Thank you for the Investing reference. Has anyone yet come across any piece which actually explains precisely what the German government has done which has stalled Red's German deal? I have tried to Google it unsuccessfully.
I stand with you, Murdo: the business is sound and the management is honest. Revolutions such as the one that is now in process take a long, long time to reach fruition, but the tide has now turned and we will not have long to wait before another significant order comes in. As for the recent order, it is creating a 25 year utility asset - even pension funds will be in the queue to finance it.
Nice find - I didn't spot the link up when I first saw that article. But see http://www.gfgalliance.com/an-integrated-approach/energy/ for more interesting connections. This guy is very serious about sustainability for heavy industry, and reliable storage is key to that goal. Simec could feature quite large in the Redt story from here on....
This is the kind of news the market needs to wake up to the potential of storage, lithium or VRB - real technical data. http://reneweconomy.com.au/tesla-big-battery-moves-from-show-boating-to-money-making-93955/
I'm going to be optimistic so put me down for 22p please.
I am assuming from my understanding of what Scott said at the Olde House that the Gen 3 design was signed off by the end of 2017 and will be incorporated in fulfilling any new orders received from now on.....What do others think?
Atlanta Hartsfield-Jackson airport definitely needs a REDT energy storage machine.....and so do all the other airports and public facilities for which an outage like that could be incredibly damaging.
Article in Clean energy - De-rating of battery projects to be cut by 80% in upcoming capacity market auctions - explains what is going on. I believe this is hugely good news for Redt. Playing-field has been re-landscaped. BEIS appears to be on the ball and are saying it is not acceptable to gamble with security of supply at the expense of electricity users. About time!
I think we suggested that to Scott at the Investors' Day at Olde House.
'Mid-teens' rate of return is especially impressive when you recall that this is a non-optimised machine in the sense that the kit was not originally configured for the Olde House slot.
I see that Younicos - mentioned in connection with Red Dot Power as providing the flow battery in the Singapore trial - is/was linked up with Gildermeister Gmbh, and was itself bought out in July 2017 for approximately $52m by generator rental firm Aggreko, which is based in Scotland..... https://www.greentechmedia.com/articles/read/younicos-acquired-for-52-million-by-rental-power-firm#gs.g3CyQAE . I wonder if this project will be needing a new storage machine provider?
Again, mind the words used: 20% of what? In the case of the trading revenues, it would presumably refer to 20% of the revenue earned for the customer by trading their energy, not anything to do with the capital cost of the machine. I would also mention that another underappreciated revenue stream stems from the rent for the electrolyte which, I understood, would be the normal business proposition going forward.
I loved the bit about taking a margin on the energy trading revenues. Of course, Redt isn't an energy trading company, but they sure know someone who is - and so do we. I believe I heard Scott mention the name Camco in this context.
I agree with Old Fool entirely. I think that focusing on Gen2 margins is a mistake. Gen 2 is an essential developmental stage. There are at least 5 other possible revenue streams for Redt besides a margin on the sale price - and those streams flow for 20 years+ so are not to be dismissed. But apart from these actual revenues, there are other important requirements for the survival of the business at this stage which Gen 2 meets admirably. Gen 2 has allowed them to pitch the machine at the price at which they believed the market would begin to buy it, while allowing the time for the education of the market, the building of the team and, most importantly, time for the completion of the design for Gen 3 which will incorporate sufficient improvements to give a reasonable margin. Maintaining a steady flow of production is far more important than having a nice fat margin but hardly selling any units. Production staff have to be trained up and once trained must be kept employed or they will disperse and the training so far will be wasted. Gen 3 is on the horizon. The design is due to be finalised very soon, and then it will move forward to production some time next year, and that will take care of the margin. Meanwhile, they will have got machines out there for people to see - never underestimate the importance of that. Tomorrow alone, some 30 or 40 potential buyers will get much the same tour as we got. And I don�t doubt that they will be impressed by what they see.
You have to choose your words carefully: the machines are there, all rigged up and working as required. But the installation still has to be signed off by Western Power, which will happen before much longer. Scott was there, showed us the insides of one of the boxes and gave a clear and detailed presentation.
Not at the Olde House, it wasn't! The sun shone and we had an excellent day. Only comment I'll make at this stage is that I came home, put the kettle on and broke open my piggy bank to put the meagre contents into a few more REDT shares before close of business. Nothing new was said, you understand; but the concise and articulate restatement of the salient facts at the right moment in time can be extremely persuasive.
Given that Scott had just been talking about the capacity of the Monash machine in kWh, I took it that the hundreds of millions of units reference was to kWh - and is surely a reasonable estimate of the capacity required to bring the Aussie grid up to standard.
Was that 750,000 bargain that has appeared as a buy at the end of the day actually a sell as, at the time the bargain was struck (12.16), 11.75 was at the bottom of the bid range? Or did the deal occur on a previous day, so doesn't contribute to today's totals?
The all-energy report of May 22, 2014, mentioned before on this site, p.13 sets out progress to that date, and also gives us a glimpse of all the things that could go wrong to delay the timetable for Gigha. Just look at how many organisations have to be co-ordinated to get the storage facility on the ground and working. It must be like herding cats to manage this project, so slippage would not be surprising. I would not be surprised if we had to wait another three months for some excitement - but I'm sure it will come. Maybe from elsewhere first?