Eco Investor June 2016

Pre-Revenue Securities

Project Completion for AnaeCo

If Australia wants to get good at commercializing technology, it can learn a lot from Perth waste to energy company AnaeCo.

After a decade and a half developing its technology that can sort municipal waste and turn it into biogas, AnaeCo has completed its first waste management project. This is a plant in suburban Perth that on 29 April it handed over to the client, Brockwaste. By 6 May the AnaeCo-Monadelphous joint venture commissioning team had fully demobilized.

AnaeCo remains connected to the project through the technology licence granted to Brockwaste and which lasts for the lifetime of the facility. Under the licence, Brockwaste has rights to use the technology at the site, and AnaeCo will provide technical support as required.

After nearly eight years developing its technology, AnaeCo listed in 2008. So project handover was a big day for the company and investors. But apart from a lot of experience and know-how, they have little on the financial side to show for it.

It seems most unfair that after so many years AnaeCo should have come this far and finished the innovative project with its shares at 0.1 cent, the lowest shares can go.

The company has under $2 million in the bank and negative equity.

The date for it to repay a $13 million funding facility to Monadelphous has been extended several times with the latest extension to 30 September. A major part of this may be converted to equity. Discussions with a Chinese company have been underway for some time and AnaeCo is hopeful of concluding a deal in the coming weeks.

In a way it almost seems like starting again as AnaeCo now works to survive, win new projects, earn revenue and build a business.

AnaeCo is another example of how long and hard and expensive it can be to turn innovative technology into a business.

Australians make a big deal about companies that rocket to success, and that's great; but it would serve our economy well if we also learn to look at and understand the many companies that year after year have to work for every centimetre of their success. Those entrepreneurs and those investors are no less heroes who deserve recognition. (ASX: ANQ)





Search Eco Investor