AGM 2022 Question and Answer Q127 May 2022 01:30
Today, someone asked me about news on wood group and their current role. A good reason to re-watch the AGM video. I also had a look at the Q&A and have seen that there isn’t a transcription of the answer of Q1 available (which doesn’t mention Wood, but corresponds to wood because it’s all about the three UK plants). I felt free to note it down:
Q1: Financial close on the UK projects was delayed to this year. I think all investors are surprised that it would be delayed to h2. Is there any danger it won't be in thus years forecasts?
Q1-part 1: Jeff
I mean the first thing that we have to say is that we have three UK projects now. We deferred two of them at the end of last year. Billingham and Deeside. We did that because at that time we were recognizing new opportunities for them. I’ll come back and talk about that.
The third one of course is in Southport. And that is moving quite quickly. It’s a smaller scaled project, which in a way makes it more attractive, possibly because we can move it along more quickly. But also because it has a lower risk profile as perceived by investors, who are of course critical to us closing these deals.
So all three of those projects are in our forecast for this year. We intend to get revenue from all three of them and we are focused very heavily on that. In fact, we held a workshop last week with 15 people in our company, dedicated to the success of those UK projects.
Now, to get that revenue, the single biggest thing we have to focus on is getting investment into those projects and getting funders who are going to come in and/or lenders who are going to get involved in them. And as you know, it’s a tough market to be doing that. However, for the reasons that David was articulating earlier, the market for small scale localised technology delivery for the kind of energy, that renewable energy, that these plants will produce, is very very strong right now. Also the UK government’s interest in energy security and independence is also stronger than ever. And that plays very very well to what we’re going to deliver. Not only because we can use UK source feedstock: we can use locally source feedstock to deliver local energy solutions.
So let’s talk about each of the projects:
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