Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
Very much looking forward to some further details on the land lease for Uskmouth BESS, especially after reading this a couple of months back:
“Gerald Eve are delighted to invite proposals on a battery energy storage system (BESS) ground lease investment. BESS is a critical pillar in the energy transition and essential to reaching Net Zero. The project is being developed by an experienced, well-funded, ESG investment manager and will occupy a 9-acre site on a 30-year groundlease at an initial rent of £821,000 subject to annual indexation.”
https://www.linkedin.com/posts/delia-batt-5b43b9b3_net-zero-investment-opportunity-gerald-activity-7053747659169239040-OSAP?utm_source=share&utm_medium=member_ios
OHS
Great confidence boost:
“In previous years, the Company satisfied its short and medium-term funding requirements through a combination of equity and debt. Management’s forecast through to 31 July 2024 anticipate revenues from trading will INCREASINGLY meet the working capital requirements of the Group.”
OHS
Now that is a very welcomed RNS. The Report itself is stacked with a load of additional details and pipeline plans also. Quick glimpse highlights for me were:
287MW BESS plan at MeyGen
Recently signed a variation to the 230MW for an extra 100MW
Head of terms for land lease options are agreed with the 120MW BESS developer (ENSO?) - Emphasis on ‘co-developing’
2 other BESS projects are being discussed - assuming the 120MW is one of them, there is another one potentially in the pipeline - This will bring more upfront land parcel payments for SAE, further monetisation of land leases based on £/MW capacity as well
OHS
A welcomed update to begin the week. In typical fashion; short, sharp and to the point, with little other info divulged.....but do they really need to divulge anymore? It's all out there in the public domain....
For those who perhaps don't share my interest in Uskmouth over Meygen and haven't delved into the tinterweb searches that I have, the £4m payment is the development premium for reaching financial close and entry into a lease on Uskmouth's BESS project (30th Aug 2022 RNS). This is very good news (imo) - it de-risks a number of uncertainties, not just for the Uskmouth site but for SAE as a whole, and adds a good foundation to stabilise as a going concern, going forward. I'm very much looking forward to reading any additional details on the lease aspect and whether they'll mention the recent 2022 T-4 auction results where Uskmouth BESS has been allocated 53MW capacity for a 15 year duration at a price of £63/kW/Year? from 2026/27 onwards?:
https://www.emrdeliverybody.com/Capacity%20Markets%20Document%20Library/T-4%20DY%2026-27%20Final%20Auction%20Results%20Report%20v1.0.pdf
This isn't even a 1/4 of the capacity Uskmouth will be able to store. Hopefully further capacity auctions will utilise Uskmouth's planned capacity, not just for the 230MW site but for the 100MW extension to it, the additional 120MW BESS project that is planned for the old cooling towers site..... and whatever else they have in the pipeline
OHS
Strangy - they’re not building a 460MW BESS, they’re building a 230MW BESS with the capacity to provide 460MWh during their proposed 2 hour duration
OHS
LittleG - ref you 6th July post at 12:08: “The existing BESS lease agreement appears to cover the currently approved scheme for 230MW and an extension to 460MW, so that scheme and the more recently proposed one account for more than half the 1GW plan.” - I didn’t twig at first but having gone back through my research I think your reference to the 460MW may be regarding Quinbrook building a 230MW/460MWh BESS. The 460 part is the 460MWh (hours) that the 230MW BESS is going to be designed to produce, as they are opting for the 2 hour duration capacity. In simple terms; MWh (MegaWatt hours) is the capacity in MW x the duration in hours (h) = 230 x 2……This isn’t me teaching you to suck eggs by the way! This is a generic explanation for all who visit the BB to read if they are following these posts
OHS
Auto correct made a complete cluster of this line “ Bari my in my there will also be fire it’s auctions” which should have read “Bearing in mind there will also be further auctions”
OHS
Morning littleG - yes, I recalled that 85/15 split but didn’t want to correct you as it was a fairly irrelevant difference in the grand scheme of things. I too was unsure as to whether the £40m was before or after the split, which is why I didn’t mention it in my earlier post. I do concur though with your point about double dipping - I agree that the £10m is part of the £40m so many thanks for posting. Whilst we’re on the topic of figures and calculations, I’d welcome your thoughts and any calculations on the following T-4 auction where Uskmouth BESS has been allocated 53MW capacity for a 15 year duration at a price of £63/kW/Year? from 2026/27 onwards?:
https://www.emrdeliverybody.com/Capacity%20Markets%20Document%20Library/T-4%20DY%2026-27%20Final%20Auction%20Results%20Report%20v1.0.pdf
Bari my in my there will also be fire it’s auctions and capacity at Uskmouth should only get bigger - 53MW Is 1/9th of what their currently planned short term capacity plan of 450MW (230+extra 100 extension + 120 other BESS)…….not forgetting another 500+ up to the 1GW
OHS
Absolutely no idea why my post has been changed to lower case for every Upper Case letter I typed??!!
OHS
morning mt - everything is always subject to change but if we stick with a '*** packet' calculation based on what is known via media releases and rns, it's something like this:
circa £40m in revenue over 30 year licence - this is on top of the following:
£6m already received (milestone achieved - grid connection agreement to eos) - aug 2022
£4m due on financial close of the project and entry to the lease (development premium) - £2m of this was paid to simec group to pay off convertible loan so no outstanding loan with them anymore
seeking £11.8m (offers in the region of) for the land lease for bess - this will be used to pay off £4.97m (afe 2018 debentures)and £4.95m (aoe 2017 debentures)
so this equates to just shy of £50m to sae after debt repayments
additional info:
sae have aspiration to develop 1gw of bess projects at uskmouth:
1. they have already submitted a screening opinion for an additional 120mw bess which has been returned as not needing an environmental statement so planning application to follow in due course (as rns'd in mar 2023)
2. 100mw expansion to to current 230mw bess project
3. also exploring opportunities to develop bess projects at meygen
so very rough calculations based on this additional aspiration for 1gw would be to crudely multiply the land lease x3 (£35.4m), the development milestones x 3 (£30) and the revenue x 3 (£120m) = £185m
and this is just uskmouth, not meygen bess or tidal projects
ohs
Cheers Phyl. There’s certainly some very close coincidence and it does seem logical (to me). As always though, we’ll just have to wait and see
OHS
Bit more background to my previous post:
Quinbrook are partnered with EOS to build the BESS site
Quinbrook acquired Habitat Energy (a leading global optimiser of battery storage and renewable energy assets)
Habitat signed a new framework agreement with Gresham House Energy Storage Fund (GRID) on 30th June: https://www.habitat.energy/habitat-energy-and-gresham-house-energy-storage-fund-extend-battery-optimisation-partnership-to-over-500mw/
GRID are the UKs leading energy storage investor https://greshamhouse.com/real-assets/new-energy/gresham-house-energy-storage-fund-plc/ …..so this is who I think will be investing in Uskmouth
OHS
Afternoon all. Seems there has been lots of interest and research going on regarding MeyGen which has been good to read, and I’m sure there’ll be more to follow. I’ve been paying particular attention to Uskmouth (as has always been my main interest) and thought it beneficial to highlight the following info to those who, like me, should find it very interesting:
Gresham House Energy Storage fund (GRID) proposed a placing in May 2023 to raise £80m for 390MW of pipeline projects expected to commission in 2024. This 390MW was broken down into 2 projects:
· 230MW of projects in Great Britain designed to a 2-hour duration which can be built using existing funds; and
· 160MW of solar with co-located 4-hour BESS projects in California, USA ("Project Iliad") requiring a total equity consideration through to commissioning of £135m.
https://www.londonstockexchange.com/news-article/GRID/proposed-placing/15961611
**The important part here is 230MW and 2 HOUR DURATION**
They raised £50m in the end ( Gresham RNS 25th May 2023)
If the dots haven’t been fully joined yet; Uskmouth’s BESS proposes 230MW and a 2 hour duration:
https://www.energy-storage.news/quinbrook-to-build-460mwh-bess-at-former-coal-plant-site-in-wales-uk/
“The project’s two-hour duration is indicative of a wider trend in the UK BESS market to move past one-hour systems, driven primarily by a shift to merchant, wholesale energy trading revenues and away from solely providing grid frequency response services”
OHS
On it should be ‘tar’ sands and not far sands🤦♂️
Fadec- your post is wholly incorrect. HSO and AC Oil (Greenfield) are now seeking permits to drill and use steam (huff and puff) to force the deeper crude oil (which won’t flow under normal conditions), to the surface. This is not the original leased permit application that was to mine the surface tar sands, with the added possibility of using Petroteq’s licenced IP to build a plant and extract the oil from the sands
OHS
Justroll - have you read the linked document? If not, read points 3-5 on pages 2 and 3. Hoodoo have the exclusive leases to drill and recover all naturally occurring crude petroleum, oil and hydrocarbons, regardless of gravity if produced at the wellhead in liquid form. Heavy Sweet Oil (HSO) have the leases for Bituminous and Asphaltic sands, otherwise known as far sands. It does not embrace any right to recover any liquid hydrocarbon substances. It’s down to interpretation of the lease wording and hence why all parties now need to sit down on the 12th, with the board, as it’s going to take considerably more time to discuss then was planned for todays meeting.
OHS
HF - see my post on TOM regarding the Utah meeting
OHS
Last post was a bit short. A company called 'Hoodoo Mining and Production Company, LLC' were granted State of Utah Oil, Gas and Associated Hydrocarbon Leases covering the entirety of Section 22 and the W½ of Section 23, effective as of May 1, 2018 (these are the areas Heavy Sweet and AC oil propose drilling).
"Hoodoo believes and therefore avers that HSO’s proposed operations are limited by the terms of the HSO Leases to conventional mining of “rock or sand impregnated with asphalt or heavy oil,” AND NOT recovery of oil through a wellbore as contemplated by HSO’s proposed plan of unitization. To interpret the HSO Leases in another other manner renders the exclusive rights granted under the Hoodoo Leases to produce “oil … regardless of gravity if produced at the
wellhead in liquid form” superfluous and meaningless"
https://fs.ogm.utah.gov/bbooks/2023/05_May/Docket/2023-022_471-03_HSOandACOil/2023-022_471-03_20230510.1_HoodooMining&ProductionCompanyLLCsResponseInOppositionToTheRequestForAgencyAction.pdf
As such, all parties have now agreed a continuance special hearing on 12th June 2023 and this has been approved
Few more weeks to wait now unfortunately.......and maybe much longer if Hoodoo's opposition to the permit request proves substantiated
OHS
Crownos et al - It's been postponed until 12th June
OHS
Another RNS stating retail value as opposed to sales revenue!! Furthermore, this latest RNS for 40,000 units equates to a retail value of £20 each but only last month ZED released an RNS stating ZenSafe had placed an order for 10,000 units with a (once again) retail value of £300,000 @ £30 each!! Why the 33% drop in price?