The fourth quarter of 2017 saw a significant consolidation of 1414 Degrees’ portfolio, increasing our readiness for an IPO.
This includes a collaboration with SA Water, on a more than $4 million investment, including a $1.6 million grant from the South Australian Government, to develop a variation of our technology to burn the waste methane from the Glenelg Wastewater Treatment Plant.
Our business development unit has also been firming up sites on which to install TESS-IND devices to enable our engineers to characterise their performance in operating commercial factories. We anticipate having at least two sites for installation in the first half of 2018. From these the aim is to generate specifications and operational performance data for product marketing.
Construction of the storage module of the first TESS-IND has begun and we took delivery of the outer casing last week. All other components for the build have been ordered, shipping is underway, and we expect to take delivery throughout February and March. Meanwhile, we are continuing extensive testing of components using the prototype attached to a smaller turbine. Our engineers have made some significant advances that will increase reliability and performance of the devices. Several of these advances will be included in the TESS-IND device under construction.
The corporate team has had some significant additions, notably Ms Marnie Robinson as Head of Legal, bringing over 18 years of experience in the energy and electricity generation sectors. All engineers previously employed under contract with ammjohn Pty Ltd have been transferred to our Company, so we are now equipped with a strong in-house research and development team.
A new project manager for the SA Water biogas project has been appointed to manage the integration of our technology at the Glenelg Wastewater Treatment Plant. SA Water is aiming to achieve a zero net electricity cost by 2020 and will make a significant investment to achieve its goal. 1414 Degrees will be well placed to benefit through sales of our products, so the completion date of the TESS-Gas has been brought forward to mid-2018 to enable our technology to be included in their investment planning. This required us to accelerate our expenditure plans and shareholders have responded, subscribing for more than $1 million at 20 cents over the past month.
Potential customers continue to bring their sites to our attention. Notable examples are another large water utility and additional solar PV farm developers. We have also been entering into agreements for distribution of our products in Australia and overseas countries. Our partners in these agreements are all engineering specialists with an interest in refining our technology for particular market segments, for example, energy efficiency for poultry farming and displacement of gas as a source of process heating.
As previously, advised, we have received approval in-principle to proceed with submitting an ASX listing application. Accordingly, our corporate team is preparing a timetable for the IPO and listing on the ASX, assisted by Taylor Collison Limited as lead managers, and HWL Ebsworth Lawyers. The due diligence process has been reactivated and the prospectus is being drafted. We’re aiming to have the prospectus ready to lodge with ASIC in March.