Member Info for observer842

WHR is now. This launched a few months ago:

https://www.alfalaval.com/products/heat-transfer/power-generator/e-powerpack/

It's ORC and for larger vessels than we are targeting (initially) but has a very attractive payback time of 2-3 years according to its data sheet. As a reminder:

https://www.inspirit-energy.com/technology/
===[
We are currently working in several sectors to apply our WHR applications and one of these is marine engine manufacture. In November 2020 we agreed a letter of support with Volvo Penta, a major global player in marine engines. We are looking to deliver an adapted Volvo Penta D13 engine incorporating our WHR technology to recover the waste exhaust energy to maximise fuel and cost savings and also reduce environmental impact. We expect to complete these arrangements and start testing in the first half of 2022.
]===

Worth our engineering team (Engineering Manager/Executive Director Paul Booker and likely one other FTE according to the accounts) taking a look through some of the chapters of this report, though some of the strategical aspects may interest our Chairman and Chief Executive Officer John Gunn I guess!

"The future of energy storage: An Interdisciplinary MIT Study" (June 2022)
https://energy.mit.edu/wp-content/uploads/2022/05/The-Future-of-Energy-Storage.pdf
===[
Executive summary xi
Chapter 1 – Introduction and overview 1
Chapter 2 – Electrochemical energy storage 15
Chapter 3 – Mechanical energy storage 67
Chapter 4 – Thermal energy storage 113
Chapter 5 – Chemical energy storage 147
Chapter 6 – Modeling storage in high VRE systems 171
Chapter 7 – Considerations for emerging markets and developing economies 233
Chapter 8 – Governance of decarbonized power systems with storage 271
Chapter 9 – Innovation and the future of energy storage 291
]===

Chapter 4 and 9 are most relevant to us.

Absolutely @maidit. The opportunities are actually quite exciting if our initial collaboration with Volvo is successful and the relationship blossoms. :-) Market totally doesn't get it IMHO, too many previous failures have soured INSP in its eyes... Guess we'll just have to wait and see if we've managed to finally turn a corner with our pivot to WHR, supported by Volvo. Double digit millions have been spent developing the tech over many, many years. If successful, I'm pretty confident we are talking many bags of current mcap! The time is now JG. $$$ ;-)))

I find it quite incredible that our market cap is what? £1.4m, despite carrying retained losses of £4.9m at last count. We are priced to fail. Have been for some time now. Guess we'll just have to see if we have more luck following the pivot to WHR and collaboration with Volvo, than we ever did with the boiler application - though I reckon even that may come off the back burner should hydrogen networks gain traction.

Fingers crossed for a good update the next few weeks!

Ob.

Personally don't think the market is recognising how important our WHR tech stands to be for Volvo's commercial edge. This was added to the website last month:

https://www.inspirit-energy.com/industries/
===[
As well as fuel and cost savings, Volvo collaborating with us for its marine engines thanks to scalability. The unit can be modified based on the heat source or the environment to produce a higher rate of power. They’re currently working on mid-range yachts but our solution can be modified to fit any size vessel and specification.
]===

Hope JG ramps up the interviews on successful internal testing by Volvo, though I'd be happy if we simply sell the IPR to them for a decent out at this stage. Though if this is anything to go by, an investment by Volvo or a subsidiary into INSP itself isn't out of the question if we think we can do better medium to long term than any out on the table today.

"Volvo Energy invests $4.9M in Connected Energy for second-life battery business; 10% stake" (18 June 2022)
https://www.greencarcongress.com/2022/06/20220618-volvoenergy.html
===[
In its mission to support and secure an attractive and sustainable circular business model for batteries, Volvo Energy is investing approximately SEK 50 million (US$4.9 million) for a 10% stake in the UK-based second-life battery energy storage specialist Connected Energy.
]===

Indeed @maidit - product update imminent IMHO, be it good, bad, indifferent or delaying news... Without an RNS to the contrary then this holds from the March RNS: "...we now see having the Volvo Marine application available for demonstration in Q2 of 2022."

Absolutely @Netzero. Wonder if the news will reveal out the power generated and efficiencies measured during testing and what technologies have been included? For instance it would be useful to know if the previously stated 11.68kW includes the additional increase from the novel 3 stage recycling process: "the novel three stage heat recycling process increased engine efficiency by approximately 20%, driven by waste heat from e.g. a Volvo Penta D13 series engine", and additional heat generation from the Inspirit Helix Accelerator "sitting alongside our WHR system, it uses the initial heat source and by exothermic reaction – created by boron oxide and cadmium – increases the heat by at least 26%."

If not, then my estimates of 2-3% of electrical power generation expressed as a percentage of mechanical power might be on the conservative side, 3-4% being possible? Perhaps even 5% at a push? Pretty game changing if so...

From Equation (12) the maximum recoverable energy is 67.8 KW. However since perfect Carnot (Stirling) Efficiency cannot be achieved, The power output can be determined from equation (17)
...
The power output of the Stirling engine system can now be estimated approximately from equation (16):
...
18.45 KW
...
This gives a total conversion efficiency of 11% which is realizable for current low temperature differential Stirling engines. From the above the saving in fuel can be determined as:
...
18tons per year considering 200 days of operation.
...
The reduction of CO2 Emissions is 56 tons/year.
]===

In summary they estimate 18.45kW of generated power from a 578kW marine engine = 3.2% electrical generation expressed as a percentage of mechanical energy.

The figure we have from the 2019 RNS is 11.68kW (no idea why so precise! lol) and more recently it was a marine D13 - we don't know the power, but it's likely in the 400kW to 600kW range: (https://www.volvopenta.com/en-gb/marine/products/inboard-shaft/inboard-shaft-engine-range/d13-mh/ https://www.volvopenta.com/en-gb/marine/products/inboard-shaft/inboard-shaft-engine-range/d13/) weighing around a tonne.

so 11.68kW / (400 to 600kW) = 2% to 3%, which corresponds closely with the 3.2% in the paper.

The equivalent reduction of CO2 Emissions would be 56t/yr * 11.68kW/18.45kW = 35t/yr

However, it's possible recent developments have improved this - e.g. using the The Inspirit Helix Accelerator which "uses the initial heat source and by exothermic reaction – created by boron oxide and cadmium – increases the heat by at least 26%." (https://www.inspirit-energy.com/technology/)

Ob.

Indeed @maidit. I'm guessing many don't want to be out of this at the moment, with "game changing" (https://www.inspirit-energy.com/technology/) news due this month! You might like to take a (re)read of this old article that outlines some of the environmental benefits:

"Improving The Efficiency Of Marine Power Plant Using Stirling Engine In Waste Heat Recovery Systems" (2002)
http://52.172.159.94/index.php/ijird_ojs/article/download/132921/92128
===[
However in the range of 2-5 KW its compactness and ease of operation makes it attractive for use as a WHR unit to charge batteries in small ships, which can later be used to supply power during harbour thereby eliminating the release of exhaust emissions in harbour areas.
]===

and estimates likely power generation/efficiencies from the exhaust gases:

===[
A case study is attempted to estimate the energy available from the exhaust gas of a 500-600 KW propulsion engine and also to estimate the recoverable energy from a Stirling Engine.
...
Engine Power 578 kW
...
From Equation (12) the maximum recoverable energy is 67.8 KW.

2019
"Inspirit Marine - currently in discussion with a large car/marine engine manufacturer to develop a unit for the shipping industry with current output of 11.68kw."

2020
"The WHR system utilises Inspirit's proprietary Sterling engine technology, and its compact nature enables it to be positioned IN THE exhaust system after the catalytic converters with the energy being directly transferred as an electrical output. During the demonstration, the novel three stage heat recycling process increased engine efficiency by approximately 20%, driven by waste heat from e.g. a Volvo Penta D13 series engine. In addition to the efficiency improvement and heat reduction, the WHR system is also expected to have the additional SIGNIFICANT BENEFIT of reducing noise."

2021
"It should be noted that this is by no means an abandonment of our MicroCHP boiler technology AS OVER 65% of the technology for the Inspirit charger is applicable to the marine and waste heat recovery applications"

2022
"We are looking to deliver an adapted Volvo Penta D13 engine incorporating our WHR technology to recover the waste exhaust energy to maximise fuel and cost savings and also reduce environmental impact. We expect to complete these arrangements and start testing in the FIRST HALF of 2022."

I make it 2-3% equivalent additional power generation, which is a decent improvement if low additional cost + other benefits such as lower noise, and compact form/low weight, compared to alternatives. However, it's possible that coupled with the IHA, or as a consequence of further developments it could be significantly higher than this, as noted in the review article I linked to.

We should get an RNS either way soon...

Ob.

Indeed @maidit. Sound like a few are having a hard time understanding what is going on here. This from the updated website:

https://www.inspirit-energy.com/technology/
===[
We are currently working in several sectors to apply our WHR applications and one of these is marine engine manufacture. In November 2020 we agreed a letter of support with Volvo Penta, a major global player in marine engines. We are looking to deliver an adapted Volvo Penta D13 engine incorporating our WHR technology to recover the waste exhaust energy to maximise fuel and cost savings and also reduce environmental impact. We expect to complete these arrangements and start testing in the first half of 2022.
]===

https://www.inspirit-energy.com/our-story/
===[
2022
Deliver product to Volvo for internal testing
Trial unit will be provided to Volvo.
]===

Let me spell it out as I see it. In November 2020 we obtained a letter of support from Volvo and stated "The technology will be tested over the next 12 months and if successful MAY lead to a test of the system in a Volvo engine to confirm the efficiency and output.". Because we have stated that we ARE now going to deliver a D13 for internal testing by Volvo it means that the 12 months of testing WAS successful.

Personally think the market won't believe it until it sees it, but then it will be too late for most... ;-)

Ob.

Indeed @Netzero - from the RNS: "The technology will be tested over the next 12 months and if successful may lead to a test of the system in a Volvo engine to confirm the efficiency and output.".

And as we now know, it the testing over those 12 months was successful as we are now close to supplying a Volvo D13 engine for VOLVO to confirm the efficiency and output. In H1 of this year. i.e. this month if we are still on track. Of course given the secrecy of JG and co, it wouldn't surprise me that the next RNS is the actual confirmation by Volvo of their testing, after all it'll only take them a day or two to get preliminary results, and maybe a week or two to give the nod... Not sure why some think it will be many months of testing by Volvo...

"Changes to Volvo Penta Executive Management Group" (26/04/2022)
https://www.volvopenta.com/about-us/news-media/press-releases/2022/apr/changes-to-volvo-penta-executive-management-group-2/
===[
Volvo Penta welcomes Lennart Börjesson as a new member of its Executive Management Group. As of 1 September, Lennart Börjesson will take up the position of Senior Vice President Planning, Purchasing & Product and Solution Development, replacing Peter Granqvist who will lead Volvo Group’s electromobility technology developments as Senior Vice President Volvo Group Electromobility Technology.
...
“I also want to take this opportunity to thank Peter Granqvist for his outstanding work with both successfully managing the past years of significant operational challenges and laying the foundation for Volvo Penta’s transition into net-zero value chain emissions. We now have a clear path on which we will continue. I’m of course very happy for Peter and I’m really glad that we get to keep him within the Volvo Group”, says Heléne Mellquist.
]===

A reminder...

"Product Update" (3 November 2020)
https://www.inspirit-energy.com/wp-content/uploads/2022/04/Inspirit-Energy-Holdings-Plc-Product-update-3.11.20.pdf
===[
Peter Granqvist, SVP Product Dev. Planning and Purchasing, Volvo commented:
“Inspirit has an interesting proposition with the development of its Waste Heat Recovery technology which aligns with our own aims of increasing the efficiency of the engines we manufacture in support of Volvo’s Agenda 2030 sustainability objectives. On success of the application, we believe this proposal will enhance the development of innovative solutions that will unlock new market opportunities for us particularly for generator sets and marine engines.”

John Gunn, Chairman, Inspirit Group PLC commented:
“We are delighted to have the opportunity to work with the team at Volvo Penta on the development of a waste heat recover system utilizing the Inspirit Sterling engine technology and the knowledge and technical expertise of our teams. We believe the technology will have applications in a wide range of other sectors including commercial and performance automotive, marine and solar and we are hopeful that this project will provide a gateway to working on future projects with the Volvo Group”
]===

The market has completely miss-valued this share IMHO - lack of understanding, belief, and reach... Volvo confirm the efficiency and output of the adapted D13 we are supplying for THEM to test, and we will fly very high. We strike a collaboration or some other agreement and the sky is the limit.

Finger crossed for that RNS in the next few weeks.

Ahem. Corrected the title.

Equivalent of 1% fuel saving would be good, over 5% would be outstanding, anything over 10% would be incredible to the point of unbelievable. My best guess is that we have achieved something in the 2-3% range.

Many years ago when I first invested here it was in some sense as a hedge against the battery/EV revolution. I still firmly believe the world will go near fully Solar/battery, but recent research has led me to believe that there simply has not been enough investment in the mining industry to facilitate this as quickly as I had envisaged, in particular the lithium industry where the lead time from greenfield to product is multiples of that of battery factories. Somewhere in the region 5-10 years.

Therefore rather than divesting from this hedge I'm gambling that now is a good time to double down as the world needs all the WHR it can get, the most efficient technologies will be in high demand, especially given high fuel costs, and I believe the likes of Volvo will be scrambling for our tech if it works so as not to lose the edge.

Sadly, as the negative posters (realists if viewed through their lens!) on here like to remind us, if the history of years of over promising and under-delivering is anything to go by it's a pretty long shot we've cracked it this time. Who knows what the odds are we'll deliver something in the next few weeks, or whether the promise will be pushed back to Q3, and then Q4, I really couldn't say. And if we do deliver, will it be any good? How long will Volvo test it for? Will we ever get to hear the results?

In terms of where the next funds may come from, keep an eye on those options... Will history repeat itself? ;-)

Ob.

There's a lot of activity in the WHR field @maidit! For a fairly accessible recent review take a browse through some of the tables at:

"A recent review on waste heat recovery methodologies and applications: Comprehensive review, critical analysis and potential recommendations" (February 2022)
https://www.sciencedirect.com/science/article/pii/S2666790821003475

I'll be very impressed if we manage to deliver something we believe will be useful to Volvo for them to test it in their labs, and even more impressed if their testing leads them to adopting the tech!

What I wouldn't mind seeing is a YouTube presentation or interview with our engineer (and director) Paul Booker, explaining what we've managed to achieve in terms which a lay person could understand, but doesn't give away too much to the competitors. I've a feeling it's bigger than many realise...

Ob.

Worth a read of the new website end to end. A few oddities in there, but overall very promising unless it's designed to be more wool pulling over tired eyes! Sigh

https://www.inspirit-energy.com/our-story/
===[
2022
Deliver product to Volvo for internal testing
Trial unit will be provided to Volvo.
]===

We will fly on confirmation of delivery, and again following successful testing and agreement. Just a question of how high, and when IMHO. We have to be talking low to middling double digit mcap with enough understanding, reach and belief.

It's also great to see that the engineering aspects appear to be in good hands - he's had long enough taking what went before him and turning it into something useful!

https://www.inspirit-energy.com/our-story/
===[
During development of the Inspirit Charger we recognised that the technology behind it – waste heat recovery (WHR) – was a game changer.
]===

https://www.inspirit-energy.com/our-team/
===[
Paul moved into a design role within the automotive industry working for Renault and Honda before moving into the aerospace industry with Rolls-Royce. He then turned his talents to the MoD where he ran the team that designed and developed the military vehicle, which remains in the Guinness Book of Records as the fastest vehicle from design concept to theatre
]===

These things take time, and sometimes lead down dead ends, many dead ends... I personally think as a company we pivoted a few years back to WHR, though it's possible we'll continue with the Inspirit Charger designed for hydrogen networks if we manage to grow as a company off the back of our relationship with Volvo, so can develop and deploy organically.

https://www.inspirit-energy.com/technology/
===[
We are looking to deliver an adapted Volvo Penta D13 engine incorporating our WHR technology to recover the waste exhaust energy to maximise fuel and cost savings and also reduce environmental impact. We expect to complete these arrangements and start testing in the first half of 2022.
]===

Fingers crossed all long term sufferers (and the lucky few buying in recently!) we complete the arrangements in the next few weeks!

Time to deliver JG. Something, anything! ;-)

Ob.

Thanks for sharing. I personally find it incredible how much "we" appear to be discounting our Sonora JV. Each to their own... ;-)

https://www.reddit.com/r/CadenceMinerals/comments/teo9dk/due_diligence_lsekdnc_cadence_minerals_asset/

Indeed @EV. I've included plenty of links in my due diligence which I've shared at:

https://www.reddit.com/r/CadenceMinerals/comments/teo9dk/due_diligence_lsekdnc_cadence_minerals_asset/

I'll probably review on the next significant news update. Until then, I'm of the opinion that now's a great buying opportunity if you are as confident as I am that @Kiran and the BoD will be delivering substantial value to shareholders buying in below their 29p options, and certainly below the 20.5p placing/open offer over the coming weeks, months and years. The value here is very poorly understood indeed from what I'm seeing, which suits me fine whilst continuing to add ;-)