The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
NRG Energy ($10B) exited the JV last September. WM has the deep pockets, the other partner, VPI, has not.
MM: I agree with you analysis.
One comment: Red Rock will need to prove their operation and its economics before the orders come in. So, I don't expect any revenues for Velocys from that side before 2022...
Did you consider that the ENVIA insurer could go after whoever is responsible for the design of the ancillary cooling system. Velocys? Ventech?
DHC: Here is what you wrote at 8:50: "The insurance product also reassures that the Red Rock deal will be built with our technology and importantly for all concerned - insured."
This is the statement I addressed and called wrong, because TCG took an insurance from NER not Red Rock Biofuels and it most certainly does not deal with our technology/
DHC: However the press release on TGC/Red Rock Biofules is crystal clear about what is covered and who paid for the insurance...I don't see room for a different interpretation.
DHC: here is the link to the press release about TCG & Red Rock Biofuels:
www.marketwatch.com/press-release/new-energy-risk-develops-performance-insurance-for-tcg-global-supporting-delivery-and-installation-of-tcgs-revolutionary-gasifier-2018-06-21
DHC: you reached the wrong conclusion. Have a look at New Energy Risk's website. The insurance does not cover the Veloscys technology, only the TCG gasifier. Its TCG who bought the insurance not Red Rock Biofuels.
"This novel insurance product will cover TCG Global's high efficiency gasifier as it is field-tested and installed, beginning with the Red Rock Biofuels LLC's ("Red Rock Biofuels") Lakeview, Oregon plant. "
I assume that VLS has £18M cash at the end of June. Based on £2.7M at the end of 2017, £18.3M raise and £4.5M revenue from Red Rock Biofuels, and £1.33M cash burn per month. <br />The question is why raising £6M when you have that much cash at hand. What is the rush? <br />At the time of the last raise in January, they had £2.7M cash, which makes perfectly sense...<br /><br />Scoredagainsteps: I meant 12 months.
MM: Velocys never said that ENVIA reached 250 bpd. That was the goal stated in the press release announcing that mentioned they reached 200 bpd. Do you know why they raised 6M now when they should have approx 12 mo cash at hand?
Can't agree more, MM.
The third party consultants have to determine the responsibility for the repair. That is only a first step, next one is the acceptance of their conclusion. This could take a long time if the named responsible party does not accept the conclusion, because this means picking up the repair cost. Or if both parties are assigned a degree of responsibility, they have to translate in a division of the repair costs. Have a look at the pictures of the "Four-core commercial reactor assembly" in Velocys' Image Library to understand that the complexity of the task even if essential parts are hidden...
NC: I agree that we are overdue an update, but the ENVIA plant is fed with landfill gas not wood biomass. The Red Rock Biofuels and the Natchez plants will be wood biomass based.