Half Year Results Announcement

Half Year Results Announcement

24 Feb 2022

    • 1414 Degrees (the Company) today released its Half Year Results and Directors report for the half year period ended December 2021. The Company recorded a net loss for the period of $3,256,210.

      This figure included a non-cash impairment of $997,516 for the past construction of thermal storage systems in 2019 that will not be incorporated in the design and construction of the SiBox system in the future. In addition, a provision of $500,000 was made for potential remediation activities at the Glenelg project which is presently not used for commercial purposes.

      At the end of this period the Company held $3,817,955 in cash and has no debt.

      During the period the Company announced a $2 million funding partnership with Woodside Energy Technologies to develop the SiBox demonstration module for commissioning in early 2023. In addition the Company was announced as a successful grant recipient of a future $2.2 million under the Australian Federal Government Modern Manufacturing Initiative (MMI) initiative. This will ensure we are well funded to progress the SiBox demonstration module and start to engage with potential industrial energy customers.

      In November the Company was granted a variation to its approvals for the Aurora Energy Project which allows for the addition of a 140MW/280MWh battery energy storage system (BESS), thermal energy storage and 33kV transmission line grid connection. Also included is a modified site layout plan and project staging. This is in addition to the 150MW Concentrated Solar Power (CSP), 70MW Solar Photo- Voltaic (PV) and 275kV connection to the network already approved. Subsequently on 20th December 14D executed an MoU with Ovida Infrastructure Pty Ltd (Ovida) to explore partnering with 14D on the development of the AEP. Ovida is a 100% owned subsidiary of Jemena Ltd (Jemena), one of Australia’s largest owners and operators of energy infrastructure with over $11 billion of assets under management and approximately 2,500 employees. The MoU provides Ovida with an exclusivity period to work with 14D before entering into a definitive sale and purchase agreement in mid 2022.

Comments by Matt Squire, Chief Executive Officer of 1414 Degrees

“The company is in an excellent position to progress its two exciting renewable energy activities being our SiBox Silicon based Thermal Energy Storage technology and the Aurora Energy Project at Port Augusta. We now look forward to providing further updates as we progress our activities during the year on these material opportunities for shareholders.”

December 2021 Quarterly Activity Report

December 2021 Quarterly Activity Report

Highlights:

    • – Strategic partnership announced with Woodside Energy Technologies to develop the SiBox demonstration module and provide $2 million of funding
    • – Awarded up to $2.2 million Australian Federal Government Modern Manufacturing Initiative (MMI) grant for future SiBox commercialisation activities
    • – Aurora Energy Project Development Approval Variation granted by South Australian Minister for Planning and Local Government
    • – Exclusivity MoU entered into with Ovida (a 100% owned subsidiary of Jemena) to potentially own an interest in the Aurora Energy Project
    • – Stabilised funding position with $3.8 million cash (zero debt) as at December 31st

Clean, scalable renewable energy storage developer 1414 Degrees Limited (“14D” or “the Company”) (ASX: 14D) provides the following activity report and Appendix 4C for the period ending 31 December 2021.

Comments by Matt Squire, Chief Executive Officer of 1414 Degrees

“The quarter has been a period of significant renewal and transformation for 1414 Degrees as we continue to progress our Silicon based, renewable energy storage technology (SiBox) and the development of the Aurora Energy Project. Both of our core renewable energy projects were bolstered by the execution of agreements with major energy companies that could see them as future long term partners.”

“In October we were delighted to execute agreements with Woodside Energy Technologies who have chosen to participate in the construction and testing of our SiBox demonstration module by way of up to $2 million in funding. Procurement activities for the SiBox have now commenced in earnest. Further support for the transformational potential of our long duration renewable energy storage technology was clear when we were announced in November as successful applicants for a $2.2 million grant from the Australian Federal Government’s Modern Manufacturing Initiative (MMI) to accelerate the commercialisation of SiBox. This will allow us to start to engage further with potential industrial energy customers for our technology.”

“Similarly we were also very pleased in December to enter into an exclusivity MoU with Ovida, a fully owned subsidiary of Jemena, to potentially partner in the development of our Aurora Energy Project near Port Augusta which received necessary South Australian Government development approvals in November.”

“The agreements with Woodside Energy Technologies and Ovida, as well as the award of the Australian Government MMI grant will not only provide significant sources of funding over the next period of the company’s activities, they are also evidence of the large potential that exists in our business as the world looks for solutions to rapidly decarbonise its future energy needs. Our development activities pathway is now clearly mapped out and we believe that we offer shareholders a compelling renewable energy investment opportunity.”

Silicon based Renewable Energy Storage technology / SiBox Demonstration Module project

The quarter saw the introduction of Australia’s largest energy company, Woodside, through their 100% owned subsidiary Woodside Energy Technologies, into the SiBox demonstration module project. The agreements executed with Woodside Energy Technologies will see them contribute up to $2million to the circa 1 MWh SiBox demonstration module on the completion of specific project milestones by 1414 Degrees. $200,000 of contributions were received in the quarter with the balance of the milestone completion payments expected to be paid across the next 18-24 months.

The SiBox is expected to be commissioned in early 2023 after which it will undergo an extended period of performance tests and validation operations. Following this, Woodside Energy Technologies will then notify 1414 degrees if they wish to proceed to jointly develop and commercialise the SiBox technology through a jointly owned Special Purpose Vehicle (SPV) which would contain the SiBox intellectual property rights. Woodside’s ownership of that SPV will be in proportion to its investment and the assessed fair value of the technology at the time. 1414 Degrees will have an ownership of at least 51% of that SPV.

Further details of the agreement between 1414 Degrees and Woodside Energy Technologies is provided in the ASX release on 13 October 2021.

During the quarter the concept design was completed, enabling detailed design and engineering to commence. Long lead items for the SiBox demonstration module were also ordered from overseas. In particular materials for the storage media. Testing on storage media options for the module continued successfully progressing towards final selection and assembly, as well as testing of new storage media designs and materials that will further improve the competitiveness of the SiBox technology.

The $2.2million MMI grant will be used to support the commercialisation of the SiBox technology through the construction of the demonstration module, complementing the agreement with Woodside Energy Technologies. It will also fund commercialisation activities including market research and technoeconomic evaluation of brown-field opportunities for SiBox, such as case studies of SiBox applications and integrating into existing industrial process heat operations or thermal energy power plants.

Aurora Energy Project (AEP) – Port Augusta

Work continued on advancement of the Aurora Energy Project (AEP), a world class site for renewable energy located approximately 30km north of Port Augusta in South Australia. The primary activity for the quarter was the successful granting in November of a variation to the AEP Development Approval by the South Australian Minister for Planning and Local Government. The variation allows for the addition of a 140MW/280MWh battery energy storage system (BESS), thermal energy storage and 33kV transmission line grid connection. Also included is a modified site layout plan and project staging. This is in addition to the 150MW Concentrated Solar Power (CSP), 70MW Solar Photo-Voltaic (PV) and 275kV connection to the network already approved.

On 20 December 14D executed an MoU with Ovida Infrastructure Pty Ltd (Ovida) to explore partnering with 14D on the development of the AEP. Ovida is a 100% owned subsidiary of Jemena Ltd (Jemena), one of Australia’s largest owners and operators of energy infrastructure with over $11 billion of assets under management and approximately 2,500 employees. The MoU provides Ovida with an exclusivity period to work with 14D before entering into a definitive sale and purchase agreement in mid 2022. In executing the MoU an initial payment of $300,000 is to be made by Ovida. This payment is expected to be received in the subsequent quarter following 31 December.

Corporate

As of 31 December 2021 1414 Degrees had the following capital structure:

  • – Shares on issue: 200,660,458
  • – Unlisted Employee Performance Rights: 3,275,000

Financial

At quarter end the Company held $3.818 million in cash and continues to focus on cashflow management to maintain liquidity and ensure the timely delivery of its projects. $0.361million of net cash outflow was used in the Company’s quarterly activities which included payments received from Woodside Energy Technologies of          $0.2 million and the Australian Taxation Office of $0.830 million for research and development claims.

    Partnership with Ovida to develop the Aurora Energy Project

    Partnership with Ovida to develop the Aurora Energy Project

    1414 Degrees (14D) is pleased to announce it has entered into an exclusivity Memorandum of Understanding (MoU) with Ovida Infrastructure Pty Ltd (Ovida) to explore partnering with 14D on the development of the Aurora Energy Project (Aurora). Ovida is a 100% owned subsidiary of Jemena Ltd (Jemena Group), one of Australia’s largest owners and operators of energy infrastructure with over $11 billion of assets under management and approximately 2,500 employees.

    Under the terms of the MoU, 14D and Ovida will work together for the purpose of undertaking relevant project-related activities to enable both parties to make decisions regarding entering into an agreement in mid 2022, whereby Ovida may own an interest in the project.  In executing the MoU, an initial payment of $300,000 is to be made by Ovida.

    The initial focus of 14D and Ovida is exploring the  development of a 140 MW / 140 MWh Battery Energy Storage System (BESS) with the final investment decision targeted in late 2022.  As announced on the 25thNovember, the Aurora project near Port Augusta now includes Development Approval for a BESS up to 140 MW / 280 MWh, 70 MW Solar Photo-Voltaic array and 150 MW Concentrated Solar Power (CSP), sub-station and associated works that enable connection to the National Electricity Market (NEM).

    Matt Squire, Chief Executive Officer of 14D said, “Jemena Group is one of Australia’s largest owners and operators of energy infrastructure with a track record of project delivery. We are delighted to be working towards a partnership with Ovida to progress the Aurora project.  Having a partner with their technical and financial capability will accelerate not just its development but also its construction and operation. Aurora is an excellent site for establishing a long term dispatchable renewable energy power generation facility, which will increasingly be in demand as efforts to decarbonise accelerate and coal power stations close down in the NEM. Following on from our announcement in October regarding our SiBox technology project in collaboration with Woodside, 1414 Degrees is now well positioned with high calibre prospective partners for both of its core renewable energy activities”.

     

    Aurora Energy Project Development Approval Variation granted

    Aurora Energy Project Development Approval Variation granted

    1414 Degrees is pleased to advise its Aurora Energy Project has been granted a variation to its existing Development Approval by the South Australian Minister for Planning and Local Government.

    The variation allows for the addition of a 140MW/280MWhr battery energy storage system (BESS), thermal energy storage and 33kV transmission line grid connection. Also included is a modified site layout plan and project staging. This is in addition to the 150MW Concentrated Solar Power (CSP), 70MW Solar Photo-Voltaic (PV) and 275kV connection to the network already approved.

    The Aurora Energy Project is intended to be constructed in a series of stages. An initial BESS will unlock the potential for future solar installation as well as providing further system security and support to the electricity network surrounding Port Augusta. The exact sequence of stages after Stage 1 is subject to change, and contingent on financial and engineering outcomes:

    1. 140MW/140MWh BESS (140MW with 1 hr capacity storage), including 275kV connection to the national electricity network
    2. 70MW Solar PV generation
    3. 150MW CSP generation
    4. SiBox Thermal Energy Storage pilot including 33kV connection to electricity network
    5. Expansion of BESS to 140MW/280MWh (i.e. increase to 2 hour capacity)
    6. SiBox Thermal Energy Storage expansion

    The development approval is a key milestone in the advancement of the long-term large-scale renewable energy project. 1414 Degrees will continue to work with all regional stakeholders including the Barngala Determination Aboriginal Corporation, pastoral leaseholders and council to unlock the renewable energy potential in the area. We are now looking to accelerate the Aurora Energy Project including potentially bringing in a partner to participate in and co-invest in the final development activities such as equipment selection and transmission studies. We anticipate a final investment decision for Stage 1 of the project to be in late 2022 with construction expected to commence in early 2023.

     

    2021 Annual General Meeting Addresses from the Chairman and Chief Executive Officer

    2021 Annual General Meeting Addresses from the Chairman and Chief Executive Officer

    25 November 2021

    Chairman’s Address

    Good morning, ladies and gentlemen, my name is Tony Sacre, and I am 1414 Degrees’ Chairman. I am delighted to welcome you all to 1414 Degrees’ Annual General Meeting of Shareholders for 2021. Thank you all for joining us, albeit in a ‘virtual’ format. The Covid 19 pandemic has presented many challenges across the world, and it has led to us having to host 1414 Degrees’ AGM ‘virtually’, for only the second time in our history. I sincerely look forward to a world where business and economic activity returns to ‘normal’, and we can all gather together, in person, at future AGMs. That said, this technology will continue to allow us to host ‘hybrid’ sessions in the future, allowing those who cannot join us in the room at future AGMs to at least join virtually.

    The year of 2021 was certainly a year of change for 1414 Degrees and this change has already started to reap positive steps forward from an organisational, transactional, and reputational perspective.

    Organisationally, we’ve had some changes at a senior executive and Board level. I’ve been pleased to see these changes having been successfully bedded down during the second half of the year and believe that there is a solid foundation of leadership at both Board and Executive level to take 1414 Degrees on our path towards the successful delivery, prioritisation and execution of our key strategies. These strategies have most recently been outlined by our Chief Executive Officer in an investor presentation released to the ASX. More on that shortly.

    From a transactional and reputational perspective, I was delighted to see our Chief Executive Officer sign off on our agreement with Woodside to further the development of our SiBox technology. That agreement is testament to the quality of work our technical team of engineers perform on a daily basis. Our engineers, admirably led by our Chief Operating Officer, Dr Jordan Parham, are committed to their work and we are starting to see the fruits of their labour.

    Reputationally, of course, partnering with such a highly reputable firm as Woodside has allowed 1414 Degrees a sense of gravitas within the industry as we continue to promote both our SiBox technology and work on our other key projects which will be discussed by our Chief Executive Officer shortly. Further to this, many of you would have seen our recent announcement about 1414 Degrees being successful in our application for a $2.2 million grant from the Australian Federal Government’s Modern Manufacturing Initiative (MMI) to accelerate the commercialisation of our SiBox thermal energy storage technology. Whilst this is good news from a financial perspective, it is, to me, further ratification of the path we are on, commercialising the SiBox technology.

    The conclusion of COP 26 has again raised the awareness of the need to act quickly on controlling global warming. The need for clean energy technology to support a global drive towards decarbonisation could not be any clearer. It is my opinion that our company is on the right path at absolutely the right time in history. I believe that our renewable high temperature heat technology will provide a solution to one of the greatest engineering and commercial challenges the world has faced, moving towards a low-carbon future. The Federal Government’s clear support for our work and our partnership with Woodside are evidence that we are on the right path.

     

    To that very end, 2021 has seen our team focus on the development and refinement of the SiBox technology, and our work with Woodside on this front has already commenced. We believe that Sibox offers unique and competitive advantages in the provision of heat solutions for industrial and combined heat and power applications. Clearly, the demand for this type of capability will only increase in the future and our successes over the past six months have meant that 1414 Degrees is now in a great position to capitalise on this.

    Leading our charge on this front is our new Chief Executive Officer, Matt Squire. Matt has only been in the role for four months but has already risen to the challenges of executing a major contract, refining our strategic objectives, and has brought a very commercial focus to our activities and, thus, delivering real shareholder value to you all. You will all have the pleasure of hearing from Matt shortly.

    In closing, I would say that the past six months have certainly had their challenges, but in overcoming these challenges and moving 1414 Degrees to its next chapter has been one of the most rewarding periods of my career. I personally am looking forward to the ensuing twelve months where we will see further development of our technological capabilities, progress on the commercialisation of our strategic objectives, and an advancement in our approach to the Aurora Energy Project. Many of these elements have recently been articulated by Matt in the Strategic document prepared by Matt and the team and released to the ASX earlier in the week. If you haven’t viewed that document yet, I encourage you to do so.

    I would like to thank everyone involved, both past and present, in supporting the growth and development of 1414 Degrees. Principally I’d like to thank our shareholders for your continued support, I’d also like to thank my fellow Board members for their professionalism and strategic support, and I’d like to thank the 1414 Degrees Leadership team and all staff at 1414 Degrees for your continued passion, energy and professionalism. I would of course like to acknowledge and pass on my thanks and appreciation to our strategic partner Woodside, and also our broader ecosystem of suppliers and business partners who contribute to the success of 1414 Degrees.

    Again, thank you all for joining us here today. The year ahead looks to be an extremely exciting and pivotal one for the company, and I do hope that you will all continue to share the journey of helping build a sustainable future through clean energy technology.

    I will now ask our Chief Executive Officer, Matt Squire, to provide an operational update on our projects before we move onto the formal part of the meeting.

    Tony Sacre

    Chairman and Non-Executive director 

     

     

    Chief Executive Officer’s Address 

    Thanks Tony and good morning, ladies and gentlemen.

    I’d also like to acknowledge the Traditional Owners of the land on which 1414 Degrees operates, being the Kaurna People of the Adelaide Plains, where we are meeting today, and the Barngarla People of the Upper Spencer Gulf where our Aurora Energy Project site is located. We pay our respect to their Elders including those past, present and emerging. We acknowledge and respect their beliefs and cultural heritage, in particular the spiritual relationship the Kaurna and Barngarla have with the land and the importance of that relationship in the past, present and future.

    Introduction

    It gives me great pleasure to speak with you today as the Chief Executive Officer of 1414 Degrees in what is a very exciting time for our company. After nearly 25 years working in the energy industry, I have never seen a period like the one we are in, and about to experience from the demands of the planet to decarbonise. The world has finally woken up, and whether or not there is specific legislated outcomes at gatherings like COP 26 in Glasgow, it is clear that there is now a general consensus that we all need to cut emissions if we are to leave behind a habitable planet for the children of the future. The world’s largest energy companies and capital providers are also clearly of this opinion.

    Already technology is playing a massive part in providing climate friendly energy solutions. The advances in solar and wind have now led to them becoming what I believe will be the primary energy sources of the future. This is already leading to significant changes to many energy delivery systems in modern economies. An example of this is the recent graph which I put in our investor presentation this week from the California systems operator showing the changes in system demand over the last 5 years – the duck curve. Just last weekend we saw more extreme evidence of this with the South Australian electricity grid actually going into negative demand as a consequence of the penetration of rooftop solar. The focus is now turning towards energy storage of what looks like an abundance of future renewable electricity. The need for electricity storage and in particular long duration energy storage will become acute.

    While decarbonisation of electricity networks is well underway, more energy is used globally in the form of heat than electricityi. Hence if carbon emissions are to be limited to meet targets, fossil fuels-based heat sources must also be replaced with cost-effective zero carbon energy sources.

     

    1414 Degrees technology

    The need for long-duration energy storage and renewable heat was recognised by our company’s founding shareholders. The benefits of utilising the latent heat properties and high melting temperature of Silicon for this purpose were understood, however the practical application of it in a usable energy storage system had not been undertaken before. 1414 Degrees pioneered the concept through its technology development and initial demonstration projects – it is the most advanced company in the world commercialising silicon-based thermal energy storage technology; most others are still at R&D level or recently spun out.

    Our initial projects have provided the foundation of knowledge that has led to our intellectual property and our understanding of how to optimise a silicon-based thermal energy storage system through our new design which we are calling – SiBox.

    SiBox leverages 1414 Degrees’ extensive expertise and experience of silicon-based thermal energy storage that it has built since inception, from commissioning our first prototype and subsequently progressively scaled up and more sophisticated units. The key lessons learnt from these projects that are embodied in SiBox are:

    – SiBox storage media is more robust – the combination of a unique silicon-based alloy and containment design, harnesses the advantages of silicon-based alloys, while solving the challenges of preventing oxidation, managing volume change during melting and solidification in a design that is more scalable and can operate in air

    – SiBox module design is more efficient – the combination of SiBox storage media and module arrangement enables a flexible geometry that can be optimised for heat transfer, reduced losses and readily customisable for cost reduction

    – SiBox is our focus – 1414 Degrees’ technical resources need to focus on our core technology, complemented by strategic partnerships with organisations to access specialised skills and experience in areas outside this, such as energy recovery system design if required

    We believe the SiBox has the potential to set a new benchmark for energy storage and offers a unique product that will enable a far greater penetration of renewable energy. The differentiating factor of our SiBox technology is in its simplicity, scalability and prospective durability that will enable it to be used in many different industrial applications. SiBox has the potential to provide energy customers with a clean source of renewable heat. And not just heat, but heat at high temperature in the form of low pressure air at over 1,000° Celsius. The importance of high temperature cannot be overstated. This means that energy is being released in a very concentrated manner and could be applied to a larger array of industrial applications where fossil fuels such as natural gas or LPG are being used.

    Utilising silicon’s combined benefits of high latent heat capacity and melt temperature means a much higher relative energy storage density can be achieved compared to other materials, providing for more efficient energy storage and consistent delivery of heat at the required temperature. The SiBox concept could also see industrial energy users install thermal energy storage systems in “behind the meter” applications that provide them with greater flexibility in managing their electricity and gas purchasing arrangements. This could in turn increase the efficient utilisation of energy supply infrastructure and potentially reduce their wholesale purchase costs of energy. Technology such as SiBox will be needed if we are to substantially decarbonise manufacturing in the future and maximise the utilisation of our vast renewable energy potential.

     

    1414 Degrees is an Affiliate Partner of The Heavy Industries Low-carbon Transition Cooperative Research Centre (HILT CRC), which aims to transform the Australian heavy industry sector to compete in the low- carbon global economy. HILT-CRC is an opportunity for 1414 Degrees to contribute to research and engage with prospective customers in heavy industries seeking to cost-effectively decarbonise and hence aligns well with our vision for developing and commercialising the SiBox technology.

    1414 Degrees was also recently announced as a successful applicant for a $2.2 million grant by the Australian Federal Government’s Modern Manufacturing Initiative which will provide us with much needed financial support and recognition to accelerate the commercialisation of SiBox. We are extremely grateful for this support and acknowledge those who supported us in our grant application.

    The best form of validation we could have achieved for the potential of our SiBox concept was the execution of a Development Agreement with Woodside Energy Technologies (Woodside) in October. This agreement not only provides us with a further $2 million towards our clearly defined SiBox validation project, it sets up the potential to create a longer term partnership with Australia’s largest energy company who is embracing the energy transition and is going to be a major developer of decarbonisation projects and exporter of cleaner energy in the future.

    Our agreement with Woodside is a compelling opportunity for us. 1414 Degrees will receive up to $2 million funding for specific project milestones that culminate in a full testing program to demonstrate the SiBox performance. Following review of the results of the testing program, Woodside will then have the exclusive opportunity to notify us if they wish to proceed to jointly develop and commercialise the SiBox technology. In this instance a jointly owned Special Purpose Vehicle would be created into which the SiBox Intellectual Property would be transferred. The ownership interests of Woodside would be determined at that point in time as a proportion of Woodside’s investment and the assessed fair value of the SPV. 1414 Degrees will have an ownership interest not less than 51%. Just to clarify as there has been some confusion, Woodside does not yet own any direct interest in our Intellectual Property. This is a decision for Woodside following completion of the Validation Project.

    Following successful completion of our SiBox validation project, the technology will require significant further investment in the future. This is to develop commercial pilots and build up manufacturing scale in order to generate unit cost benefits. We believe Woodside would be an ideal partner for 1414 Degrees to make these potential future investments and we certainly hope to have them as a partner for the longer term.

    So, the strategy for advancing the company’s Silicon-based thermal storage technology over the next 12- 18 months is now on an excellent pathway and is very clear. We have commenced procurement activities and look forward to updating shareholders on construction progress of the demonstration module throughout 2022. We will also be looking to engage with potential energy users interested in applying the SiBox technology for future commercialisation pilot opportunities in the future.

     

    It has taken a lot of effort by our core technical team to continue the progress of our technology and drive us further forward on our commercialisation pathway. Jordan, Mahesh, Josh, Will and Nathan I thank you for your dedication and commitment. We are also excited that this team will be increasing in size when Callum and Sam join us next week on a permanent basis after completing their final year undergraduate studies in Mechanical Engineering at the University of Adelaide.

    Before I leave discussing our storage technology, I also want to highlight the importance of the Glenelg project in getting us to where we are today. Following its commissioning in 2019 and testing through 2020, the commercial decision was made by SA Water not to proceed with procurement of the GAS-TESS unit. Hence, we made the decision to impair the project in our 2021 accounts, however the project is available for future reinvestment and demonstration. I would sincerely like to thank SA Water and the South Australian Government for their assistance in developing the Glenelg project and allowing us to showcase how renewable energy sources can be successfully time-shifted. It is an innovative project and again demonstrates how South Australia continues to embrace the renewable energy transition.

    Aurora Energy Project update of status and next steps

    This then leads me into updating you on our other primary asset, the Aurora Energy Project (Aurora) north of Port Augusta in a world class solar zone. Since acquiring in 2019, 1414 Degrees has continued its investment in the project and remains steadily focussed on securing its ultimate development.

    Aurora is an excellent site upon which a long term renewable energy development can be established. It is directly adjacent to the ElectraNet 275kV transmission line that serves a globally significant minerals province further north in the state where Oz Minerals operate their Prominent Hill and Carrapateena mines. These mines produce significant volumes of copper which is a core metal required for the worlds decarbonised future. Our vision remains that large volumes of solar energy will be supplied from Aurora onto the transmission line that connects these mines to the National Electricity Market.

    However, presently our focus is on the development of an initial 140 MW Battery Energy Storage System (BESS) with 1 hour of full rate discharge (or 140 MWhr storage). This Stage 1 of the Aurora project would then underpin electrical connection of the site and facilitate future renewable energy development where we have sought variations to our existing approvals to accommodate 70 MW of solar PV generation and 150 MW of Concentrated Solar Power. We have also sought in our approvals the opportunity to install a pilot plant for our thermal energy storage technology.

    The variations to our Development Approvals have all been lodged and we hope to be able to update shareholders on this progress in the near future.

    Following receipt of this variation to our Development Approval, we still have a lot of work to do at Aurora. In particular we will look to finalise preferred equipment with suppliers that will then facilitate the technical work required for the electrical connection process. We are targeting the second half of next year before we will able to conclude connection agreements with ElectraNet that will enable us to make a Final Investment Decision (FID) and commence construction. We remain hopeful that we could have the Battery project commencing operation in the first half of 2024.

    Currently we are also considering the potential introduction of a partner to participate in and co-invest in the next development phase of the project. This would reduce the overall funding requirement for 1414 Degrees and allow us to secure more competitive financing at FID which would increase returns for our shareholders.

    The Aurora Energy Project is an important opportunity not just for 1414 Degrees, but also for other stakeholders including pastoral leaseholders, the Barngarla Determination Aboriginal Corporation and the Port Augusta council and community. We gratefully acknowledge their future support and look forward to further engagement with them as we seek to further unlock what is emerging as a world class renewable energy region.

    Concluding remarks

    I believe that 1414 Degrees is now set for a very exciting period ahead. We have two well defined areas of activity being:

    1. The progression of our technology through the successful construction of our SiBox Demonstration Module in conjunction with Woodside and,
    2. Accelerating the Aurora Energy Project to a Final Investment Decision

    Our work activities to achieve this are clearly mapped out and understood. Both of our projects are material opportunities to generate future value, however this value will not be created by simply looking at the short-term share price each day. We need to ensure we deliver tangible progress and generate sustainable, longer-term growth. I want to assure shareholders that we will remain focussed on achieving this and I’m sure the share price will follow.

    In conclusion I would like to thank the team at 1414 Degrees and the board. In the relatively short time that I have been here I have felt nothing but welcome from you all and I appreciate and value your support. We are a small company with a lot ahead of us however I believe we are back on track and offer investors a compelling renewable energy investment opportunity.

    Matthew Squire
    Chief Executive Officer