The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
There are some ‘technicals’ that could turn positive over the next few sessions. If anyone fancies buying some shares above the current sp to start the momentum… Failing that, we might be a bit aimless till policy mandates are confirmed.
I suspect, after the past 12 months, it is difficult to offer projections but think he appears to have tried to cover it here “whilst there is inevitable uncertainty”, and also re “with momentum continuing in the fourth quarter (ending 31 March 2021)”.
Physical shops were open for some of the past 12 months, and about half of H2, including the busy period leading up to Christmas. H2 revenue still rose to £0.95bn.
Can they underwrite the warranty plans themselves? How many items fail within ‘warranty’ and, presumably where applicable, there will be some recourse with the manufacturer? It’s not a big issue for me.
The bits of particular interest to me are a) obviously the growth and b) the comment “…and strengthened the Group's positioning as we seek further growth”; on to the next country/ies??
“Stanlow Refinery owners 'confident' of future amid financial woes speculation……We are fully focused on supporting our customers and industries who rely on our products as lockdown restrictions are eased and we are excited about our plans to decarbonise Stanlow and increase our supply of sustainable fuels, thereby supporting the UK's green agenda."
https://www.chesterstandard.co.uk/news/19231354.stanlow-refinery-owners-confident-future-amid-financial-woes-speculation/
7 April 2021: “Biden tax plan replaces U.S. fossil fuel subsidies with clean energy incentives……The Treasury Department CONFIRMED that the Biden plan includes a blender’s tax credit for sustainable aviation fuel…”
https://www.wind-watch.org/news/2021/04/08/biden-tax-plan-replaces-u-s-fossil-fuel-subsidies-with-clean-energy-incentives/
The chart in this at 15.47 https://www.youtube.com/watch?v=5h889ayAP5s details what can fuel the aircraft industry going forward.
There are feedstock issues. However, MSW and perhaps the likes of woody biomass (eg in the south east of the US), seem plentiful.
VLS seem well placed to capitalise on any policy mandates / incentives / tax credits.
1 April 2021 - Innovations in Sustainable Fuels Webinar Series: Part 4 - Sustainable Aviation Fuels.
00:09:50 - The Altalto Project - Neville Hargreaves, Vice-President, Velocys.
https://www.youtube.com/watch?v=5h889ayAP5s
Usual kinda stuff; some interesting snippets. NH does confirm that “our primary purpose is to license our technology to third parties”.
Lanzatech and Fulcrum also on there.
Old news Expat; it’s been covered before re different scales / marriage of convenience / sole control / etc.
What’s interesting is the increase in volume here from Thursday pm. Interest in the SAF arena is certainly picking up; will VLS have a role to play? Do the buyers of late think so??
5 April 2021 – “With the launch of the sustainable freight flight connection, DB Schenker and Lufthansa Cargo are reiterating their call to other companies in the logistics industry as well as politicians to jointly expand production and infrastructure for Sustainable Aviation Fuel and thus drive forward decarbonization in logistics”.
https://www.intelligent-aerospace.com/commercial/article/14200672/db-schenker-and-lufthansa-cargo-launch-regular-co2neutral-freight-connection-from-europe-to-china
6 April 2021 – “Swiss research institutes join quest to find best green jet fuels”.
https://www.swissinfo.ch/eng/swiss-research-institutes-join-quest-to-find-best-green-jet-fuels/46475618
Good spot, spot!
Has anybody emailed VLS / Radnor Capital to enquire after the FEED?
That might explain matters. They appear to be becoming (even) more politicised; VLS mentioned in this from 25 Mar 2021; https://fieldconsulting.co.uk/field-announces-appointment-of-first-managing-director/
1m trade went through after hours. The stated price was 6p and it was shown on the ‘sell’ side, but the uncrossing trade went through at 6.25p; was this the overhang cleared? Or was the 1m trade actually a buy from some point earlier in the day?
Smashing, thanks.
Ian, can you assist with whereabouts on the Foxtons website it shows details of the sales for the last 60 days? Ta.
In addition to the proposed amendments to the Renewable Transport Fuel Obligation (RTFO) – see earlier post – in the US there is increasing lobbying for a “$2 per gallon SAF blender’s tax credit” – https://www.ainonline.com/aviation-news/air-transport/2021-03-31/us-airlines-commit-carbon-neutrality-2050.
There is similar stuff (also the past few days) in the EU; “but only in a scenario where the provision of renewable energy is rewarded with the generation of tradeable assets with a monetary value proportional to the energy content produced”; https://www.bio4a.eu/2021/03/26/the-state-of-the-implementation-of-saf-related-policy-under-the-eus-red-ii/
Research Tree released a note yesterday – I do not have access to the same – which appears to be along similar lines re “Velocys - Support for SAF Grows”; https://*********************/companies/uk/chemicals/velocys-plc/research/longspur-research/velocys-support-for-saf-grows/59_9f60c202-11e9-44f4-80ec-b18910a93fc4
Policy change is vital to VLS / its projects / its MC.
A couple of bigger buys have gone through today – 333k & 100k.
Expat, it says investors (plural), including the 6 it then names, invested “$24.3m”. Say there are just 7 investors - it could be more - that would equate (on an equal basis) to $3.471m / £2.51m each? Haven’t BA invested £3.4m to date in Altalto? “Invests small change in VLS”??
The piece also says “…while there is no single solution to this challenge"......
https://mediacentre.britishairways.com/news/31032021/british-airways-sets-its-sights-on-zero-emissions-aircraft-as-it-announces-investment-in-tech-innovator-zeroavia-to-speed-up-development-of-hydrogen-powered-aircraft
There are massive opportunities in SAF but VLS – including their IR Team – need to up their game somewhat.
31 Mar 2021: “US airlines commit to net-zero carbon emissions by 2050…… A4A’s declared commitments — which it hopes to see reflected in upcoming infrastructure legislation — include a ramp-up of SAF production to make 7.6 billion litres (2 billion US gallons) available to US carriers by 2030. That would require a massive 84% average increase in production for each of the next 10 years”; https://www.flightglobal.com/air-transport/us-airlines-commit-to-net-zero-carbon-emissions-by-2050/143121.article
I’d been chasing VLS on a few issues for 2-3 weeks – Altalto / Freeport status / Bayou / Poor PR / Etc – and finally received a vague response on Monday from Radnor Capital (IR). Yesterday’s RNS merely highlighted the poor PR. A wasted opportunity.
Re the FEED; Worley’s website remains the same as before re “We’re delivering the pre-feasibility, feasibility and front-end engineering and design packages for what will be Europe’s first waste-to-jet-fuel plant in Immingham”; https://www.worley.com/our-work/clean-jet-fuel
The RNS reference to having ‘opened a Consultation into amending the Renewable Transport Fuel Obligation (RTFO)’. The amendments include a proposal “that RCFs from solid feedstocks are awarded 0.5 dRTFCs per litre, and RCFs produced from gaseous feedstocks are awarded 1 dRTFC per litre”; a proposed policy change and which would be a positive for VLS; https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/974822/targeting-net-zero-rtfo.pdf
Henrik Wareborn, CEO, said: “…Velocys is accelerating into commercial deployment of our technology now after a long period of research and development”.
If he isn’t misleading – “accelerating into commercial deployment” – then there must surely be some news coming, and soon?
Expat, this is from 20 Jan 2021 – although only published yesterday; “DfT's spending over £25,000 for January 2021” – is this the remainder of the F4C Grant re “Rika F4C S2 Grant MS01 38.4k £290,000.00”?
Not sure if it is of interest to Altalto that the “Expense area” is “DG Roads, Places and Environment”?
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/970735/dft-spending-over-25000-january-2021.csv/preview
I also think that the main driver will be the “Migration of entire estate to Morrisons supply” having now been completed, coupled with the more specific “strategic goal of becoming a food-led convenience retailer”.
MCLS (largely) have the stores, locations & customers; hopefully, they also now have a more focused strategy. Improve efficiencies via the sole supply arrangement and with the “greater range of products enabling a more comprehensive grocery offer” – “the strongest revenue performance being delivered with stores with the highest grocery mix” – they should see an increase in visits / customers / spend.
Still can’t find any reference to Peel Hunt having increased their TP to 67p.
Panmure Gordon “NEW ENERGY & CLEAN TECH SEMINAR” can be accessed here; https://www.panmure.com/new-energy-clean-tech-seminar/
Andrew Morris presenting for Velocys. His piece starts around 46mins 30secs and the Q&A starts around 60 mins.
Some interesting bits in there – with CCS the projected 1000 annual Trans-Atlantic flights would become 2500 / waste to be brought in via truck and rail (not 100% clear whether that related to both sites?) – and his comment that “we are looking to bring these projects to fruition in the UK”.
Q4 2021 for the amended date of completion (Lakeview, Red Rock Biofuels) does appear to be correct.
loosely’s link (17.02) included “despite rumors”. I can’t access that link – something to do with the EU – but via a couple of google searches, there is a job advert from 26 Feb 2021 which includes “The site has a planned completion date scheduled for yearend 2021”; https://www.internships.com/posting/sam_f33af5aa5b4416e5
And from 16 March 2021 there is this – cannot access the article for the same reasons – but it presumably relates to the ‘despite rumors’ bit above:
“To aid in the completion of the Red Rock Biofuels facility in Lakeview, the Port of Morrow Board of Directors voted to authorized up to $65 million of revenue-generating bonds for the Red Rock facility, including up to $10 million in private activity bonds from the Port.”
There is also this from 10 Feb 2021; “Red Rock Biofuels in Lakeview has temporarily laid off some of its workers but work is still ongoing at the facility with the goal of construction”.
Looks like Red Rock might have been running out of coin??
Any news re the investor’s day?
Loosely, correct; was trying to cover that re “seeming fairly confident”.
As Fern has just said, construction due to be completed Spring 2021; the website does incorporate aerial footage (video) of the site from Oct 2020 on this page; https://www.redrockbio.com/lakeview-site/. Unfortunately, the latest imagery from google maps is May 2019 (was trying to see if there was any up to date imagery); the construction site is shown in this link: https://goo.gl/maps/6bpfRnJv6rRVuKKZ6.