Member Info for Piltick

It would be interesting to know where Fortescue will be getting their renewable energy from to produce the hydrogen by electrolysis.

The RNS states:
" the Strategic Process will be conducted by the Monitor under the Court's supervision and will be designed to achieve the highest value available or otherwise best offer for the Company, its subsidiaries, and its stakeholders."

So initially they want to sell the company and it's subsidiaries, i.e. they want someone to make an offer to buy the shares of the holding company, or parent company.

But that might not suit potential buyers, who may not want to inherit any "baggage" associated with the companies. A cleaner solution for any potential buyer would be for them to make an offer to buy the assets of the Group of companies, and to pay an amount that would enable them to pay off all of RMM's debts, loans and creditors.

I think it all depends on what offers they get, and what potential buyers are prepared to do.

aandi, I am confident that the hydrogen supply issue will be resolved in the short-medium term. As demand increases, supply will rise to the challenge, and the cost per kg will fall as well. I think will start with depots for heavy commercial vehicles, and will grow from there.

testpack, have you watched the video about JCB's ICC using hydrogen as fuel?

https://www.youtube.com/watch?v=jxtxZY45RMM

Seafllat, HW explained in the interview why he sold shares. So long as he held over 20% he was restricted in having any involvement in the management or running of the company, but now that he is under 20% that restriction doesn't apply any more.

phyamh, watch the video, all the info is there.

Great video Kenny. Thanks for finding it and putting the link on here.

JCB hydrogen internal combustion engine. Fantastic!

A far as I know HUI and Linde are still in contact with each other.

That all depends on what news comes out, Tatty.

Yes you are right MJA, TBH I hadn't thought of it that way round! The trouble with giving exclusivity to Peel is that if they drag their heels on a project with say, a local authority, that restricts PHE from going ahead with the local authority without Peel.

MJA:
" As long as it only applies to Peel owned property. "
In that case they don't need an exclusive agreement. - if it's their site they can do what they want with it!

But seriously, reading today's RNS, it seems to me that there is a strong hint that PHE intend to develop the DMG on other sites themselves, or with other partners, which means that Peel's exclusivity agreement is, or will be, dead. Peel will still be a 50% partner in the Protos installation of course.

The next news that I'm hoping for is:

- Announcement that the Peel-PHE JV agreement for the SPV has been completed.
- Peel's exclusivity agreement - hopefully abandoned.
- Financial Close for Plot 10B project
- Announcement that specific contract signed with Petrofac for the construction etc. on Plot 10B

So are they saying that the only way to meet net zero targets is to stop construction?

How much funding would they need to raise to pay off Newgen plus enough working capital to get back on the road? About $15Million?

Castle, I think it has already been explained on here that we had a new Chairman earlier this year, and as Keith Riley is currently standing in as acting CEO we don't need to hurry to look for a new one until KR wants to step down. I am hoping that won't happen until we have the Protos DMG up and running.

I had forgotten about that article and I know that Keith is very keen on computerised fluid dynamics. It's certainly very encouraging and I hope they can move forward quickly with it. Nevertheless, to what extent they will be able to get funding from institutions or banks, we will have to wait and see.

MJA, About mid December Keith said that he hoped that Peel and PHE would be able to finalise the JV agreement for the SPV fairly soon. I expect there are a few issues to resolve in that agreement, not least how much funding the two companies will have to contribute to the SPV and how much will be equity (for the shares) and how much will be loans.

And before they can finalise all of that they will have to know what the total funding for the SPV will be to cover its Capex and working capital, and how much of that will be available from commercial sources i.e. cor[orate investors, financial institutions and/or banks. Only then will they know how much funding will have to be provided by the two parent companies.

My own personal feeling is that they will have difficulty persuading financial institutions or banks to invest in (or lend to) a FOAK because there is no track record of this particular plant at commercial scale, and these organisations are usually reluctant to take that sort of risk. Unless Keith can give them a very convincing story, which I'm sure he can!

When Keith mentioned the commercial funding he was talking about how the SPV would be funded. I'm not aware of how PHE will fund it's 50% shareholding of the SPV, nor indeed how much PHE and Peel will have to put into the SPV out of their own money. The entire funding arrangement has yet to be decided, I believe.

The first news I'm expecting is that they have selected the contractor (or contractors) for the construction of the buildings and installation of the plant. That may be one contractor, or two. As Peel still owns 100% of the SPV, that is down to Peel at the moment. But I'm also hoping to hear very shortly that Peel and PHE have finalised the SPV agreement so that they will each have 50%.

Yes, there is hope!