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Fantastic interview from #SAE @simecatlantis CEO.
Two major value inflection points approaching:
1) at Uskmouth: results from fuel testing in Japan. If successful, the immediate TAM for SAE would essentially be limitless. 2,500 coal-fired power plants worldwide. A 200 MW... 1/8 https://twitter.com/simecatlantis/status/1271374556813561857
Two major value inflection points approaching:
1) at Uskmouth: results from fuel testing in Japan. If successful, the immediate TAM for SAE would essentially be limitless. 2,500 coal-fired power plants worldwide. A 200 MW... 1/8 https://twitter.com/simecatlantis/status/1271374556813561857
...plant, once converted, would generate £40m+ (arguably closer to £60m) EBITDA pa for a further 20+ years. It would also burn more efficiently and more cleanly than it previously did, when coal-powered. Decom costs can be well over £10m - as such, there's a huge market for...2/8
… #SAE to pick up end-of-life plants for next to nothing.
Moreover, as the operation is so reliable, 100% debt financing (conventional or receivables) for conversion capex could should be achievable.
Uskmouth will be the blue print for global rollout of the conversion. 3/8
Moreover, as the operation is so reliable, 100% debt financing (conventional or receivables) for conversion capex could should be achievable.
Uskmouth will be the blue print for global rollout of the conversion. 3/8
2) at MeyGen: the UK gov itself has proposed a restructuring of the pots for the next round of CfDs (2021).
[In short, CfDs are governmental support (via buying electricity at higher prices) to encourage the development of renewable energy technologies.]
The gov is... 4/8
[In short, CfDs are governmental support (via buying electricity at higher prices) to encourage the development of renewable energy technologies.]
The gov is... 4/8
...proposing to take offshore (fixed) wind out of the pot that tidal power is in, and put it in a pot of its own. The rationale is to enable offshore (floating) wind and tidal to have a greater chance of winning the CfDs (i.e. revenue support).
The gov is now reviewing... 5/8
The gov is now reviewing... 5/8
...the public's response to the proposal - but I would suggest that the gov proposed these measures in the first place precisely because of industry participants pushing for it.
Needless to say, a change in the CfD structure would open up massive support for #SAE's MeyGen. 6/8
Needless to say, a change in the CfD structure would open up massive support for #SAE's MeyGen. 6/8
The project lease has a further 392 MW of capacity to develop: with gov financial support, industrials and infrastructure funds would be much, much more interested in financing the development of MeyGen.
That whole process would itself lower the LCOE of tidal, validating... 7/8
That whole process would itself lower the LCOE of tidal, validating... 7/8
..its commercial viability to the world.
To summarise, in the coming months #SAE could receive two items of news that would enable it to become a leading global player in 2 potentially vast markets, that are both highly topical.
2nd largest position, and I continue to add. 8/8
To summarise, in the coming months #SAE could receive two items of news that would enable it to become a leading global player in 2 potentially vast markets, that are both highly topical.
2nd largest position, and I continue to add. 8/8
