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The increase in project size announced today imv is evidence that the company is moving at speed. i can see a takeover/ reratewithin 12 months as bigger players look carefully ay this.
Expect Atome will be fine. CPH2 have identified the potential issue (still to be confirmed) and are working on a solution to retro-fit to the first 2 units built, just a bit late for Octopus who wanted theirs last month (other customer affected looks like it could be AFCryo in NZ).
Delivery of Atome’s electrolyser is not due until end Q1 2023, only a small deposit paid with nothing else due until Q1 2024 and a free upgrade to the next generation tech at that time as well. All info from various RNS, think I’ve summarised it correctly but DYOR obvs.
News from CPH2 (from whom ATOME have ordered an electrolyser) today was not great - their other buyer has pulled the plug.
For those who do not have a Times subscription, here is the text of the tip:
Share tip: Atome is ahead of the game in green tech
Lucy Tobin
Sunday November 20 2022, 12.01am, The Sunday Times
Amid the energy market and fertiliser crisis created by war in Ukraine, the value of Atome Energy more than doubled to 152p. The only pure-play green hydrogen and green ammonia producer listed in London was seen as a saviour in the transition away from Russia’s oil and gas.
Then the shares sank to 75p — below Aim-listed Atome’s 80p float price last December — alongside a general sell-off of new energy amid the realisation that the journey to green hydrogen is a much, much slower burn.
It is one that is worthy of interest, though. Atome, now trading at about 90p, stands out from its rivals for its focus on the production of green ammonia from green hydrogen.
It will be made entirely renewably and carbon-free via electrolysis from hydroelectric power, mostly in Paraguay, with another project in Iceland. Currently, most hydrogen comes from electricity from coal or gas, so Atome can help decarbonise agriculture as well as the heavy goods and shipping industries.
Atome has only just begun building small operations in Paraguay. It is, though, ahead of the market.
After fast-tracking production more efficiently than rivals, it is soon set to receive a 1MW electrolyser for a site near a hydroelectric dam in Paraguay. That dam generates energy 24/7, unlike wind and solar power producers, and is expected to be producing green hydrogen to fuel Paraguay’s buses and barges before the end of next year, meaning revenues will start to trickle in for Atome.
“The value of this work is fairly marginal,” said Sam Wahab, renewables analyst at Liberum. “But it shows proof of concept — that Atome can achieve sales of green hydrogen — and bodes well for larger projects ... and sales outside Paraguay.”
Once green hydrogen technology has caught up to serve global transportation in a few years, Atome will be primed to boost production.
The £9 million raised at its float looks sufficient to cover current projects, and Atome’s well-connected board — chief executive Olivier Mussat previously worked for the World Bank — has lined up an array of potential green hydrogen customers.
Atome also has first-mover advantage, and good commercial locations — Paraguay has both spare energy capacity and a government that is strongly encouraging green hydrogen technology.
In a drive for real cashflow and yield, investors may have overlooked Atome’s potential. The firm is pre-revenue, but it’s not far off.
This is a risky punt but one with potentially significant rewards. Buy Atome.
Yes, I totally agree. Had a decent H1 and things appear to be improving H2 too - oil price better, production on a number of fronts, Farm out and Paraguay spud hopefully not too far away. I'm hoping Atome also can start to pick up more projects and apparently they had a very positive write up in The Sunday Times yesterday.
In terms of lithium they seem to be in the right place but am not sure how they mine it and not sure how they.get the expertise to build a business in that but potentially could be big if they could. Basically I just want to see them.keep improving on all.fronts but yes very undervalued imho.
Atb,
Northern
Northern
Molecular Energies (MEN) starting to look ridiculously cheap atm, even on a simple arbitrage basis given their holding here, dont think the market has woken up to fact production is back on stream over there and generating significant revenues for such a small market cap.
I really do hope it gives both shares a boost. To me more importantly it would be good if Atome started to get a few new projects to show that others agree and are putting their money into projects with the company.
Atb,
Northern
Good news, that will hopefully give Atome and MEN a boost. https://www.thetimes.co.uk/article/share-tip-atome-is-ahead-of-the-game-in-green-tech-v8h3jrzr3
It's a building block at least. Once they begin to produce H2 in Peru they have another customer so it is good news, But I'm still waiting for the RNS asking for more money from shareholders.
sp. Maybe it will start to move when things are shipped, income is generated and profits and new projects start to be added to the current portfolio.
Atb,
Northern
still someway off, never appear much progress iceland,
GROUNDHOG DAY- AGAIN !
It's the SPREAD..................you do the Math !
Must admit anything tied too P L is a no investment, guys not be trusted, ppc was total poor company, many bad desision, my worry here is Iceland is not really progressing, as 4 Paraguay where he has connections not totally convinced yet
When the funds run dry the IYA facility will kick in and that's when PL starts to get an even stronger grip of the company and that's not going to well over at president
That's true, but I anticipate there will be a call in the next few weeks.
It doesn't all have to come from shareholders.
With net cash of £1.6m & £3.7m burnt in the last 6 months, and greater cash requirements as construction gets going, and no serious income for about a year, they are obviously going to have to tap shareholders again.
GROUNDHOG DAY
Spread: 6.00 (5.77%)
SPREAD is stopping people buying.
Cost you 12p when selling before you make any monies !
update video: https://www.youtube.com/watch?v=AALU7fl6IFk
Not sure if link works but some big deals getting done in hydrogen space. Need atome to get in the headlines
https://twitter.com/atomehydrogen/status/1563111811377135616