• – 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.

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.

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. 

* 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.  

• – 14D planning an efficient and cost-effective alternative power plant using SiBox technology
• – World-leading technology company supporting energy recovery system development

1414 Degrees (ASX:14D) is pleased to provide an update on the thermal energy efficiency of its SiBox thermal storage technology that will be used in the Silicon Power Plant proposed for its large Aurora Solar Energy Project in South Australia. It is engaging with multinational heat recovery specialist Nooter/Eriksen Inc (N/E) to maximise electricity generation from the SiBox.

SiBox, 14D’s scalable silicon based thermal energy storage (TES) for its Thermal Energy Storage System (TESS), is designed to operate at very high efficiency for long periods when cycled daily, thereby providing the equivalent functionality of thermal energy from burning fossil fuel at over 90% efficiency (Figure 1). Nooter/Eriksen’s involvement is to use SiBox energy to reliably supply steam generators and turbines, resulting in a heat-to-electric efficiency as in conventional fossil-fuel-fired steam turbines.

Figure 1: Key thermal power plant components for firmed, synchronous generation based on steam (gas alternatives not shown).

The key advantage of our new SiBox technology is that it will enable the economies of scale necessary to provide effective long-duration storage services at low cost. Scale is also important because the electrical efficiency of turbines increases with size. We are planning to increase the scale of our technology progressively, demonstrating the performance and reliability of the SiBox and its energy conversion system at each level (Figure 2).

Additionally, there is a growing need for dispatchable synchronous generation as more fossil fuel plants are retired and the penetration of variable renewable energy generators increases. 14D’s TESS is aimed at providing a complete clean thermal technology with synchronous output for the electricity network, unlike current plans to build more gas generation.

The decreasing cost of solar PV, projected to drop to around US$15/kW in coming years, makes SiBox competitive with fossil fuels as a source of synchronous electricity generation. This is an exciting development because the solar PV capacity of the Aurora Project can be increased as demand grows, allowing the Aurora project to expand incrementally and limit financial exposure. Hence, the benefits of the TESS technology as a value add service providing long-duration energy storage with synchronous output for grids and renewable energy farms can be progressively demonstrated at Aurora.

Figure 2: Comparison of efficiency at scale for different energy conversion technologies.

About Nooter/Eriksen: N/E is the world’s leading supplier of Heat Recovery Steam Generators (HRSGs) for power generation and heat intensive industries. N/E has built and installed a full range of heat recovery systems, including many of the world’s largest natural circulation HRSGs, several producing over 580 tons/hr of steam. Complex heat recovery systems are Nooter/Eriksen’s speciality. All systems are designed for maximum reliability, efficiency and availability. The heat recovery systems for each specific application are custom designed to meet the customer’s requirements at the lowest possible cost without sacrificing quality or easier maintainability.

An interview with Dr Jordan Parham, CEO of 1414 Degrees:

What matters to you most professionally?

To be a successful leader and lead a team that delivers on our promises. To be challenged every day and to rise to the challenge, while being true to my values.

What are your values?

I value a forward-thinking mindset: optimism and creativity are very important in coming up with new ideas every day. Resilience is also key; we will face obstacles and must overcome them while maintaining focus on our end goals and objectives. I also value honesty and an “above the line” culture where everyone takes ownership of their actions.

How will you lead 1414 Degrees?

I am leading the team to deliver a commercially successful technology by focusing our technical and business development efforts in the areas that will bring the best success. I am taking the lessons we have learnt and implementing an updated strategy that aligns the team with external requirements, while confidently representing 1414 Degrees to the best of my abilities.

What are you working towards?

I am working towards 1414 Degrees being a sustainable and successful business that delivers a competitive clean energy technology with value for energy users and investors.

What do you bring to your role?

A commercial and strategic mind, management experience and technical knowledge as well as a passion for thermal energy technology and a comprehensive understanding of the energy sector in Australia and globally.

Click here to view Jordan’s LinkedIN profile

How do you determine success?

Saying what we do and doing what we say. Delivering on our promises to customers, partners and shareholders and in doing so adding value with sustainable, secure and affordable energy.

Why do you believe in 1414 Degrees?

Fundamentally, I believe that clean, low-cost energy is critical for the world’s environmental future and economic prosperity – and that innovation in technology is required to drive the transition from where we are now, to where we need to be. 

Energy storage is vital to harness the full potential of renewable energy as a reliable, low-cost energy source. 1414 Degrees’ storage technology can provide a clean, economical solution and address other key challenges in the energy transition such as delivering clean heat to industry. The technology delivers long duration energy storage, synchronous generation for grid stability and high temperatures for decarbonising heat to industry.

I believe it is a unique offering that can positively impact and shift the energy landscape as we know it.

An interview with Marie Pavlik, CEO of SiliconAurora:

What matters to you most professionally?

I need to enjoy what I do. I am driven by challenging targets and find joy in developing businesses to reach their full potential.

What are your values?

I get enthusiastic when I find opportunities to contribute to the bigger picture and make a positive impact in the community. I am passionate about renewable energy and the energy industry. I search for creative solutions to achieve challenging targets. I value team empowerment and collective wisdom.

How will you lead SiliconAurora?

The energy industry is dynamic and we are delivering to a market still in development. I am leading the Aurora project through uncharted territory with eyes open and ears ready to listen. I am daring to discover new ways to take us through uncertainty and deliver value.

What are you working towards?

Our primary focus is revenue generation from the Aurora Project to help grow and further develop 1414 Degrees’ technology. The bigger picture is that the Aurora project can decrease the electricity price for consumers, improve the utilisation of transmission lines and secure and strengthen power supply without emissions. This is a vision we are transforming into a plan.

What do you bring to your role?

Extensive experience in the energy industry and implementing disruptive technologies. I have a big picture perspective and think outside of the box to develop innovative solutions. I also bring drive and ambition that will lead the Aurora project to create positive changes.

Click here to view Marie’s LinkedIN profile

How do you determine success?

To me, success is determined by delivering value and meeting the requirements of stakeholders. For the Aurora project, this means implementing the structure and systems to greater service the electricity market but also generate revenues that can then be used to move forward 1414 Degrees’ technology. TESS can then be implemented into the Aurora project site and assist the energy industry further.

Why do you believe in 1414 Degrees?

I have always had a passion for renewable energy and transitioning the current energy networks from conventional methods to cleaner alternatives. I am a big advocate for change in the energy industry and innovative technologies are the way to do that. I believe 1414 Degrees technology can have a positive impact on many different levels. It can time shift renewables and its synchronous generation provides a cleaner option to achieve grid stability.

1414 Degrees has commenced a restructure of its corporate and leadership team toward realising early revenue opportunities from its Aurora Project while advancing 14D’s core technology. Paired with recent Board changes, the Company is seeking to strengthen both the Board and corporate leadership team with the appointment of ASX experienced Directors and a Managing Director.

1414 Degrees is pleased to advise that, effective immediately, it has appointed Dr Jordan Parham as interim Chief Executive Officer to lead 1414 Degrees through this transition phase. He will fill the position of CEO of 1414 Degrees until October 2020 when the position will be re-assessed.

Dr Parham has been Chief Operating Officer at the Company since 14 January 2019. In this time he has restructured and enhanced the technical team setting a new development path for long-duration storage competitiveness of the Company’s TESS technology. Prior to his time at 1414 Degrees, Dr Parham was CEO of FCT-Combustion (Asia-Pacific) and Manager of the Institute for Mineral and Energy Resources at the University of Adelaide. His qualifications include a PhD in Mechanical Engineering, Advanced Diploma in Project Management, and he has completed the Advanced Management Program at the University of Melbourne Business School. He brings a unique combination of technical, strategic, business and leadership skills, a strong interest in clean thermal energy technology, and a comprehensive understanding of the energy sector in Australia and globally.

As interim CEO, Dr Parham will work with 1414 Degrees’ executive team and Board to execute the Company’s vision and build investor confidence by delivering commercially valuable outcomes. In particular, he will support Ms Marie Pavlik, CEO of 14D’s subsidiary company, SiliconAurora, to develop the Aurora Project with TESS and generate revenues for the Company. He will continue to oversee the technical team, led by Dr Mahesh Venkataraman, to ensure the delivery of robust and competitive TESS technology. He will work closely with the business development team to commercialise 1414 Degrees’ SiBox, GAS-TESS and TESS-GRID technologies.

Dr Parham and Ms Pavlik will continue to report to Executive Chairman, Dr Kevin Moriarty.

Terms and Conditions of CEO Appointment:

The Employment Contract covers standard terms including confidentiality, intellectual property, non-solicit and non-competition.