Half year Chairman’s Report

Half year Chairman’s Report

Chairmans review of half-year results

Over the past six months, 1414 Degrees has sustained a high level of interest from major corporations looking to reduce their emissions. Demonstrating the feasibility of SiBox technology to provide a stable and reliable heat stream, capable of augmenting or replacing natural gas in high-temperature industries, has been a consistent focus.

The evaluation of business cases across diverse industries has revealed promising opportunities. We found that industries like alumina could save cost and reduce emissions with our technology, depending on gas and carbon prices. The same goes for industries that use a lot of natural gas and want to cut emissions or use renewable electricity. The SiBox Demonstration Module (SDM) is designed to provide confidence in operations, building on our experience with earlier silicon storage systems to prove safe and reliable energy storage at temperatures up to 1500°C.

The battery energy storage system (BESS) on our Aurora Energy Precinct near Port Augusta progressed. A generator performance study was submitted to the transmission utility as part of an application to connect to the National Electricity Market through the 275kV line.  The Company purchased Aurora in 2019 as a potential site for a pilot SiBox system to store and generate electricity and obtained regulatory approval for a grid scale SiBox thermal energy storage system capable of generating revenue through frequency control ancillary services (FCAS) and system strength in the National Electricity Market (NEM). The Company plans to demonstrate the SDM’s ability to provide FCAS in the upcoming months, driven by positive feedback from industrial and energy firms. Additionally, the Company assembled partners to develop an integrated hydrogen-SiBrick reactor to position the Company as a producer of carbon-free hydrogen, with potential for lower operating costs and substantially higher efficiency compared to traditional electrolysis plants.

SiBox® Development Update

Following the successful commissioning announced in August, the SiBox Demonstration Module has continued operational testing, verifying robust performance of the patented SiBrick and SiBox technology. Notably, significant performance milestones were achieved, including successful operation for a prolonged duration with an outlet temperature at 900°C, the upper limit of the SDM design specifications. Charge-discharge cycle testing was also completed across a range of outlet temperature setpoints (700-900°C), simulating conditions in high-temperature industrial processes.

The SiBrick storage media underwent 97 latent heat cycles, showcasing consistent performance within design expectations. Testing has verified the nominal design storage capacity of 1MWh-thermal at an 850°C outlet temperature.

Our engagement with industry partners has uncovered diverse demands across sectors, highlighting the individualised requirements for energy storage. The flexibility of the SiBox storage system has been showcased, delivering consistent and clean high-temperature process heat. This not only lowers energy costs but also contributes to emissions reduction and increased process stability.

Ongoing testing aims to provide additional data, quantifying SDM performance under variable operating conditions and demonstrating specific operating modes. The SDM comprises a modular arrangement of SiBrick optimised for energy storage capacity and effective heat transfer. The SiBricks are housed within an insulated heat store and integrated with an energy recovery system, simulating commercial application processes, such as gas burner replacement in an alumina calciner.

SiBrick Development

We have made substantial progress in developing a SiBrick that is both durable for long-term use and suitable for mass production. The initial batch of the newly designed SiBrick is currently being produced in Germany by our technology partner, Refratechnik-Steel Gmbh. The upcoming phase involves thorough thermal cycling in the active airflow of the Company’s original Prototype device, which has been upgraded to automate charging and discharging. Success in this phase will mean that the Company can use existing refractory manufacturing lines to produce thousands or millions of SiBrick – a million would nominally store 1GWh of energy – without having to invest in its own manufacturing facilities.  

 

 Aurora Energy Precinct Progress

The Aurora Energy Precinct has seen significant progress toward revenue with submission of the application for transmission connection of a 140MW BESS, a lithium-ion storage system to the National Electricity Market.  Development approval has been secured for a pilot SiBox thermal energy storage system generating 2MW of electricity has been secured, with potential expansion possibilities. Modeling indicates that a SiBox thermal charging system could also provide frequency control services (FCAS) to the NEM, generating substantial revenue in the context of increased renewable penetration.

Corporate Initiatives

Collaboration with London-based investment bank Hannam & Partners has extended the Company’s global reach, involving consultations and research reports on thermal energy storage markets as well as identifying potential buyers or investors for the Aurora BESS project. Financially, the successful shareholder rights issue raised approximately $1.5 million to fund further SiBrick development and attracted increased grant funding.

1414 Degrees secures $2.5m Grant for SiPHyR clean hydrogen technology

1414 Degrees secures $2.5m Grant for SiPHyR clean hydrogen technology

1414 Degrees Ltd is proud to announce that it has been granted $2.5m by the Australian Government to advance its SiPHyR technology for affordable net-zero hydrogen production. This funding is part of a $5.2m project, conducted in partnership with the University of Adelaide (UoA), Woodside Energy Technologies, Vulcan Steel, and the Royal Melbourne Institute of Technology, to develop a methane pyrolysis reactor for cost-effective turquoise hydrogen production.

This significant grant builds on the Company’s recent announcement (8 January 2024) that it has secured an exclusive licence from the UoA to commercialise its dual-column fluid reactor technology.

SiPHyR (SiBrick integrated Pyrolytic Hydrogen Reactor) combines methane pyrolysis – a high-temperature process that transforms methane into hydrogen gas and solid carbon, with 14D’s proprietary silicon energy storage technologies SiBrick and SiBox. SiPHyR stands out in the hydrogen production landscape by circumventing the carbon dioxide emissions associated with grey hydrogen production, eliminating the technical and cost challenges of carbon dioxide gas capture as encountered in blue hydrogen methods, while requiring much less electricity generation and transmission infrastructure than green hydrogen. 

Net-zero hydrogen is needed at a cost below US$2/kg if it is to become cost-competitive in heavy industries such as fertilizers, iron/steel and alumina production. This scalable technology could enable continuous production of net-zero hydrogen at an estimated cost of around US$1/kg, markedly lower than current methods. It will also produce a solid carbon product that can be used in many industries, including steel and plastic production.

The Project aims to advance SiPHyR from its current Technology Readiness Level (TRL) of 2 to TRL 5 within three years. A critical deliverable of this Project is a detailed plan for a scaled demonstration at TRL 7 within two years of this project’s completion, ensuring the technology’s readiness for commercialisation.

1414 Degrees is committed to the transition to a clean hydrogen economy and is set to commercialise SiPHyR by 2030. 

December 2023 Quarterly Activity Report

December 2023 Quarterly Activity Report

1414 Degrees provided an update to the ASX outlining progress on key milestones during the Quarterly Report for the period ending 31 December 2023.

Executive Chairman, Dr Kevin Moriarty wrote to Shareholders summarising the key updates. His correspondence and the Quarterly update are provided in the link here.

 

1414 Degrees to enhance reactor technology with SiBrick integration

1414 Degrees to enhance reactor technology with SiBrick integration

We are pleased to announce that we have obtained an exclusive licence for a new fluid reactor technology (Reactor) developed and patented by The University of Adelaide.

The novel Reactor design features innovative dual bubble column technology with liquid metal catalysts for high-temperature reactions. 1414 Degrees plans to integrate its SiBrick™ silicon thermal storage with the Reactor design, primarily for emissions-free hydrogen production through pyrolysis of methane. Integrating SiBrick with the Reactor will allow the use of intermittent renewable energy in the process, which requires constant very high temperatures to maintain continuous hydrogen production.

The University of Adelaide will continue to develop its Reactor design under a sub-licence for teaching and research purposes.

On successful commercialisation 1414 Degrees will pay royalties to the University. The licence term is 20 years and the agreement includes an option for 1414 Degrees to purchase the intellectual property in the future.

SiBox proves ability to track electricity pricing

SiBox proves ability to track electricity pricing

The SiBox® Demonstration Module is charging according to National Electricity Market (NEM) pricing.

In a successful new phase of operation, our technology demonstrates the capability to discharge a constant 24/7 heat output while charging intermittently when electricity is cheaper.

This is an essential requirement for customers as it will allow them to minimise their energy costs while enabling their processes to run continuously.

Read the complete update to the ASX below.

Highlights:

  • Successful integration of SiBox with National Electricity Market pricing
  • Consistent heat output maintained despite variable charging cycles representing low and high pricing periods, demonstrating reliability and commercial viability
  • Completion of six daily cycles at 700°C, with plans for higher temperature operations

 

 

Figure 1. Shows constant heat output (orange) for 6 days with variable storage temperature (red). Top is SiBox state-of-charge (blue). Middle shows NEM price curves (blue line) and SiBox charging status (green is on).

1414 Degrees Ltd (“1414 Degrees”, “14D”, or the “Company“) is pleased to announce its SiBox Demonstration Module (SiBox or SDM) is charging according to National Electricity Market (NEM) pricing.  This successful new phase of operation showcases the SiBox technology’s capability to discharge a constant 24/7 heat output while charging intermittently when electricity is cheaper.

This is an essential requirement for customers as it will allow them to minimise their energy costs while enabling their processes to run continuously. The SiBox successfully completed six daily cycles at 700°C output. Future runs will be conducted at higher temperatures.

This sets the stage for the SiBox to participate in demand management on the NEM to further minimise energy costs.
Furthermore, 14D is preparing the SDM to test its ability to provide frequency control ancillary services (FCAS) in the NEM, potentially enabling a new revenue stream for future SiBox installations in the electricity market while also substituting a renewable source of FCAS for the typical fossil fuel source of gas or coal.

About FCAS

FCAS are mechanisms in the power grid that maintain the balance between electricity demand and supply, ensuring a stable and reliable frequency. Generating revenue from FCAS involves rapidly in response to grid imbalances, and receiving compensation for helping maintain system stability

November Annual General Meeting

November Annual General Meeting

On 10 November 2023, 1414 Degrees Limited held our Annual General Meeting (AGM). 

Our Executive Chairman, Dr Kevin Moriarty, elaborated on how the past year had been marked by significant achievements in technology validation, ongoing product development, strategic market positioning, and reporting of real results to shareholders, all while laying groundwork to attract global investors. 

The presentation delivered at the AGM provided an overview of the size of the market for our thermal energy storage technology – SiBrickTM – as well as how the Aurora Energy Precinct is poised for near-term cash flow potential from the National Electricity Market. 

For more details, including the technology commercialisation road map, see the AGM presentation here.