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Eco investor feb 2015

February 2015 Year 11 No 80
Investments That Solve
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Initial Public Offerings
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Mighty River Power 4, 11, 12, 35 Published by: Eco Investor Media Aeris Environmental Energy Developments Wareemba NSW 2046 Australia Novarise Renewable Resources Ph: 02 9705 0578, Fx: 02 9705 0685 Orbital Corporation Enhanced Energy Systems Editor & Publisher: Victor Bivell Aspen Parks Property Fund Environmental Group Pacific Environment6, 13, 29, 32, National Advertising Manager: Philip Thomson Galaxy Resources 19, 29, 33, 35 August Investments Papyrus Australia Australian Ethical International Please note that Eco Investor Media is a publishing Phoslock Water Solutions 33, 35 business only and does not provide financial or invest- Australian Ethical Advocacy Greenearth Energy ment advice. The inclusion of any story in Eco Investor is for Australian Renewable Fuels 33, news purposes only, and should not be taken as a rec- Hastings Rare Metals 23, 30, 32, ommendation about the quality of any financial prod- Australian Ethical Smaller uct nor as a recommendation to invest in any financial Hidden Garden Sustainable Readers interested in any financial product should Beacon Lighting Group HRL (formerly Hot Rock) Sims Metal Management undertake all the necessary research and due diligence Bellamy's Australia and if required seek independent advice from qualified Biosystems Engineering Ingenia Communities Group 5, 9, Cardia Bioplastics Carnegie Wave Energy 4, 7, 23, Please note writers associated with Eco Investor have shares in the following listed companies: AEB, AFT, ANQ, ARW, BLG, CFU, CWE, DYE, EGL, ERJ, GAP, Ceramic Fuel Cells 7, 17, 33, 35 GDY, GXY, IFN, INA, LYC, PHK, PPY, QTM, RFX, Tox Free Solutions SGM, SOO, SYP, TGR, TPI and the following Clean TeQ Holdings 18, 31, 33, Transpacific Industries Group 5, unlisted funds: AESCT. Clean Energy Finance Corp Lynas Corporation 6, 15, 29, 32, Commodities Group Water Resources Group Front Cover: Dillenger Pty Ltd raised $120,000
in 15 days on crowd funding platform Kickstarter
Dillenger Pty Ltd to fund its electric bicycle. Page 24.
Eco Investor February 2015
ties and the serious fixed interest investor like the nologies and business ideas.
serious property investor needs more coverage than Eco Investor's niche in the publishing and financial Changes at Eco Investor
Eco Investor can realistically provide.
services sectors is providing news, research and com- International green equities has always been a large mentary that can help investors, especially small to me- With this edition, Eco Investor is changing its edito- sector, huge compared to the Australian sector, and be- dium sized investors, interested in Australian listed and rial focus to concentrate on Australian environmental yond our resources to cover widely let alone fully.
unlisted environmental equities. It's a worthwhile mis- equities. This includes core, pre-dividend, pre-profit, However, we will continue to cover Australian based sion in a technologically, financially and ethically ex- pre-revenue and unlisted securities.
international funds and companies, and we may still citing area.
There are two reasons for the change.
from time to time include other stories about interna- As always, reader feedback on these changes and Until now Eco Investor has endeavoured to cover tional equities, particularly as they affect Australian eq- other issues is welcome.
the range of environmental investments and asset classes including property, fixed interest, and interna- Along with the growth of these sectors, the second The Power of Ethical
tional equities. But so much is now happening with reason we are refocusing is that there has also been these sectors that even covering just the main trends is good growth in the number of other publications cover- not feasible.
ing these asset classes. When I started Eco Investor in One of the most interesting articles I read over the The green property asset class has grown spectacu- 2005, I did a wide ranging national and international summer holidays was a piece by Sally Young in Fairfax larly since Eco Investor commenced in 2005. Develop- internet search and found only a handful of publications Media about how a group of young Sicilians have been ments are now underway across all types of properties that were covering environmental investment and envi- able to do what "police, the courts and politicians have from suburban apartments and houses, urban planning ronment related business. That has changed dramati- been largely unable to do for over a century – stop the and green infrastructure to rural properties and land cally and there are now a huge number of sources, some care, national parks and nature corridors, control of free, some by subscription.
They did it by starting a campaign called Addio- weeds and feral animals, and protection of native wild- In those early days Eco Investor tried to fill the gap pizzo or "Goodbye Pizzo". Pizzo is protection money.
life and landscapes. It is wonderful for environmental- with a wider editorial sweep that also included News They started with posters, then a web site, then an Ad- ists and environmental investors that so much is and The Future column on research, both of which were diopizzo logo for shop windows so consumers would happening in this asset class. But it also means that cov- dropped in 2010 when we refocused as a purely invest- know that those shops were not paying protection ering even just the main trends let alone the details is ment related publication.
money to the Mafia.
beyond a small publication like Eco Investor.
So this is not our first refocus. With both changes, In 2005 Addiopizzo got a big boost when it pub- Fixed interest has been the slowest asset class to of- the trend, as with the wider world, has been to greater lished the names of 2,500 consumers who had pledged fer environmentally positive investment options. In the specialization. Australian green equities have always to support Mafia-free businesses. Despite the risks, the past few years the green bond market and particularly been Eco Investor's core skill, and we will continue to movement is growing and it now has 800 organizations the issue of international clean energy and climate re- provide the most comprehensive coverage available of in its guide to Mafia-free shops, over 1,000 businesses lated bonds has taken off in a dramatic way, but it is local environmental equities. In line with our policy display the logo, and 10,000 consumers have joined its likely to be some years before there is a good range of from day one and my 15 years of reporting on the ven- "I pay those who don't pay" campaign.
choice open to the Australian retail investor. Fixed in- ture capital sector, this will continue to include unlisted It's a wonderful story about the power of the ethical terest is a very different asset class to property and equi- companies and their commercialization of new tech- consumer. I include ethical and environmental inves- Eco Investor February 2015
tors among them as investors are consumers of finan- On the investment side, I do not buy shares in Coles big ambition come true but for now it's a project for the cial products.
and Woolworths and am a shareholder in Metcash, future or maybe my super.
Fortunately in Australia the consumer does not have which owns IGA, and in Tassal.
My preference for diversity also extends to politics to try too hard to avoid the Mafia. But there are plenty With media, I avoid Murdoch Media products and where I am a long time swinging voter, and to religion of other ethical choices that need to be made.
prefer Fairfax Media newspapers and web sites, the where I am philosophically eclectic.
For my own part, I have been watching my own ethi- ABC and SBS. This is despite Rupert Murdoch having These cover my main likes and dislikes as an ethical cal choices for quite a few years and late last year I put been a bit of a media hero of my youth for the way he consumer and investor. Writing them down has been them in a list with the thought that perhaps I would built a global media business and supported a national useful personally and it would be interesting to know write about them. My list covers both consumer prod- newspaper in our small country. I was eventually able how they are similar and different to other people's.
ucts and investment products.
to get over the way Murdoch treated Whitlam in the With time I have become more convinced about the On retailing, one thing I really don't like is mega- 1975 election, but I cannot get over the UK phone hack- monopolies and oligopolies, so for years I have avoided ing scandal, his extraordinary media concentration in consumerism, of which environmentally positive shopping at Coles and Woolworths and instead shop at Australia, the way he uses his media outlets to pick investing is part, is a practical way to a better society.
Aldi and IGA. I also don't like the way that Coles and prime ministers, and the way his media treated Rudd in Although one consumer won't change the world, it's Woolworths are gradually taking over the supply chain the 2013 election.
good to know that when enough like-minded with their own brands, and have moved into other retail On the investment side, I do not invest in News Cor- consumers get together they can tackle big crime, big areas such as fuel. I'm put off by Woolworths' gam- poration. I have been a past investor in Fairfax Media government, big oil, big coal, big media, big retail or bling machines and the coal assets owned by Coles' and would do so again if I thought it and the media sec- just about big anything.
parent, Wesfarmers. On the positive side, I like Aldi's tor were good investments.
low prices and that IGA is often the only supermarket in On energy, I was once a client of AGL Energy and Initial Public Offerings many small country towns that are too small for Coles Origin Energy but now I avoid them and our electricity and Woolworths.
comes from Momentum Energy, which is owned by For many years I've bought free range food includ- Hydro Tasmania. Our hot water is solar.
Eco Floats Among Best IPOs in
ing eggs, chickens, ham and bacon. I'm proud to say On the investment side I have been a past investor in that many times I asked my local IGA to stock free both AGL and Origin but both have been off my list range ham and bacon and they eventually did. That also since they got into coal power big time a few years ago.
Environmental IPOs were among the best floats of meant that I didn't have to get them at Woolworths. I I have invested or am currently invested in clean energy 2014, with Beacon Lighting Group the second best per- choose farmed fish when available such as Tassal and companies including Mighty River Power, Meridian former and Bellamy's Australia the fourth best of 81 Huon Aquaculture salmon, and for a while I tried or- Energy, Infigen Energy, Energy Action, and innovative IPOs last year. A listing by the Australian Financial Re- ganic fruit and vegetable shopping but lack of parking speculative stocks such as Carnegie Wave Energy, An- view also has Metro Performance Glass at 21st posi- makes it difficult in my area.
aeCo, Dyesol and some others.
tion. Beacon Lighting rose 114 per cent over its issue At present there are not a lot of cruelty-free food op- I would really like to avoid oil companies and hope price, Bellamy's rose 67 per cent and Metro Glass 17 tions on the ASX, but the sustainable and organic food that one day I can afford an electric car. It needn't be an per cent. The fourth environmental IPO, Huon Aquac- sector is growing and I am happy to look at the IPOs expensive Tesla either. A city run-around like a Leaf ulture, was the only one to go backwards, falling three and options as they arise.
would be more than enough. For me, that would be a Eco Investor February 2015
manufactured houses that can be sold as inexpensive Companies and Milestones to
Watch in 2015
accommodation is a growing market, and the The organic baby food maker had a good IPO and its Australian holiday parks sector is disaggregated and shares are well above their issue price. Variables to It's a tradition that the start of the year sees many suitable for a roll-up strategy. Ingenia is busy making watch are new products and market share in Australia stock pickers giving their lists of stocks to watch for the acquisition. For investors much will depend on the and sales in China. These are growing and mean the new year. Although Eco Investor is not a stock picker, quality of the acquisitions and how the new parks and company now expects to beat its prospectus forecasts we can still have a turn as there are many milestones the manufactured homes strategy can add to earnings for sales and profit by 20 per cent. Also, the prospectus coming up among the 75 or so securities we currently and dividends.
said the company intends to start paying dividends with follow, particularly among the smaller and more inno- a final dividend for 2014-15. That would normally help vative companies. Whether such companies meet their Pacific Energy the share price if it goes ahead as planned, but with a milestones or surprise on the upside or downside is Remote power developer Pacific Energy has had dividend policy of 30 to 40 per cent of net profit there is sometimes crucial to their share price and survival, so several years of strong growth and commenced paying a risk that if the share price keeps rising it might outrun keeping up can pay for diligent investors.
dividends, but the managing director who guided the Here is a selection of environmental companies with success has resigned. The shares fell 20 per cent and plans and milestones for 2015 that could move their have not fully recovered. The company needs to find Clean Seas Tuna share prices. The 20 companies show that there is the right replacement and handle the transition well so Clean Seas Tuna has had a good share price run plenty happening in cleantech, a lot of it world class.
that the growth continues. It will also be interesting to since it suspended its tuna breeding program, focused see the take up for the company's new and proprietary on the production and sale of yellowtail kingfish and re- waste heat recovery technology that can reduce its cli- turned to profitability. The company has forecast sales ents' fuel costs.
of 1,350 tonnes for 2014-15 and around 2,000 tonnes TFS Corporation for 2015-16. It is planning for 3,000 tonnes by 2018-19.
The results of many years of growing Indian sandal- Financially, it expects to have positive underlying net wood plantations should become clearer this year for The national waste company has undergone massive operating cash flows from sales when monthly sales TFS Corporation. The key event is the start of sales in changes in recent years, selling a couple of divisions reach 125 tonnes or 1,500 tonnes per annum. The com- the US by its partner Galderma of Benzac acne solution and its new Zealand business, paying down over a bil- pany said it expects to achieve this level of sales during products that contain TFS' sandalwood oil. If sales go lion dollars in debt to fix the balance sheet, redeeming this quarter and the cash flow milestone in the final well, TFS could have a longterm winner as the US mar- its step up preference securities, improving its truck quarter of 2014-15.The company would keep investors ket is huge and Galderma operates in 80 countries.
fleet and landfill portfolio, and recommencing divi- happy if it met these targets. The company has hatchery dends. This year investors will see what the new look and farm capacity for 6,000 tonnes so there is plenty of Ingenia Communities Group company, revenue, balance sheet and dividend pros- room for longterm growth.
The seniors' housing operator is a growth story.
pects look like.
Ingenia is cashed up and focusing on acquiring holiday Eco Investor February 2015
Huon Aquaculture which has $21 million in sales compared to Cardia's $5 Nanosonics' share price. With sales mainly in the US, Huon Aquaculture has the potential to be solid million. Cardia's has also won numerous sales still small in the UK, France and Australia, and just company but so far its share price has traveled sideways contracts around the world so it needs to be seen how starting in Germany and Japan, there is plenty of room since the IPO. A milestone is its plan to commence the merger and new sales all come together in its top paying dividends in September for the final half of and bottom lines.
2014-15, and then half yearly with franking credits. The payout policy is up to 35 per cent of net profit.
Commodities Group Orocobre has just commissioned its battery grade Commodities Group has undergone great change by lithium carbonate plant at Salar de Olaroz in Argentina Metro Performance Glass switching its growth focus from carbon credits to prawn with first stage production set at 17,500 tonnes per an- The New Zealand doubled glazed window maker is farming. Following an acquisition, its new subsidiary num. The plant is said to be a high margin/ low cost op- potentially another solid company that is about to com- Seafarms is Australia's largest prawn producer and is eration, so investors will want to see production and mence paying dividends. It has forecast an initial divi- about to begin exporting. How that goes as well as Sea- sales remain on target. The company says the use of dend for 2014-15 to be paid in May for the eight months farms' half year and full year results will indicate how to 31 March. Its payout policy is 55 to 75 per cent of Net Commodities Group is traveling as well as its plans for Profit after Tax before Amortization (NPATA). Based large scale prawn farming in north west WA.
on its IPO price of NZ$1.70, it forecast a cash yield of2.1 per cent to March and 4.5 per cent for the 12 months Lynas Corporation to September. With NZ imputation credits the forecast Lynas has done well to begin production of rare gross yields are 3 and 6.3 per cent respectively. So far earths but it has debt issues that need to be solved, the the company is traveling as forecast.
smooth ramp up of production is important, and it needsto be seen how it travels with a new chairman following the retirement of its founder. The company was Pacific Environment has seen its share price double operating cash flow positive in the December and since its return to modest profitability and two recent March quarters but says low market demand and acquisitions, Waste Solutions Australia and DLA Envi- pricing mean it may not be sustainable. So a key to its ronmental, that could substantially improve its revenue share price is demand and pricing in the rare earths and earnings. It has also begun to roll-out its latest En- virosuite 2.0 software so initial sales and growth are im- battery grade lithium in portable electronic devices has grown at 20 per cent per year since 2000.The other im- Nanosonics is making good progress commercializ- portant variable is the lithium price, which is expected ing its environmentally friendly trophon EPR disinfect- to rise over coming years.
ing units for ultrasound probes in hospitals. Sales have been growing each year, its annual net loss is declining, The bioplastics maker is merging with fellow and it has plenty of cash. The strong growth in sales and RedFlow has overcome its technology issues of the plastics company and partner Stellar Films Group, revenue look like continuing, which has boosted past two years and is now embarking on contracted Eco Investor February 2015
commercial manufacturing and a new focus on sales for fully and successfully operational the plant will show next three to six months. These are awaited with inter- its ZBM batteries. The chief executive said "Our big- investors and potential clients that the company can de- est both for the sectors and their financials. If Geody- gest challenge now is to achieve early sales, which is liver and the technology has a future.
namics follows the trend of recent acquisitions by other our immediate focus, and build sales volumes through cleantechs and wants to impress investors, it will calendar 2015 to the level where we are at least cash Carnegie Wave Energy choose companies that are profitable or soon to be.
flow neutral." That's what investors will be looking for, The world leading wave energy developer has been as well as performance from installed batteries.
very good at achieving milestones and Carnegie Wave Energy looks to be on target to build the world's first commercial wave farm. But first it needs to install the Solco is finalizing a reverse takeover by renewable third CETO wave unit at its Perth Wave Energy Project, Qube to Develop Rail Freight
energy retailer and financier GO Group, after which it the first two now being operational. The electricity hopes to have its shares relisted. GO Group is an early needs to be fed into the grid, and the onshore desalina- stage business with $67 million in sales and tion plant needs to be commissioned. If all goes well the A rare environmental winner from the rise of the considerable potential. Investors will want to have a company will start on its CETO 6 full scale commercial Abbott Government is Qube Holdings, which has good look at how it performs and how long it will take reached an agreement with the Federal Government to for the combined GO and Solco to become profitable.
combine their land holdings and develop the Moore- Ceramic Fuel Cells bank intermodal rail project in south west Sydney.
Ceramic Fuel Cells has had great trouble finding The agreement, through Qube's SIMTA consor- enough ongoing cash to commercialize its world lead- tium, is with the Moorebank Intermodal Company, and ing fuel cell technology. Key factors to watch are its is subject to Federal Government approval. The previ- Algae.Tec and its Indian partner Reliance Industrial cash position including the dubious funding arrange- ous Labor Government did not support combining and Investments are to build an algae pilot plant in India us- ment it has with an opportunistic funder that converts developing the SIMTA site and the adjacent Common- ing Algae Tec's technology to produce biofuel, with the shares at a discount and dumps them on market, driving wealth site as a single integrated precinct.
plant expected to be operational this year. The success- down the share price; and whether Ceramic can con- Qube managing director Maurice James said the de- ful development of the plant and its operation would be tinue to raise enough capital to fund its manufacturing velopment will commence this year subject to planning an important step for Algae.Tec and give investors con- in a way that can reduce its cost of production and unit approvals and should significantly increase competi- fidence in its product and commercialization strategy.
prices. Another key factor is the level of sales and reve- tion in the Sydney intermodal freight market.
Under the deal, SIMTA would develop the Moore- bank freight precinct and be the operator. The precinct The successful commissioning and operation of An- will include an open access import-export (IMEX) aeCo's first municipal waste to energy plant, in Perth, After all its years and troubles trying to commercial- freight terminal with a final capacity of 1.05 million would be a big step forward for the company. Ramp up ize hot rock geothermal energy in Australia, Geody- containers a year, and an open access interstate freight and commissioning have taken longer than planned, but namics still has $33 million in the bank and is looking terminal with an ultimate capacity of 500,000 contain- this has been due to fixable issues such as faulty equip- for environmentally friendly acquisitions outside of ment rather than anything more fundamental. When geothermal energy. It hopes to make one or more in the A rail link will connect the site to the Southern Syd- Eco Investor February 2015
ney Freight Line; there will be 300,000 square metres Group in 2012 as part of a move into China. However, flowback water from AGL's controversial Gloucester of warehouses and distribution facilities; and the freight the sale announcement did not mention Sims' plans for village will include support services such as site man- China and whether these have changed. China is an im- The manager of EPA Hunter, Adam Gilligan, said agement, security offices, driver facilities, and conven- portant market for Sims' scrap metal. (ASX: SGM) that AGL contracted Transpacific to transport and treat ience, retail and business services.
the flowback water from its Gloucester operations.
The agreement with the government is a major lo- Transpacific Buys Melbourne's
"Transpacific treated the flowback water and then dis- gistics development that will add to Qube's environ- charged it, as trade waste water, from its Kooragang Is- mentally positive credentials by increasing rail freight land treatment facility to Hunter Water's sewerage Transpacific Industries is to buy Boral Ltd's West- and reducing truck movements on Sydney's roads.
ern Landfill business, which includes the largest land- In other news, Qube has acquired NZ stevedoring Although the EPA has no evidence there was a fill site in Melbourne, for $150 million upfront plus $15 and marshalling company, ISO Limited. ISO operates breach of environmental legislation or environment million for site preparation work. It will also pay Boral in seven New Zealand ports and at Portland and other protection licence conditions from the release into the ongoing fixed payments and volume-based royalties ports in Australia. Its stevedoring, marshalling and sewerage system, Hunter Water advised the EPA that it for the life of the landfill, expected to be around $15 transport operations are focused on the forest products is undertaking its own investigation and may take fur- million per annum.
ther action in relation to the Trade Waste Agreement.
Chief executive Robert Boucher said the acquisition The initial purchase price is NZ$80 million with fur- The EPA reminded AGL and Transpacific that any is about TPI achieving its goal of increasing returns by ther consideration in June 2018 if earnings targets for liquid waste must be discharged lawfully and in accor- processing more of the waste it collects at our own sites.
the financial years June 2016 to June 2018 are dance with any directions from the receiver of the The site will also replace TPI's current Melbourne sites achieved. The acquisition will be funded from cash and waste. Like other industrial waste, CSG waste must be which are expected to close in 2015-16.
undrawn debt facilities and is expected to be earnings stored, transported and disposed of in a way that pro- Given the essential role that Transpacific plays in per share accretive in 2014-15.
tects the environment and community and upholds en- managing Australia's waste, the great care and expense Mr James said "ISO is a high quality business with a vironment protection licence requirements.
it went to to ensure fleet safety after a fatal truck acci- long term customer base, and an experienced and AGL has since contracted Worth Recycling, which dent in Adelaide, as well as the ongoing expense to en- highly regarded management team who will remain holds an environment protection licence for wastewater sure that its landfill sites are properly managed, the last with the business." It will provide Qube with diversifi- treatment, to lawfully transport, treat and dispose of the thing Transpacific needs is to risk spoiling its environ- cation through a new geographical market and product flowback water.
mental credentials with slack behavior on a controver- sector. (ASX: QUB) Although the EPA cleared AGL and Transpacific sial and marginal contract on coal seam gas wastewater.
over the Hunter wastewater shipments, the story made Sims China Move
Yet this is what it is done in NSW where the company mainstream news with The Sydney Morning Herald re- was caught up with AGL Energy in the possible mis- porting that the companies had ignored demands they Sims Metal Management is selling its 16 per cent management of AGL's coal seam gas flowback water at avoid discharging water from fracked coal seam gas shareholding in Chiho-Tiande Group Limited with wells into Hunter Water's sewage network.
completion due by 16 February. Cash proceeds will be Fortunately, the NSW Environment Protection "The destination of 600,000 litres of the so-called around $73 million with no material profit or loss an- Authority ruled that there had been no breach of the flowback water containing chemicals used in hydraulic ticipated. Sims acquired an interest in Chiho-Tiande environmental protection licence in the disposal of the fracturing only came to light after an anti-CSG activist Eco Investor February 2015
pursued two Transpacific tankers from Gloucester near likely naturally occurring Sydney Acquisition for Ingenia
the mid-north coast of NSW down to Newcastle. Be- However, the management of Transpacific can do a Ingenia Communities Group has added to its recent fore that, AGL had not disclosed publicly where it lot better than get the company associated with such a acquisitions with a conditional contract to buy the Syd- planned to dispose of water from its four pilot gas wells controversial and potentially dangerous project. That ney Hills Holiday Park in Dural in northern Sydney.
in the region," said the report.
AGL is now using Worth Recycling is a good thing and The park has 65 permanent and 63 short term sites with "Hunter Water's concern was and remains, Trans- should serve as a lesson to Transpacific. (ASX: TPI) further upside. It is one of the closest freehold holiday pacific's breach of its trade wastewater agreement; a parks to the Sydney CBD and is in a growing residential contract that sits outside the authority of the EPA," it re- DUET Raised $63 Million
areas with the surrounding land recently rezoned for ported Hunter Water as saying.
DUET Group raised $63.4 million in the retail com- medium density residential. It is expected to provide a "Hunter Water's refusal to accept flow-back water ponent of its 1 for 8 entitlement offer that closed in mid yield of over 8 per cent on the acquisition cost of about from the AGL site was based on the chemicals AGL December at $2.39 per security. In November DUET $12 million.
nominated as contained in its ground water," the water raised $267.9 million from the institutional offer. The Following detailed due diligence, Ingenia did not agency said. "Before making its decision, Hunter Water underwriters contributed another $65 million. DUET is proceed with the purchase of the Canberra South Motor requested in writing additional information from AGL, using $144 million of the $396 million to pay for its Park in the ACT. Ingenia said it remains interested in however this information was not forthcoming." share in the Dampier Bunbury Pipeline (DBP). Its part- the Canberra market. (ASX: INA) And the Herald reported Opposition Leader Luke ner Alcoa of Australia is investing $36 million. The in- Foley as saying the EPA's response not to pursue either vestment will increase DUET's rights to DBP Institutional Action for TFS
company was "a weak and insipid decision that should distributions to 82.1 per cent and then fall to 80 per cent send a shiver down the spine of every local community Sandalwood grower TFS Corporation is growing its as Alcoa progressively makes its investment. The funds seeking to protect the sanctity of their waterways".
support from institutional investors. In January a US in- will be used by DBP to repay external senior debt and The Herald also reported the EPA as saying that it stitution exercised two of its remaining three options to strengthen its balance sheet. (ASX: DUE) had no evidence of harm to the environment from the invest in 399 hectares of Indian sandalwood plantations discharge of the treated wastewater to the sewer and that will be established in the Northern Territory in the GWA Sells Climate Systems
any environmental impact was highly unlikely. But June quarter. Settlement payments are expected in two Hunter Water has reserved the right to rip up Transpaci- tranches in this and the June quarter.
fic's Trade Waste Agreement and issued the company a GWA Group has sold subsidiary Brivis Climate "This amounts to an estimated $40 million-plus life default notice for four breaches of the agreement, said Systems Pty Ltd to gas appliance company Rinnai Aus- of plantation investment (excluding performance fees) tralia. The sale price is $49 million on a debt and cash in Indian sandalwood plantations through TFS' Beyond After the story broke AGL ran into further trouble free basis, which is in line with book value. GWA had Carbon product and is the fourth and largest investment and suspended pilot production at Gloucester after sam- identified Brivis as a non-core asset following a strate- by the US investor to date," said chief executive, Frank ples of BTEX chemicals were found in samples of gic review. GWA has also completed the sale of Dux flowback water from two of the four wells and an Hot Water to Noritz Corporation. The sale process for A $24 million investment from a new institutional aboveground water storage tank. AGL said none of the the company's Wetherill Park site is well advanced.
investor in the Beyond Carbon sandalwood plantation hydraulic fracturing fluids it used at the project con- Work has commenced on a return to shareholders of the product has settled. The transaction, referred to in the tained any of the BTEX chemicals, which are most excess funds from the sales. (ASX: GWA) company's year-end results for 2013-14, was com- Eco Investor February 2015
and oil, he said.
the previous range was $192 million to $202 million.
And on schedule, its partner, dermatology company Key drivers of the upgrades were the strong perform- Galderma, launched its Benzac over-the-counter acne ance of the Envirogen assets acquired in April 2014, solutions in the US through major national retailers higher prices for landfill gas and higher prices for such as Target, Walgreens and Rite Aid Pharmacy, on- power in Queensland. (ASX: ENE) line retailers such as Amazon.com and Benzac.com,and through social media for the youth market.
No Interim Dividend from Gale
The institutional support and revenue is good news for investors, especially on top of TFS announcing an Gale Pacific's share price fell to a three year low of $18 million profit for the September quarter. The initial 17 cents on news that it would not pay an interim divi- sales of the Benzac products will also be keenly dend. This is because it expects a fall in underlying first watched. The good news helped to lift TFS's share half net profit after tax to $1.1 million compared with price off an eight month low in November. (ASX: TFC) $3.5 million for the previous corresponding period. The Upgrade for Tox
statutory results will include non-recurring costs of$2.5 million pre-tax and $1.7 million after tax.
The Benzac acne products with sandalwood oil
Tox Free Solutions' share price rebounded off its re- from TFC.
Fortunately, directors confirmed that the profit in cent lows following a stronger than expected trading the second half is expected to be significantly greater performance by the company in November and Decem- pleted by an Australian financial institution on behalf of than the profit for the second half of 2013-14. Underly- ber and earnings above prior expectations. Toxfree now a Hong Kong institutional investor. TFS has planted ing net profit for the full year is now expected to be be- expects underlying EBITDA will be $37 million for the and will manage 400 hectares of Indian Sandalwood tween $6.5 million and $7.5 million compared with first half compared to earlier guidance of between $32 trees in the Northern Territory for the investor.
$8.2 million for 2013-14.
million and $34 million, said managing director, Steve Mr Wilson said the settlement increases the number Although there will be no interim dividend, a divi- Gostlow. (ASX: TOX) of institutional Beyond Carbon investors to five. "The dend is expected to be declared for the full year. Eco In- addition of the new investor, in conjunction with both vestor will maintain Gale Pacific as a core security on Bigger Dividend for Energy
the recent decision by our long term and respected US the strength of the assurance that a final dividend will investor to exercise two more of their options and the be paid and because the company is still profitable.
recent $20 million acquisition by the Church Commis- Energy Developments' share price climbed to an sioners for England of interests in two Indian sandal- eleven month high on news that it has upgraded its first Meridian Cancels Hydro Project
wood plantations, is an endorsement of the appeal of half and full year profit guidance, and the interim divi- the Beyond Carbon product to major institutional in- dend guidance is now 20 cents per share 75 per cent The Federal Government's failure to support renew- franked, up from 15 cents fully franked. The interim able energy means that Meridian Energy will not pro- TFS is continuing to attract strong global demand earnings (EBITDA) guidance is $96 million, above the ceed with its Burdekin Hydro Power Generation project from the pharmaceutical, fine fragrance, carving and guidance range of $88 million to $93 million. The full in northern Queensland. Located at Burdekin Falls, the luxury cosmetic industries for East Indian Sandalwood year guidance is $205 million to $210 million, where massive dam is one of the largest in Australia. Meridian Eco Investor February 2015
acquired the rights to develop the otherwise wastedpower of the dam in April 2013 and since then hasworked with local communities, landowners, the localwater authority SunWater, and the Queensland Gov-ernment to develop the project.
Meridian Energy Australia chief executive Ben Burge said "Meridian understands the disappointmentthat the people of Northern Queensland will feel onlearning of this decision. However, the Federal Govern-ment's protracted efforts to reduce the Renewable En-ergy Target have made long term capital investments inenergy assets in this country nearly impossible. This isespecially disappointing given the role that the Burde-kin project stood to play in enhancing energy securityin Northern Queensland, which is expected to emergeas a threat in the medium term." (ASX: MEZCA) Geothermal Now NZ's Second
Energy Source
Mighty River Power reports that geothermal energy is now New Zealand's second largest source ofelectricity. During the second half of 2014, geothermalgeneration replaced gas and is now only behind hydro.
Geothermal generation has increased by over 150 percent in the past decade. Investment including NZ$1.4billion geothermal output from 6.5 per cent of national supplyto 16 per cent, it said. Geothermal runs 24/7 and in thepast six years has overtaken both coal and gas-firedgeneration, cutting millions of tonnes of emissions.
Mighty River Power operates more than half of the total New Zealand clean energy utilities Mighty River Power and Meridian Energy have recently enjoyed
strong re-ratings that have seen their security prices reach post IPO highs. Meridian Energy's
geothermal now contributes 40 per cent of Mighty instalments will convert to shares in May when a second instalment payment is due.
River Power's total power generation.
Eco Investor February 2015
But while the company has been growing its New August's shareholder returns over the second half of Zealand geothermal assets, it has decided to exit its Mighty River Power is now the Smaller Companies 2014 were even better than the first half of the year, he geothermal development interests in Chile and Ger- Fund's largest cleantech holding at 2.6 per cent of the said. "Our share valuation (adjusted for the $4.00 divi- many and will keep its stake in operating US interests dend paid) increased by 11.1 per cent for the six months following a review of its international geothermal in- to December to $245.84 per share. The one month in- Aspen Group Controls 57 Per cent
crease over December was 0.9 per cent. These increases Chief executive, Fraser Whineray, said the interna- of Aspen Parks
far exceed benchmarks such as the All Ordinaries Ac- tional geothermal development options in the three cumulation Index. New shares are now being issued at The Aspen Group now controls 57.4 per cent of the countries have positive characteristics, but are now not Aspen Parks Property Fund following last year's rights in line with the company's investment objectives. "We issue by the holiday parks fund. Aspen Parks now has will be commencing a sale process for the assets in 232,636,714 stapled securities on issue, of which As- Chile and Germany. In the US, where we have an inter- Pre-Divedend Securities pen Group and its associated entities hold 41.96 per est in a 50 MW operating plant and a minority stake in a cent and the Aspen Parks Wholesale Property Fund geothermal development company, no further develop- holds 15.48 per cent. Aspen Funds Management Lim- ment capital will be committed." Possible US Movement for Infigen
ited is the responsible entity for the Wholesale Property The company's current strategic focus is on incre- Fund but it holds no beneficial interest in the fund.
Infigen Energy has confirmed a Reuters news report mental consumer-focused growth options, including The October 2014 Withdrawal Offer that allowed that it has hired advisers to consider ways of splitting its smart meter deployment and data services. He said geo- security holders in Aspen Parks to withdraw capital saw US assets from its Australian wind farms. The sale or thermal remains a core capability for Mighty River requests for withdrawals exceed the $6 million allo- float of the US assets has been an option for some years, Power and New Zealand, and the company looks for- cated for the offer. All investors received 32.3 per cent with Infigen previously having said it is waiting for the ward to pursuing future geothermal development op- of their requested allocation. Securities were redeemed right time to move. Infigen has 18 US wind farms said tions in New Zealand when commercial conditions are at $0.5227 in line with their net asset value at 1 Decem- to be worth about $500 million, and six Australian wind right for investment, as well as opportunities to lever- ber, less 0.5 per cent to cover transaction costs.
age its expertise internationally without significant "We have contemplated . the possibility of separat- capital investment. (ASX: MYT) August Investments Considers
ing our Australian and US businesses so that the USbusiness can be financed out of the US, where we think Ethical Funds Perform
it would get better value recognition and make more August Investments is looking at its investment pol- Australian Ethical Investments' funds performed sense," Reuters quotes Infigen managing director, icy that currently allows it to invest in the ‘Australian well in Mercer's December Survey with the Smaller Miles George. "Separating could be either a sale of the region only'. Changing the policy would allow it to in- Companies Trust ranked first out of 100 over six entire US business or a refinancing which would see us vest elsewhere in the world where renewable energy months and second over one year, plus first out of 67 raise equity into the US business at the US business development is not hindered in the way it is in Australia over seven years and first out of 54 over 10 years.
by current Federal Government policies. Managing di- The Advocacy Fund ranked second out of 23 over "The environment in the US at the moment is strong, rector Damien Lynch said that, if approved by share- six months and one year and third out of 19 over three equity markets are strong, renewable energy market holders, this will be a major change for the company.
prospects are strong, so it kind of makes sense to do Eco Investor February 2015
something," he said. (ASX: IFN) els, which could limit our capacity to respond to sudden NZ$117.8 million and profit after tax of NZ$9.4 mil- increases in demand. We maintain good cash levels to Bellamy's to Beat Prospectus
support the planned increases in production." (ASX: Major Project Win for Pacific
Environment
Organic baby food maker Bellamy's Australia ex- US$5 Million Placement for
pects to exceed its prospectus forecasts for 2014-15. If Pacific Environment has received confirmation the momentum continues in Australia and China and from NSW Transport's WestConnex Delivery Author- normal formula ingredient supply arrangements, it ex- Ecosave has expanded its shareholder base in the ity for it to supply state-of-the-art air quality monitoring pects the business will exceed its prospectus forecast US with a US$5 million private placement at US$1.38 stations, services and EnviroSuite software as part of for sales and for net profit by 20 per cent each.
per share or $1.66 at the then exchange rate. The issue the M5 Main Works project in Sydney. The contract is The company said it now has 14 per cent of the Aus- price was at a premium of 73 per cent to the market estimated to be worth over $4 million over five years tralian retail formula market. It attributes the market price. Bonus shares may be issued under the agreement and will be significantly greater in value than any previ- share growth from 12 per cent in the prospectus to but this will be subject to qualifying criteria and share- ous contract win in the company's history.
deeper distribution across Australia and stronger brand holder approval may be required. Ecosave will use pro- Chief executive Peter White said it is a major win ceeds of the placement to expand its capabilities to that extends the company's each into the growing infra- "The formula category in Australia remains one of deliver existing and new services in the US. (ASX: structure services sector. The project follows on from the fastest growing categories in the grocery trade, de- work awarded to Pacific Environment in March 2014 spite a relatively flat birth rate in Australia. Our view is for the M4 East Stage 2 and Stage 3 projects. (ASX: the growth in the Australian industry is in part a result Metro Glass on Target
of offshore consumers, particularly in China, purchas- New Zealand based Metro Performance Glass is ing Australian formula for use at home," it said.
Energy Storage Project for Tag
trading in line with its prospectus forecasts, based on its "Bellamy's is satisfied with the progress made in a trading result for the two months ended 30 September short time-frame following the licencing of our Infant 2014 where profit after tax was NZ$0.8 million. Sales Tag Pacific has won a $2 million energy storage Formula manufacturer by Chinese Authorities. Bella- increased 13 per cent over the prior corresponding pe- project in Queensland that will be Australia's largest my's is on plan to meet our Forecast China Sales FY riod and earnings (EBITDA) margins were also energy storage system to be operated alongside a solar 2015. As an initial part of our market expansion into stronger. Indications are that revenue growth will re- power plant. The project will utilize 800 kilowatt hours major supermarkets in China, Bellamy's formula re- main strong through to the end of the financial year.
of lithium-ion battery storage and Tag's subsidiary cently launched in Wal-mart stores in Guangdong. We The NZ housing market is expected to grow from MPower will also supply and install a sophisticated and have been pleased with the results to date and, impor- 21,000 annualized residential consents in December substantial management system.
tantly, this step will contribute to increasing the brand 2013 to around 25,000 in December 2014. Glass is a Tag's chief executive Nathan Wise said "Energy profile in the China market.
late cycle product which Metro Glass says lags con- storage has been identified by Tag as a high growth "As a result of the growth in formula sales, we are sents by an average of nine months. If the current con- market, and we have positioned MPower to be a market yet to reach our preferred stock levels. We are mindful, sents continue to flow through to sales, Metro expects leader. The awarding of this contract validates Tag's however, that there are risks in having lower stock lev- to achieve its prospectus forecasts of sales revenue of strategy to focus on emerging areas within the power Eco Investor February 2015
start-up company with limited trading history", Urban Commodities Group to Export
Other recent energy storage projects in which Group was confident enough to underwrite the offer Prawns Soon
MPower has been involved are a residential trial in Vic- and to a not insignificant sum. Solco and Urban Group Commodity Group's diversification into prawn toria run by power utility AusNet Services and three are working to place enough of the shortfall with third farming is progressing with its subsidiary Seafarms grid stabilisation systems developed in remote commu- parties to meet the requirements for re-admission to the close to obtaining export approvals and scheduled to nities for the Northern Territory's Power and Water ASX, and the period for Urban Group to subscribe for commence export sales in the second quarter of this Corporation. In September last year MPower signed a the shortfall shares has been extended to the earlier of year. The company is also asking shareholders to ap- contract to build a 1.7 MW solar power plant for Rio when the requirements are met and 2 February.
prove another name change, this time to Seafarms Tinto Alcan's Weipa bauxite mine, the first of its size in All going well Solco should soon be relisted and Group Limited.
Australia for a remote mining site.
have a new and revenue generating business as a clean Its Seafarms subsidiary is now the largest producer The projects are needed wins for Tag as its share energy retailer and financier. But it will be a big job and of farmed prawns in Australia. Last year it acquired price has been on a two year decline and in December it take some time to establish investor confidence that the Coral Seafarms and its nearby prawn farming assets at touched a three year low of 8.5 cents. (ASX: TAG) business can perform and deliver for shareholders.
Cardwell in Queensland. This was its first major invest- Meanwhile, Eco Investor has downgraded Solco to ment in cash producing assets, and its Cardwell opera- a pre-profit company. Solco's prospectus gave a pro- Pre-Profit Securities tion now has 158 hectares of production ponds. The forma loss of $291,00 for 2014 for Solco and GO Group operation is performing 11 per cent better than the ac- Solco Downgraded to Pre-Profit
combined. The prospectus says "GO Group is now in a quisition budget. During 2014 Seafarms doubled proc- position to generate a profit, however because it has yet essing capacity to 20 tonnes per day and changed from to do so, GO Group has no certainty around when this There was a modest uptake for Solco's shares under one to two crops per year. Upgraded hatchery facilities may be achieved or how profitable it will be. Go Group its entitlement issue with the solar energy company re- mean it can produce 1,600 tonnes per annum, a rate is not in a position to give any guidance around likely ceiving 184 subscriptions for $689,294 of the $4.1 mil- revenue or profit." lion in shares it offered. The take up rate by capital Go Group's 2013 reve- raised was just under 17 per cent. It is not a huge gesture nue was $88 million, so it is of support for the back door listing of GO Group that not small in potential.
will become Solco's main business, but it is enough as So, some promise but Urban Group Energy, the vendor of GO Group, under- not a lot of history on the wrote the shortfall to the minimum sort of $3 million.
performance side. On the The modest take up rate is likely due to a mixture of positive side, Solco has sur- shareholder disappointment in the performance to date vived as a clean energy of Solco and clean energy micro caps in general, the un- certain outlook for the solar and renewable energy sec- should soon have a stock of- tors, and the prospects for GO Group which is a fering clean energy finance.
relatively new business, having begun in 2010.
Although GO Group is described as "essentially a Key metrics for Seafarms, the main business of Commodities Group.
Eco Investor February 2015
which it aims to reach in March.
to Lynas as the business strives toward profitable it raised $5,005,444 through a placement to a group of A better view of its outlook will be available with professional, sophisticated and other investors at 22 the 31 March half year results as these will reflect the Mr Harding's has held management positions cents per share.
important Christmas and Easter sales period. Further around the world with British Petroleum (BP), includ- The capital raising is a major achievement and very out, it will be interesting to see full year sales and re- ing as President and General Manager of BP Explora- significant as the company has suffered from danger- sults for the expanded aquaculture business. But either tion Australia. He is currently chairman of Downer ously low cash levels for many years. Last September it way its Project Sea Dragon to farm prawns in WA EDI, and a non-executive director of Transpacific In- had only $123,000.
means Commodities Group is in expansion mode and is dustries Group. He is a former chairman of Roc Oil Aeris said the placement was substantially oversub- likely to be a consumer of capital rather than a provider Company and a former non-executive director of San- scribed, with a number of institutions including Allan of dividends even if it re-achieves profitability in the tos and Clough. He has a Masters in Science, majoring Gray Australia, Regal Funds Management and others short or medium term.
in Mechanical Engineering.
representing over 50 per cent of the placement. Passing Commodities Group said its carbon business re- Philippe Etienne is a non-executive director of the insto test is major good news for a micro cap.
mains an important source of cash flow to fund the aq- Transpacific Industries Group and the former manag- The new capital will fund the roll-out of the Aeris uaculture strategy. The business has contracted ing director and chief executive of Innovia Security Pty SmartENERGY platform, and help with what the com- management fee income up to the end of 2061 financial Ltd. He was previously chief executive of Orica Mining pany hopes will be the rapid commercialization and year with the current annual income level around $1.9 Services and a member of Orica Ltd's executive com- marketing of its AerisGuard products. New key staff million. On the situation in Australia, it said significant members are being recruited with expertise and a track carbon policy movement by the US and China should The December quarter was Lynas' sixth successive record to accelerate sales and business development.
provide further implications to Australia's current car- quarter of increased production and sales revenue. For The funds will also be used for further research and de- bon policy, and 2014-15 is the year in which countries the month of December it achieved positive operating velopment activities, corporate costs and working capi- are scheduled to make new commitments on carbon.
cashflow (revenue less production and administration costs) of $1.2 million. However, the company does not Operationally, the commercial installation of Aeris expect to sustain the positive operating cash flow into products in the first building for Spotlight Retail Group New Chairman at Lynas
the March quarter due to the current market environ- has been completed and invoiced. Spotlight Retail is a ment of low demand and pricing due to uncertainty diversified business with two retail operations: Spot- As its shares touched an all time low of 4 cents in about Chinese government policy and to restructuring light, an Australasian craft, fabric and home interior su- December, Lynas Corporation appointed a new non ex- costs. It said there are indications market pricing may perstore, and Anaconda, a camping, adventure and ecutive chairman in Mike Harding to replace founder recover slowly over the next quarter as inventories in sports superstore. Spotlight Retail owns and operates and longstanding chairman Nicholas Curtis. Lynas has the supply chain are consumed. (ASX: LYC) over 150 premises in four countries.
also appointed Philippe Etienne as a new non-executive Aeris chief executive, Peter Bush, said Aeris signifi- $5 Million and Share High for
cantly exceeded its targeted energy reduction for Spot- Mr Curtis said Lynas is in a period of transition light Retail Group of 22.6 per cent which alongside the from start up to profitable operating business, and Mr improvements in indoor air quality, system efficiency Harding's experience as both a non-executive director Aeris Environmental's shares reached a four year and carbon reduction provided the client with a highly- and a senior management executive will be a great asset high of 30 cents in late December, just over a week after attractive return on investment.
Eco Investor February 2015
Aeris is also working with a range of other clients Stellar Films' $21 million in annual sales will radi- around Australia, and invoiced or received purchase or- cally transform Cardia's top line and it will be interest- ders for over $400,000 in January. This revenue repre- ing to see how much it changes its bottom line.
sents the initial commercialization of its current priority Meanwhile Cardia has been making sales progress platforms. The company has also manufactured and with two new contacts.
shipped over 1.5 tonnes of its new HVAC coating since One is a two-year contract with Cleanaway for the its recent Australian launch, said Mr Bush. (ASX: AEI) annual supply of 7.8 million compostable kitchen tidybags and 50,000 kitchen tidy bins for the rollout of an Merger and $1 Million for Cardia
organics kerbside collection program in Albury, Wo-donga, Corowa and Indigo.
Cardia Bioplastics has made progress on three fronts Cardia said food and garden waste are the main with a company-changing merger with Stellar Films sources of organic waste. Currently, most people put Group, a $1 million capital raising and new sales con- food scraps and garden waste into their general waste Cardia Bioplastics has won a contract to divert
bin, and this adds up to a significant amount of valuable Cardia Bioplastics and Stellar Films have completed food and garden waste from landfill.
resources going into landfill that could be better used the documentation for their merger. Cardia is acquiring for compost for local growers to improve soil fertility.
all shares and units in Stellar Films in return for which ronmentally friendly, high quality and cost competitive It sees diverting organic waste from landfills as a large Stellar Films' stakeholders have been issued with Biohybrid films for these industries. The Biohybrid shares for 55 per cent of Cardia, down from the previ- film produced on Stellar Films' proprietary cast film After a four year testing regime a German fast mov- ously agreed 58 per cent. The merger is still subject to process has a high performance profile. It has a unique ing consumer goods company is to use Cardia's Biohy- shareholder approval and other conditions but should soft touch and warm feel that is ideal for personal care brid technology for its product packaging. (ASX: be completed by 20 March.
products such as disposable hygiene products, he said.
The shareholder meeting will also vote on a one for The close cooperation between the companies over 100 consolidation of shares.
the last three years clearly drew out the strategic fit of Vmoto Expands Beyond Scooters
After the merger, the company will undertake a the two businesses and the benefits of a merger, includ- capital raising for $3 million to assist with growth and ing the scale and geographic footprint of their com- Vmoto is to enter the three and four wheel electric working capital.
bined operations, market reach, production and vehicle markets, and in October had its most profitable Meanwhile, Cardia has raised just over $1 million operational savings, complementary intellectual prop- month, making $537,000 after tax and one-off expenses with $950,500 coming from a share purchase plan and erty positions, resources to deliver business strategy and impairments. The company's previous earnings $100,000 from a placement to a professional investor.
and high quality management teams.
guidance for the financial year to 31 December was be- The issue price for both was 0.2 cents per share.
The combined business has the scale and resources tween $2.5 million and $3 million, and it now antici- Stellar Films makes and markets high quality films to successfully implement the company's profitable pates this to be at the higher end of the range.
for the personal care, hygiene and medical product in- growth strategy in its carrier bags, films and packaging, Vmoto is to enter the electric three-wheel and four- dustries. Cardia chairman Richard Tegoni said Cardia and waste management target market segments, said wheel vehicle markets through a joint venture company and Stellar Films originally partnered to produce envi- to be incorporated with a number of partners from Chi- Eco Investor February 2015
New All Time Low for Ceramic
Fuel Cells
Ceramic Fuel Cells' shares hit an all time low of 0.4 cents in late January, only weeks after it issued newshares to Bergin Global Opportunity Fund, a knownshare dumper.
In late December it issued US$100,000 of shares at 0.5 cents each when Ceramic's shares were trading atbetween 0.6 and 0.7 cents. In mid January Bergin re-ceived another US$100,000 of shares under its con-vertible loan notes and these were also issued at 0.5cents each. In late January it issued US$160,000 ofshares at 0.4 cents.
The prolonged pain inflicted on Ceramic's share- holders overshadows some good news.
The conditions were met for the first fully funded BlueGEN program where BlueGEN units are installed na's electric vehicle market. Vmoto will own a 20 per and approvals received by the end of February.
at no cost to the end user, and UK based iPower was cent of the equity at an initial cost of up to $1.5 million.
Electric three-wheel vehicles are used in a number able to draw down funds from a third party funder and The new company will design, manufacture and dis- of industries for freight, delivery of goods, leisure and CFU received its £350,000 ($636,000) deposit. The tribute electric three-wheel and four-wheel vehicles for sightseeing, and transport for the aged and disabled.
first installations under the iPower contract are under- China and international markets. Year 1 production and Electric four-wheel vehicles are important to reduce way with 55 units to be installed by 30 June and the re- distribution is forecast at between 20,000 and 50,000 pollution and support new-energy and clean technol- mainder by 30 September. The 100 kW fleet will be units of small model vehicles.
ogy. Ipsos Business Consulting has predicted that Chi- installed mostly in public sector buildings where the Managing director Charles Chen said "The Chinese nese annual demand for electric four-wheel vehicles end users pay for the costs of the gas and maintenance government's initiatives to encourage the development will reach 820,000 units in 2020. The annual compound and receives the benefits of the electricity from the and use of electric vehicles within the country for envi- growth rate from 2012 to 2020 is expected to reach 30 BlueGENs and the recovered heat for hot water.
ronmental reasons have been and will continue to drive The German Federal Ministry for the Environment the growth of the country's electric vehicle market.
Mr Chen said "We are very pleased with the prog- has updated its funding of microCHP systems, giving a Vmoto is in an exciting position at the forefront of the ress Vmoto is making on several fronts, which will be higher base funding for smaller units and additional in- reflected in our 2014 financial results. Domestic Chi- centives for highly efficient systems such as the Blue- The new company will base its manufacturing at nese and international sales continue to increase, the GEN. These will receive additional funding of up to 85 Vmoto's Nanjing Manufacturing Facility, which has latter encouragingly so where our margins are strongest per cent of the base funding. That means a BlueGEN excess space and production capacity. It is expected and 2015 is shaping up to be another exciting year of unit in Germany could attract 3,792 in Federal fund- that the JV will be fully established with all licencing growth." (ASX: VMT) Eco Investor February 2015
founder Peter Voigt will subscribe for 1,666,667 sharesat 6 cents but this needs shareholder approval.
Chairman, Sam Riggall said the capital raising puts Clean TeQ in a strong financial position to progress itscurrent activities throughout calendar 2015 and accel-erate its water treatment and metals recovery business.
Clean TeQ's primary focus is on the recently an-nounced acquisition of the Syerston Scandium projectin NSW and further advancing the development of itsbusiness activities in China through the recently an-nounced Heads of Agreement with the Shanghai Inves-tigation, Research and Design Institute (SIDRI).
The head of Clean TeQ Metals division, John Carr, said "The drill results confirm that the Syerston projectis a rare geological anomaly, hosting some of the high-est naturally occurring grades of scandium mineraliza-tion in the world. As a rare earth mineral withsignificant functional properties for the next generation Ceramic Fuel Cells' unit sales by quarter since 2010-11.
of light weight industrial alloys and fuels cells, our fo- ing, which is a significant increase from the previous Managing director Bob Kennett said he is confident cus will be to apply Clean TeQ's intellectual property Federal funding of 1,567.
the Melbourne based technology team can reach the tar- and extensive experience in hydrometallurgical extrac- This can be combined with incentives from other geted 10-year stack life to help reduce costs and in- tion of scandium to build a long-term and stable source Federal or State programs and from local councils or crease market penetration. (ASX: CFU) of mineable scandium." utilities to a maximum total funding of three times the The scandium grades mean the Syerston project Federal microCHP funding. Ceramic said a BlueGEN Clean TeQ Raises $2.25 Million
could potentially be the lowest cost primary mine pro- customer can thus receive up to 11,376 depending on ducer in the world, and the large tonnages will allow for Clean TeQ's shares reached a one year high of 14.5 the availability of additional incentives.
long term supply of the metal.
cents just over a month after its raised $2.25 million at 6 On the technology front, another six months of stack Last November Clean TeQ agreed to acquire the Sy- cents per share and said testing has revealed excep- operation at a key customer site shows that degradation erston Project but the acquisition is subject to a number tional grades of scandium at a number of drill holes at rates continue to be significantly lower than previously of conditions including government approval for the the northern section of its exploration license at Syer- experienced. The company said a linear extrapolation transfer and Clean TeQ shareholder approval. The ston in NSW.
of the degradation rates indicates that the anticipated strategy of Clean TeQ's metal recovery business is to The $2.25 million was placed with professional and stack life is approximately 60,000 hours or seven years identifying and secure projects that can significantly sophisticated investors. The lead manager was BW Eq- - 35 per cent longer than anticipated in June 2014.
benefit from Clean TeQ's hydrometallurgical process- uities. Separately, executive director and Clean TeQ ing capability. (ASX: CLQ) Eco Investor February 2015
RedFlow Battery Still Performing
ture to power irrigation pumps, from industrial plants Placement for Green Invest
and as additional backup power for hospitals and data How good is RedFlow's battery? RedFlow said long Green Invest withdrew its $1.18 million 2 cents per term testing of its core ZBM product achieved the im- share partially underwritten rights issue mid offer as it Eden's Pyrolysis Project with carbon nanotubes portant milestone of over 10,000kWh (10MWh) of en- said it received a more favourable alternative via a (CNT) saw US trials extend the shelf life of the CNT ergy processed through a single battery. Furthermore, placement and debt issue.
enriched concrete admixture and maintain a stable con- the test battery is continuing to perform with no signs of The new offer was a private placement of centration of CNT in the admixture for three months.
degradation, so it is not yet possible to predict the total 17,830,812 shares at 2.1 cents per share to raise The trials will continue for the next three to six months.
capacity nor the battery life of the current generation of $374,447 from sophisticated and professional inves- A major global cement and concrete manufacturer will ZBM now being manufactured by Flextronics.
tors; a debt facility from DLB Holdings Limited (DLB) commence Australian trials of the admixture in con- Chief executive Stuart Smith said increased energy for $700,000; and a subsequent conditional placement crete this month.
storage over the life of the battery decreases the effec- to DLB of up to the lesser of 19.9 per cent of the compa- However, the conditions for the merger of Eden's tive cost of the energy stored, a key driver of sales. The ny's issued capital or 26,152,804 shares at 2.5 cents UK gas and petroleum assets with its joint venture part- results have been achieved using accelerated bench each to raise up to $700,000. The conditional placement ner have not been met. Discussions are continuing be- testing and charging and discharging daily at 100 per will be used to repay the debt facility.
tween the parties and the conditional merger agreement cent over several months. In addition, the battery has The placement was arranged by Kamerad Trading will continue unless it is terminated at any time by ei- been stressed at higher charge and discharge rates to Limited, which received a fee of 7 per cent plus GST.
ther party. (ASX: EDE) achieve this result in a quicker time frame, further vali- Green Invest chairman Peter McCoy said the new dating its robustness as higher charge and discharge proposal is more beneficial in issuing shares at a more Galaxy to Get Less for Battery
rates tend to speed up the degradation process.
attractive price and in introducing a strategic investor Sales in Europe can now proceed with the ZBM who can help with expansion opportunities in Austra- having gained CE approval, which is a requirement The price that Galaxy Resources will receive for lian and the US.
there. The CE certification covered safety, electronics, selling its Jiangsu Lithium Carbonate plant in China to He said DLB is a Hong Kong investment company mechanical design, noise and temperature characteris- Sichuan Tianqi Lithium Industries Inc. has been re- involved in the development of sustainable and eco- vised down from $249 million to $223 million. Galaxy logical projects around the Pacific Rim. It is owned by said that due to the long completion process, Tianqi in- Pedro J. Lobo, the son of a prominent Hong Kong fam- Two Steps Forward, One Back for
dicated its shareholders would not approve the transac- ily. Its investment strategy is to participate in new and tion under the original terms. Renegotiated terms will practical ‘Ecological and Green' user friendly tech- give a higher degree of certainty.
nologies that can make a substantial impact in conser- Eden Energy's US subsidiary, Hythane Company, Meanwhile, Tianqi will meet 50 per cent of the vation, the preservation of natural resources, and in the saw its annual sales of its Optiblend dual fuel units dou- plant's running costs from 1 February until completion retrofitting of old technologies to enhance the environ- ble in 2014 to US$2.2 million. In the December quarter of the sale. The new terms are subject to Galaxy and Ti- ment and communities.
it received nine orders for systems totaling US$258,000 anqi shareholder and regulatory approvals. Post trans- DLB was attracted to Green Invest programs in the ($315,000). Hythane believes it will see further growth action, Galaxy will have a pro forma cash balance of US and is reported to see potential for the Green City in calendar 2015. It hopes to add to growth in the oil and $50 million. (ASX: GXY) model to be adapted to other products.
gas markets with demand from markets such as agricul- Eco Investor February 2015
Pre-Revenue Securities Green Invest has been struggling for years to get its recyclable, biodegradable reagent glycerol in a simple green plumbing businesses off the ground. Some high process to break down plant biomass into lignin, cellu- powered money and assistance should help with com- lose and hemicellulose at low temperature and pres- Eco Investor Suspends
mercialization. (ASX: GNV) Coverage of Actinogen
Leaf Resources' commercialisation strategy is to Positive Results for Leaf Test
partner with industry leaders in product supply chains.
Eco Investor has suspended coverage of Actinogen It has appointed Dr Marc Sabourin as the Executive as the company is now primarily a biotech company fo- Leaf Resources says testing shows its Glycell pro- Vice President for business development – the Ameri- cused on its recent acquisition of Corticrine and the de- cess for using biomass to produce cellulose is well velopment of a cure for Alzheimers as well as other suited to use Poplar as a feedstock. Poplar is a hard- medical treatments.
wood common in North America. Testing of samples Orbital to Raise $10 Million
Actinogen continues to be involved in the develop- produced from the trials run at the Andritz demonstra- ment of bioenergy, but this is now through a collabora- tion facility in Springfield Ohio in August showed that Orbital Corporation is aiming to raise up to $10 mil- tion and royalty agreement with Leaf Energy, which the Glycell process performed equally well on Poplar as lion through a secured convertible note offer. This will Eco Investor follows. Actinogen's enzyme production on Eucalyptus. The saccharification result was 100 per comprise up to 200 convertible notes with a face value method compliments Leaf Resources' Glycerol Pre- cent in 24 hours. Leaf said this is an important result as of $50,000 per note. The minimum amount to be raised treatment Process, and it has granted Leaf the right to poplar is the biomass that will be used by ZeaChem at is $5 million. The offer will only be made to sophisti- exclusive use of any method of production developed their proposed plant in Boardman, Oregon.
cated and professional investors.
as part of their collaboration in return for a net profit Andritz is a global supplier of plant, equipment, and The proceeds will mainly be applied towards the ac- royalty on any future licensing arrangements by Leaf.
services for pulp and paper industries. Further trials quisition funding and working capital for the acquisi- While this is environmentally positive, it also means were run at Andritz's Springfield facility in November tion of REMSAFE Pty Ltd that was announced in that bioenergy is a secondary activity for Actinogen af- with ZeaChem personnel in attendance. ZeaChem pro- November. Azure Capital Ltd is the lead manager to the ter its growing biotech activities. (ASX: ACW) vided samples of the Poplar that they intend to use at offer and will be issued with up to 2 million shares, their proposed plant. Additional runs were also done depending on the amounts subscribed to the offer, in Algae.Tec Busy In India and China
using sawdust and shavings from Poplar, which would lieu of a cash payment for its services.
allow for a lower cost biomass input.
Orbital has filed court documents in the US alleging Algae.Tec is looking serious about the potentially ZeaChem said "We were very impressed with the the infringement of its patents by Daimler AG, big biofuel markets of India and China.
Glycell process and the ability to observe the trials in Mercedes-Benz USA LLC, Mercedes-Benz U.S. Inter- The company has strengthened its relationship with progress has shown us the possibilities that the process national, Inc., Robert Bosch GMGH and Robert Bosch its largest partner, Reliance Industrial Investments and can deliver. We await the compositional analysis with LLC. Orbital said it has secured financing to minimize Holdings Limited, by entering a second subscription optimism and note the outstanding results from the its litigation funding risk. (ASX: OEC) agreement with the company that raises $2.4 million.
August trials utilizing poplar." The shares were issued at 7 cents each. Reliance also re- Leaf Resources is commercializing the Glycell pre- ceived 14,285,714 options exerciseable at 7 cents each treatment technology, which is the first step to produc- by May and October.
ing bio-based products. The process uses a low cost, The new funds are for working capital to develop an Eco Investor February 2015
algae pilot plant in Jamnagar in India that will utilize the signed modules reach between 20 and 100; and a services to assist with the identification and remedia- Algae Tec's technology to create biofuel. Algae.Tec further US$1 million of options when the signed mod- tion of health and safety risks for humans and the envi- managing director, Peter Hatfull, said the new funds ules exceed 100. The issue of options needs shareholder ronment. These include contaminated land analysis, will allow the plant to be fully operational in 2015.
approval and they are exercisable within two years of soil sampling, dust monitoring, air quality monitoring, Algae.Tec is also entering China following an issue. (ASX: AEB) asbestos auditing and building contamination assess- agreement with China Finance Strategies Investment Holdings Ltd (CFS) under which CFS will introduce New Name, CEO and Business for
Precise Consulting provides HRL with the opportu- Algae.Tec's technology into the greater China region.
nity to add a profitable business with significant growth Algae.Tec will issue CFS an initial US$0.5 million potential and supplement the acquisition of OCTIEF Hot Rock has changed its name to HRL Holdings convertible bond, and subject to milestones also issue Pty Ltd completed in September 2014, said Mr Ma- Ltd, appointed a new chief executive in Steven Dabel- US$5 million conditional options.
loney. It provides HRL with an additional opportunity, stein, and is proposing to acquire a New Zealand based CFS is a Hong Kong based financial institution that in the same business segment as OCTIEF, to move into environmental consulting and hazardous materials ana- invests its own capital, manages investment funds, and the fast growing New Zealand market.
lytical laboratory company called Precise Consulting provides corporate and financial advisory services. One HRL will pay a maximum price of NZ$7.5 million and Laboratory Ltd.
of its key focuses is the green energy sector. It is well for Precise Consulting including a part payment on Mr Dabelstein is a Certified Practicing Accountant established, having completed over 250 fundraising completion of NZ$5 million in cash and an earn-out of with a Bachelor of Commerce. He has spent the past and advisory transactions and invested in over 20 proj- up to NZ$2.5 million. The purchase price will be paid four years working for Diversified Mining Services, ects involving around US$1.5 billion.
with debt finance, a non-renounceable rights issue and where he worked initially with HRL executive director Mr Hatfull said "This is an exciting development for from working capital.
Darren Anderson. Prior to this his experience was in Algae.Tec. The Chinese Government has stated its in- Preliminary discussions have indicated the compa- financial and operational roles in public practice tention to assiduously pursue a "Blue Sky" Policy, with ny's bank supports providing the debt finance. To fa- accounting, manufacturing, service and construction the intent to utilize all technologies and procedures cilitate a capital raising and meet other ASX conditions, HRL chairman, Kevin Maloney, said Mr Dabelstein which will reduce greenhouse emissions throughout HRL will undertake a consolidation of its capital, al- will progressively take over the day to day running of China. We are confident our algae based renewable fuel though the terms, like the rights issue, are not yet final- the company from Darren Anderson, who will remain and carbon capture technology can play a meaningful ized. The rights issue is expected to close on 27 as an executive director focusing on business develop- role in contributing to the Strategic Targets China has February and the share consolidation to be completed ment and growth opportunities.
by 19 March.
"We believe that the requirement for our laboratory The US$0.5 million bond is convertible into Al- With HRL saying that Precise Consulting is profit- services, especially in relation to testing for asbestos, is gae.Tec shares at A$0.075 cents per share. The bond at- able, it will be interesting to see how profitable likely to see strong growth for the HRL owned OCTIEF tracts a 12 per cent coupon payable annually and is OCTIEF and Precise prove to be and how much they business over the coming years as both Australia and repayable or convertible after 18 months. The options transform HRL. It is fortunate for environmental inves- the rest of the world come to grips with this growing are also exerciseable at 7.5 cents each and are contin- tors that in diversifying HRL chose to remain within the gent on achieving milestones. US$2 million of the op- environmentally positive sector. (ASX: HRL) The proposed acquisition of Precise Consulting will tions are contingent on the signing of the first algae add to this capability as the company offers a number of plant in China; another US$2 million of options when Eco Investor February 2015
Deals in Turkey and Portugal for
from which they can evaluate progress. Dyesol's key AnaeCo Borrows $1 Million
commercialization project in the UK also has a 2018 AnaeCo has entered an agreement with partner date for commercial production.
Dyesol has signed deals to exploit its dye solar cell Monadelphous Group to borrow $1 million to help In Portugal, Dyesol and EFACEC have agreed to (DSC) technology in Turkey and Portugal.
complete its responsibilities on its municipal waste re- exploit the proprietary, laser assisted, glass frit sealing For Turkey it has entered a Heads of Agreement cycling project in Perth. AnaeCo's cash position has technology developed by EFACEC and the University (HOA) with Nesli DSC to introduce and commercialize again become a potential problem as it had $967,000 at of Porto in the manufacture of glass substrate, solid- its perovskite DSC Photovoltaic (DSC PV) technology 30 September and $436,00 at the end of December.
state DSC (ssDSC) solar panels. The structured finan- in three stages - prototype, staged manufacture and Ramp up of the Perth plant continues but has been cial transaction will see Dyesol pay EFACEC potential mass manufacture.
delayed due to faulty mechanical equipment. The com- consideration of 5 million after which the ownership During 2015 the partners will establish a prototype pany said it is examining its options for compensation of the IP will be assigned to Dyesol.
facility in Turkey which is underpinned by a US$1.9 due to the delays. Managing director David Lymburn As a first instalment, Dyesol will pay EFACEC million contract to supply prototype equipment. Dyesol said despite the delayed ramp-up, no fatal flaws have 500,000 over 15 months during which the technology has received the activation payment to commence been identified in the DiCOM bioconversion technol- will be modified for use in perovskite based photovol- work, which will be undertaken substantially by its Ko- ogy, which has operated as expected to date.
taics. Payments will on milestones and the achievement rean subsidiary Dyesol-Timo. If this stage is completed On the technology front, AnaeCo has been issued of the final technical specification will trigger a further successfully, the partners will implement a commer- with two new patents by the Australian Patent Office payment schedule of 1.7 million over 24 months. A cialization strategy and form a 50/50 joint venture.
for inventions that comprise part of AnaeCo's next gen- further 2.8 million is payable as a royalty pending the Stage 2 is scheduled to start in 2016 with the estab- eration organics processing technology. The patents are commercialization of the process on Dyesol's proposed lishment of a staged manufacturing or pilot line facility.
titled: Pressurised Recirculation of Organic Material, solar panels and modules.
PV production is expected to be over 20,000 square me- and Inerting Method in Digestion. (ASX: ANQ) Dyesol said it believes the technology is essential in tres to also allow for product testing and accreditation its entry strategy for the PV and BIPV markets. It also and optimization of the manufacturing process.
Greenearth Cancels Raising
believes that ssDSC will be durable and low cost Mass manufacture is planned to commence in 2018 enough to compete with incumbent PV technologies in Greenearth Energy is looking at the merits of sepa- and is expected to produce multi-million square metres a wide range of applications. Chairman , Ian Neal, said rating its two key businesses: CO2-to-fuel conversion of product annually.
"Durability is the greatest technical challenge in the PV technology business NewCO2Fuels (NCF), and its in- Dyesol director, Gordon Thompson said "Dyesol market. This proprietary sealing technology has the po- dustrial energy efficiency business, Vivid Industrial, to has been working closely with Turkish parties for a tential to deliver 20 year plus life to solid-state DSC unlock shareholder value, said managing director, number of years and it is gratifying to see our common products in multiple applications, including BIPV, and Samuel Marks.
interests captured in an agreement. Further, it is very we are very excited about its commercial prospects." The announcement followed Greenearth not pro- encouraging to have Turkish government interest to Dyesol said it is on schedule to produce demonstra- ceeding with its capital raising due to market conditions help bear the financial risk of development and com- tion prototype panels in 2016, leading to mass produc- and shareholder and investor feedback. The company tion in 2018. (ASX: DYE) said it received strong interest from potential investors, Another attractive feature of this deal for sharehold- but would not have secured the full amount needed to ers is that it has a firm timeline for commercialization fully fund the total remaining investment in NCF.
Eco Investor February 2015
The company is assessing funding avenues for the placement of shares at the same price to directors fol- 2014 rebate is estimated to be about $600,000 and the extra investment as it sees NCF as having "exciting fu- lowing shareholder approval. $1.5 million of the share funding provided by Metamor is $500,000. Metamor ture growth potential." The deadline to complete the in- plan was underwritten by an entity associated with the holds security over the R&D Rebate and Enerji's vestment has been extended to 30 June. Greenearth has chairman, Charles Lew, and the balance underwritten assets. The facility will be repaid out of the R&D invested US$1 million and can invest up to another by an unrelated entity. Both underwriting agreements Rebate, expected in the second quarter of 2015 and no US$2 million to retain its 33.33 per cent of NCF.
will be subject to shareholder approval. The $8.5 mil- later than 30 April. The arrangement enables Enerji to Meanwhile, NCF and one of its USA technology lion will enable Hastings to fund the Pre-Feasibility progress its "Five-Projects" strategy that focuses on a suppliers have won a grant of US$1 million from the Study of the Yangibana project through to completion.
pipeline of five commercial projects. The Hybrid Solar BIRD (Binational Industrial Research & Development) This follows the positive results shown by a Scoping Thermal Project is one of these. (ASX: ERJ) Foundation to continue the development of NCF's Study. (ASX: HAS) technology. The BIRD Foundation is a joint program Enhanced Systems Technologies
funded by the US Department of Energy and Israel's Solar Thermal Project for Enerji
Ministry of National Infrastructure, Energy and Water Enerji is to develop a 10 MW Hybrid Solar Thermal Project with partners Carbon Reduction Ventures Pty commitments for $745,250 from its rights issue that A report by Technip indicates a favourable internal Ltd (CRV) and Morawa Solar Thermal Pty Ltd (MST).
closed in December. This was a take up rate of 17 per rate of return for NCF under most economic scenarios, The $15.1 million project is supported by the WA Gov- cent of the shares on offer. The underwriter has and reaffirms its likelihood of commercial readiness by ernment through $3.775 million from the Low Emis- committed to $2,178,997 of the shortfall and directors sions Energy Development (LEED) Fund.
hope to place the remaining $1,455,321. Directors need CRV is a developer of advanced solar and hybrid so- More Progress for Carnegie
to raise the minimum amount of $1.8 million excluding lutions and is the project's proponent. MST is the proj- the underwriting. (ASX: ESY) Carnegie Wave Energy has completed the onshore ect vehicle and has the LEED funding.
power plant for its Perth Project, as well as the physical The Project includes the ATEN 3 technology devel- works so that the plant is ready for connection to the oped by Enerji, and an Opcon Powerbox.
electricity grid at HMAS Stirling pending approval The project will have zero emissions with all of the from Western Power. At sea, the second CETO 5 wave energy to drive the power generator coming from what energy unit has been installed and commenced opera- said to be a ground-breaking hybrid arrangement com- tion. The first CETO 5 Unit has been operating as ex- bining solar thermal energy with waste heat. The Solas- pected since its installation in November. (ASX: CWE) tor System, which stores energy in high temperaturegraphite, is supplemented by waste heat harvested from Hastings Raises $8.5 Million
the exhaust of a fossil fuel power station.
Meanwhile, Enerji has entered into a funding Hastings Rare Metals raised $8.5 million with $6.15 agreement with Metamor Capital Partners under which million from a placement and $2 million from a fully Metamor will loan Enerji up to 80 per cent of its underwritten share purchase plan, both at 7 cents per accrued and available R&D rebate. The amount of the share. Another $395,000 will be raised through the Eco Investor February 2015
Unlisted Companies green employment in regions of the world which might lian clean energy market. This shows just how we are not otherwise be home to a high-value agricultural in- helping draw in private sources of funding to enable in- Sundrop Farms Wins High
novative projects to proceed, generating new economic Powered Private Equity
Sundrop and KKR intend to develop a hub of agri- activity and employment in regional areas." cultural innovation for arid climates in Port Augusta Mr Saumweber said that "Without the CEFC we Sundrop Farms Holdings Ltd, which is using seawa- which will allow for further development in countries would not have been in a position to negotiate funding ter and solar power to grow high value crops, has won with similar environmental conditions. Thus KKR's in- growth capital from international high profile private vestment in Sundrop Farms will also support its plans equity firm Kohlberg Kravis Roberts (KKR).
to expand into the Middle East, North America and Electric Bike Raises $120,000 on
The funding will be used to significantly expand other supply-constrained markets.
Sundrop Farms' glasshouse facility at Port Augusta in KKR has made its investment from its Asian Fund Early stage electric bike company Dillenger Pty Ltd South Australia and underpin its international develop- II. "Sundrop Farms provides a unique and innovative has raised $119,659 from 222 backers in 15 days on ment. It means Sundrop Farms can scale its operations solution to environmental challenges in farming," said crowd funding platform Kickstarter. The company had by financing a 20-hectare greenhouse facility that will Justin Reizes, member and head of KKR Australia.
initially sought $30,000 but has now increased the tar- produce more than 15,000 tons of vegetables annually.
"KKR looks to invest in and partner with companies get to $250,000. The Kickstarter project will be funded Sundrop Farms has signed a 10 year contract with that provide solutions to environmental and societal on 28 February.
Coles. Construction of the expansion facility has begun challenges. Sundrop Farms epitomizes this effort, and Dillenger director Sam Sewell said the company has and is due for completion in 2016.
we are delighted to work with this experienced and developed a folding electric bike that it is selling for un- Sundrop Farms chief executive, Philipp Saumwe- knowledgeable team to pursue new growth opportuni- der $400, making it the world's most affordable electric ber, said "Sundrop is the world's first commercially ties in Australia and internationally." and environmentally sustainable arid climate agricul- Coles' managing director John Durkan said "By en- The funding is for the production of a new version of ture business. We grow food where land is too arid for tering into a 10-year deal to buy Australian-grown to- its popular folding bike, the Cheetah. The electric bike farming, fresh water is in short supply and domestic matoes from Sundrop Farms, we are supporting an comes with a warranty and after sales service.
food security is a concern. Farming with typical agri- enterprise which is redefining sustainable agriculture in Kickstarter supporters can receive a Cheetah by cultural inputs would be unsustainable in these regions, Australia. This is the first time we have signed a con- pledging for a reward. Each pledge for a Cheetah in- so Sundrop uses renewable energy to heat, power and tract of this length for Australian-grown fresh produce creases the funding by $399 plus shipping and in return water its crops." and we are delighted it will be supporting the creation the supporters get a new Cheetah. Supporters who have With state-of-the-art glasshouses and proprietary of 300 new jobs and investment in South Australia." pledged for the Cheetah will also receive a free bicycle technology, the "Sundrop System" uses concentrated The Clean Energy Finance Corporation's (CEFC) repair and maintenance toolkit that is normally valued solar power to create the heat, electricity, and was an early supporter of Sundrop Farms, providing desalinated water to feed and power its operations.
cornerstone debt finance that helped the company to at- Mr Sewell says electric bikes are a fantastic inven- Mr Saumweber said the significant KKR investment tract private capital investors.
tion. "They are a fun, healthy and environmentally is at the heart of the company's growth strategy. The Chief executive, Oliver Yates said "The Sundrop friendly solution for our transportation problems, they Sundrop Farms food production system grows high project demonstrates perfectly the role and expertise are a great way to interact with world around you and quality produce all year round, and creates long-term the CEFC is bringing to develop finance in the Austra- Eco Investor February 2015
they are a lot of fun!" Something Different About
production of high quality compost or Bio-Vital com- The problem for consumers has been cost. The aver- post. It provides project and financial management, age price for an electric bike is over $1,700, more ex- permaculture design, soil biology and land remediation Christmas Island is usually in the news about asy- pensive than some second hand cars.
skills. The system is suitable for communities of vary- lum seekers but there is also a plan to help make it a "We now know that there are better, more cost- ing sizes and climatic conditions, and the business self-sustaining and eco-friendly garden. Hidden Gar- effective ways of producing electric bikes whilst still model is flexible so it can produce a range of foods for a den Sustainable Farms Ltd (HGF) has commenced a maintaining the same great features and a quality that constant supply and a varied diet year round.
project on the island that it says is a much needed eco- our customers deserve," he said. "We've invested in Following discussions with the Federal Govern- friendly fruit and vegetable solution for the residents.
new design and production techniques that allow us to ment, HGF has a long term lease over 55 acres to con- The company is raising funds to establish a horticul- produce the Cheetah and deliver it to our customers at a struct the horticultural garden. Work on the Hidden tural garden to meet the demand for fresh fruit and price point that blows the competition out of the wa- Garden Sustainable Farm Christmas Island com- vegetables and reduce their cost as the residents cur- menced recently and the first milestone, an eight rently pay among the highest prices in the world for "Before this model is priced for retail distribution, megalitre dam, is expected to be completed by March.
these foods. Christmas Island is 2,600 kilometres north we're going to offer this at early bird prices never be- This will pave the way for a compost facility, propaga- west of Perth and has about 2,000 permanent residents.
fore imagined for a product like this. We've already or- tion nursery, and mulching and preparation of the soil But the island imports 95 per cent of its food and what ganized shipping arrangements to deliver the Cheetahs for cropping beds. The first planting will be mid-year HGF says are "exorbitant freight costs" mean residents to anywhere in the world, with the first available pro- and first harvest is expected in July, along with the can pay up to $14 for a kilogram of tomatoes and $10 duction scheduled for delivery in February 2015, with opening of a permaculture training centre.
for a lettuce or cauliflower.
the second production due to be delivered later the fol- HGF is currently raising up to $2 million with a HGF sees itself as an innovative farming business minimum target of $0.5 million, and is listed on dedicated to growing fresh organic produce for rural With pedal assist the Cheetah has a range of up to 45 ASSOB. Tony Camphin of Strategic Corporate Direc- and isolated communities. Its systems are based on the kilometres and a top speed of 20 kilometres an hour. It tion, which is assisting HGF with the capital raising, weighs 28 kilograms. The battery is 12Ah and 24V anda charger is included. The bike has 16 inch wheels and asingle speed gear. It is foldable, and arrives 95 per centassembled with just the seat and pedals to be attached. Itcomes in four colours: black, white, red or blue.
The electric bike design and manufacturing com- pany is based on the Gold Coast. It began in 2007 whenthe founders of a small engineering firm were lookingto build a custom bike frame from stainless steel rods.
This led to the thought of motorizing it. The prototypeelectric bike led to requests from local clients and theinterest continued to grow.
Indicative layout of the Hidden Sustainable Farm Garden site at Christmas Island.
Eco Investor February 2015
said the project is attracting cornerstone investors from Adelaide late last year, Mr Dow said "Harnessing bio- the island as well as mainland investors. Company energy makes good economic sense while contributing presentations are being organized in Sydney and Mel- to fuel security and regional development, but for a bourne in 2015.
range of reasons Australia has generally lagged the rest Mark Bennett, managing director of HGF, said "The of the world on large and small-scale bioenergy proj- farming model we have developed is very profitable, ects particularly in the waste-to-energy sector." offers local employment and investment opportunities Mr Dow said while bioenergy currently provides and addresses many community issues related to gen- about 10 per cent of Australia's renewable electricity, it eral health and wellbeing and the safe and effective has significant potential to develop further with the management of waste." right support in place.
He hopes the project will become a blueprint for "CEFC finance is helping accelerate bioenergy proj- similar projects for remote and regional communities ects that reduce energy costs, waste and carbon emis- An Airpod pick-up.
that want to improve their diets and quality of life.
in the tank. The engine offers freedom from fossil fuel agriculture, horticulture, utilities and local govern- $3 Million Needed For
reliance and together with the gear box weighs only 24 ment," he said.
Compressed Air Car
"While our bioenergy investments to date have fo- cused on waste-to-energy and biogas and make up Air Volution Ltd is finalizing the documentation to Air Volution is offering 26.3 per cent of the com- about 10 per cent or nearly $100 million of our current raise $3 million in equity to manufacture and market af- pany and the equity will be used to set up a factory in total portfolio, the corporation is looking to expand into fordable and environmentally friendly light weight ve- Australia to manufacture and assemble the AIRPod as other bioenergy technologies." hicles that run on compressed air.
per the agreement between MDI and AVL.
The kinds of projects the CEFC can finance include Air Volution has the rights to licenses in Australia, The company says it has over 500 enquiries for converting food and meat processing waste into biogas, New Zealand and the Pacific regions for the manufac- MDI's vehicles and wants to convert these to orders. Its producing ethanol from bagasse and creating biofuels ture of a range of Motor Development International directors believe that within the second year of opera- from feedstock such as sorghum, wood waste, or straw (MDI) transport vehicles such as the AIRPod, AIROne, tion a projected net profit of $1.9 million is achievable.
and waste biomass.
AIRCity and AIRFamily. The product range will in- Air Volution is listed on ASSOB.
The CEFC can also finance associated or enabling clude small commuter vehicles, family vehicles, cargo infrastructure such as cogeneration facilities, storage, carriers and utes.
CEFC Sees Role for Bioenergy
processing, refining, transportation, distribution and re- The core product comprises a compressed air engine Bioenergy has the potential to play a significant part fueling infrastructure, distributed power generation so- that has multiple applications in the transport arena as in Australia's renewable energy future and the Clean lutions at individual sites as well as truck and shipping well as many other potential uses, said Eugenia Arrarte Energy Finance Corporation (CEFC) is focusing on in- fleet upgrades and conversions to biofuel.
of Funding Strategies, which is assisting with the capi- troducing internationally commercially-proven tech- "We're able to play a significant role in helping tal raising. "The engine has 68 per cent efficiency in nologies to the Australian market, says CEFC chief projects overcome a range of barriers by being able to comparison to combustion engine which is around the investment officer, Ted Dow.
structure investment terms tailored to suit the unique 20-34 per cent. It is also reversible and recompresses air Addressing the Bioenergy Australia Conference in characteristics of a project. We work with private sector Eco Investor February 2015
banks and share our expertise to pioneer new ways to The $3.5 million project aims to collect 15,000 ton- has been a research and development business, and has accelerate investment in bioenergy," said Mr Dow.
nes of chipped Mallee at a plantation near Casino in demonstrated expertise in managing innovative techni- "It's important for the right partnership to be in NSW during a 33 day harvester trial. This will be used cal projects for its clients, from conceptual ideas place to ensure successful bioenergy projects. The to supplement feedstock to the 30 MW bioenergy through to commercially implemented technologies.
aligned interests of feedstock suppliers, energy off- power plant at the Broadwater sugar mill in NSW.
takers, project operators and equity investors provide The new harvester will use a clever design that Waste to Energy Plant
the framework for making a project bankable.
could significantly lower the cost of producing wood Near Perth
"Bioenergy has the potential for both domestic con- chips for biomass. It simultaneously cuts down trees A project for a metropolitan waste-to-energy facility sumption purposes and the export market and our fi- and converts them to woodchips in a single pass. Proto- in East Rockingham near Perth that could process nance activities in this sector will help develop local type trials have demonstrated the system's potential to household waste into enough electricity to power industries, generate new employment opportunities and process more trees per hour than existing technology, 23,000 homes a year has received environmental ap- achieve emissions reductions." said Mr Frischknecht.
proval from the WA Government.
The harvesting process integrates with in-field hau- ARENA Supports Biomass from
The facility being developed by New Energy would lout vehicles and roadside collection, similarly to the be strategically located in the Kwinana Industrial Area Fast Growing Trees
current supply chain model for sugar cane.
and is planned for 2017.
Biosystems Engineering plans to increase the size of WA Environment minister Albert Jacob his decision the harvester and upgrade the design to operate under (ARENA) has provided $2 million of funding to help to approve New Energy's Waste-to-Energy and Mate- full-scale commercial conditions. The harvester also Biosystems Engineering to develop a harvester to col- rial Recovery Facility was based on advice from the has potential as a technology export if it performs to ex- lect renewable biomass from fast growing trees.
Environmental Protection Authority, and is an impor- ARENA chief executive Ivor Frischknecht said fast tant step in establishing a large-scale facility to process The project is scheduled for completion in 2017.
growing trees have the potential to offer an attractive non-hazardous residual waste from mixed waste Since its inception in 1999, Biosystems Engineering renewable feedstock if a cost effective harvesting method were developed, and the innovative woody bio-mass harvester being developed and tested by Biosys-tems Engineering could be the solution.
"Biosystems Engineering plans to collect biomass from certain species of eucalyptus trees that can be har-vested every three to five years. These species are com-plementary to food production and are already beingused on Australian farms as wind screens and to tacklesalinity and boost biodiversity. Using them as a renew-able fuel may offer a win-win outcome for farmers andcould potentially create a new model for communitybased biomass energy hubs in rural Australia," he said.
Eco Investor February 2015
Waste-to-energy technology recovers materials and the solar/wind category, RayGen won the overall award RayGen provided the design and technical support energy from residual waste, which would otherwise go for its track record in its home market, value-capture in for the prototype, and drew on the same technology that to landfill. Residual waste is material that has no avail- its chosen industry, its international expansion plans sits at the heart of its Concentrated Solar Photovoltaic able recycling option. The materials recovery facility and its strong investment credentials.
(CSPV) solution that it says is capable of producing the will extract recyclable materials, such as metal and The win quickly followed a RayGen Resources and world's lowest-cost source of utility scale renewable plastic, before the remaining residual waste enters the University of New South Wales (UNSW) collaboration that produced the highest ever efficiency rate for the Chief executive, Bob Cart, said the world-first con- "This new facility could process up to 225,000 ton- conversion of sunlight into electricity. Outdoor testing version result is an exciting milestone in enabling nes of waste a year, which equates to about nine per in Sydney by UNSW researchers achieved an unparal- utility-scale solar power to become a more viable alter- cent of all metropolitan waste sent to landfill in leled 40.4 per cent conversion rate for photovoltaic native to fossil fuels. "In practical terms, we'll be look- 2012-13," said the minister.
(PV) efficiency, which also puts it ahead of fossil fuels ing to apply the outcome of the testing to the work "It is designed to produce 18.5 megawatts of elec- for energy conversion. In Australia the most efficient we're doing with companies like China Intense Solar, tricity, with 16 megawatts - equivalent to 23,000 homes coal-fired power stations run at 40 per cent system effi- where addressing the acute air pollution problems of per annum - available to the grid." the world's most populous nation is a major priority." The facility would be required to meet strict envi- The result was achieved using a system that enables In March RayGen will commission the first site de- ronmental standards consistent with those imposed on sunlight that is normally wasted by solar cells to be con- ployment of CSPV tower power in regional Victoria, facilities in the European Union. Mr Jacob said im- verted to electricity. Independently verification was by and has fast-tracked its project timeline with China In- provements to waste-to-energy technology over several the National Renewable Energy Laboratory (NREL) tense Solar to deliver a 10 MW commercial-scale op- decades mean that these facilities now operate safely in outdoor test facility in the USA.
eration in Qinghai province by August 2016 that can many countries to very high emission standards.
The Australian Renewable Energy Agency contrib- power thousands of homes.
New Energy still needs other State Government ap- uted $550,000 towards the $1.3 million ‘Power Cube' Last year Raygen won the Energy Technology provals for the project, such as a works approval and li- project. Chief executive, Ivor Frischknecht, said "The Award and the inaugural People's Choice Award at the cences under the Environmental Protection Act.
clever solution combines advanced triple junction cells 2014 Australia Technologies Competition, previously with cheaper conventional silicon cells to boost power Australian Cleantech Competition.
International Cleantech Award
output. Light that is normally wasted by triple junction Mr Frischknecht said the latest breakthrough is for RayGen
cells is captured by splitting incoming sunlight into dif- another world first for Australian solar researchers and ferent spectra and directing some of it into a silicon cell.
demonstrates the value of investing in Australia's Solar technology developer RayGen Resources beat This approach has achieved a higher efficiency than renewable energy ingenuity.
more than 10,000 companies from around the world to what is physically possible with a triple junction cell win the Grand Prize in the 2014 Global CleanTech Nappy Recycler Wins
Cluster Association (GCCA) Later Stage Awards.
John Lasich, RayGen chief technology officer, said The winner was selected by a panel of investors at the company was capable of lifting energy conversion the 5th annual CleanTech Investing Seminar in Lau- Relivit has progressed its nappy recycling project by levels even higher. "Looking at the pipeline of solar PV sanne, Switzerland with RayGen among 30 finalists signing nappy maker Kimberly-Clark Australia for its cell advances, we expect to achieve close to 45 per cent from a variety of cleantech industries. After winning service. Under the contract, manufacturing waste from system efficiency in the next few years." Eco Investor February 2015
Kimberly-Clark's Huggies Nappy Mill in south-west enable our Huggies Nappies, Poise and Depend adult Entries Open for StartupSmart
Sydney will be diverted from landfill and sent to Reliv- care products, and our U by Kotex female hygiene it's proposed plant for recycling.
products to be recycled post use. To date, there has been Entry is now open for the annual StartupSmart In addition, an exclusive partnership with the Hug- no technology in Australia to recycle and recover the Awards for new companies. The awards are open to gies brand will in the future give consumers for the first materials of these products. Therefore, we're thrilled to every industry including cleantech and are an opportu- time the option to recycle their nappies and other ab- be supporting Relivit in establishing Australia's first nity to showcase the variety and vibrancy of the start-up sorbent hygiene waste.
absorbent hygiene waste facility." sector and attract the attention of potential investors and Managing director of Relivit, Mark Dunn, said "The "We believe that Relivit's business model, which contract helps further de-risk the project for investors, makes recycling Absorbent Hygiene Waste cheaper Categories are Best Start-up, Best New Start-up, further demonstrates demand and underpins future cash than landfill, will be a game changer for waste manage- Best Start-up Idea, Best Disruptor, Best Social Change flows. We now have almost two-thirds of our ment in Australia. Partnering with Relivit makes both Entrepreneur, Fastest Growing Start-up, Best Regional breakeven tonnage under contract, with the rest already business and environmental sense," she said.
Start-up, and Start-up Hero.
under letters of intent. By the time the plant is commis- When the targeted capital investment has been A range of prizes includes business advisory pack- sioned, we expect to have double the breakeven ton- raised, Relivit's plant will recover the paper fibre, plas- ages with start-up experts DFK ANZ and a $10,000 ad- nage ready to go." tic and super absorbent polymer (SAP) in absorbent hy- vertising package with Private Media, which publishes "With Kimberly-Clark on-board, joining our other giene waste so it can be used to make new products the online StartupSmart newsletter. Entries close on 13 major partners such as Initial Hygiene and Bunzl Out- such as park benches and building materials.
sourcing Services, we're looking forward to securingthe final piece of funding so that we can start workadapting an existing facility for our needs. This will al-low us to create 70 new, sustainable jobs, divert many Eco Securities Data tens of thousands of tonnes of waste from landfill andreclaim millions of dollars' worth of materials. We willalso make carbon savings equivalent to removing 5,625cars from our roads, assuming each car was to drive15,000 kilometres a year," said Mr Dunn.
Relivit's technology and access to a suitable plant will allow over 95 per cent of absorbent hygiene wasteto be diverted from landfill. This means used dispos-able nappies, female hygiene and adult incontinenceaids will become almost completely recyclable.
Jacquie Fegent-McGeachie, Head of Sustainability & Corporate Affairs at Kimberly-Clark Australia &New Zealand, said "For years we have been workinghard to identify a waste processing option that would Eco Investor February 2015
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Eco Investor February 2015
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