1414 Degrees provided an update to the ASX, outlining progress on key milestones during the period ending 30 September 2024.

Executive Chairman, Dr Kevin Moriarty wrote to shareholders summarising key updates including progress on:

• Oversubscribed SPP raised $1.08 million to fast-track projects
• Secured up to $4.7 million from Lind Partners to fund SiBox® installations
• Submitted proposals to multiple Australian manufacturers to integrate SiBox and reduce gas use
• Advanced SiPHyR™M hydrogen project with CRC-P funding and Woodside partnership
• Progressed transmission agreement for 140MW battery in Aurora Energy Precinct

You can read the full announcement to the ASX here.

Highlights

• Up to A$4.7 million investment by US institutional investor, Lind Global Fund II, LP, an entity managed by New York-based firm, The Lind Partners (together, Lind).
• Under a Share Subscription Agreement 14D will receive an initial A$1.3 million, with up to a further A$3.4 million in funding available over 12 months under a Monthly Purchase Agreement.
• The Monthly Purchase Agreement is a staged private placement of up to $3.4 million in monthly instalments of between A$50,000 and up to A$300,000 monthly over a 12-month period (unless extended), with an initial instalment of A$100,000.
• Proceeds from the investment will be used to fund industry placement of the Company’s SIBox technology, development of the Aurora Precinct grid scale battery and the Company’s general working capital requirements.

1414 Degrees Ltd (ASX: 14D) (“1414 Degrees” the “Company”) a developer of energy storage products for industrial decarbonisation and hydrogen production is pleased to announce that it has entered into agreements with Lind Global Fund II, LP (Investor) pursuant to which the Investor will provide up to A$4,700,000 in funding to the Company to subscribe for fully paid ordinary shares in the Company (Shares) under two agreements as follows:

• • (Share Subscription Agreement), the Investor will make a payment of A$1,300,000 (Advance Payment Amount) (less any applicable offset) to the Company, as a prepayment for Shares to be issued to the Investor (Subscription Shares) for a deemed subscription value of A$1,560,000 (Subscription Amount), with the Subscription Shares to be issued within 24 months from the date of payment of the Advance Payment Amount in accordance with the terms of that agreement; and
  • (Monthly Purchase Agreement), the Investor will subscribe for Shares (Tranche Shares) by making payments of up to A$3,400,000 in aggregate to the Company in monthly tranches ranging between A$50,000 to A$300,000 over 12 months (Tranche Amounts), with an initial Tranche Amount of A$100,000 (First Tranche Amount), in accordance with the terms of that agreement.

Executive Chairman, Dr Kevin Moriarty, said “We benefited from Lind investment in our formative phase and are pleased continue working with Lind to support roll-out of our SiBox technology in industrial trials and taking our Aurora Energy Precinct projects to ready to build status.”

Jeff Easton, founder of The Lind Partners, said:

“Lind was a seed investor in 1414 Degrees prior to its IPO. Lind continues to believe in 1414 Degrees, and was delighted to be selected by 1414 Degrees to re-invest so as to support 1414 Degrees’ product roll-out. We look forward to working with the team and supporting the business as it enters it next phase of growth.”

Connections made at the TACTIC conference and trade expo earlier this month could lead to new partnerships that help integrate 1414 Degrees’ technology into industry processing plants.

Dr Jason Chaffey, who is leading the commercialisation of 1414 Degrees’ technology, presented at the 750-delegate conference in South Australia’s Upper Spencer Gulf and is eagerly following up leads.

“We have a product – SiBox – that can be used to decarbonise process heat across a spectrum of temperatures and this conference was an important opportunity to connect with key players in the energy industry and energy users in the region,” Dr Chaffey said.

“This was about understanding their challenges so our solutions can be tailored to their energy footprint, site area and energy available.”

Since successfully proving the efficacy of the company’s SiBox Demonstration Module earlier this year, 1414 Degrees has this technology ready for commercialisation and is seeking commercial pilot partners. “We’re keen to work with energy service providers to come up with solutions for the industries we’re talking to,” Dr Chaffey said.

“We’re focused on industries looking to reduce carbon emissions from process heat, found in industries where steam is used as part of the manufacturing process.”

The conference was also an opportunity to talk about how 1414 Degrees is integrating its proven energy storage solution with hydrogen production technology – through the SiPHyR project.

“By connecting with natural gas users in the region, we’re generating a pipeline of potential hydrogen customers, who could benefit from a solution that would decarbonise emissions at the point of input,” Dr Chaffey continued.

The conference was also held near the site for the Aurora Energy Precinct – which 1414 Degrees is developing with joint venture partner, Vast.

“The key for us, was understanding the main energy users in the region, including BHP – which operates mines in the area – and how they could benefit from renewable firmed energy and frequency controlled and ancillary services.

“The Australian Energy Market Operator (AEMO) has indicated that by 2035, 36 GW of storage is needed to be able to supplement the renewable energy system here in Australia.

“Two things are needed – storage and firmed energy.

“Aurora allows us to demonstrate both for the energy market.”

Global energy storage experts showed strong interest in 1414 Degrees’ SiBox® and SiPHyR™ technologies at an invitation-only workshop in North Carolina earlier this month. These technologies are designed to provide high-temperature energy storage solutions crucial for decarbonising industries. 

1414 Degrees’ Chief Technology Officer, Dr Mahesh Venkataraman, was invited to present at the Thermal-Mechanical-Chemical Energy Storage Workshop, to a prestigious audience of energy industry leaders, policymakers and end users. 

Dr Venkataraman – the only Australian representative in attendance – said the workshop was a prime opportunity to raise awareness about 1414 Degrees’ unique capabilities. 

“The energy storage market is substantial, but our technology has a unique advantage in that it can provide direct heat from renewables, which can help decarbonise industries which rely on high-temperature processes and lack feasible alternatives to fossil fuels,” Dr Venkataraman said. 

“Very few, if any, companies have been able to demonstrate performance of high-temperature energy storage, in the way we have,” he said. 

The United States is investing heavily in the transition towards net zero, following introduction of the Inflation Reduction Act, which the Clean Energy Council calls “a mammoth package of policies and incentives targeting US$369 billion (AUD $520 billion) of clean energy and climate change initiatives”.1 

Dr Venkataraman noted the US market could fill a gap in the Australian market for research stage activities and small-scale demonstration opportunities. 

“There was considerable interest from different parties in the US,” Dr Venkataraman said. 

“Partnering with US companies could open doors for funding under US policies designed to fast-track the energy transition. This workshop was an excellent opportunity to showcase 1414 Degrees’ leading-edge capabilities,” he said.