Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
To stay on the optimistic side with a positive spin, I do hope RED have secured the services of good quality installation and commissioning contractors particularly on outage critical sites, like water or production lines. The installation of this plant covers a number of specialist skill sets, from the delivery of the units in restricted areas like substations where cranage is very constrained, to the installation of concrete foundations, cabling in and out to major electrical plant requiring power outages to the final commissioning and integration in to the protection and earthing systems. This in many cases can cost has much as the flow plant in complex sites. Anyway lets make the sale first.....
From speaking with RED I get the feeling, although it wasn't stated, that the German deal hit a set back when the German Government changed the rules. This has led to a more or less complete overhaul of the customers requirements and realignment of the finance, not to mention the tweeting of RED's offering to fit the new circumstances. As I understand it Gen3 can be configured in many forms and is more or less a bespoke item that can be adapted to any requirement within parameters. It has a core of course but the software and various components are variable to suit each deal. Thats my understanding anyway but I could be wrong as we've not seen one yet. Bearing this in mind, RED's end of the deal should be no problem but, to my mind, the hardest part is getting the customer to understand and decide upon what it needs. I think this why RED is working hard at the moment. Certainly I was told that they are burning the midnight oil. If I am correct I still don't think that the deal will not get finalised as some sort of storage solution will be needed, that's being more and more appreciated by utilities, and RED have more than their foot in the door and are very capable of fulfilling the need however it manifests itself.
I am not focusing on the system and its configuration I am taking that has a done deal from the previous seeding units. However the seeding unit was installed and commissioned at a holiday home, this is very different from taking a front line business offline and installing a fully operational system, which from day one at a specified time deliver 100%. This is stepped up again when integrated in to a DNO sub-station with thousands of customers supplied from that sub-station. REDt would need installation and commissioning partners, they would not have that skill set waiting around. If they do they will be burning money at one hell of a rate.
This is from a recent release from Gore Street. I'm not sure what to make of it nor whether it has any bearing on the German project or indeed RED. Any thoughts?
"Gore Street Capital, Gore Street's Investment Advisor, has witnessed the market react to the need for storage with increased permitting and installation of storage projects in the UK that are accessing the frequency response and capacity markets. In November 2018, we commented on the news that the UK capacity market had been suspended following an EU decision that the process for obtaining EU State Aid clearance was flawed. These two events have led to a small fall in frequency response prices and temporary loss of capacity payments. The UK and the EU are working to address the procedural issues and reinstate the capacity market.
In light of these developments, Gore Street is taking a conservative view of the level and sources of revenue available to energy storage projects. It is this conservative forecast that results in the NAV adjustment. The Investment Advisor remains confident that the UK still presents compelling investment opportunities, and the present operational portfolio is generating strong positive cash flows, whilst the asset in construction remains on track for commissioning as previously advised.
As a leader in this new and growing market, Gore Street has an extensive pipeline of UK and European storage projects, several of which are in exclusivity or advanced negotiations; over the last few months that pipeline of opportunities has increased materially. However, Gore Street has been focused on preserving its rigorous investment discipline to safeguard target returns to shareholders at the levels indicated in the IPO prospectus and has therefore been selective in the projects it invest in. Nevertheless, the Company expects to announce several new investments in the near term.
In addition to the Company's significant UK investment pipeline, the opportunities outside the UK have continued to grow considerably and there are immediate and attractive opportunities available at present market prices. Gore Street's advanced pipeline encompasses projects across Belgium, Germany and the Ireland; a point of differentiation for the fund."
Battery facility (Source Irish Times 24/48 hours ago)
Statkraft intends building what could be the Republic’s first battery facility at Kilathmoy, which will store 11MW of electricity for use when demand is high.
Comment John Ward, Alchemy owner, Redt shareholder and ex Redt non exec director was involved with Sorne Wind Farm in the Irish Republic where many years ago a huge VRFB was planned but never happened. A second chance for Redt in Ireland with Statkraft the new UK redt collaborator?
Couple of links but no mention of the battery supplier.
https://renews.biz/48708/norwegians-let-fly-at-kilathmoy/
https://www.siliconrepublic.com/companies/statkraft-renewables-battery-facility-ireland
Yes, I thought of that. I suppose Statkraft would want to see how RED performs up close before making any decision. ATM they could buy the whole lot for what's in their Christmas party fund I'd imagine.
Found by Gerd212 on LSE
https://uk.reuters.com/article/us-norway-statkraft-results/statkraft-to-expand-electric-vehicle-charging-in-germany-and-britain-idUKKCN1SF14U
Statkraft have just linked up with RED in another potential project and RED has been picked to supply the storage for the Oxford EV charging initiative. Personally I don't believe in coincidences in business.
Posted this on ADVFN but thought you may be interested here as well.
You will probably need to join up for a free trial to access this but basically it says that asset managers, managing $20 trillion worldwide, have built up teams that are very knowledgable about renewables and are competing to accumulate assets in the sector. It is leading to asset price inflation, a bubble is the term they use, where assets are being competed for. Its the asset managers that are competing for assets not the asset competing for finance. It may well explain why RED has had little trouble in finding finance to date and why the likes of Schroders are still invested here. It bodes well for RED's search for a strategic partner. We still don't know if the partner will be a financial company or an industrial company like Siemens.
https://www.telegraph.co.uk/business/2019/05/13/asset-managers-could-become-energy-supermajors-future/
I'm trying to work out whether you are joking tongue-in-cheek or serious!
More long term stuff
https://www.energy-storage.news/news/south-africa-makes-huge-distributed-energy-storage-commitment
Might get something from the trials although RED are in Africa already.
I note that the Eskom plans in South Africa are dated October 2018. More recent politically influenced reports from Feb 2019 suggest that the timescales are much slower than this report suggests. The recent split planned for the heavily indebted Eskom into transmission generation and distribution are likely to significantly delay these battery plans.
https://redtenergy.com/story/botswana-essential-infrastructure/
No date