Member Info for observer842

Anyone else reading the full report at: "H21 Leeds City Gate" http://www.northerngasnetworks.co.uk/archives/document/h21-leeds-city-gate It's fascinating if energy is your thing! If you do decide to read the 382 pages I'll save you a page, skip 54 it's the same as 53. Obviously that's a (true) joke - but I'd love to know if we have some play in this. I know this project is some time off, but as someone who is heavily into batteries (the lithium contained in them), it's making sense to me that energy for both heating and partially for electricity could be delivered by the existing gas networks which are in the process of being upgraded to be able to cope with hydrogen: seasonally storing gas is quite simple. Whereas the TCO of beefing up the electricity grids and sufficient battery capacity to handle heating and transport (EV's) on top of existing electricity demand seems like it won't be cost competitive compared to the already sunken CAPEX in the gas networks which has sufficient existing capacity. And of course this isn't just the UK - it's worldwide! And what do we have again in the Inspirit Charger? World beating technology! ;-)

Whatever is happening - it's behind closed doors all right! ;-)

A must watch for anyone invested in here or thinking about investing in here. Good summary of what is being planned for the UK (and probably world) gas networks over the coming decades: "Watch our H21 Leeds City Gate film" (12th July 2016) http://www.northerngasnetworks.co.uk/archives/9689 === The report finds that converting the UK gas grid to hydrogen will be a major step towards meeting the UK�s carbon reduction targets. Currently, over 30% of all UK carbon emissions come from domestic heating and cooking. A UK-wide conversion to hydrogen gas will reduce heat emissions by a minimum of 73% as well as supporting decarbonisation of transport and localised electrical generation. === I do hope our bod are all over this: being able to locally generate electricity cheaply and cleanly from hydrogen, as a side product of heating the home/business, to charge electric vehicles/batteries is very likely the near/medium term future for countries with a sunk cost existing gas network infrastructure. What I like very much about this "plan" is that although, understandably, the industry expects to be making the hydrogen from natural gas in the near term (capturing the carbon in the process), what they neglect to consider is that medium term, and certainly long term IMHO, it's quite likely that a large fraction of the hydrogen will be made directly from water using excess solar energy in the summer months - seasonally shifted (stored) to the winter months. Hopefully I'll get a chance this weekend or sometime soon to read the in depth reports from July at: "H21 Leeds City Gate" http://www.northerngasnetworks.co.uk/archives/document/h21-leeds-city-gate Bottom line: mCHP very likely has a future in a de-carbonising world. And we have a product which can very easily be adapted to run on Hydrogen, since it runs on "heat" not any particular fuel. "The Future Of Gas" (April 08, 2016) http://www.inspirit-energy.com/article/3138700-the-future-of-gas === If projects such as the Leeds city gate hydrogen project take off, then our Stirling engine could be adapted to run on hydrogen. ... That�s why we talk about microCHP being the next generation boiler, a straightforward replacement for or addition to existing boilers with the significant benefit of low carbon electricity being generated at the same time. We believe that gas will be around for many years yet, certainly long enough to power the next generation of heat and power boilers. Great potential is there for that gas to be increasingly low carbon: a win-win for our technology and for the environment. === So why the silence? Biding our time? Talks taking place? Licensing? Funding? Tweaking the design? Module to locally capture the carbon? Now that would be a blinder - it's not as if we don't have "free" electricity to power the process. I wonder...? World beating! Ob

Absolutely @steveho. Very surprising no official comment on the FitS - news blackout indeed! Either very good, or, well you know... I'm choosing the former. You just know these guys are plotting behind the market's back...! ;-) And besides, fortune favours the brave! (probably...) Good spot re the mail article. I didn't stumble across that when re-researching this company the past month. 10 units they say - I wonder if they have been built and distributed (under NDA if so I'm guessing - or we would have likely heard about it - not sure why so secretive though if so...): "SMALL CAP IDEAS: Big market awaits for combined heat and power boiler specialist Inspirit Energy" (6 June 2016) http://www.thisismoney.co.uk/money/markets/article-3627456/SMALL-CAP-IDEAS-Big-market-awaits-combined-heat-power-boiler-specialist-Inspirit-Energy.html === Inspirit is currently concluding the certification process for its state-of-the-art boilers before releasing ten units for commercial use with ‘high-end customers’. === What we have here is world beating! I'm starting to think about upping my opinion from Buy to Strong Buy, but I'm not that brave - yet! First sniff of good news and this share could fly. En Garde ;-) Ob

Looks like the economics for Flow don't really work even with FiTs in the current environment...: From this morning's RNS: "MicroCHP Feed-in Tariff (FIT) update" (09 February 2017) http://otp.investis.com/clients/uk/flowgroup/rns/regulatory-story.aspx?cid=1746&newsid=842725 === The Company continues to believe that the increase in manufacturing costs of the Flow microCHP, caused by the recent fall in the value of Sterling against the Euro and the US Dollar, makes the microCHP model uneconomic in the UK market in the near term. === Just not economical for them - that's because they have an *inferior* product to us. 14kWh(t)/1kWh(e) compared with 15/3 (or 15/2 with FiTs) for us just does not compare! I say again: 3.1 years pay back. Has our hand been bitten off yet!? ;-) Now where is our RNS? Come on. Wakey wakey. ;-) Ob

And not forgetting this from mid last year - I notice the little dig at our peers who are exposed to exchange rates...: "What does ‘Brexit’ mean for Inspirit Energy?" (July 08, 2016) http://www.inspirit-energy.com/article/3261186-what-does-brexit-mean-for-inspirit === From an Inspirit Energy point of view we have limited currency risk. Currently, all of our input costs are sterling denominated, almost all of our first year sales are expected to be to UK customers and sterling denominated and our supply chain is predominantly UK based. As a result there are no obvious, short-term impacts from this currency realignment and, if anything, we are more insulated from this than other companies in the industry. Even better, the fall in the value of sterling makes our products more financially attractive abroad in markets such as Europe and North America. === OK I'm excited, but even now I realise I might be wishful thinking! But even if so and it's as bad as a 50/50 chance INSP goes belly up - I'd say with a 10x multi-bagger or higher on the cards (again - see earlier posts!), it's worth getting excited over! Come on John Gunn. Do us proud and get something to market 2017/18! ;-) Ob

Another coincidence - Flow released an RNS this morning - on the same day the government *finally* responded: "Update" (Wed, 8th Feb 2017 07:00) http://otp.investis.com/Utilities/PDFDownload.aspx?Newsid=842423 === MicroCHP and strategic review update As previously announced, the ongoing review by the Department for Business, Energy and Industrial Strategy (BEIS) into the microCHP Feed-in-Tariff (FiT) has had a major impact on our business due to the consequent uncertainty around continuing FiT support. In addition, we have seen a significant increase in manufacturing costs of circa 17% due to the fall in the value of Sterling against the Euro and US Dollar. We initiated a strategic review of our microCHP business in September 2016 and reported back on its progress on 16 November 2016, laying out several possible options. Whilst the uncertainty of FiT support remains, and with increased manufacturing costs, the Board has reconsidered the business plan for microCHP as we believe that it is uneconomic in the UK market in the near term. === That leaves the UK market *wide* open to us. Now get those boilers out there pronto. 3.1 year pay back. 3.1 year pay back! ;-) Ob

Well since you asked... ;-) The long answer is take a look back through my posts from the beginning of the year! The short answer is we have a superior product to what is currently on the market. It's all about the heat to electricity generation ratio. Take Flow for example, they have a ~14kW heat and ~1kW electricity offering. Do you know what INSP has *demonstrated* for our Stirling, sealed for life, engine? 15kW heat and *3kW* electricity. That makes us a far more attractive proposition whilst electricity prices are significantly higher than gas prices - which they have been and currently are (read back through my posts). It's all in the pay back time. Take a look at the Align Research report from the summer: http://www.alignresearch.co.uk/wp-content/uploads/2016/06/Inspirit-Energy-Align-Research-13th-June-2016-Final.pdf A pay back time of 4.9 years without FiTs and 3.1 years with FiTs. You can Forget about the upfront costs, they are mostly irrelevant since as reiterated as recently as December in the annual report: http://www.inspirit-energy.com/investors/results-reports-presentations === We remain focused on small commercial boiler rooms as our launch market where the Inspirit Charger will have greatest impact in the shortest time and we continue to see substantial interest in adopting our technology amongst key potential customers. === We are targeting *Commercial* customers, i.e. customers who would very likely have no problem arranging suitable financing (assuming we didn't offer this as an option) to realise immediate savings from day one - see my earlier posts. And FiTs... The canny investors here probably realise that this is very likely the reason we appear to have "stalled": although we don't *need* FiTs to make a success of our product, the governments consultation has added a certain air of uncertainty for which we need patience to hear the outcome which should be any day now: https://www.gov.uk/government/consultations/review-of-support-for-anaerobic-digestion-and-micro-combined-heat-and-power-under-the-feed-in-tariffs-scheme Well that's a coincidence! It ended today - and the conclusion is... I'm not going to spoil it for you - it's an exciting read. DYOR! (we contributed to the report - take a look in the appendix) Although I'll say this: that 3.1 year pay back with FiTs is looking a *very* attractive proposition from where we stand today! ;-) Ignore the "the share price says it all" types. Share price is sentiment driven, volumes have been ridiculously low (only stressed/nervous sellers - the brave/patient hold/buy low), and as we know, the sentiment on this board has been a bit off the past year or so, but equally as we all should know, sentiment can, and often does, spin on a dime! Presumably we'll get an RNS in response to this news. We better do! ;-) Ob.

I'll tell you what's beyond terrible. Your apparent blatant one-sided biased attempt to destroy this company. It's almost as if... dare I say it, you don't want INSP to succeed! ;-) Now why could that possibly be I wonder? Go on do tell. Flow? ;-) Of course if I've got you wrong, then how about next time you post here, try to be a bit more... balanced with your views shall we say, you know, throw in a few positives - such as: I suppose it is possible the company could be in the process of being sold, hence why the silence. You'll sound much more credible that way: otherwise it's a massive "beyond believable" - followed by a massive "beyond terrible" from me! ;-) Oh - and of course we'll need to place soon - I don't think there is any denying it: how could we possibly get the product to market otherwise!? Unless we are about to sell to the highest bidder of course... Ob.

In the interests of transparency I just posted this on the OCT board: ===== Thought I'd mention that if INSP goes belly up, I believe OCT gets to own its assets as from page 35 of the INSP annual report: http://www.inspirit-energy.com/investors/results-reports-presentations === GIS holds a fixed and floating charge over all the assets of the Company. === ===== I've known this for some time, and I've been tempted to invest (more? I'm not telling!) into OCT as a safeguard against losing INSP to OCT - but I decided that if INSP does go belly up either because we can't raise funds or via corporate engineering (TM), it's pretty much game over for INSP in my mind. And if it is the latter, I would have lost all faith in those pulling the strings and my appetite to invest in them, that INSP would be dead to me ;-) Bottom line: it's INSP for INSP. Now let's get a move on - surely more than just me must get it - although admittedly those I talk to need to have it explained to them. I suppose it isn't an obvious proposition: creating electricity from gas cheaper than you can buy it. How can that possibly work!? ;-) Ob.

Thought I'd mention that if INSP goes belly up, I believe OCT gets to own its assets as from page 35 of the INSP annual report: http://www.inspirit-energy.com/investors/results-reports-presentations === GIS holds a fixed and floating charge over all the assets of the Company. ===

The business case for INSP gets more attractive every day! "Npower facing backlash over energy price rises" (3 February 2017) http://www.bbc.co.uk/news/business-38852517 === The company will raise standard tariff electricity prices by 15% from 16 March, and gas prices by 4.8%. ... EDF cut its gas prices by 5.2% last month, but will raise electricity charges by 8.4% from 1 March. === For consumers - electricity is round about 12p per kWh and gas is about 3p per kWh - before VAT, and this difference is currently widening. In term of businesses which are likely more relevant for us initially - take a look at: "British Business Energy - Electricity & Gas Price Comparisons" (25 January 2017) http://britishbusinessenergy.co.uk/electricity/ === In the example above, prices vary between a low of 17.38 p/kWh in Merseyside & North Wales all the up to 24.77 p/kWh in the East Midlands, a difference of 42.5%! === http://britishbusinessenergy.co.uk/gas/ === 2.48p to 6.96p/kWh === http://britishbusinessenergy.co.uk/wholesale === At the start of 2016 the spot price of electricity was around �30-�35 MWh, this is much lower than the �55 MWh rates seen just a couple of years ago. Wholesale gas has traded as low 37p per Therm or �12.63 MWh down from a high of over �29 MWh in 2008. === According to: "Historical Natural Gas Prices" http://www.energybrokers.co.uk/gas/historic-price-data-graph.htm wholesale gas prices have increased from a minimum of around 27p per therm in April 2016 to 53p today - an almost doubling from 0.92p/kWh to 1.8p/kWh whereas from: "Historical Electricity Prices" http://www.energybrokers.co.uk/electricity/historic-price-data-graph.htm wholesale electricity prices have approximately doubled from around a minimum of around 3p/kWh in April 2016 to around 6p/kWh today. The graphs can be compared here: "Historical Electricity and Gas Prices" http://www.energybrokers.co.uk/electricity/historical-electricity-and-gas-graph.htm The point being that although both wholesale gas and electricity prices have near doubled over the past year, with associated retail price increases, because the absolute increase in electricity prices has been greater than the absolute increase in gas prices, our business proposition has strengthened. Now get targeting companies in the East Midlands already - surely they should be biting our hands off at the opportunity to generate their own electricity at around 5p per kWh rather than buy it for around 25p/kWh! ;-) I want to invest more in here, potentially much more if some of my other investments come good, but I need confidence, and indeed reassurance, that all is well and progressing to schedule, albeit perhaps a little more slowly, before doing so. I can see how what we have has the potential to be massive! ;-) Come on John Gunn - get a move on and make INSP great!

Thanks again, and of course if anyone believes to the contrary, do say! ;-) Ob.

Thanks @dickies. Found what I was looking for (with your help): "PROPOSED ACQUISITION OF GLOBAL INVESTMENT STRATEGY UK LIMITED" (June 2015) http://www.octagonalplc.com/docs/default-source/default-document-library/aim-admission-document.pdf?sfvrsn=4 === Shareholders should note Global Investment Strategy's holding of 54,481,404 ordinary shares in Inspirit Energy Holdings plc ("Inspirit") === So combining that with the July 2015 placing: "Inspirit Energy Holdings plc: Placing and director deals" (17 July 2015) http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/INSP/12430249.html === Inspirit Energy Holdings plc, the AIM listed developer of micro combined heat and power boilers, is pleased to announce that it has raised £365,000 through the placing (the "Placing") of 77,659,570 ordinary shares of 0.1 pence each in the share capital of the Company ("Ordinary Shares") at 0.47 pence per Ordinary Share (the "Placing Shares"). ... John Gunn, the Company's Chief Executive Officer, will participate in the placing by investing £75,000. Of this investment, £50,000 will be invested by Global Investment Strategy UK Limited ("GIS") which is a 100% owned subsidiary of Octagonal Plc (OCT) of which John Gunn is Chief Executive Officer and 52.44 per cent shareholder, as a conversion into Placing Shares of an existing loan, and £25,000 will be invested by John Gunn directly in the Placing. === (50,000 / 365,000) * 77,659,570 = 10,638,297 and the May 2016 placing: "Inspirit Energy Holdings Plc: Placing and director deals" (17 May 2016) http://www.inspirit-energy.com/investors/rns-news-detail.html?id=13372300 === John Gunn, the Company's Chairman and Chief Executive Officer, is Chief Executive Officer and 52.44 per cent shareholder of Octagonal Plc ("OCT"). Global Investment Strategy UK Limited ("GIS") is a 100% owned subsidiary of OCT. GIS will be investing £50,000 in this placing by subscribing to 10 million Placing Shares and will also receive 5 million Warrants. As a result of the above transaction, John Gunn will be interested directly and indirectly through GIS / OCT in 370,029,580 Ordinary Shares representing 39.5 per cent. of the Company's enlarged issued share capital. === 54,481,404 (from GIS acquisition document) + 10,638,297 (from 2015 placing) + 10,000,000 (from 2016 placing) = 75,119,701 So it appears that unless some have been sold, which I can find no evidence for, of the current 374,029,580 shares, representing 39.9% of the company, assigned to "John Gunn" at: "Number of Securities" (7 Dec 2016) http://www.inspirit-energy.com/uploads/results_reports_presentations/1483098697-a75cfa2fb6552ea57/AIM%20Rule%2026%20Capital%20Structure%207th%20December%202016.pdf 75,119,701 (8.02% of the company) are OCT's. Thanks again, and of cours

Hey @Bigdaddyian I think you are the second person to quote this "GOING CONCERN" in the most recent annual report. It's slightly baffling since the company accounts have been prepared on a going concern basis since its inception if I recall correctly - it's the nature of the company at its stage of product development. We *will* have to raise funds for product development, ongoing staff costs, marketing, etc, etc. This is a given, and anyone investing here will know this, or at least they very well should! ;-) Here is a recent article discussing the nature of "going concern": "Guidance on going concern for companies" (Nov 10 2014) http://stevecollings.co.uk/guidance-on-going-concern-for-companies/ === Under the going concern concept, it is assumed that a company will continue in operation for the foreseeable future and that there is neither the intention, nor the need, to either liquidate it or to cease trading. ... There is no one-size-fits-all where the assessment of going concern is concerned and directors of all companies are required to make a going concern assessment. The directors of a company cannot use the going concern basis of accounting if they intend to cease trading, or go into liquidation or they have no realistic alternative but to do so. === So in principle - ahem - there are no plans to cease trading or to go into liquidation. Of course there may be "other" plans which might not play out so well for shareholders, but since John Gunn himself is a very large shareholder (39.9%) - unless INSP is sold to another company in which he has a large financial interest, getting a good sale price will be in his, and thus, all of our best interests. But that is a far too logical an assessment for AIM! ;-) The same goes for raising funds as noted by the Align research note: "On the cusp of cogeneration commercialisation & trading at a fraction of replacement IP cost" (13th June 2016) http://www.alignresearch.co.uk/wp-content/uploads/2016/06/Inspirit-Energy-Align-Research-13th-June-2016-Final.pdf === Inspirit's current market capitalisation of £3.89 million represents just a fraction of the money spent on developing the technology over three decades. Competitors have spent sums in the tens to hundreds of million pounds on their technologies, which gives some idea of the cost of development from scratch (and not considering the time involved). Consequently, we believe that the company may be attractive to competitors given this commercial consideration. As John Gunn holds a major stake he has influence to extract a decent price and we doubt it is anywhere near the current valuation. === So I'd say it's either a hold and wait to see how this plays out, or if you have an appetite for risk, it's likely a buy, potentially a strong one given the potential! The outcome depends on what's being planned behind closed doors really... ;-) Ob.

Thanks @steveho - that is about as much as I found out too. Did OCT/GIS have a commercial interest in INSP before then is the question...?

Loads of excitement in the build up to the AGM tomorrow I see...! ;-) Seriously INSP - just keep us informed: good or bad, we want, no, deserve to know. I have other questions, but let's focus on the most obvious one: "Successful completion of internal testing on Inspirit Charger" (17 December 2015) http://www.inspirit-energy.com/investors/rns-news-detail.html?id=13277784 === The board is delighted to report that the appliance has met or exceeded all internal quality requirements for safety, reliability and durability. ... The significance of concluding this test phase should not be underestimated given the superior performance of the Inspirit Charger versus the current competition. === All good so far, but then this in the same RNS: === Enertek will complete safety and performance testing during January and February prior to EC Certification via BSI Certification which involves testing the appliance to European Standards covering gas safety, electrical safety and thermal/electrical efficiency. Once certified to the relevant European Directives the Inspirit Charger will be released for field trials. === So what happened? Have Enertek completed their safety and performance testing or not? Well according to: "Interim Results" (15 March 2016) http://www.inspirit-energy.com/investors/rns-news-detail.html?id=13329956 === Enertek International, based in Hull, is our partner for independent third party testing and is one of only two UK based engineering laboratories capable of fully testing microCHP appliances. The results of the tests will allow the Inspirit Charger to obtain certification for field trials, which are due to commence in Q2 2016. These are necessary steps the Company must take in order to prove its product reliable and safe ahead of market launch. === So commencing in Q2 2016 after all - but we still haven't heard the results of these. Has there been a "misunderstanding" along the way between us and them? The annual report seems fairly up beat: "Audited results for the year ended 30 June 2016 and Notice of AGM" (30 December 2016) http://www.inspirit-energy.com/investors/rns-news-detail.html?id=13506887 === The progress over the last year has been extremely positive. We are well positioned at the forefront of mCHP boiler technology and I firmly believe we will continue to make great progress in 2017 and beyond, in achieving our goal of technological commercialisation. === but no mention of "Enertek" anywhere... If anyone does attend the AGM tomorrow - it would be great to hear from you on here. Give a good prod from me! ;-) Come on JG - throw us a bone. Ob.

I'd be grateful if someone could shed light on how many shares OCT (or GIS?) directly own in Inspirit Energy (INSP). From: "Number of Securities" (7 December 2016) http://www.inspirit-energy.com/investors/aim-rule-26 === Name: John Gunn (Chief Executive Officer) Number of Shares: 374,029,580 Percentage of Issued Share Capital: 39.9% === It is unclear to me whether those are all owned in his personal capacity, or on behalf of OCT/GIS - or some combination. I had a quick scan through various OCT documents but couldn't spot anything. Rather than spend time digging deeper I thought I'd ask! ;-) Ob.

@graham-wales. I know the history of this company - I've read the RNS's and the previous companies RNS's... Take a look at the recent thread "INSP history". Sometimes time-lines are somewhat "optimistic" shall we say. But progress has been happening over the past few years. Unless of course you don't actually believe anything we have been told such as: "Placing and director deals" (17 May 2016) http://www.inspirit-energy.com/investors/rns-news-detail.html?id=13372300 === Since the last placing on 17 July 2015 the Company has completed the development of its micro combined heat and power boiler, the Inspirit Charger, on which a European trademark has been awarded, successfully completed internal testing and commenced the accreditation process for field trial units with Enertek International. The funds raised will allow the Company to finalise the accreditation process and commence field trials with field trial partners as well as providing working capital for the Company's continuing development. === and from the annual report: === The Company also announced it entered into a collaboration agreement with the Chartered Institution of Building Services Engineers (CIBSE) to produce a formal peer review, by evaluating Inspirit's micro-CHP boiler, the 'Inspirit Charger', against other micro-CHP products currently available in the market. CIBSE provide project management, execution and implementation in order to gather the data necessary to produce a report. The Company will provide access to its field trial data as well as offering technical and commercial guidance. It is expected that the final report will be published by the end of 2017. ... The Inspirit Charger has now completed several internal trials with thousands of hours of rigorous testing and the Company has demonstrated that the appliance will meet not only market requirements, but also our quality objective of creating a product which is "sealed for life". === To answer your question on field trials. I believe we are on the cusp of starting. I presume we are still waiting on Enertek: From Align's report: === The results of further tests with Enertek - which are currently being carried out, will allow the Inspirit Charger to obtain certification under the relevant EU law (Gas Appliance Directive) so it can then undergo field trials with commercial partners. These are needed to prove that the Charger is safe and reliable before being launched in to the market place and it is planned to commence with 10 initial customers, which includes major utilities and retail chains and in commercial plant rooms and domestic properties, by the 4th quarter of this financial year (to June). === I couldn't argue that more information would be useful! But I suppose we have just had the annual report which claimed progress has been good over the past year - extremely positive in fact! ;-) Ob

@stage1974, I guess you saw these figures in the Align report: "On the cusp of cogeneration commercialisation & trading at a fraction of replacement IP cost" (13th June 2016) http://www.alignresearch.co.uk/wp-content/uploads/2016/06/Inspirit-Energy-Align-Research-13th-June-2016-Final.pdf === Smaller commercial without FiTs Electricity output:: 3kW First year saving: £2,082 Installed price: £11,500 Payback (years): 4.9 === Less than 5 year payback *without* fits. And with: === Smaller commercial with FiTs Electricity output:: 2kW First year saving: £3,611 Installed price: £11,500 Payback (years): 3.1 === We *don't* need FiTs to be very profitable. It's just a nice bonus if the government wants to lend a hand... ;-) Ob.