- – 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.
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
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.