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1414 Degrees (ASX:14D) - Executive Chairman, Dr Kevin Moriarty - The Market Herald
Executive Chairman, Dr Kevin Moriarty
Source: Energy Source and Distribution
  • Energy specialist 1414 Degrees (14D) has released a promising revenue simulation for its Aurora Project in South Australia
  • Based on historical solar profile data collected over several years at the Aurora project site, 14D's revenue simulation suggests the company's planned power plant could have made $80 million over five years
  • The company is planning to develop a solar power plant with a battery energy storage system (BESS) and a thermal energy storage system (TESS) at Aurora
  • Executive Chairman, Dr Kevin Moriarty, said though based on historical data that may or may not be a guide to future conditions, these revenue simulations are "very encouraging" for the company
  • Shareholders welcome good news after the company was unsuccessful in receiving approval for its gas-fired thermal energy storage system at the Glenelg Wastewater Treatment Plant last month
  • Shares in 14D closed over 16 per cent higher today, for 9.9 cents each

Energy specialist 1414 Degrees (14D) has released an encouraging revenue simulation for its Aurora Project in South Australia after last month's disappointing wastewater plant news.

On June 18, 14D told shareholders it was unsuccessful in receiving approval for its gas-fired thermal energy storage system (GAS-TESS) at the Glenelg Wastewater Treatment Plant in S.A. The GAS-TESS would have been the world's first biogas storage system, according to the company.

Today, the company told shareholders things are looking a bit promising at Aurora, which is another of its key focusses. The energy project will involve a mix of solar photovoltaics (PV), battery power, and 14D's TESS technology, allowing for wide ranges of revenue streams.

The company is seeking assistance from specialist agencies CQ Energy and ITP Renewables to model the project and simulate revenue.

14D told shareholders this morning that ITP has been using solar profile data collected over several years at the Aurora site to simulate the operation of a 70-megawatt solar power farm with a battery energy storage system (BESS) to maximise National Electricity Market and ancillary services revenue.

According to 14D, ITP'simulation showed that a 70-megawatt-hour battery with the sale of electricity from the solar plant would have generated between $44 million and $80 million in annual revenue over the past five years. Without batteries, a 70-megawatt solar plant would have generated annual revenue of between $12.5 million and $28 million.

Given 14D is developing a solar power plant with a BESS and TESS at Aurora, this simulation is good news for the company.

"Although based on historical data that may or may not be a guide to future conditions, these revenue simulations are very encouraging for the development of our Aurora Project," 14D Executive Chairman Dr Kevin Moriarty said.

"We are working to lock in power purchase agreements to secure cash flows for the first stage of PV generation to complement the BESS revenue streams," he said.

"The addition of our TESS will provide a complete green hybrid solution for a global market as renewable penetration increases," he said.

Of course, 14D did not say how much the development of Aurora will cost, and given the nature of the modelling, it provides no guarantees for the future of the project.

Nevertheless, shareholders seem pleased with the company's news, with 14D shares closing 16.47 per cent higher at 9.9 cents each.


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