Eco Investor Update
A Weekly News Update for Environmental Investors
July 2011 - No 38
The 67.2 MW Oaklands Hill Wind Farm in western Victoria is under construction by Suzlon under a fixed price turnkey contract and is scheduled for completion in early 2012. It will utilize 32 Suzlon S88v3A turbines.
AGL will construct, operate and maintain the facility, and retain until 2036 the rights to all renewable energy certificates and electricity output.
The buyer, reported to be a Challenger fund, will pay all remaining development and construction costs under the project's finance facilities. AGL said the sale recoups its development costs to-date of $164 million and relieves it from another $38 million of further ongoing expenditure.
The wind farm will support AGL's 27-year contract to supply up to 860 GWh of electricity and associated renewable energy certificates each year to Victoria's desalination plant, which is expected to commence operations in 2012.
AGL has over 1,280 MW of renewable energy capacity currently in operation. The 53 MW Hallett 5 Wind Farm and the 420 MW Macarthur Wind Farm are also under construction.
The Galilee Gas Project in which AGL is a 50 per cent partner has issued its first estimate of its contingent gas resource - 259 petajoules (PJ) of 2C gas and 1,090 PJ of 3C gas.
"The estimation is an important milestone for the Galilee Gas Project," said Steve Koroknay, chairman of Galilee Energy. "The technically recoverable gas identified provides a sound basis for continued development of the Galilee Gas Project." (ASX: AGK)
APA has raised $300 million through an oversubscribed institutional placement at $3.85 per security to fund the acquisition.
The wind farm is 10 kilometres from APA's Parmelia Gas Pipeline and 200 kilometres north of Perth. APA managing director, Mick McCormack, said Emu Downs is a renewable energy project located in an area with a high yielding and predictable wind resource. "Emu Downs complements and enhances APA's gas infrastructure assets in the Perth region, including the Parmelia Gas Pipeline and Mondarra Gas Storage Facility, which can support gas fired generation in the region."
The Emu Downs acquisition represents a 2011-12 earnings (EBITDA) multiple of 8.5 times and is operating cash flow per security accretive in 2011-12, said APA.
Long term revenue agreements for the total output of the wind farm for the remaining operating life of the asset, about 20 years, are with large energy retailers including the WA Government owned energy retailer Synergy. This should provide secure and stable cash flows, said APA.
At $171 million, the acquisition price is $2.2 million per MW currently installed.
Part of the $300 million raised
is earmarked for the organic expansion of APA's energy infrastructure
portfolio to June 2012. APA said that over the period to June 2012, it
will complete, continue or commence six projects:
Also under a conditional agreement with ATCO, DUET would sell its minority interest in WA Gas Networks (WAGN) and have its $80 million SOLA debt to WAGN repaid.
DUET would pay $42.5 million, which it would fund from its cash reserves.
The transactions are conditional on AET&D agreeing to sell its interests in the Dampier to Bunbury Pipeline, Multinet Gas and WAGN to ATCO. The deal would also need approval from the Foreign Investment Review Board.
Meanwhile AMP has increased its stake in DUET from 13.94 per cent to 15.36 per cent, and Lazard Asset Management Pacific Co has increased its stake from 9.62 per cent to 10.67 per cent. (ASX: DUE)
Dart said the reserve certification, undertaken by Netherland Sewell & Associates, Inc (NSAI), is among the first and most sizable CBM reserves certifications in Europe to date.
NSAI also evaluated Dart's recently acquired USCB and Milejow licences in Poland, with the Milejow Shale having a best estimate of 9,485 BCF net.
Chief executive officer, Simon Potter, said the reserve and resources certification for PEDL 133 and the Polish licences is a first step in an ongoing resource maturation program over the next 12-18 months.
Dart will now "move swiftly to achieve early commercialisation, benefitting from easy access to market and Europe's high gas prices," he said.
"We have now also established that PEDL 133 in Scotland and the Milejow block in Poland are assets with substantial shale gas potential. We will be working to further assess that potential and define a strategy that best achieves value for these assets."
The good news did not stop Dart's shares hitting a new low of 55 cents on June. (ASX: DTE)
Eastern Star Gas
Energy World Corporation
The project includes six wells, a central processing plant, a metering station, and a 19 kilometre export pipeline.
Energy World has also reached agreement with its bankers for the US$200 million project finance for the 120 MW expansion of its Sengkang power plant. (ASX: EWC)
$108 million of the bonds have maturities of 10 years, $192 million have 12 year maturities and $50 million have 30 years.
The funds will refinance existing shorter term revolving bank facilities. US long-dated private placement bonds now represent close to one third of Envestra's total debt portfolio. The average duration of the company's debt portfolio will increase to close to 11 years.
Envestra has no further term debt maturities until July 2012, when $80 million of Capital Indexed Bonds and $240 million of bank facilities mature. The company expects to have the refinancing arrangements for these finalized by early 2012.
The Australian Energy Regulator (AER) has issued its Final Decisions on Envestra's South Australian and Queensland Access Arrangements, setting the terms, conditions and tariffs for Envestra's gas distribution services from 1 July 2011 to 30 June 2016. Envestra's South Australian and Queensland networks generate about half the company's revenue, and the Final Decisions provide about $100 million of extra revenue over the five year period relative to the Draft Decisions published in February.
The Final Decisions mean that in South Australia revenue of $172.2 million in 2011-12 will increase to $252.4 million in 2015-16; and capital expenditure over the five years will be $533 million. Network tariffs increased by 15.3 per cent on 1 July 2011 and are then to be adjusted for the next four years on average by CPI plus 7.3 per cent.
In Queensland, revenue of $54.9 million in 2011-12 increases to $75.9 million in 2015-16. Capital expenditure over the five years is $151 million. Network tariffs increased by 12.5 per cent on 1 July 2011 and are then to be adjusted for the next four years on average by CPI plus 4.3 per cent. (ASX: ENV)
Ms Harris is chairman of Barrington Consulting Group and a national director of the Australian Institute of Company Directors. For the past 15 years she has been a professional non-executive director, and an adviser to boards on governance and performance matters.
Based in WA, she has energy related experience as a previous director of Alinta Ltd for nine years. She has also been a director of five other ASX 200 companies. She is currently on the boards of Sundance Resources Ltd, Altona Mining Ltd, Territory Resources Ltd and Aurora Oil & Gas Ltd.
Infigen's sale of its German wind energy assets, now complete, was at an enterprise value of 154.6 million, and will see Infigen amortize 120 million or $164 million of debt under its global debt facilities.
In addition, finance lease liabilities of 26 million associated with the 36.5 MW Eifel Wind Farm remain in a company acquired by the purchaser and so cease as liabilities of Infigen.
Thanks to the sale, Infigen's expected debt amortisation across 2010-11 and 2011-12 has increased to about $250 million.
Infigen expects to record a non-cash net loss on sale of the German assets of $32.5 million for the year to 30 June 2011.
This is based on an underlying loss on the disposal of $17.9 million; foreign currency translation losses of $3.6 million associated with the ownership of the German wind farms since their acquisition, reclassified from the foreign currency translation reserve to the statutory profit and loss account at 30 June 2011; and interest rate swap termination costs, transaction costs and taxes from the transaction of $11 million.
Infigen Energy's portfolio now comprises interests in 24 wind farms across Australia and the US with a total installed capacity of 1,646 MW on an equity interest basis. (ASX: IFN)
Lynas said it accepts the IAEA's recommendations and will implement them in full.
Lynas "is required to provide a comprehensive long-term detailed plan for waste management, including at the decommissioning and remediation level. This must be done before any further licensing approval can be considered. The [Malaysian] Government will ensure that Lynas complies fully with this recommendation of the IAEA Report. Until this is done, the status quo remains: there will be no importation of raw materials into the country, and no operational activities will be allowed on site."
The plan needs to be approved by the AELB, the Malaysian regulatory body with authority to issue the pre-operational licence.
The pre-operational licence will allow start up of the plant and ramp-up to capacity, but Lynas will still have obligations related to the additional IAEA recommendations and this work will continue during the operational start-up of the LAMP.
Lynas said the impact of meeting the requirements could result in commissioning being completed by the end of 2011, with full Phase 1 production capacity achieved by the start of the second half of 2012. It does not believe the schedule for Phase 2 will be impacted.
The IAEA may return in one to two years to review implementation of the recommendations.
Lynas said it "remains fully committed as an absolute priority to the safety of our employees, the environment and the communities in which we operate. In accordance with the recommendations of the report, Lynas will intensify our communication with interested and affected parties within the communities in which we operate."
The company said it plans to become the benchmark for security of supply for rare earths and a world leader in quality and environmental responsibility to an international customer base. (ASX: LYC)
This is in addition to the $5.5 million write-down on its interest in CMA Corporation and the $1.8 million restructuring charge for its Manufacturing division announced on 7 June.
The majority of the impairment charge, $180-200 million, relates to the New Zealand Division. This is a non-cash write-down of goodwill based on a more conservative future growth rate due to the difficulties facing the New Zealand economy generally and due to recent natural disasters.
The planned write-down does not reflect TPI New Zealand's current business performance, which the company said continues to be strong, and the division remains an integral part of TPI's total waste management service offering.
There is also a write down of $40-45 million for the Manufacturing Division. All goodwill relating to the manufacturing division's past acquisitions will be written off. This is part of TPI's plan to restructure its manufacturing operations to stabilize performance and position the division for growth.
Transpacific's net loss for 2010-11 after significant items, mark-to-market adjustments and SPS distributions is expected to be in the range of $177-209 million. The 2009-10 profit was $59 million.
The company said debt reduction is its number one priority. It has reduced net debt by $209 million since mid 2009, with $87 million of this in 2010-11.
TPI said its Step-up Preference Shares are perpetual in nature and it plans to step these up in October 2011 as they are a cost-effective source of funding.
It will also sell up to five surplus freehold properties, but not the Tullamarine landfill site. The sales could generate up to $20-30 million in cash. (ASX: TPI)
Ceramic Fuel Cells
Microgeneration UK 2011 is run by the Micropower Council, the British Photovoltaic Association and the British Heating and Hot Water Industry Council.
The Technical Innovation Award, one of five categories, was presented by Baroness Maddock of Christchurch, President of the Micropower Council. The Baroness said "CFCL is playing a key role in pioneering technology that can help provide a source of cleaner, more efficient, low cost energy. Currently collaborating with multiple partners across the globe to help bring cleaner electricity, CFCL is a great example of how innovation within the microgeneration sector can deliver tangible benefits."
BlueGen has the highest electrical efficiency of any small-scale power generation system in the world, reducing energy bills as well as making significant carbon savings. (ASX: CFU)
CMA said it is assessing the Austock proposal but it is incomplete and there is no certainty it will be finalized. (ASX: CMV)
The impact of the decisions is an anticipated impairment of $9.7 million before tax in the carrying value of goodwill associated with the original acquisition of Trevor R Howse.
Greencap expects the group result for 2010-11 will be a net loss after tax of over $5 million. The subsidiaries Trevor R Howse and Leeder Consulting, which are now both held for resale, will be treated as discontinued operations in the year end accounts.
Whilst the underlying operations of Leeder remain highly profitable it is anticipated that the combined result of the discontinued operations taken together, inclusive of the non-cash goodwill impairment charge, will be an earnings (EBIT) loss of around $9 million for the financial year, said Greencap.
The continuing operations from the core risk management consulting services business is expected to deliver earnings (EBIT) of between $5 million and $6 million for the financial year.
Greencap said its bank supports the initiatives and has negotiated a new funding agreement.
Greencap managing director Andrew Meerman said "While the decision taken will result in a loss for Greencap for this financial year, the Board and management are confident the company is in a strong position moving into the new financial year."
"The earnings generated from the continuing operations coupled with the value expected to be released from the sale of Leeder positions the group for renewed growth. We anticipate strong performance in the first quarter of financial year 2012," he said.
Greencap consulting chief executive officer, Earl Eddings, said "Greencap's realigned business model is delivering results. Our new key account program that commenced this year is already producing an increased flow of work from larger national and international clients. We continue to experience ongoing success from the program. This is demonstrated with our confirmed appointment to deliver hazardous materials audits of a portfolio of properties in the Sydney city basin area with a project value of $1.2 million to a new major land asset client."
"We are building our Defence order book, with project wins resulting in $1.3 million of revenue in various defence projects across Australia. Our Indonesian operation has won several major new projects totalling US$1 million in the environmental and water management field."
"We are also expanding our service offering into new markets. We are rationalizing smaller offices and opening new regional offices in resources sector hot spots, expanding operations in the Northern Territory and Western Australia, rolling-out our online services and training offerings to continue to drive growth in our core business." (ASC: GCG)
The result is due to increased demand for solar products as well as the securing of several exclusive distribution agreements with international manufacturers.
Executive chairman David Richardson said that the upside in the solar industry is now becoming clear, with demand from consumers who are facing rising power prices being complemented by a strong Australian dollar and lower prices for manufactured products.
"As the price of solar panels and components continue to fall rapidly, solar power systems are becoming increasingly affordable at the same time as the cost of electricity generated by traditional means is rising steadily around the nation. This means there is potential to reach the point known as "grid parity" faster than anticipated. As solar becomes increasingly competitive with traditional power, a sustainable market for residential and commercial photovoltaic solar systems is becoming a nearer-term reality," he said.
"We aim to build, own and operate grid, hybrid, mini-grid and remote solar projects, capitalizing on a major growth period for the solar power generation market. Our investment in this area is progressing well and we are receiving considerable interest from a very wide range of organisations seeking to involve Solco in their power projects in either a development role or long-term operator," said Mr Richardson.
Although the Federal Government's reduction of the multiplier under the RET scheme at 30 June 2011 may inject some uncertainty into the solar power sector at the start of the new financial year, a range of opportunities that have been presented to the Projects and Power Division mean that the company's investment in this area is expected to produce results during the year that will contribute to both revenue and profit, he said. (ASX: SOO)
Transfield Services Infrastructure
The sale and suspension mean the loss of an income producing security and less choice for environmental investors.
The Fund is to sell its 50 per cent interests in the Macarthur and Yan Yean water filtration plants to its joint venture partners TRILITY Australia Holdings and TRILITY Yan Yean (Holdings) as outlined in the offer announced on 16 June.
Transfield Services Infrastructure Fund also owns a portfolio of interests in five power stations and three wind farms. (ASX: TPI)
Micro Cap Companies
Executive chairman Roger Stroud said "The Algae.Tec algae photo-reactors will be sited next to the main facility and take a carbon dioxide feed from the main ethanol fermenters."
The photo-reactors are currently being assembled at the company's USA headquarters, the Algae Development & Manufacturing Centre in Atlanta, Georgia, an 18,200 square foot fabrication facility.
Algae.Tec is one of only a few biofuels companies in the world with a technology that can grow algae on an industrial scale and produce biofuels that replace increasingly expensive fossil fuels, he said.
"The technology captures carbon pollution from power stations and manufacturing facilities which feeds into the algae growth system." (ASX: AEB)
AnaeCo has recruited a new chief executive officer and is undertaking a capital raising of between $8.75 million and $10.75 million.
The new CEO cannot yet be revealed, but he will commence work by 30 August. AnaeCo said he has a credible track record of commercial achievement in a substantial international industrial business, and that the appointment "is a very important step in the transition from technology development to commercialisation".
Until the new CEO can commence full time employment, Professor Michael Dureau has been appointed as chairman and managing director and will later return solely to the role of chairman.
AnaeCo's capital raising comprises a placement of $1.75 million at 5 cents per share for which it has firm commitments from sophisticated and professional investors, plus a $7 million to $9 million convertible bond issue for which it has signed a term sheet with a global asset management firm.
Drawdown of the convertible bond facility is subject to conditions precedent and approvals. Key terms include a conversion price of 8 cents per share, zero coupon, a three year term, and ranking as senior and secured.
$4.85 million of the funds from the capital raising will be used for working capital, $2.2 million for construction of the WMRC Stage 2 facility, and the balance for industrialization of the DiCOM technology, business development costs and repayment of a short-term loan facility.
The capital raising is being arranged and managed by Bizzell Capital Partners. 4,166,667 placement shares worth $250,000) were subscribed by a party related to Shaun Scott, a director of AnaeCo.
Commenting on the capital raising, Prof. Dureau said "We are extremely pleased with the level of support shown for this capital raising, including the participation by several prominent institutional investors and the significant proposed investment via the Convertible Bond. These investments underscore the quality of AnaeCo's DiCOM technology and business model.
"The company has, with the strong support of non-executive director Mr Shaun Scott, progressed the transition to a commercialization focused business." (ASX: ANQ)
Australian Renewable Fuels
Tom Engelsman, currently the chief executive, will become executive chairman of the ARF Group. His specific focus will be to assist in the implementation of the ARF strategy and lead the development of the opportunity presented by subsidiary Besok and its capital structure.
The intention is for the ownership of Besok to be expanded to include GlobalBiofuels Trading Inc (GBTI) and others so it can be grown into a substantial operator in the international feed stock and fuel sector.
Andrew White, currently the chief operating officer of the Infrastructure Capital Group (ICG) and the managing director of BPL, will become the managing director of the ARF Group. His main initial focus will be on integrating the BPL business, and growth based on the market dynamics and feed stock options available. He will also review expansion models in regions and markets linked to the current large industrial demand.
Julien Playoust, managing director of the AEH Group in Sydney and currently a director of ARF, will take on the role of lead independent director. (ASX: ARW)
Non-executive director Garry Button resigned on the same day. He has been a director since February 2009 and was chairman of the Risk and Audit Committee. Mr Button said that as a result of a restructure within Stanwell Corporation, his role had changed and he would no longer be in a position to act as Stanwell's nominee director.
Blue Energy's ATP813P tenement in the Galilee Basin has 554 petajoules of 3C recoverable Contingent Resource together with a further 1,142 PJ of Prospective Resource, according to the dataset developed from the 2010 drilling campaign and an independent assessment by Netherland, Sewell and Associates (NSAI).
The Contingent Resources are mainly around the existing five wells drilled by Blue Energy, while the Prospective Resource relates to some of the inter-well areas but does not include the majority of the permit area.
The resource assessment is for around 25 per cent of the ATP813P permit area. The potential of the remaining 75 per cent will be addressed with future drilling, said the company. (ASX: BUL)
SPTS is also a joint venture partner with BluGlass in the commercialization of BluGlass' RPCVD technology.
SPTS designs, develops and manufactures capital equipment used in the production of devices on semiconductor substrates. It serves end-markets including micro electro-mechanical systems (MEMS), power management, advanced packaging, high speed RF components, and light emitting diodes (LEDs) on compound semiconductor substrates.
SPTS president and CEO William Johnson said "The investment by Bridgepoint in SPTS signifies the next stage in our evolution as a market leader in the MEMS, compound semiconductor, advanced packaging and power markets."
Bridgepoint said it believes SPTS is an attractive opportunity to acquire a market leader in the wafer fabrication equipment sector.
Chris Bell, a director at Bridgepoint, said "SPTS has strong positions in every sector in which it operates, and a global customer base in end markets poised for long term growth. In addition, we have identified with management a number of initiatives to optimize its operational performance, including acquisitions in attractive niche markets and joint ventures, such as the BluGlass agreement." (ASX: BLG)
In addition, investors in the company's 10 cent convertible note issue have converted the $500,000 note to shares.
Broadacre Asset Management (BAM), the holder of a $1 million convertible note, is to convert $500,000 of the note into shares. The notes will convert at the lower of 10 cents per share or a 10 per cent discount to the volume average weighted price of the shares over the five days prior to conversion.
The terms of the remaining $500,000 note have been extended to 30 September 2011. The revised terms allow for conversion at the lower of 11.5 cents or a 10 per cent discount to the volume average weighted price of the shares over the 5 days prior to conversion.
The $1 million in converted notes so far are subject to shareholder approval at a general meeting in August. (ASX: CCF)
Carnegie Wave Energy
Carnegie has drawn down $2.7 million of the $12.5 million grant over the last 18 months and says it is currently meeting all development milestones. (ASX: CWE)
The initial harvest represents another significant milestone, said the company, offering a proof of concept' of its vertically integrated Hatch to Dispatch' business model.
The commencement of harvests will also result in "a significant uplift in revenue", with the company intending to progress towards profitability as production expands from the Thailand operations.
The value added Premium Barramundi fillets will be sold as part of the recently launched gourmet Eco-Star ready to cook' barramundi meal range. In April, the company undertook a soft launch' of these products in over 50 supermarkets and says it has received "outstanding feedback".
"With a strong and steady Premium Barramundi supply now commenced and continuing to develop, the Company can progress towards distribution of its Eco-Star product range throughout Western Australian, followed by national distribution," it said. (ASX: CAQ)
Clean Seas Tuna
Managing director, Clifford Ashby, said that with the lowest at-sea water temperatures soon to reach 11 to 12C, the few remaining juveniles from this year's spawning program were not expected to survive such conditions. It was always anticipated that survival was unlikely as winter temperatures arrived, hence the continued survival is remarkable and builds on the significant knowledge gained for future trials and ultimate commercialization.
"The information gleaned from our latest achievements - combined with the Japanese experience from Northern Bluefin Tuna trials - indicates that greater survival will be achievable if we have bigger juveniles going into winter months," he said.
"Clean Seas has already begun addressing this latest research and development goal and is on track in advancing its spawning program at the maximum advised rate of one month per season.
"Accordingly, initial SBT spawning for the forthcoming season is scheduled to be brought forward to December this year, with our spawning preparation cycle already well underway.
"It is anticipated that the earlier spawning will see Clean Seas build further on its achievements by resulting in quicker growth of SBT juveniles, a significant reduction in mortalities and the potential for the juveniles to survive and prosper through the challenging winter cycle.
"This year's success with world-firsts in transfers of SBT juveniles to sea cages, diet developments and growth monitoring through to the current winter water temperatures of some 14C, have all combined to produce a most encouraging result for our research and development project," he said.
"Overall, we remain confident that commercialization of the SBT lifecycle at Arno Bay in South Australia is a realistic objective and the Company is highly encouraged by its first at- sea, grow-out trials this season," said Mr Ashby. (ASX: CSS)
Datamotion Asia Pacific
This would be steel roofing with a photovoltaic coating applied to the steel sheet using standard coating methods, and made using a roll-to-roll process for high volumes.
Roof sheets that incorporate a photovoltaic function within their coating allow for large-scale application and can functionalize" the whole roof surface. (ASX: DYE)
The shares to Carmelton Enterprises were also in lieu of the manufacturing deposit for the period from April 2011 to March 2012.
The funds will be used for the production of stock and general working capital. (ASX: ECQ)
The company there may be concerns about the progress of its forward work program and funding requirements, and issued an update saying it remains fully committed to the Deeps project.
A review of the forward work program for the Innamincka Deeps Joint Venture with Origin Energy is advanced and will "fully evaluate the most appropriate next technical and commercial steps to develop the Deeps geothermal resource, with a view to finalizing a program for approval in July".
"A clear program of major activity is being proposed for the coming year and focus remains on delivering near term value to shareholders through commissioning the 1 MWe Pilot Plant as early as possible in 2012."
The forward work program will be funded from existing cash resources, currently $29.1 million, plus grant funding and the balance sheet.
Geodynamics is assessing opportunities to leverage its drilling rigs by sale or lease. (ASX: GDY)
"Dividends flowing to GNV from its interest in the Nextgen joint venture during the most recent two quarters comprised: December quarter: $37,166, March quarter: $222,709. Revenues for the current quarter are tracking in line with expectations, but weather conditions and the possibility of changes to the SREC legislation make forecasts more difficult to provide at this time." it said.
"Although the net impact on GNV's yearly results is yet to be determined, a greater than anticipated annual contribution is anticipated," it said.
Meanwhile, the incorporation of the company's US subsidiary, to be named Vert Strategies Inc, is near completion. The vehicle will likely be used to share ownership of some core assets and revenue streams from the US. (ASX: GNV)
The restructure positions the company to enhance its balance sheet and dispose of non-core assets, and to focus on its core business of delivering energy-as-a-service.
The restructure reduced liabilities by $2,720,892 and increased share capital through the issue of 59,186,142 shares and mandatory convertible notes for consideration of $1,741,795.
This included the completion of a private placement which raised $525,000 through 10.5 million shares and 7 million mandatory convertible notes at 3 cents per share.
The balance sheet was de-leveraged through the conversion of convertible notes into 24,033,973 shares for $721,019; and through the conversion of short-term loan notes of $381,873 into equity of 12,729,087 shares.
A reduction of $1,618,000 in liabilities of trade creditors and other payables by achieved through the disposal of a non-core debtors ledger to a third party, the issue of 1,139,025 shares and use of cash from the private placement.
Options for shares were exercised by three option holders resulting in the issue of 3,784,057 shares. New options have been issued to a third party for 4 million shares exercisable at 3 cents and expiring 14 April 2014.
The company now has 211,636,425 shares and 7,416,667 mandatory convertible notes on issue following the restructure.
The company's shares will remain suspended so it can focus on its business plan and wait for market conditions to improve.
Chairman Peter Carre and non-executive director Richard Arnold have resigned. The board now comprises co-founders Chris Mrakas as chief executive officer, Simon Barnes as executive director, and non-executive director Ron Langley who will oversee execution of the company's plans until re-instatement on the ASX.
Mr Barnes said "The completion of this restructure means GreenBox is now ready to finalize the technology systems and partnerships it needs to deliver Smart Energy Retail in the (Australian) National Energy Market. Further consolidation in the energy market and rising energy prices are creating a perfect storm for our Smart Energy service. Energy retailers and consumers need to find ways to reduce bills and create more value." (ASX: GBN)
The agreement is with Yeda Research and Development Co Ltd, the commercial arm of Israel's Weizmann Institute of Science, and is for an exclusive, worldwide Research and Licence Agreement. This will be held through a subsidiary company NEWCO2FUELS Ltd.
Greenearth Energy says the CO2 to fuel conversion technology has the potential to substantially reduce emissions using low cost generation facilities and resources.
The concept was developed in Israel by Professor Jacob Karni and his group at the Weizmann Institute of Science. It was tested in laboratory trials involving a new method of using concentrated solar energy for the dissociation of carbon dioxide (CO2) to carbon monoxide (CO) and oxygen (O2).
The same system can also dissociate water (H2O) to hydrogen (H2) and oxygen (O2), at the same time it dissociates the CO2. The CO, or the mixture of CO and H2 (called syngas) can then be used as gaseous fuel in power plants or converted to liquid fuel such as methanol, which can be stored, transported and used in motor vehicles.
The oxygen produced can be used in the combustion of the fuel, or elsewhere.
Greenearth Energy says the source of carbon dioxide for the process could be existing power plants, cement factories and other emitting industries. The fuel produced could potentially be recycled back into the plants, substantially reducing their CO2 emissions, or used as transport fuel.
The deal with Yeda Research and Development includes a Research and Licence Agreement, an Investment Agreement for the establishment of a company in Israel to help develop the technology to which the worldwide licence will be transferred, and a Funding and Option Agreement with Erdi Fuels Pty Ltd.
Managing director Mark Miller said "Greenearth Energy's subsidiary company NewCo2Fuels Pty Ltd will fund the development of the project (via NewCO2Fuels) from the laboratory into the field. Research will be performed under the supervision of Professor Karni, utilizing the Weizmann Institute's world class solar tower and solar field facilities to generate fuel with the energy input being concentrated solar energy.
"Funding for the initial stage of the project (US$5.5 million) will be generated by way of a combination of a placement in Greenearth Energy to Erdi Fuels Pty Ltd for 10 per cent of the company's issued capital (being 8,093,297 shares at $0.1171 each, representing a $0.0511 or 77.42 per cent premium to the share price as at 29 June 2011) and an option payment by Erdi Fuels Pty Ltd.
"The option is for the acquisition of the shares of NewCo2Fuels, the licensee (following assignment) of the worldwide rights to the technology, should the project prove commercially viable, in return for which Greenearth Energy and its subsidiaries will receive a substantial capital sum and an ongoing royalty stream from future product sales.
"We believe that this technology has the potential to be a viable alternative to CO2 sequestration and shift our thinking and approach to global CO2 emissions," he said. (ASX: GER)
Intermoco said that due to unanticipated delays in the delivery of its product and project services, revenue for the second half of 2010-11 is lower than previously estimated. It now expects revenue for the financial year will be around $3.5 million, with the second half outperforming the first half.
"While the total revenue is lower than in previous years, the Company's transition from basically an outsourced billing service to full embedded networks increases our gross margin quite significantly. Because of this and cost containment, Intermoco expects net profit after tax to be broadly in line with last year's result."
The company has reiterated that it now has seven embedded networks in operation from which billing is in line with expectations and expected to increase as the developments become fully tenanted. In addition a number of contracts are close to being announceable.
"The Board of Intermoco strongly believes that the strategy undertaken by the company to concentrate on our Intermoco Connect model will provide growth and profitability in future years. With all of our Intermoco Connect contracts being for at least five years, a reduced overhead cost base, and our ability to compound revenues in the future, we are confident of achieving steady and sustainable growth for Intermoco's core business." it said.
With 2,475,737,737 shares on issue, the company is proposing a 1 for 20 share consolidation. If the consolidation proceeds, the number of shares on issue will be 123,786,887. A general meeting to approve the consolidation is planned for 29 July. (ASX: INT)
Early preliminary work has commenced and identified several tin, tantalum, lithium and rare earth element targets at Moolyella.
The Moolyella Project is 23 kilometres east-north-east of Marble Bar in WA and accessible by sealed road. (ASX: LTX)
Executive chairman Paul McPherson said the expected reduction in net loss is the result of a rigorous focus on cost reduction and containment, while still investing to complete its two core development initiatives.
"Our recent completion of the new MetaMizer 240SSS and positive progress on SunnyWipes now puts us in a position to focus on revenue growth in FY 2012. We are excited with the demand for our products and we will now be concentrating on building assembling capability and inventories to meet market demand," he said. (ASX: MDV)
The price makes it more difficult for the share purchase plan it announced a week earlier at 26 cents per share. The $15 million share purchase plan and a recent $6 million institutional placement are to raise up to $21 million.
The capital is to fund its development program for first gas sales and an exploration program.
"Metgasco is currently pursuing these large scale LNG supply opportunities vigorously. At the same time that the Company pursues its export sale agenda we remain focused on progressing high impact exploration opportunities and delivering gas and gas fired power to customers and households in our local area," it said. (ASX: MEL).
UGAMP is a committee of 12 members from various governmental departments, stakeholder groups, and local communities which reviews Environmental Impact Statement for mining projects prior to approval by the Provincial Director on Mines and Energy Resources.
Orocobre said the addenda updated the previously approved Environmental Impact Statement with the results of its extensive engineering and design efforts during the recently completed definitive Feasibility Study. In addition, it addressed the development of the gas pipeline to support the energy needs of the operation.
Chief executive officer Richard Seville said "Whilst we must still complete the secondary approvals process according to the Provincial Decree announced on 4th March, we are gratified with the very strong support of the local communities in this UGAMP approval, and see this approval as a continuation of the development of positive relations with the Jujuy government and other stakeholders.
"We remain confident that our work and the support we are generating at the local level will lead to a timely final approval to build our lithium carbonate project." (ASX: ORE)
Kalgoorlie Power Systems' new 12 MW Garden Well Gold Project Power Station will supply Regis Resources with electricity for five years. The project is 350 kilometres north of Kalgoorlie.
Managing director Adam Boyd said the new contract expands the Kalgoorlie Power Systems' contracted capacity to over 150 MW at 15 mine sites around Australia. "We are continuing to prosecute the company's stated "250 MW by 2012" national expansion strategy including the "roll-out" of our waste heat recovery technology," he said.
Kalgoorlie Power Systems will soon commence installation of its exclusive KPS Waste Heat Recovery fuel saving system to its power stations that supply electricity to Regis' Moolart Well and Garden Well gold mines. The Moolart Well power station will have the retrofit completed around February 2012 and the Garden Well power station will be constructed by May 2012.
The KPS technology has consistently achieved a reduction in fuel consumption and related carbon emissions of between 6 and 7 per cent, said the company.
Pacific Energy is now negotiating with its existing mining clients to retrofit the KPS fuel saving solution to other power stations in its power station fleet.
Mr Boyd said "Following a three-year development phase with our technology partner, the commercialization of this fuel saving solution will materially reduce fuel consumption, energy costs and carbon emissions at Regis' operations and improve the profitability of both Pacific Energy and Regis.
"At current diesel fuel prices, this deal with Regis stands to increase Pacific Energy's EBITDA by approximately $1.5 million during the first 12-months after the retrofit is complete.
"If the fuel saving solution is successfully implemented across the entire existing 150 MW plus KPS fleet, the potential EBITDA increase at current fuel prices would be between $7 million and $10 million per annum.
"We plan to roll out this fuel saving solution across the KPS fleet over the coming two to three years and work with potential new clients to demonstrate the energy cost saving advantages of a KPS mine site electricity supply solution," he said. (ASX: PEA)
The capital reduction is to settle the company's legal claims over the acquisition of Commercial Energy Services Pty Ltd, which did not live up to vendor claims.
In 2010 Pacific Environment's subsidiary New Environmental Quality Pty Ltd borrowed $1.8 million from Mr Ormerod. The Loan Agreement allows Mr Ormerod to convert some or all of the outstanding loan to shares in the company.
Mr Ormerod has exercised his option to require NewEQ to provide to him with a fixed and floating charge as security for the loan and interest.
In regard to the third resolution, in December 2010 the company issued 1,266,072 shares and 226,786 options to sophisticated and other investors and the company is requesting that shareholders ratify these. (ASX: PEH)
Phoslock Water Solutions
"Encouragingly, orders received were spread across a number of key European markets including Finland, Netherlands and Germany. These projects are scheduled to be executed in the second half of the 2011 calendar year," it said.
The company's Phoslock product has been applied to over 30 European lakes over the past four years. "Strong growth is expected to continue with the number of lakes treated with Phoslock expected to exceed 40 by the end of the year," it said.
Managing director Robert Schuitema said "Phoslock is making significant strides in the European market. Recent sales results in the region have been outstanding and our project pipeline is robust. We expect a number of decisions to be made over the coming months and believe we are well positioned to win a number of key contracts.
"Sales momentum across the entire business is trending upwards and looking increasingly encouraging. This will be reflected in year on year sales growth for the FY2011 year." (ASX: PHK)
Executive director Chee Keong Oh has resigned. Mr Oh has been a director since 13 July 2010 and was a member of the Remuneration Committee. Mr Oh will continue to run Aridtec Pte Ltd following its demerger from Refresh
Meanwhile, Pacific Alliance Asia Opportunity Fund LP has become a substantial shareholder with 8.9 per cent. (ASX: RGP)
Mitsui E&P Australia has executed farm-in agreements to acquire 49 per cent of the company's 50 per cent interests in Bowen Basin tenements ATP 688P and ATP 769P. Mitsui will pay WestSide $11.5 million equivalent to 49 per cent of WestSide's acquisition and continuing exploration costs within the tenements to date.
Settlement should occur following Queensland Ministerial approval of the change.
Mitsui will then have a 24.5 per cent interest in the tenements while WestSide's interest in each will fall from 50 to 25.5 per cent. QGC, a BG Group business, holds the balance.
WestSide is now the operator of ATP 688P and approximately half of the ATP 769P Joint Venture. (ASX: WCL)
Denmark Community Windfarm
The two turbine project aims to "make a positive environmental, social and financial contribution to Denmark and beyond" by "providing carbon-free power, local investment and economic prosperity, employment, and a sense of common purpose".
The project was begun in 2003 by Denmark Community Windfarm Inc (DCW), a not-for-profit association established to build a community-scale windfarm funded by community investment.
The proposed project is on a 50 hectare site zoned Wind Energy Facility' about 9 kilometres south of Denmark. It is said to have an excellent wind resource and is well away from local residences.
The wind farm will comprise two 800-kilowatt (kW) Enercon E48 wind turbines and have minimal associated infrastructure. The turbines will connect into Western Power's South West Interconnected System electrical grid.
The 1.6 megawatt (MW) windfarm will provide about 40 per cent of Denmark's annual electricity enough for 1,150 households and prevent more than 6,000 tonnes of CO2 entering the atmosphere each year.
The cost of the project is $5.8 million, of which about 40 per cent or $2.49 million will come from a grant from the federal government's Renewable Remote Power Generation Program (RRPGP).
The company is seeking to raise a $3.5 million in equity from individual investors with $2 million in the form of $1 shares and $1.5 million in loans from individual investors and or banks. The minimum individual share parcel is $500.
The project will also benefits from the RET scheme, which requires retailers of electricity, such as WA's Synergy, to acquire 20 per cent of their energy from renewable sources by 2020.
As payment for its cash and in-kind contributions over eight years of planning and development, Denmark Community Windfarm will receive 200,000 one-dollar class A' shares in the windfarm. All income derived from the shares will fund a community chest' to finance local community enterprise initiatives.
If the offer is fully subscribed, the total number of shares on issue will be 2.461 million.
SkyFarming Pty Ltd, a Fremantle-based company which helped to initiate the project and built the recently-completed nearby Mt Barker wind farm, will manage the project; and consultant Paul Llewellyn, an environmental planner, resource economist and renewable energy expert, will oversee business development.
Western Power Networks (WPN) will control the electrical operation of the wind farm from its East Perth control centre, and the turbines will be monitored and maintained under contract by their German manufacturer, Enercon International, using a maintenance team at its service centre in Albany, 55 kilometres east of Denmark.
Further information from John Cheyne, 08 9840 9774 and firstname.lastname@example.org.
The process will help the company in its aim to win a share of the multi-billion dollar global pallet market.
Wooden pallets take up a large
slice of the world's timber consumption. While there are several environmentally
sustainable processes being developed, most export pallets are
The AGP program funded through the Federal Government's extension to the CSIRO's Flagship initiatives was created to offer equity funding to small and medium-sized enterprises in an area of national priority. The program offers between $500,000 and $2 million per company and allows businesses to purchase CSIRO research and development capability.
The CSIRO will invest up to $1.97 million to fund a collaboration through its Future Manufacturing Flagship to tailor the material formulation and high speed production.
Innovation minister Senator Kim Carr said Biofiba's technology would allow production of timber substitutes from organic fibres and natural starches. "The raw materials come from renewable sustainable resources and pallets made from Biofiba composites will break down into Earth-friendly, natural matter delivering significant environmental advantages over traditional wooden pallets."
Biofiba's managing director, Laurence Dummett, said the company was attracted to the AGP program because it could deliver a combination of benefits. "The CSIRO's Future Manufacturing Flagship has the facilities to develop the commercial process and to validate the products' biodegradability. AGP offered us access to this and funding as well," he said.
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