Share Purchase Plan Extension

Share Purchase Plan Extension

1414 Degrees wishes to advise that the closing date for its Share Purchase Plan (SPP) has been extended to 5pm (ACST) Monday 12 October 2020. 

The Company has received a number of enquiries from shareholders interested in participating in the SPP who have not yet received their SPP Offer Document or have experienced delays in the receipt of their SPP Offer Document. The board has resolved to extend the closing date from today, Wednesday 30 September 2020 to allow all eligible shareholders the opportunity to participate.  

The SPP is seeking to raise approximately $3.0 million to accelerate development on its Aurora Solar Energy Project in Port Augusta, South Australia after modelling of a hybrid renewable energy plant showed encouraging revenue potential. Funds raised will also be put towards further development of 14D’s technology to allow integration into the Aurora project. 

Further details are outlined in the Offer Document which was released on 10 September 2020, and which should be read in full before determining whether to take up your entitlement under the SPP.  

More information, including relevant announcements, is available at www.1414degrees.com.au/spp  

Revised dates for the SPP Offer: 

Event  Date * 
Closing Date for SPP Offer  Monday, 12 October 2020 
Issue of new Shares under the SPP Offer  Wednesday, 21 October 2020 
Quotation of new Shares on ASX  Thursday, 22 October 2020 

*These dates are indicative only. The Company may vary the dates and times of the SPP Offer without notice by lodging a revised notice with ASX. Eligible shareholders are encouraged to submit their applications early as the Directors reserve the right to close the SPP Offer early if oversubscribed. 

Applications and payment must now be received by 5pm (ACST) on Monday 12 October 2020. 

GAS-TESS to be recommissioned for electricity export to grid

GAS-TESS to be recommissioned for electricity export to grid

SA Water has requested 1414 Degrees to have the GAS-TESS operational by the end of October to prepare for electricity export to the grid as an embedded generator on the National Electricity Market.

The Glenelg Wastewater Treatment Plant can generate electricity from gas engines, solar PV and the GAS-TESS but has not been able to export to the grid pending SA Power Networks’approval.

SA Power Networks intends to conduct verification testing and witnessing in November, and in preparation, SA Water requires all generation devices to be integrated into an upgraded plant control system, which will be implemented prior to SA Power Networks testing.

14D will commence recommissioning its GAS-TESS from Thursday,1 October, and will provide progress updates to the market as it proceeds.

Encouraging results for revenues from TESS and Aurora

Encouraging results for revenues from TESS and Aurora

  • – Aurora could generate higher revenues by combining thermal (TESS) and battery (BESS) storage
  • – Modelling shows TESS can earn substantial revenues from FCAS while charging from the grid

1414 Degrees (ASX:14D) is pleased to report first results from the modelling of a TESS-GRID in the context of the Aurora Solar Energy Project. A partial set of revenue stacks modelled by ITP Renewables (ITP) using historical data shows a positive revenue outlook for 14D’s TESS at the site. Charging the TESS from the grid can earn substantial revenues from FCAS services which in turn reduces the levelised cost of storage (LCOS). Importantly, the modelling shows that a combination of TESS and BESS storage increases potential revenue generation from the site through more flexibility of frequency response.

This extends encouraging modelling of revenues from a hybrid PV-BESS power plant on the site, as reported previously. ITP has been optimising and refining models of revenues from a variety of plant scenarios (see chart) incorporating TESS and BESS. 14D will commission specialist modelling using projections to 2050 for the Aurora business case and project financing.

1414 Degrees Executive Chairman, Dr Kevin Moriarty commented, “There are other revenue sources that cannot be predicted for inclusion in the stacks, and more are expected to be created as the regulatory market adjusts, driving down the LCOS to support TESS deployment in our proposed hybrid Silicon Power Plant at Aurora.”

He added, “A BESS and TESS can complement each other to provide short and long duration storage capabilities as described in AEMO’s recent Integrated System Plan. Our Aurora Solar Energy Project will demonstrate this to provide a model for the entire NEM.”

 

Notes on the modelling:

  • – The TESS and BESS are charging from the grid in these scenarios
  • – A TESS and BESS combination at existing solar and wind farms could maximise their revenue by making use of curtailed electricity for charging, and this would be an option as Aurora expands its PV generation
  • – The model aims to maximise revenues by capturing the full potential of spot energy prices and FCAS in each time segment
  • – TESS opens a significant opportunity in the FCAS market and, potentially, the AEMO demand response scheme, Reliability and Emergency Reserve Trader (RERT) because a TESS can charge and discharge independently, unlike batteries.
Aurora Project Update: Vast Solar MOU

Aurora Project Update: Vast Solar MOU

1414 Degrees is pleased to report progress on its Aurora Solar Energy Project (ASEP). 14D and Vast Solar have executed a Memorandum of Understanding (MOU) to investigate the commercial feasibility of incorporating Vast Solar’s modular Concentrated Solar Thermal Power (CSP) technology in a dispatchable renewable energy park.

 

Vast Solar has developed a modular CSP technology with assistance from the Australian Renewable Energy Agency (ARENA). Vast Solar is seeking sites to build larger plants to provide low cost, firmed electricity.

 

The proposed ASEP park will include 14D’s Thermal Energy Storage System (TESS) and other energy assets creating a globally important showcase of world-leading technologies to deliver dispatchable renewable electricity. The aim is to provide secure, reliable renewable electricity at low cost.

 

The collaboration will assess the mutual benefits of increased utilisation of the transmission assets, reduction of potential spilled energy and maximisation of revenue stacks to demonstrate competitive levelised cost of energy (LCOE) and levelised cost of storage (LCOS).

 

14D plans a multistage development of the Aurora Solar Energy Project with solar PV and batteries in the first stage of a hybrid power plant, followed by expansion to add 14D’s TESS and, potentially CSP.

 

About Vast Solar

Vast Solar is an Australian company that has developed world-leading, utility-scale modular CSP technology. Since 2009, Vast Solar has undertaken research and development activities to trial, test and scale different aspects of the technology culminating in the Jemalong 1.1MW CSP Pilot Plant. Vast Solar’s next project is the 50MW North West Queensland Hybrid Power Project. Located in Mount Isa, the NWQHPP will deliver power prices significantly lower than the region’s existing gas-fired generators, 99.95% reliable energy 24 hours a day and an 85% reduction in carbon emissions by integrating CSP and PV firmed by a battery and gas reciprocating engines.

Share Purchase Plan Extension

1414 Degrees Announces Share Purchase Plan

1414 Degrees is pleased to offer shareholders an opportunity to participate in a Share Purchase Plan (SPP) targeted to raise approximately $3.0 million. 

Under the SPP, eligible shareholders will be invited to subscribe for up to $30,000 of new fully paid ordinary shares in the Company (Shares) at an issue price of $0.12 (12 cents) per new Share, free of all brokerage and commissions. 

 

Rationale and Use of Proceeds 

The SPP allows eligible shareholders to participate in the Company’s capital raising program at an integral stage in its development.  

As announced in the Company’s Quarterly Shareholder Update dated 31 July 2020, the Company is accelerating development on its Aurora Solar Energy Project (Aurora Project) in Port Augusta, South Australia after modelling of a hybrid renewable energy plant showed encouraging revenue potential based on the past five years of data. To attract project financing, your Company is undertaking forward modelling to 2050, a full engineering design of the plant and completing transmission connection studies.  The Company continues to advance the technology readiness of the GAS-TESS and TESS-GRID. 

The proceeds of the SPP will enable your Company to complete technical studies for the transmission connection, system integration and engineering of a proposed hybrid power plant at the Aurora Project. The proposed hybrid plant would combine photovoltaic (PV) generation to the grid and a large battery selling frequency support to the National Electricity Market (NEM) 

The Aurora Project, managed by the Company’s wholly owned subsidiary SiliconAurora Pty Ltd, already has development approval for 70MW of solar PV and 150MW from a concentrated solar plant. The funds raised in the SPP will be used to extend approval for energy storage in a battery and 1414 Degrees’ TESS, enabling your Company to generate revenue from both frequency support services and selling long duration, firmed power to meet system requirements for electricity supply stability. 

Proceeds are also intended to be used to fund further upgrades of the TESS technology to increase electrical efficiency and prepare our scalable silicon payload, SiBox, for implementation in a grid scale TESS. 

I encourage all shareholders to take up an allocation under the SPP to enable your Company to realise the potential of its strategy. The Company’s Executive Chairman, Dr Kevin Moriarty will be applying for his full entitlement through his trustee company. 

Participation in the SPP is entirely voluntary. 

 

Share Purchase Plan 

The offer of Shares under the SPP (SPP Offer) is being made exclusively to shareholders who were registered as holders of Shares at 6.30pm (ACST) on 2 September 2020 (Record Date) and whose registered address is in Australia or New Zealand (Eligible Shareholders).  

The SPP Offer is targeting to raise approximately $3.0 million by way of the issue of up to 25,000,000 Shares (New Shares) and entitles Eligible Shareholders, irrespective of the size of their shareholding, to purchase up to $30,000 worth of New Shares at an issue price of $0.12 per New Share. The Company may elect to either scale back applications or increase the amount to be raised under the SPP Offer, subject to compliance with applicable regulatory requirements. 

You may apply for parcels of New Shares in $1,000 increments with a minimum investment amount of $1,000, up to a maximum investment of $30,000, without incurring brokerage costs. The issue price of $0.12 per New Share represents a discount of: 

  • – 14.3% to the closing price of Shares on the Australian Securities Exchange (ASX) on 2 September 2020, which was the last trading day prior to the announcement of the SPP; 
  • – 12.6% to the volume weighted average price (VWAP) of Shares on the ASX during the 5 trading days immediately prior to the announcement of the SPP Offer on 3 September 2020; and 
  • – 20.9% to the VWAP of Shares on the ASX during the 30 trading days immediately prior to the announcement of the SPP Offer on 3 September 2020. 

Full details of the offer will be contained in an offer booklet which is anticipated to be dispatched to Eligible Shareholders on 10 September 2020. 

 

Key Dates 

The proposed timetable for the SPP Offer is set out below. The Directors reserve the right to vary the dates and times without notice. 

Event  Date * 
Record Date (date for determining shareholders’ entitlements to participate in SPP Offer)  Wednesday, 2 September 2020 
Announcement of SPP Offer  Thursday, 3 September 2020 
Despatch of SPP Offer documentation to Eligible Shareholders  Thursday, 10 September 2020 
Opening Date for SPP Offer  Thursday, 10 September 2020 
Closing Date for SPP Offer  Wednesday, 30 September 2020 
Issue of New Shares under the SPP Offer  Friday, 9 October 2020 
Quotation of New Shares on ASX  Monday, 12 October 2020 

* These dates are indicative only. The Company may vary the dates and times of the SPP Offer without notice by lodging a revised notice with ASX. Eligible Shareholders are encouraged to submit their applications early as the Directors reserve the right to close the SPP Offer early if oversubscribed.