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I've been in contact with Biomass Magazine re the below linked article (Success by design).
I raised the point here previously that in the article, Player talked about steam treated pellets, a divergence from steam exploded.
I questioned the author of the article if there was an error in the article. The response leaves things still a little cloudy for me. It seems Player is still marketing exploded pellets to customers but is in the process of building a plant to produce steam treated. I've no idea if this is in conjunction with AEG, or if they have cut ties in regard to production.
The article cites issues with exploded pellet plant scalability. Is this the reason for the delay? Is steam treated a replacement of sort for coalswitch? Is this why AEG are moving towards Coalswitch 3.0?
The response was as per below;
"The project discussed in the article (MaineFlame) is steam-treated pellets, but Player Design also has experience with steam-exploded pellets, and is marketing that technology to customers. The reason that market (steam exploded) is mentioned at the end is because it is a much more discussed/popular/known about technology that many have tried to commercialize over the past decade-plus."
https://biomassmagazine.com/articles/success-by-design
Also to note, Player Inc. have removed the comments on their website regarding the article on steam exploded pellets.
May not be of any significance, but worth mentioning.
https://www.playerdesign.net/maineflame-expansion/
I wouldn't say out of order, it's a fact. The plant was supposed to be producing Q1 '23 and won't be until Q1 '24 earliest. They're a year behind. It's great to have Player on board for sure, but we don't hear the conversations so if they've been adamant about the agreed timelines, it's acceptable for the board to be displeased. And it's expected of them that they take action and seek alternative measures.
One would hope it would take Player, who is heavily invested, more than that RNS to give up on everything. Ego can be very costly.
It was more direct than the usual beat around the bush RNS's of the past. Which I'd prefer tbh. So at least some credit is due to AEG for that, I think.
Regarding cash, we had $2.6m 31 Dec. 2022 and $1.2m 30 June 2023. That's a cash burn of $1.4m in six months.
$1.2m gives us about 5 months or so from June.
I'd seen this article myself, it shows he's still progressing the plant but it does raise some questions..
Previously Tyler has spoken about steam exploded pellets (Coalswitch) but in the recent article he says it's now steam treated he is working on and not steam exploded. Does this mean he's moved away from AEG? Or is it Coalswitch 3.0 he is now focusing on?
The RNS does sound like there has been a disagreement or breakdown in the relationship, but it is just an assumption.
There are new comments on PDI website from last week also, about the plant not being ready till Q4 / Q1.
PDI website still mentions steam exploded:
https://www.playerdesign.net/project/steam-exploded-wood-pellets-ashland/
Comments on PDI website:
https://www.playerdesign.net/maineflame-expansion/
Previous article around steam exploded:
https://www.mainebiz.biz/article/presque-isle-company-grows-its-wood-to-energy-business
New article mentioning steam treated:
https://biomassmagazine.com/articles/success-by-design
Please forgive the insane amount of typos (lowercase letters etc.) seems like LSE algorithm has gone insane.
Also, starred out sentence is repeated below, spread out, to allow reading: (hopefully works)
It's been clear in the past that Rowan is often - s p a r c e - with the truth.
the rns in may states:
the permit, which has been granted by the department of environmental protection in the state of maine (the "department"), will:
a) allow pdi to immediately commence the final stage of construction for the coalswitch® production plant (the "coalswitch® plant") at the ashland facility; and
b) permit manufacturing operations at the coalswitch® plant to commence.
c) under the terms of the permit, pdi must provide certain additional data to the department within an initial six-month period.
the key element here is 'pdi must provide certain additional data to the department within an initial six-month period'
it does not say what would ensue for not providing this data, or providing it, however, it stands to reason if they do not provide that data the application cannot commence / production would have to cease. why else would there be a six month clause? perhaps an extension would be easily attainable. i would assume so.
it's been clear in the past that rowan is often sp**** with the truth. this is another example. the rns could easily have been written in a straightforward manner without smoke and mirrors. also, why was it not mentioned on their twitter account on 10th july when the boiler arrived, that they were also waiting on additional 'critical' parts?
it's just typical rowan, delivering only a good news story but not telling the back story.
every rns is the same, some bad news, a missed deadline for example, and then trying to soften the blow with an 'update' of sales talks or tactics etc. etc. as if we're all numskulls and can't read between the lines. it's embarrassing.
i'd have more respect for rowan & so would the broader market if he refrained from these amateur tactics and kept things transparent.
regarding your concern about tyler holding off capital deployment. i wouldn't think that is an issue. the guarantees will not be given until maine dep are satisfied with the emissions of the plant. hence the application being shelved pending further data being submitt4ed.
tyler is the 5th largest of all shareholders, individual or institutions. at least according to ibkr. this is public knowledge. he holds circa 6.64% or 10.74 million shares, 376 million in pre split terms. it's within his best interests to get this project moving. in contrast, rowan holds 1.1% or 1.79 million shares.
i wish i had more insight into the true delays, maybe it is some simple parts issue. but aeg have never been the most forthcoming with information regarding its operations.
i cross my fingers and hold my breath that november brings us a working plant, product, orders , news of joint venture partnerships and we can finally put all the speculation behind us.
good luck all
The reason you can't locate the new permit online is because they were not granted one. It will only be listed on their website when it has been awarded. To be more precise, it's an amendment to the existing licence for the facility at 86 Clark Siding Road, Ashland, Maine.
It will be found here: (type Ashland as a search reference)
https://www.maine.gov/dep/air/licensing/minor-source-list.html
The application was put on hold pending the submital of additional information. The 'permit' mentioned in the RNS back in May is not a fully awarded license to operate.
You'll recall in 2022 they had a 'temporary permit' to operate in order to collect additional data. However the plant malfunctioned.
Based on RNS in May I assume the 6 months runs from that date, I may be wrong on that though. Still, it's a concern.
Very disappointing news today. The thing to remember here though (if it's to be believed) is that it's not AEG or Rowan's setback as such but Player Inc.'s. Previous setbacks were AEG's own fault, so not exactly history repeating itself.
Some pics of progress would be nice, at least to calm the waters.
The worry now is that the permit is only valid till end of November, 6 months from being awarded, which leave minimal time to report emissions findings to Maine DEP (if we even get up and running by then). Originally Player were supposed to have production in Q2, which was moved to Q3 and now Q4.
I'm a little dubious as to the validity of todays RNS. Player commenced building of the plant in January, took delivery of the boiler months ago and began final assembly, but now are still waiting on parts?
They've had all year to get the parts needed. There are a lot of holes in AEG's updates, and personally I don't even believe Player are building from scratch & setting aside AEG's components. The images posted on Players website for steam exploded pellets are of the exact same plant built & posted to AEG's twitter in 2022 apart from 1 part, which is now a different colour. Changed from black to silver.
https://www.lse.co.uk/rns/AEG/business-update-7qjqpcygfdcqqte.html
@Janoz just trying to drum up some conversation here ;-)
Your 1st post, have you some eyes on the ground?
It has of course crossed my mind that the plant could be built and operating.
We're not subject to the same reporting regulations as NYSE etc. and the fact that Player are financing, building & will be operating the plant at their own expense, separates it completely from AEG. AEG just have an agreement to take or pay for product produced, so, I assume with my limited knowledge, that if it were operating AEG would not be required to inform the market.
I could be wrong, happy to be schooled
This is the company that made the boiler
https://cleaverbrooks.com/
Interesting & insightful interview with Tyler. Albeit a little misleading, eluding to the fact that Player Inc. created Coalswitch methodology.
Nonetheless it's clear Coalswitch is big in his plans.
https://www.mainebiz.biz/article/presque-isle-company-grows-its-wood-to-energy-business
Update to Player Inc. website to include Coalswitch
https://www.playerdesign.net/steam-exploded-wood-pellets/
It's hard for sure to be optimistic. I have always said though, that since Player came on board it has benefitted AEG. He's a successful business man and this is his field, the construction side anyway. I think he brought a lot to the table, more than just engineering.
Tyler clearly believes in the business and he's closer to the intel than any of us here. He's even more heavily invested now, since taking on the construction & manning of the plant. Lets' not forget he invested I think £250k of his own cash & forfeited was it £450k of payment for works completed? (off the top of my head) $1m dollars total.
AEG have made some good hires with knowledge of the business & they will have plenty of contacts in the industry. They've also managed to hold onto capital, which I think signifies a change in the managements priorities.
Permit granted, a massive win! I think it's almost even gone unnoticed in the market, probably because of all the previous setbacks. Fingers crossed this time around that the plant doesn't malfunction & works without issue.
The last 'makeshift plant' Player put together in Ashland was done in record time, 4 weeks if I remember correctly. I'm hoping the new plant will be up and running July, August latest.
With a working plant and orders filled we should see ourselves beyond the previous 1.8p in old money. I've been averaging down a lot so that alone would see me happy.
If Pacificorp are still in the mix, delivering Coalswitch, finally, for actual co-firing test will be a massive milestone.
They haven't been quick back with their reports but one would hope we'd hear by year end their stance & if they wanted to move to order or license.
Personally I'd prefer if they licensed the product, but if they ordered a significant amount, would someone like Enviva be interested in taking on the production element for us? Perhaps
I do think things have shifted for the better. I know it has been a slow slog, but once things are definite, as in, we have a working plant and actual product, accompanied by the recent staff hires & Tyler's direction too, it completely changes the landscape. Seeing is believing. I think by year end we'll be in an entirely different place. A bit optimistic perhaps, but it's possible we'll see a Working plant(s) orders beyond our capacity. Joint venture interest from big players. Perhaps a license agreement in either Japan, UK or Europe. A master license giving the owner full control of production & sales in that country / continent would be enormous! I for one would be delighted to see AEG take this approach.
For me, the future of this company is in it's technology, not it's ability to produce small amounts of product. There are many companies better positioned to take on that aspect.
Could we be sitting on the next bitcoin???
Rules for AIM companies (includes information disclosure)
https://docs.londonstockexchange.com/sites/default/files/documents/AIM%20Rules%20for%20Companies%20%2801012021%29_1.pdf
https://www.mainebiz.biz/article/ashland-log-maker-plans-7m-expansion-to-produce-heating-pellets