Frequently Asked Questions

Watch the Q&A where the 1414 Degrees team answer questions raised from our IPO information sessions.

Why store electricity?

Renewable generators produce electricity on an intermittent basis, requiring backup generation in networks for periods when wind or sun are not available. Batteries store electricity but are expensive at large scale and their efficiency declines each time they are used. Our Thermal Energy Storage System (TESS) provides a low cost energy store that can be ‘charged’ and electricity regenerated at the very high rates needed for grid scale operators.

Is this technology suitable for individual homes?

No, the scale is better suited to entire neighbourhoods of 250 homes and above.

Is it a battery?

No, this system is a thermal energy store, not a battery.

Energy and Efficiency

What is the efficiency of a TESS?

The electrical efficiency of the industrial TESS-IND modules will be dependent on the application, with units capable of 15 – 40% depending on the thermal energy requirements.  Energy usage in industrial sites reportedly averages 33% electrical and 66% heat in the form of steam or water.

The TESS-GRID devices will aim for the 57% electrical efficiency of advanced power stations, but will be colocated where possible with heat consumers, like greenhouse food producers or process industries, for CHP efficiencies of up to 80%.

The prototype has achieved an electrical efficiency of 31% of the energy recovery device and over 80% CHP efficiency.

How is efficiency measured?

Electrical efficiency is measured as the energy charged into the system over the electrical energy produced. The overall CHP or cogeneration efficiency is measured as the energy charged into the system over the sum of the electrical energy and useful heat produced.

How long can energy be stored?

Standard insulation allows for heat to be stored for a week. Additional insulation can extend this time, but would increase the unit cost. The TESS is designed to cycle daily, hence losses over time are not a significant driver.

Why is the heat output included in efficiency of a TESS?

A major use of electricity is producing heat for processes including, hot water, central heating and industry. The TESS can supply useful clean heat or steam for these processes without the need to convert back to electricity.

What is the efficiency of a battery?

Typical battery efficiencies are around 80%. i.e. when storing 100 units, 80 units are able to be recovered. The remaining 20% being lost as low grade heat, this can be experienced when your phone gets hot during charging. Unlike the TESS, battery efficiency decreases with each charge and discharge cycle.

What is sensible heat?

Sensible heat is the energy used to increase a materials temperature. Energy stored in rock or concrete, and graphite are examples of sensible heat storage. The efficiency of a sensible heat store decreases as it is used because the temperature decreases.

What is latent heat?

Latent heat is the energy used to change a materials phase, i.e. boiling liquid water into steam. The efficiency of a latent heat store remains constant because the temperature is constant.

What is a heat engine?

A heat engine is the general term used for any mechanical device which uses a source of heat to produce electricity, such as a gas turbine, steam turbine or Stirling engine.

What is CHP?

CHP – Combined Heat and Power. CHP is used to describe the generation of electricity and heat from a single energy source.
We offer a unique high efficiency CHP solution by providing a combined electricity and industrial heat output.

About the TESS

What is thermal energy storage?

Thermal energy storage is simply the storage of energy as heat, this can be observed in its simplest form as an insulated hot water tank.

What are the different types of thermal energy storage?

Sensible storage: energy is stored by heating a storage medium and maintaining its state in solid or liquid form. Energy is released and recovered by cooling the storage medium. This type of energy storage is ‘sensible’ because the heating and cooling can be sensed as a temperature change in the storage medium. Typical sensible storage media are: water, air, oil, rocks, brine (and other molten salts), concrete, sand or soil.

Phase change storage: energy is stored by heating a storage medium through its transition from solid to liquid, or from liquid to gas.  Energy is released and recovered by extracting heat from the storage medium. Phase change storage, often also called ‘latent heat’ storage is latent, or hidden, because the storage material’s temperature does not change throughout the phase change. These storage materials include water/ice, paraffin, molten salts, metallic elements (e.g. silicon) and alloys.   

Thermochemical storage: a thermochemical storage material absorbs energy in the form of heat, and splits into two physically separable chemical compounds. The recombination of these two compounds into the thermochemical storage material releases heat for energy recovery. Salt hydrates are the primary example of this energy storage technology.  

Is the TESS clean?

Yes, unlike with conventional heat engines, the TESS does not produce any exhaust gasses, as there is no combustion involved. The silicon is also non-toxic and completely recyclable.

Can the TESS store any type of heat?

The high melting point of silicon is greater than what is achievable with typical heat sources, for example low grade exhaust heat cannot be stored directly but could be integrated depending on the site requirements.

How do you heat the silicon?

Electricity or burning gas (biogas or natural gas) passes through high temperature elements (like a cooktop) which heat the silicon.

What is the difference between a TESS and a battery?

A battery stores electro-chemical energy while the TESS stores thermal energy i.e. heat.

How long will it last? (system lifetime)

The TESS is designed to have a service life of over 20 years. After which the majority of the components may be recycled into new units.

As it operates at a constant temperature there is little degradation of the internal components. This is contrary to batteries where the efficiency degrades with each cycle, requiring full replacement after the useful lifetime.

Does it matter where the TESS is positioned?

No, the TESS is flexible and may be positioned anywhere on the grid, off the grid, or “behind the meter” on site. This makes it particularly efficient because it can be placed where the clean heat can be used.

How long does it take to “charge”?

This is specific to each installation and the power available to charge. Generally, this time may be 1 to 8 hours.

How long does it take to “discharge”?

This is specific to each installation and the rate that energy is recovered. A typical installation would have 4 to 10 hours of storage for the rated output.

How big is a TESS unit?

The mid-scale TESS-IND unit (10MWh) is approximately the size of a standard 40 foot shipping container. The larger TESS-GRID module will be the size of a 2 story building.

Doesn’t the gas turbine burn fuel?

A gas turbine simply operates off of any hot gas such as air. In conventional gas turbines fuel is burnt to produce the hot gas.

What power output can it produce?

The modular nature of the TESS allows multiple units to be “stacked” together to provide the energy output required. Current plans are to provide from 100kW to 100 MW electrical output but there is no upper limit.

Is it patented?

1414 Degrees owns patents granted in the US, China, New Zealand and Australia. Further patents are pending in these and other jurisdictions related to its heat store technology. We have an IP strategy to add to these patents based on recently completed R&D.

Is it safe?

Yes, the TESS is safe and has been designed to ensure safety in the unlikely event of a failure.

About Silicon

Why use silicon?

Silicon has extremely high energy density due to the latent heat properties. The high melting point also allows for high efficiency energy recovery. Silicon is also abundantly available, ensuring the technology is sustainable and affordable. It is also non-toxic and completely recyclable.

What is silicon?

Silicon is a natural chemical element (atomic number 14). It is the second most abundant element in the Earth’s crust, primarily found as a major component of common sand. Silicon like that used in the TESS is commonly used for electronic circuits. In the TESS however silicon is kept in molten form as the energy storage material.

What is the difference between silicone and silicon and silica?

Silicon is a naturally occurring element, silica is also known as silicon dioxide, the most common component of sand, and silicone is a synthetic substance.

Silicon is the 14th element on the periodic table with the symbol Si and is a metalloid. Metalloids have the properties of both metals and non-metals. Silicon is the second most abundant element in the earth. Elemental silicon is a semiconductor of electricity. Silicon has a high melting point, 1414 degrees Celsius, and this combined with high latent heat properties give it excellent energy storage density making it ideal for thermal energy storage.  The higher temperature enables much higher efficiencies during the reclaim of the heat to either electricity, heat or both.

Silica is an oxide of silicon and comes in many mineral forms, such as quartz,  flint, jasper and opal. As silica, silicon is a key ingredient in bricks, concrete and glass.

Silicone, is synthetic polymer made up of silicon, oxygen and other elements, most typically carbon and hydrogen. Silicone is generally a liquid or a flexible, rubberlike plastic, and has a number of useful properties, such as low toxicity and high heat resistance. Silicone is present everywhere in our modern day lives – in healthcare it is present in catheters and contact lenses; in our bathrooms you can find silicone in shampoos and shaving cream; and due to its high heat resistance, silicone makes up a lot of kitchenware, such as oven mitts, tongs and pan handles; silicone’s non-stick properties also make it useful for cookware coatings.

At 1414 Degrees our patented thermal energy storage systems (TESS) store energy as latent heat in molten silicon. The use of an abundantly available material ensures its sustainability and its affordability.

Is silicone the same as silicon?

Silicone is an artificial substance derived from silicon and other chemicals. A rubber-like material it is typically used in sealants, adhesives, lubricants, medicine, cooking utensils, and thermal and electrical insulation.

Why does the silicon have to be melted?

To utilise the high latent heat properties which provides excellent energy storage density.

Is silicon toxic?

No, silicon is non-toxic.

Can the molten silicon “leak” out?

No, there is no risk of the silicon leaking out. The silicon is held within specially designed containers which are stable at high temperatures. Even if the containers were to fail, thick layers of insulation prevent the silicon from escaping the unit.

How does silicon compare with molten salts?

Silicon provides much greater energy density over molten salts, as much as 2-5 times the energy storage capacity. Additionally, the high melting point increases the energy recovery efficiency.

IPO...

What form do I use for IPO applications?

As we’ve issued a Second Supplementary Prospectus, dated 13 July 2018, all new applications for Shares and Bonus Loyalty Options received after this date must be made using the Application Form attached to the Second Supplementary Prospectus, or to avoid any confusion, we recommend applying online at https://www.1414degreesoffer.com.au.

If you completed an online application before 13 July 2018 but have not yet made payment, you do not need to complete a new application or modify your application in any way. The only action required on your part to take up the offer of Shares and Bonus Loyalty Options is to transfer payment.

If you have applied and made payment for Shares prior to 13 July 2018, you do not need to modify your application in any way and no action is required on your part to take up the offer of Bonus Loyalty Options.

If you have any questions, please contact Computershare on:
1300 556 161 (within Australia)
+61 (0)3 9415 4000?(outside Australia) 

www.investorcentre.com/contact

Monday to Friday, 9:00am to 5:00pm (AEST) 

What steps are being taken to protect the IP, or technology from theft? Can the technology be reverse engineered?

The Company has invested significant time and resources to protect its intellectual property, including a patent (granted in several jurisdictions and pending in Europe and India) for its thermal energy storage and retrieval system, that was the precursor to the Company’s current design for its GAS-TESS and TESS-IND. The Company has also filed a patent application (PCT) in respect of the current design of the TESS-IND which is also the platform technology that the GAS-TESS is based on. The Company anticipates that the PCT patent application will be published in September 2018. 

The Company’s IP strategy is to patent the foundational and novel aspects of the Company’s inventions that it has developed from its Research & Development (R&D). In other cases the Company will keep its R&D a trade secret and confidential, where appropriate.   

In addition, the patents provide protection against reverse engineering. It should be noted that the current designs have been years in development and would be very difficult to replicate.  

“We have spent years developing this. So much time and energy; this would take a long time to replicate.” – Matthew Johnson

Are there any extra energy losses during energy input, e.g. heating and the phase change of a TESS system? How much heat gets lost?

The loss in charging is minimal. There is some heat “leakage” through the casing in the holding part of the cycle. In certain instances, it will be possible to recover some of this heat.

The prototype testing has achieved over 80% CHP efficiency and the aim for the larger systems is up to 90% CHP on frequent cycling. Read more about this here.

When can you start taking commercial orders and how long will it take for the production period (how long until delivery)?

We expect to able to take commercial orders following the successful commissioning of the pilot units which we anticipate to be in approximately 12 to 24 months. Lead time on storage units will be 6 to 12 months.

Is it safe?

The safe containment of the silicon is one of the key design considerations and was an integral part in the development of the technology. Exactly how this is achieved is also a fundamental part of the intellectual property of the device.  

The silicon has three levels of containment, all of which will be monitored by the robust control system for the TESS. The designs include measures to prevent a spillage of molten silicon during normal operation for all known scenarios. This matter has also been subject to vigorous internal and external risk reviews. 

Installation will require mechanical protection to prevent impact – similar to the safety measures in place for storing bulk LPG or liquid fuels. Should a TESS unit be structurally compromised (e.g. by a major impact), it is possible that molten silicon could spill, in which case it will solidify once it cools to less than 1414 degrees.  

What is the financial model? How will you make money?

The basis of the 1414 Degrees business model is to derive recurrent revenue from its devices through direct sales or leasing with associated O&M Agreements, and by sharing in revenues earned through commercialisation joint ventures.  

“These devices are doing something that no one else is doing. They will make the grid work better and electricity work better and gas work harder. So, we should have a model where we try and share the cost savings from the energy efficiencies that we are delivering. Plus, there are opportunities with GAS-TESS. There is nothing like the GAS-TESS anywhere else in the world. It’s tapping into a new and unique market for waste treatment. A lot of wastewater treatment facilities just flare off the gas. Free gas is being burnt off. We will do well if we can get into this market quickly. These have decades-long lives. We want an operating and maintenance agreement over the life.” – Kevin Moriarty

Have you done any cost analysis?

The whole purpose of the next installations is to get the engineering specifications. We know in principle we have low cost storage and we know what the components cost. We have put it all together and it works. We have the small-scale specifications, but we need these specifications at the larger scale to confirm them for potential sales.   

“We are confident they will be good numbers, but we can’t say what they will be yet.” – Kevin Moriarty 

What’s the prognosis?

We’ve had a huge amount of interest across the world, from large urban developments to large solar and wind farms. We don’t know yet which will produce the best revenue as we need to get the technology scaled. We have been approached with extraordinary opportunities, but we need to remember that this is a growth story. This will be a growth company and we need to work out where we can make the most growth with the least money. This is the business proposition. 

It is an early stage, commercially. One thing we will be doing post IPO is bringing on more commercial people to assess the multitude of opportunities – most are overseas. 

The product comes into its own when you think of the whole energy landscape, where is the energy coming from – what are you going to use it for, how are you going to make it all work. We’d like to offer this as a solution.  

This system is remarkably scalable and versatile. 

Are you looking for more funding?

We have an innovation stream ahead of us, we have more to develop. We will look for grants to assist in developing more efficient technologies. We want these to be commercial machines. They must be viable and should not rely on financial subsidies or assistance. 

What are the plans for the international markets?

There are great opportunities in the northern hemisphere for heat energy. We have key investors in Europe and North America. Once proven locally we expect to be expanding through the Northern Hemisphere very soon.  

“We need to get these units running. Then it will be relatively easy to penetrate these markets.” – Matthew Johnson 

Please see the Prospectus for more details, particularly Section 2.9.

More...

What is a Stirling engine?

A type of piston engine which is externally heated. An internal working fluid is heated and moves between two pistons, the movement of the pistons generating electricity.

What is a steam turbine?

A steam turbine is similar to a gas turbine, rather than a hot gas steam is instead used as the working fluid.

What is a gas turbine?

A gas turbine is a type of heat engine which uses a hot pressurised gas to spin a turbine (fan blade) to produce electricity.

Doesn't the gas turbine burn fuel?

A gas turbine can operate using any hot gas including air. The TESS produces very hot air at a high temperature so it does not need a fuel such as gas.

What is pumped hydro storage?

Pumped hydro storage is the most common form of large-scale energy storage. Water is pumped to a higher reservoir or dam when power is available. When power is needed the water is allowed to flow back down, spinning a turbine in the process. It works most economically at large scale sites because of the requirements for dams which in turn have environmental issues.

What is compressed air energy storage (CAES)?

CAES is a commercially used form of large-scale energy storage. Air is compressed and stored in large underground caverns or tanks. When power is needed the air is allowed to escape, spinning a turbine in the process. The process produces heat, but not in useful form like the TESS.

1414 Degrees Limited (ACN 138?803 620) (1414 Degrees) lodged a prospectus with the Australian Securities and Investments Commission (ASIC) on 28 May 2018, as supplemented by the Supplementary Prospectus dated 14 June 2018 and the Second Supplementary Prospectus dated [13 July 2018]) (Prospectus). The Prospectus replaces the prospectus dated 30 April 2018, which was lodged with ASIC on that date. Under the Prospectus, 1414 Degrees invites prospective investors to apply for fully paid ordinary shares in the Company (Shares) (and as a result, Bonus Loyalty Options on a 1 for 4 basis).

Offers of Shares (and Bonus Loyalty Options) will be made in, or accompanied by a copy of the Prospectus. The Prospectus has been issued in paper form, and any person in Australia or New Zealand may obtain a copy free of charge upon request by emailing info@1414degrees.com.au. The Prospectus is also available in electronic form and may be accessed on the internet at www.1414degrees.com.au/prospectus. Persons who access the electronic version of the Prospectus should ensure that they download and read the entire Prospectus.

Prospective investors wishing to acquire Shares (and as a result, Bonus Loyalty Options) should consider the Prospectus carefully in deciding whether to acquire Shares (and as a result, Bonus Loyalty Options). Any prospective investor wishing to acquire Shares (and as a result, Bonus Loyalty Options), under the Offer must complete the Application Form that accompanies the Prospectus and any further Supplementary Prospectus.