There has been an extraordinary amount of activity over the last quarter and below we highlight key developments and Executive Chairman Dr Kevin Moriarty provides his review.
- SA Premier and Treasurer inspect prototype and identify support to speed development
- AUD$2.5m raised in over-subscribed seed round
- Substantial increase in engineering resources, now with over 10 staff deployed
- Significant run time and experience gained with the demonstration unit at Tonsley
- 10MWh module design progressing for commissioning at end of 2017
- 200MWh module design now underway
- Submitted proposal to SA Government for TESS GRID deployment to provide low cost energy security
- The Company is evaluating many proposals for installations from Australia and overseas
- Patent application arising from commercial prototype development in preceding two years
- Existing US and Australian patents, with patents pending in four other countries
This quarter has again been pivotal for your company as its technology attracted international attention, not only establishing that energy storage is a necessity to sustain renewable generation in the electricity grid but that people are looking for a low cost and environmentally friendly solution.
There have been hundreds of enquiries about our technology, ranging from agribusiness to large property developers and government. There is an appetite for much larger storage installations coupled with turbines producing 50MW and above.
1414 Degrees has generated much positive exposure in traditional and social media, and it is clear the current energy climate is ready for the clean, scalable storage solution we are offering. This means that our seed funding round was heavily over-subscribed and we thank all our new investors for supporting our development.
Due to this funding, engineers are working on perfecting the modules, and we are compiling the prospectus for our planned June IPO, while at the same time, answering and evaluating a continuous stream of enquiries from companies interested in utilising the 1414 Degrees TESS.
There is a large demand for modules the size of the 10MWh TESSIND to sit behind the meter supplying reliable power for a range of businesses, particularly those which use a combination of heat and electricity. Potential consumers include suburb-sized developments, resorts on private islands, shopping centres, hotels, wineries and food producers.
The thermal energy storage is projected to grow very strongly and our products have the potential to drive much higher growth because of their integration of electricity and usable heat for industry. As the world consumes more energy and generates more from renewable sources, it has become evident that we need to be developing much larger scale storage solutions capable of stabilising entire grids cleanly and cost-effectively. The 1414 Degrees systems will provide grid scale storage at a cost that will encourage revolutionary expansion of thermal energy storage.
After an analysis of the electricity supply issues in eastern Australia, we are designing TESS systems combining four or more 200MWh modules and incorporating 50MW+ turbines that could plug into transmission lines. These will enable energy security because they can charge at very high rates and provide the same load-following power as gas generation. An added advantage in emergencies will be the ability to generate power from gas.
Following repeated blackouts, the South Australian government has recognised the necessity for energy storage and spinning inertia supplied by a gas turbine. 1414 Degrees has submitted a proposal to the South Australian government to provide long term grid security with installations whose capacity and affordability will dwarf the current plans.
Governments are not the only concerned parties. We have also been approached by large scale property developers, both in Australia and overseas, who are seeking long term renewable energy solutions at an affordable price.
Our prospectus for the IPO is well advanced, and we’re aiming to lodge in June. Our staff are to be commended for their major contribution, especially as at the same time they’ve had to field thousands of enquiries and progress the technical and commercial programmes.
Dr Kevin Moriarty