Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
https://www.youtube.com/watch?v=NYPWI9nKvNI&t=1534s
Ok so this video from 10 months ago is obviously optimistic and has bias but does raise some interesting issues on costs. Particularly:
1. benefits of wet connectors
2. switching for a hydraulic pitch system to electrical
3. issues of problems with the gravity weighted foundations and moving to a monopole design
4. export cables and convertors - beyond my comprehension but there are economies of scale here by sharing these amongst a number of turbines
5. Development of 4MW turbines - the first reference I've seen to this.
They also talk about the tidal side of the business being self-sufficient in terms of revenues and costs.
So from an engineering perspective there is a lot to be positive about if there are costs gains to be had then lessons have been learned and may be just may be the future could be bright. And in terms of backing and financial support if there is a good chance of these gains being made I would have thought Mr Gupta will not want to give up on the business with so much invested already.
As the third (and fourth turbine) have always been expected to be successfully redeployed (and as do believe in relatively efficient markets) I stand by what I said earlier. This was already priced in. I suspect the market as a whole still does not have confidence in the company because of the enormous risk and mistake they made with Uskmouth. With time hopefully this confidence will rebuild and with the company sticking to what it is good at, hopefully we will see the kind of share price that reflects this.
I agree @Pokeface. This was expected and so was already taken into account in the share price. @Tidal-lover's point is how we should be thinking 'we are on the right way'. The turbine is in, cashflows will benefit, we are on a slow but hopefully now steady recovery. This is one for the long term but I think we will get there.
Thanks @Tidal_lover I've been looking out for this news ever since I posted the mariners news last week. So pleased you found the ship! Hope it's the next turbine but there are so many other things they could be doing down there!
I have only just seen that on the 2nd Sept a notice was published that MeyGen will be conducting subsea works from the 16-21st Sept. Anybody know what this is about? Is it significant? I know a lot of related work is going such as researching the impact of the turbines on sealife. If it's a game changer it would be great to hear about it.
I've been reading the comments on SP with great interest. Like others I'd expect it to be better from the excellent news. I can only assume that confidence in the company is still low given the hugely expensive mistake they made with Uskmouth. That and with quite a few senior management changes are probably suppressing the price in my opinion. I think and certainly hope this company has great prospects. I'm holding on the shares I have but am not inclined to get any more. I will hang around though for the long term come rain or shine.
I was looking at another section of the report that quoted 7GWh but on closely inspection said for 21/22 without specifying exactly when. Even with the 4.6 GWh figure (where is it as I can't seem to find it) this still equate to around £35 compared to the £178 awarded in the CFD?
I'm not sure that looking at the historical operating figures of MeyGen is particularly useful in looking forward. As I see it (and I'm happy to be corrected if I've made mistakes) 1. Historical costs are not really representative of the future. There will always be an expensive learning curve with such innovative projects and whilst not quantified this is referenced in the annual report. 2. It appears to me (and again let me know if I've got it wrong) that last year 7GWh were generated earning £1.6M. So I make it £22 per GWh? Moving forward the CFD provides £178.
Whilst the auditor's disclaimer is because of the going concern issue the company is not yet teetering on the edge of bankruptcy as it can (for now) pay its debts as and when they fall due. It is in a far better place to raise funds now it has turbines back in the water and a healthy CFD. (Surely DD was done before awarding this? ) Yes, there is a long way to go and it may well not end nicely but the situation is more optimistic than it has been for a good while and this could end up being a great success story.
Most of this news was expected and already built into the share price. The one that's news to me is the EU grant clawback. Ultimately though the question is how much Gupta is willing to support this business. If he feels there is a long term future then he'll help it ride out the current storm. If however MeyGen doesn't look financially viable then that will be the end. Another question for me is whether the poor balance sheet will affect the ability to gain a cfd award.
As far as I can see this is old news. The RNS and the article both refer to the rescheduling of the Atlantis Ocean Energy Debenture. This was expected to be determined by during the week of the 13th June. In fact the announcement was made on the 10th. Having done that the company then sought to delay the interest payment on the Atlantis Future Energy debenture, but not reschedule the debt repayment. This is what is to be determined this week.
I appreciate anybody's efforts to keep the rest of us informed so as far as I'm concerned, mistakes like this are accepted. (I do find it frustrating that when I do make a mistake on these message boards there is no mechanism to correct it).
I'm another one that bought in, in the 20's so sitting it out. I've topped up a few times (if only to make the percentage losses look smaller!). I suspect we still have a way to go on this one and even though all the signs are now in the right direction we won't see any significant movement until both the Abundance loans and cfd's go in our favour.
Incidentally I bought a few more today but when I checked on the trading record my purchase appeared as a sale. Has anyone else seen this? Is it. an occasionally or one off error?
I thought ROC only increased with inflation? So my estimate would be: previous ROC approx £246 (taking off wholesale price of around £40. So potential payment per MWh 246+150 = 396 - say £400 (ignoring inflation I know). So I'd go with around £4m of income. What do you think?
Very interesting @noisybooy9. And thank you. Where do you get these figures from? Can you also explain what the ROC figures mean?
I reckon with wholesale prices hovering around £150/MWh that means roughly £35k gross revenue for Feb? The Abundance Loans are £4.3M at 8% so interest alone on these will be £344K. A huge amount of capital is going to be needd to develop Meygen so I hope they've got a strong business case beyond this financial set back.,