[vc_row][vc_column][vc_column_text]The Q&A session at the end of each of our Information Session presentations often shared the same questions across the venues. The answers to the top 9 questions are below – documented from the sessions and supplemented from information available in the Prospectus.
Don’t forget you can also read more FAQs here.
- 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 have 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.
Interested in reading more about our technology, what we want to achieve, or become involved? Download our prospectus here.
1414 Degrees Limited (ACN 138 803 620) (1414 Degrees) lodged a prospectus with the Australian Securities and Investments Commission (ASIC) on 28 May 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).
Offers of Shares 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.1414degreesoffer.com.au. 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 should consider the Prospectus carefully in deciding whether to acquire Shares. Any prospective investor wishing to acquire Shares under the Offer must complete the Application Form that accompanies the Prospectus.[/vc_column_text][vc_single_image image=”8846″ img_size=”large”][/vc_column][/vc_row]