Member Info for Pask

Spending cuts for GBE, and the NWF will now also focus on defence (cutting money spent on renewables).

I think BESS should be okay, but tidal is less so.

https://www.ft.com/content/8379627b-036f-4ad2-ae5c-a1fe16c9c144

Fair enough (at least, you are cordial about it). At the present time, the UK goverment seem to be dealing with increasing defense spending via cutting welfare. They could soon go for other sources of funding however.

For what its worth, the GBE Bill and CE Bill are almost at royal ascent. It may be a game of ping pong for a bit. I am still not sure if this would mean anything for SAE directly (if anything), given that GBE only has a fraction of what it once did (in the current budget at least). At the very least, it highlights the government's intentions in the sector, and I do think all of this is significant background stuff.

https://bills.parliament.uk/bills/3738

https://bills.parliament.uk/bills/3739

"To ensure that these deployments are led by Scottish companies and organisations, establishing a highly competitive and modernised domestic supply chain is increasingly important. This will help to ensure that Scotland remains the location of choice for prospective tidal stream and wave energy developers to develop, build, deploy and maintain their devices."

"Scottish tidal stream technologies and projects have won Contracts for Difference in the last three auctions (to be delivered 2026–2029). A competitive Scottish supply chain, capable of producing devices and key subsystems at volume, is now needed. Investment in this supply chain, coupled with ongoing market support for the tidal stream and wave energy sectors, is essential to ensure that Scotland capitalises on its position as a pioneer of these technologies."

Posted January, 2025. Seems like a diffrent version of something I found earlier in powerpoint form. Was posted on the Northen Times 8 days ago I believe.

"Tidal stream and wave projects in the UK could generate over £8bn in economic benefit to the Scottish economy by 2050, and support over 15,000 high-value jobs in 2050."

https://www.policyandinnovationedinburgh.org/uploads/3/1/4/1/31417803/future_economic_potential_of_tidal_stream_and_wave_energy_in_scotland.pdf

Nothing that new, but good to see. How much do we know about Scottish Enterprise's mandate? I am more aware of NWF/GBE/CE rather than SE.

Good finds, guys.

I would normally say same diffrence, but I think we have slightly diffrent commitments as to how this money is made. Don't get me wrong, if the stock went up to £1 tommorow I would take it. However, based on where the company is, I would like to see them actvely decrease risk (which they are doing) where possible. Like Deutscher, I am cautious about merely basing this on "AI" hype. Veeble has made a good point, and data centres are used in other parts of the economy where demand is growing.

GCHQ I believe, stores a lot of the metadata it collects in Ireland (it has to get rid of it every so often, as data is constatly being generated). Data brokers more generally are used to sell their products to companies and intelligence agencies. Cloud services, and streaming are also in demand as it allows companies to keep better control of IP. I believe Yanis Varoufakis came up with the concept of technofeudalism where we rent things rather than own them. The stopkillingames campaign is a good case study of this, whereby their is a lack of legal clarity around buying physical copies of games and streaming services. Point is, more and more digital consumer products are "lended" rather than "owned" which means that data centers will increase in demand ragardless of AI or Crypto IMO.

For us at least, it does seem that if we supply electricity to BESS through our services there would be a consistant supply of demand for our services. And that is money to us.

So long as it's not just AI or crypto, and there is meaningful demand from other parts of the economy, then I am okay with this.

I am of mixed opinions about data centres in the long term. Don't get me wrong, in the short to medium term these are good developments for SAE, but remember not long ago deepseek? The American AI model focused on adding more computing capacity for better results, while China focused on efficiency. While there will still be a demand for increased data centres, I am not sure as to the extent of them. It will still be profitable however, as more and more people seem to be using AI as a substitute to search engines. It seems like the effect it has had on NVIDIA stock has dissipated, but I would still keep note of that event.

I appreciate the CEO keeping us up to date with their strategy, and progress that is being made however. I feel the company is in good hands based on what I know in the here and now. Sod’s law is always a factor, but I am pretty confident at the direction of this company in the short to medium term (which is where we need to focus IMO).

Any other perspectives on the issue?

This is the case, having read the amendments in the bill. Doesn't mean all the amendments will be enacted, but it is the direction the GBE Bill seems to be going.

Https://www.vice.com/en/article/lab-grown-meat-products-for-pets-in-the-uk/

Https://www.jpost.com/consumerism/article-841695

Https://edition.cnn.com/science/first-lab-grown-meat-pets-meatly-spc/index.html

Cheers Mr. T.

******* pdfs. i deleted the paragraph embeddings, and it still came up like ****. whatever.

Found something intresting published 5 days ago on the UK Marine Energy Council's website. It's a report conducted by the Uni. of Edinburgh meant for policy makers in the area:

https://www.marineenergycouncil.co.uk/news/new-report-outlines-progress-in-the-uk-ocean-energy-sector

Page 13 stresses the role of the crown estate's role in growing a portfolio of assets worth currently 16 billion. They have managed to grow this by 4 billion in the past 4 years. If the new bill will permit the CE/SCE to borrow to invest, then it makes sense they would put it into offshore projects such as SAE.

There is also quite a few refs to SAE Renewables in the report. There's quite a lot of praise for it.

"As a demonstration and pathfinder, phase 1 of the MeyGen Project has faced and overcome a significant

number of challenges, both commercial and technical. Having addressed a range of early breakdowns, the first

of class machines selected for phase 1 are now proving their technical suitability to long term continual

deployment. The longest continually deployed turbine, maintaining power production at 1.5 MW throughout

this duration, has now surpassed 6 years continued deployment. MeyGen will continue to monitor all the

turbines and plan preventative maintenance activities based upon condition monitoring. During 2024, phase

1 was successful in returning to operation all four 1.5 MW turbines, bringing it to full power, to deliver 6 MW of

predictable electricity to the local grid.

The next phase of MeyGen will deliver an additional 59 MW of capacity utilising 3 MW turbines of up to 26 m

rotor diameter. Securing the consents and funding required to deliver this world leading project has acted

as a signpost for the wider industry. In maintaining its leading position within the tidal industry MeyGen is

working to expand its current 86 MW capacity up to 200 MW+ in support of the UK government NET Zero targets

and continued support under the CfD."

Theres a few things about Proteus in the report as well:

"In December 2024, Proteus successfully redeployed the AR1500 bringing MeyGen phase 1 back up to its

full power output of 6 MW. Earlier in the year, Proteus was selected by Ocean Renewable Power Company to

join the American Tidal Energy Project, funded in part by US Department of Energy, which will deploy Proteus

and ORPC technology into Alaska’s Cook Inlet. Proteus’ French subsidiary Normandie Hydroliennes is

developing the 12 MW NH1 pilot array at Raz Blanchard, France. Proteus has also completed upgrades to its

1.1 MW AR1100 turbine, set for redeployment in Japan’s Naru Straight in early 2025."

What would be the net worth of MeyGen if at full capacity?

O snail,

climb Mt. Fuji,

but slowly, slowly

...

I hate waiting.

Depends if they can get access to funds.

GBE I still struggling to fill jobs and plans to focus on solar initially (from what I remember). The Bill is fairly close to Royal Ascent, but they are currently at the report stage in the House of Lords. They are next due to sit on the 11th of February. What is perhaps more important, is the crown estate bill. It is also quite close to Royal Ascent now.

The amendments will allow the crown estate to borrow for projects from the treasury, in line with sustainable development goals and GBE. I just get the feeling that GBE is a red herring for the press, and much of the capital for off land projects will come from the crown estate. This is still speculation at the end of the day, and I will most likely be proved very wrong. But based on the information I am aware of, it seems easier for the company to get capital off of the crown estate rather than GBE in future.

Happy to be proved wrong on this, but it just seems to me the most plausible explanation as to how SAE might access capital right now (125 million from GBE isn't enough for SAE).

Sources:

https://publications.parliament.uk/pa/bills/cbill/59-01/0135/240135.pdf

https://bills.parliament.uk/bills/3738

https://bills.parliament.uk/bills/3739

If it is any consolation, I feel there have been more daily crazy rises recently. Others here are more knowledgeable than I, but I think there is better sentiment in certain small caps in the last few weeks.