid for EU funding with the assurance that payments will continue after our departure from the EU. In respect of projects that have PCI status these would continue to be eligible to apply for, and receive, grants from the CEF energy programme and provided they meet the relevant criteria under the Connecting European Facility regulation and TEN-E regulation.”
-
Reassuring regarding PCI funding beyond 2020. All looking secure
https://publications.parliament.uk/pa/cm201719/cmselect/cmeuleg/301-x/30107.htm
Still a risk of course o and w. But directors seem driven and are aligned with s holders interests. Certainly £6 mill seems too cheap to be where this is. Considering construction starts next year. Market yet to fully catch on
All very good points and noted, even the £300mn capex number in the Infa presentation (schlemiel!) is subject to downward revision if efficiencies can be generated.
I'm a newbie believer, guys. I have bought 3mn shares this last week, and I plan to buy more in time. It's just that I try to see things from the project owner's point of view, not just the gross revenue numbers, which are mind-blowing in relation to the current MC, I agree.
Hear hear! Good job Adrian. Not easy at all. Remember where we were with the old guard?! Oblivion beckoned. To do what he and RTF did receive requisition took balls. And it took canny skill and determination to actually do the hard part which was to pull it off! It was always going to get worse before it got better. But we've weathered the storm.
Not forgetting that almost 2/3 of CAPEX is covered under the UK government guarantee scheme. So will basically be a loan at zero risk to the lender so will attract very favourable terms
O and W. Agree but also note the phased development and the possibility of grant funding to some degree plus reduced capex too. Not forgetting the doubling of the LOM so doubling revenues after the initial capex has been met.
For me holding long term. I think we could well be seeing muliples so risk vs reward v favourable at this mcap
The phased development will also make this much more attractive imo. Much reduced upfront CAPEX
By the time the FEED is complete approx £15mill will have been spent on the project. JW the new CEO is obviously very bullish and expects significant upside. I'm looking forward to the revised economics taking into account potential double project life and significant increase in storage volume. Cherry on the top would be an EU grant towards CAPEX
£300m? You don't know that to be true.
Yes, and that will take the buyer's total cost - capex + full equity ownership - from £300mn to £350mn. They will need to do their IRR sums on that basis.
Got to remember imo 5p sp is still just over £50mill mcap
Absolutely agree Spud....the guy, like JW is world class with relevant experience second to none globally.
Infrastrata is already well on the radar and Malcys blog on Monday should include his interview with our BoD.
Malcy has already shown keen interest in the recent reshuffle and the PR that will surely come from his comments on Monday will give a hell of a kick to the sp because Malcy is a much used source of material for the press and is avidly read by many hard hitting private investors and institutions.
There are so many ducks in a row, it's surreal....the things that investors dreams are made of!....a few years down the line, we should be able to live off the dividends alone!!
The numbers are staggering, Eyeguy, but let's remeber that the lion's share of them (and the associated capex to get it up and running) will accrue to the ultimate project equity owners. Petronas has been mooted, for instance.
What I can't get my head round still is how much of these revenues can/will flow down to Infa, on a recurring basis, or capitalised upfront in a buy-out.
energy supply and the influence of the EU. This article shows the EU dynamic of creating an energy system (ISEM) that affords the Irish government a large degree of influence and control over Northern Ireland's ability to supply itself. The EU's plan is to create an 'Ireland' in the truest sense of the word if not politically then in every other way
https://inews.co.uk/news/politics/electricity-security-fears-major-ni-power-station-shut-suddenly/
https://www.kinsale-energy.ie/gas-storage.html Kinsale was the island of Ireland only gas storage facility and closed last year. Notice on the link who owned it! Petronas! New NED Arun is the key to commercialisation imo