16 June 2022
Yesterday we executed agreements with Vast Solar to create a joint venture at our Aurora Energy Project by way of a sale of 50% of our ownership of the shares in Silicon Aurora Pty Ltd for $2.5 million. The shares will be purchased by a wholly-owned subsidiary of Vast Solar. You can read the ASX announcement here.
This transaction is an extremely positive step forward for the project as we continue to bring it towards potential commercialisation and a final investment decision next year.
Vast Solar is a highly complementary partner for 1414 Degrees who shares our vision for the development of Aurora as a long-term renewable energy project in Port Augusta. Silicon Aurora Pty Ltd will bring together two highly innovative Australian companies and the Aurora project will not only remain focused on the initial Stage 1, 140MW battery project, it will also optimise the site for the potential to showcase our respective renewable energy technologies.
Entities associated with the owners of Vast Solar will also be granted call Options in up to 9.9% of the shares in 1414 degrees with a strike price of $0.16/sh. The granting of these options is conditional upon the execution of a connection agreement for Stage 1 of the Aurora project and only if this occurs within 18 months. The expiry of those options is 3 months after being granted.
We continue to accelerate the connection approval process for Stage 1 of Aurora as announced to shareholders on 11 May, the costs of which will now be shared with Vast Solar.
We receive payment in two stages from Vast Solar with the initial $1 million payment expected by the end of July. The second $1.5 million payment will be determined by the timing and outcome of the connection approvals process.
Silicon Aurora Pty Ltd will act as a joint venture with 1414 Degrees continuing to manage the current development activities.
1414 Degrees will continue with the development of our core technology, our Sibox demonstration module in conjunction with Woodside. This is entirely separate from Silicon Aurora Pty Ltd and will showcase our Silicon based Thermal Energy Storage System in Adelaide early next year.
1414 Degrees as 50% owner of Silicon Aurora Pty Ltd will retain the right to construct a pilot of the Sibox energy storage technology at Aurora in the future if we wish.
Who are Vast Solar?
Vast Solar is developing modular based concentrated solar plant (CSP) technology and was recently announced in the Federal Government’s commitment to boost regional South Australian industry, through the adoption of major new low emissions technology projects.
The Federal Government agreed to negotiate the terms of a loan of up to $110 million to support the development by Vast Solar of a 20MW concentrated solar thermal power (CSP) plant. Vast Solar is also backed by Johnny Kahlbetzer as a major shareholder. Mr Kahlbetzer is a high net worth Australian who is a significant investor in environmentally sustainable projects through Twynam Group.
For more information