EnviroMission Ltd. (EVOMY)

[tykundegex]

Not too much happening with the company since the PPA with the SCPPA was pulled. We have no tangible news about the Texas or Arizona towers, other that this, released last week:

Enviromission is pleased to announce a further tranche of US$100k of the US$2M Solar Tower development license fee due to be paid to EnviroMission has been received from Texas based developer, Apollo Development LLC.

Apollo is on track to meet the terms of the Heads of Agreement to obtain the Solar Tower development license for Texas from EnviroMission, and has informed EnviroMission it has identified sites in the El Paso region suitable for the development of up to three Solar Towers.

"Each tranche received from Apollo inched the transaction closer to full satisfaction of the terms of the Heads of Agreement that will expand Solar Tower development in to a second market in the US", EnviroMission Chief, Roger Davey said.

EnviroMission's US based subsidiary, EnviroMission Inc. continues to work with development partners in Arizona to move Solar Tower development forward in La Paz.

Development modelling has shown EnviroMission and Apollo can reasonable expect benefits from simultaneous development in Arizona and Texas through economies of scale.

"Simultaneous development is an agenda priority shared by EnviroMission and Apollo", Mr. Davey said.

ref: http://www.asx.com.au/asxpdf/20130904/pdf/42j4zz5wwy1p0m.pdf


I did a little digging into Apollo, and it turns out one of the directors is a former Director at Stream Energy, which is encouraging.

http://www.linkedin.com/pub/mike-rowley/4/675/8a8/

[joboggi]

six months with no posts. what is up?

[tykundegex]

As of March 8, o/s = 447560840 @ last trade A$0.031 =~ A$14 million mkt cap.

With the Texas license fee, they should have enough cash to operate for more than 2 years at the current burn-rate, so dilution should slow/stop.

From recently filed annual accounts:

RESULTS AND REVIEW OF OPERATIONS
DIRECTORS' REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2012

The Board of Directors of EnviroMission Limited have pleasure in submitting the financial report of the consolidated group for
the half year ended 31 December 2012.

During December 2012 the Company executed a Memorandum of Understanding (MOU) with a Texas based development company that grants an exclusive development licence for Solar Tower development throughout the State of Texas, USA. A formal Heads of Agreement and contract between the parties is currently underway and completion is expected in the near future.

The licence provides the Company with an initial non refundable fee of US$2,000,000, which grants the Texas developer the right to market and develop Solar Towers in Texas from the date of signing the MOU. The Company will also receive equity participation in the development entity and receive ongoing technology fees on an annual basis at the successful conclusion of each Solar Tower development in the State of Texas, details of which will be disclosed at the completion of the formal Heads of Agreement.

The US$2,000,000 licence fee is due and payable at 31 December 2012 and must be received, in full, by the Company no later than 30 June 2013. The development rights will revert back to the Company in the unlikely event that full payment is not received. At the date of this report, US$250,000 has been received in line with the payment scheduled agreed by the two parties.

Net loss from ordinary activities was $713,962 (2011: Net loss $616,620), the expenditures during the half year were consistent with expectations. Refer to Note 2 for further explanation regarding the classification of the development licence fee.

During the half year ended 31 December 2012 the Board of the Company believe that significant advances in commercialising the right to develop the intellectual property associated with the global licence held by the Company have been made. The development licence agreement with a Texas based consortia is an example of recent commercialisation success.

As previously disclosed, the Intellectual Property owned by the Company was independently valued by Acquity in February 2011 at $60,000,000. The valuation was conducted using a relief from royalties approach that included a probability adjusted net present value of likely future cash flows, based on revenue projections supported by the Power Purchase Agreement signed with the Southern California Public Power Authority. As previously announced, the Power Purchase Agreement has since been terminated by both parties to the agreement. However the Company’s Board of Directors believe that more favourable terms can now be negotiated to those stipulated in the original Power Purchase Agreement, thereby increasing potential revenue projections.

Accounting Standards in Australia and the United States of America prevent the valuation being brought to account due to the fact that no active market, under Australian Accounting Standard definitions, exists for the asset.
The recent Texas Development Licence Agreement, the La Paz Solar Tower development, and negotiations to assign development licences in other markets, supports the Board’s opinion that the value of the technology is realistic, despite its inability to be brought to account.

The Company’s management is confident that demand for renewable energy will continue to increase. Sighting factors such
as but not limited to, the continued rise in global energy demand of which current demand is primarily met by a generation of
finite resources. The emission and risk liabilities associated with these finite resources will ultimately lead to renewable energy forming a greater component of the current energy mix as a matter of necessity.

...

The Group has accumulated losses of $35,428,000 and a net asset deficiency of $1,416,893 at 31 December 2012. The directors believe that the company will be successful in its future operations and has accordingly prepared the financial report on a going concern basis. The Company is also in the discussion to grant further development licences with similar terms as those negotiated for the State of Texas to other jurisdictions both within and outside USA.

[joboggi]

2 months with no posts. Anything going on? I get their email, and I have not seen anything.

[joboggi]

all any investor had to do was put enviromission in his google box, just like I did.

So, anyway, good news is good news. Ride the wave.

[tykundegex]

But the Discovery Channel didn't mention the company was public

Today's announcement clarifies the License Agreement just signed in Texas. Stock up 17% on ASX on 5x normal volume.

Good news, but no guarantee the project will be breaking ground soon or ever... so we wait for details. At least the fees they will receive ($2 million) will give EVM some legroom and avoid more dilution to shareholders.

---

EnviroMission Limited : Heads of Agreement Texas License Locked In
12/18/2012| 08:15pm US/Eastern
COMPANY ANNOUNCEMENT

Immediate Release

19 December, 2012

ASX: EVM

OTCQX: EVOMY
HEADS OF AGREEMENT TEXAS DEVELOPMENT LICENSE LOCKED IN EnviroMission Limited (ASX:EVM; OTCQX: EVOMY) has engaged DLA Piper Australia (Melbourne) to prepare the Heads of Agreement to grant an exclusive Solar Tower power station development license in the State of Texas to a Texas based development entity to be executed on or before January 31, 2013.

The Heads of Agreement will include the terms and conditions set out in an MOU (announced via the ASX on December 10, 2012), and the rights and obligations of both parties moving forward in the roll out of Solar Tower technology in Texas.
Under the terms of the MOU, EnviroMission is to receive a US$2,000,000 development fee; the first tranche of US$200,000 to be received by EnviroMission by December 31, 2012 and the balance to be received by installments completed by June 30, 2013.
EnviroMission will own 20% of the 'Texas Solar Tower' development company in the first instance; this holding will not be diluted to less than 10% and will then be free carried and non-diluting.
EnviroMission will also receive an annual technology fee (commercial in confidence) for each Solar Tower development delivered by the development company.
"This is a landmark agreement that meets EnviroMission's objective for Solar Tower development in multiple US markets via joint venture and development license agreements and will provide vital operational revenue for EnviroMission's Arizona (La Paz) Solar Tower development through non-equity development capital.
"The agreement reinforces the role EnviroMission has intended to occupy as a technology developer.
"This transaction will also add currency to the overall value of the intellectual property owned by EnviroMission, independently valued at $AUD60 million in January 2011," Roger Davey, EnviroMission Limited Chief Executive said.
Ends.
Roger C. Davey Executive Chairman Executive Director EnviroMission Limited
Enquiries
Kim Forte
Communications Manager
EnviroMission Limited

[joboggi]

I suppose. But I first learned of this company on the Discovery Channel. I am pretty sure that I was not the only one watching.

[tykundegex]

Which makes it a great stock to own as nobody knows about this company yet. Even on the ASX, only between $3-10k of EVM shares trade hands daily... volume is super low.

[joboggi]

This board gets as much attention as the stock.

[joboggi]

There are THREE power grids in the United States, East, West, and Texas. Seriously. So if they want this, it will get built.

Interesting state, the great state of Texas. ( Never saw what is great about it ) but it is very good news that this is underway.

[tykundegex]

Actually, the significance of this event is quite big. It adds tremendous credibility to the business case of a Solar Tower, the financial metrics of which have never been made public. I'd love if they would disclose the licencee's name, and details like where the tower(s) are planned. I wonder when we'll see the licence fee show up in the filings... as it could give a better idea of how to value this company!!

[tykundegex]

This means the new licencee has proven their ability to secure a PPA, but need only show funds sufficient to get them to a "pre-feasibility" study. That said, something about the terms "Texas" and "Energy" that makes me confident the licencee likely has rather deep pockets.

Davey (Chris) was quoted once as saying "We’re hitting the ground running all over the world". Of course, that was exactly 1 year ago.

I'm happy to sit on the modest amount of shares I have today and wait until things improve significantly and with more transparency, before taking a bigger stake.

(I wonder how one of these 2000ft / 600m tall concrete tubes would stand-up to a category 5 hurricane?)

[tykundegex]

I've always thought that there would be a bunch of these towers all over the world

So did I, and so do they.

See the news today?

Licensing Partner Signed for Texas Development

From it: "Enviromission has signed an exclusing development licensing agreement.."

And from the Annual Report: "The company will receive a significant fee for granting the development rights and a [sic] equity position in the successful recipients [sic] project with an ongoing annual licence fee"

And then we'd heard about India a while back ... so let's hope they have more fires burning and get some traction elsewhere. That said, the latest PR does still say "The La Paz Solar Tower development in Arizona remains at the centre of EnviroMission's development activity in the USA..."

But all in all, this is great news!

[joboggi]

I've always thought that there would be a bunch of these towers all over the world, with the GE logo on top of them. Now I am back to that notion. That is not bad for the current investors, but not as good as it could be if the company could get financing.

[joboggi]

did you find out just what they voted on the other day?

[tykundegex]

I didn't miss it.. I'm just still in denial. Huge disappointment with the recent news. The very same condition they appeared to want to impose on potential licencees, they appear to have failed to meet themselves now.

Indeed this turn of events is potentially catastrophic for the company, unless they have fires burning elsewhere.

It's still unclear to me if the PPA was "required" or not. While I don't see why the cannot built it and sell the power anyway, clearly the funding may depend on a guaranteed revenue stream that the PPA provides.

I fail to see the positive aspects of this decision, despite the clever wording by Davey: "it does now provide EnviroMission with additional options to meet those interests expressed by the project financier in the environmental credits and ownership of the project"

I suppose we'll have to wait for more news, but it would appear they still plan to build it. Of course... what else can they say?

Yes, they said they'd release project financing details by summer 2012 (Northern hemisphere), and despite many emails to IR asking why they haven't, I have heard nothing back.

It's a waiting game now... maybe a middle-eastern nation will fund of these? Heck, if Masdar City is any example of what can be done as a "pilot", then a solar-tower should be a no-brainer to fund.

[joboggi]

As of the Nov 30 report, they do NOT have financing. AND the delay has cost them the contract with the SCPPA.

http://www.enviromission.com.au/EVM/Company/ShowPage.aspx/PDFs/1379-25959338/ChairmansAddresstoShareholders

While the physics of this project remain constant, and support the project, there is very little else supporting this project at the moment.

There is no financing and no buyer for the power. I am not familiar with the process but the sale of the power came before the financing "committment"

Now that the financing is NOT in place the power company backed out, needing to fill energy needs with electricity and not hope.

That is how I see it.

[joboggi]

You missed the Nov 20 report, which as far as I know was NOT put on the email distribution list.

At any rate, they NO LONGER HAVE A buyer for the energy. The jumble of words at the end of the release is not intelligible, in my estimation. I emailed the company about this last night.

http://www.enviromission.com.au/EVM/Company/ShowPage.aspx/PDFs/1377-82467769/SCPPAPowerPurchaseAgreementUpdate

"“The exit from the PPA does not in any way prevent EnviroMission from resubmitting to any
future SCPPA RFPs for renewable energy, however it does now provide EnviroMission with
additional options to meet those interests expressed by the project financier in the environmental
credits and ownership of the project, that have to this point in time, been outside the scope of the
financial negotiation,” Mr Davey said.

I just read the Nov 20 release. What on earth does this mean?

So here are specific questions.

Are they still building the project?

Who is going to buy the power from the project?

Why have they not named the "project financier" as they promised to do in Jan of 2012.

"
it does now provide EnviroMission with
additional options to meet those interests expressed by the project financier in the environmental
credits and ownership of the project, that have to this point in time, been outside the scope of the
financial negotiation,” Mr Davey said."

What does this mean? "

That is my copied email.

[tykundegex]

Final report out: http://www.asx.com.au/asxpdf/20121001/pdf/4292lwv6ldl9s6.pdf

Noteworthy parts include:

"The 'pure equity' project finance proposal ... to provide Enviromission with 100% debt-free project equity is still undergoing third-party legal and banking due dilligence"

"The company is in discussions to grant development rights to develop Solar Towers in other jurisdictions both outside and within the USA. Development rights will not be granted until the prospective recipient can demonstrate an ability to secure a PPA with a major power utility operating in their jurisdiction and the ability to finance the project at a minimum to a pre-feasibility stage. ... The company will receive a significant fee for granting the development rights and an equity position in the project with an on-going annual licence fee .. all of which will be determined on a case-by-case basis."

"The independent assessment placed a value of A$60 million on the IP and development rights.. was conducted using a relief from royalties approach that included a probability adjusted NPV of likely future cash flows based on revenue projections supported by the PPA with SCPPA..."

With today's share price, the company is only valued at around A$10 million, or 1/6th of the value from the two La Paz towers alone (i.e. does not consider granting of new development rights ..which they appear to have in the works).

I bought some shares today... at A$0.025 they're a steal, if only for a quick flip on good news..but also to hold through a few more development agreements signed and .. the-deity-of-your-choice willing.. a tower actually built!!

[tykundegex]

Enviromission's LaPaz project discussed on Arizona PBS TV spot last week: http://www.azpbs.org/arizonahorizon/detailvid.php?id=14025

Notable snippits:

capital cost "ballpark": $700m
"we have a 100% committment for that now"

land use: 3500 acres (equiv space/power ratio for solar PV)

discussed also: past concerns voiced by FAA & military re: LaPaz tower (this is new to me). Unclear if this is resolved.

1500 peak construction jobs, 50 people to operate & maintain it. Life expectancy of 75 years (2-3 times other renewable plants).

Land rights still being negotiated (rev-share with land trust).

Break ground expected end of next year, or early 2014.

Permitting phase is only road-block left, since the capital cost are worked out.

[tykundegex]

H1 Preliminary Report out: http://www.asx.com.au/asxpdf/20120831/pdf/428f1t6r49ks26.pdf

Review of Operations
During the past year, EnviroMission has continued development activity in the US, with the Phoenix office managing EnviroMission's activities at LaPaz. This has involved site work, environmental activity, aerial surveys, desk top geotechnical study filed with the federal aviation authority, completed a critical impact analysis, water analysis, and other related developmental activities.

Project finance discussions are ongoing with bank to bank, and to bank to lawyer negotiations underway. The financing structure being examined is both innovative and unique and will, if successful, provide 100% project equity and no debt. EnviroMission is currently examining numerous proposals for the development of The Australian Solar Tower concept in other jurisdictions with high expectations of successful negotiations.

Questions that come to mind:
. what are the CapEx and OpEx numbers being used for Tower #1?
. what are the remaining gates to clear for a full GO to break-ground? (financial, environmental, legal, logistical, regulatory)
. expected timeframe to close a deal on financing?
. other jurisdictions where? US, India, Middle East, Australia?
. define "numerous"? 3, 10, more?
. what is the advancement of these other negotiations: what gates will be required there, and can EVM leverage the existing financing vehicle to support these other projects if they start?

[tykundegex]

LinkedIn discussion thread (started by Faithful+Gould) reveals some details of the tower:

http://www.linkedin.com/groups/Solar-Tower-Technology-Western-Arizona-3442439.S.91391159

The project will be privately funded, and we do now have a 100% commitment for project funding of the La Paz Solar Tower. As for the Environmental issues, this is now being progressed in dialogue with a number of govermental and local entities.

The collector will likely be using a mixture of ETFE and polycarbonate panelling supported by a steel/al. framework. The intention is for as much UV to pass through the collector as possible. Various suppliers/component materials are under investigation by the Project Team.

[tykundegex]

New share issuance:

http://www.asx.com.au/asxpdf/20120315/pdf/4251kj9hnw3wxb.pdf

6,600,000 more issued @ A$0.04 for $214k in working capital. That brings O/S to 395,577,391, with another 117k options ranging from A$0.052 to A$0.20 expiring in late 2014.

At today's close of A$0.05, the valuation is A$20 million.

Looking forward to something concrete (plans, revenue/licencing model, etc.) to be released from the company about La Paz tower #1 soon, and also to hear about plans in other countries!

[tykundegex]

2H2011 Financial Report

http://www.enviromission.com.au/irm/Company/ShowPage.aspx/PDFs/1346-89467701/HalfYearlyReportandAccounts

[tykundegex]

They say competition is a good thing, right?

It would appear that Enviromission has some -- and in the back yard of their old stomping ground.

http://hyperionenergy.com.au/

I'm going to look into them.

[tykundegex]

News: Enviromission Solar Tower Project Finance Commitment

http://www.asx.com.au/asxpdf/20120112/pdf/423qp21vwwfpdt.pdf


In summary, the construction of Tower #1 in La Paz (Arizona) will be fully financed by a third-party, and that investor will own a majority equity stake in the Tower itself.

This means NO DILUTION for EVM shareholders, and NO DEBT for EVM. That makes for a far more compelling investment than just about all of the other funding scenarios they could have secured. Details of this financing will be released "early 2012".

I think this is the ideal situation to get started. Recall that the IP alone was valued at A$60 million, and with today's share price (A$0.036) the market values the company at only A$13 million.

Issued shares: 372,134,534 (as of Dec 2011).

This company needs new eyes and the prospect of more towers, and the share price could really take off!

[tykundegex]

Just a thought on that comment by Chris Davey who heads Enviromission's commercialization efforts (brother to the CEO Roger Davey?) "We’re hitting the ground running all over the world". It would appear the comment was made in a closed room meeting with the La Paz County Supervisors (and a journalist from the Parker Pioneer), and hints at the very meticulous approach to planning that they are taking, in addition to implying they are not still in the starting blocks with respect to commercialization efforts in other countries.

If true, regardless of the project financing details (expected to be made public for Tower #1 shortly), the share price could run nicely in the coming weeks.

EVM (trading in Australia) has an average daily volume of under 100k shares, and last traded at A$0.03. That's pathetic volume (but still better than the ADR's traded on the OTCQX as EVOMY (and Google shows ordinary shares trading as EVOMF though I'm not able find/trade these via my broker). But it's spent a long time consolidating in that range. In short, any buying pressure would clearly push the PPS much much higher, and if with global commercialization progress and Arizona Tower #1 financing details soon to be made public, the stock could see just that!

http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=EVM

[tykundegex]

Dec 14, 2011: Arizona tower progress update

(taken from: http://www.parkerpioneer.net/articles/2011/12/12/news/doc4ee67b96330c4148897462.txt with underlining added by me for key or new information)

By JOHN GUTEKUNST
Parker Pioneer
Monday, December 12, 2011 3:11 PM MST

Christopher and Roger Davey, of EnviroMission, gave the La Paz County Supervisors an update at their Dec. 5 meeting on the status of a proposed solar tower, which will be built between Parker and Quartzsite.

The project, when completed, will consist of a tower more than 2,000 feet tall and a greenhouse-like canopy at the base, which will be more than 2,000 feet in diameter. Air will be heated under the canopy and will rise into the tower. The rising hot air will turn 32 turbines to generate electricity.

The plant will have no emissions and will not use any water to create electricity.

EnviroMission is based in Australia. In previous meetings, they told the supervisors the concept had been tested and proven at a plant in Spain. They estimated the La Paz County plant would produce enough electricity for 150,000 homes.

Christopher Davey said engineers and consultants had been at the site, and their aerial surveys had been completed. A water analysis was being done.

“It’s a perfect location for what we’re looking to do,” he said.

Davey said the company is trying to determine what permits they will need. He added an environmental study still needs to be done, and formal hearings on the project as part of the permit process.

In earlier meetings, Davey had announced Hensel Phelps, a firm based in Greeley, Colo., had been hired to build the project. An internationally recognized firm, they built the American embassy in Berlin, Germany, and the South Terminal at Miami International Airport.

Davey announced the Australian firm Arup had been hired to design the project. He acknowledged Arup is not well known in America, but stated the structures they are known for include the Sydney Opera House and Centre Pompidou in Paris. They also designed many of the structures for the 2008 Beijing Olympics.

On their website, www.arup.com, Arup described themselves as a company specializing in environmentally sustainable architecture. They describe “corporate responsibility” as their way of working.

Davey said EnviroMission is creating a new website specific to this project, and it will have links to the various partners in the project, including those in construction, engineering, and financing.

EnviroMission has also hired Terracon, a Kansas-based firm, to do the initial geotechnical work. In a press release dated Nov. 21, 2011, Terracon said the work they will be performing included foundation analysis, soil stabilization and ground improvement, and subsurface exploration and testing.

Terracon estimated the project would eliminate the production of 1 million metric tons of greenhouse gasses each year, as well abating the use of 1 billion gallons of water.

Davey said the plant will employ approximately 1,500 people while its under construction, and 40 once it’s completed. While the plant itself will cost $750 million, he estimated the economic impact on the county at $2 billion.

Roger Davey said the project would likely also become a major tourist attraction, generating even more revenue for the county.

Parker resident Bobby Page asked if the project would use local contractors and suppliers.

The Daveys replied their plan was to use local talent and suppliers to the extent that they could. They added Henshel Phelps takes pride in using local workers and suppliers.

Christopher Davey said there should be more activity at the site in February as more engineering and design work is performed.

Davey said EnviroMission was proceeding, and they hope to break ground late in 2012. However, they also want to be sure everything is in order and done properly.

“We want to make sure all our ducks are in a row before we break ground,” he said. He then added, “We’re hitting the ground running all over the world.”

District 2 Supervisor John Drum thanked Christopher and Roger Davey for the update, and for their efforts on the project.

“This will be a big project,” he said. “They’ve done everything they said they would.”

For more information on the project, go to EnviroMission’s website: www.enviromission.com.au.

[tykundegex]

Solar Tower Development Overview & 2012 Strategic Direction

(taken from http://www.enviromission.com.au/irm/Company/ShowPage.aspx/PDFs/1336-20559511/SolarTowerOverviewAnd2012StrategicDirection )


EnviroMission Limited (ASX: EVM) (OTCQX: EVOMY) 2011 has concluded a decade of
development since listing on the ASX, in the first instance to exclusively develop the Solar Tower
concept in Australia that resulted in the achievement of commercially driven engineering solutions
and enhancements to form new intellectual property, know how and market credibility.

As a result of the achievement of those enhancements and intellectual property development to
EnviroMission Solar Tower technology, as it was licensed to EnviroMission from SolarMission
Technologies Inc, and in light of failed renewable energy incentives in Australia that would be
capable of supporting a large-scale solar powered power station infrastructure development of
the scale of a Solar Tower in Australia, EnviroMission acquired the rights to develop
EnviroMission’s Australian Solar Tower concept form SolarMission Technologies via a securities
transfer that placed the global development rights to EnviroMission’s Australian Solar Tower
concept with EnviroMission Limited.

This action, completed in 2008, provided EnviroMission the opportunity to market EnviroMission’s
Australian Solar Tower technology outside Australia, and subsequently resulted in EnviroMission
moving rapidly forward to build on the advanced, but deferred development proposal in Australia,
to the current phase of delivery of EnviroMission’s Australian Solar Tower concept in the United
States.

(Despite holding Major Project Facilitation Status form the Australian Federal Government and
State Significant Development status form the New South Wales Government (domicile State of
the first Australian Solar Tower development project). the renewable energy incentive landscape
was inadequate to support the demands of the capital market for a subsidized investment of the
required scale in Australia.)

Reorganization of the corporate structure and technology ownership has since been shown to
have been a prudent and timely strategy as no incentive programme capable of attracting
investment to a large-scale renewable energy infrastructure development (specifically solar) have
to this point not materialized in Australia - in contrast, incentives, political will, and an investment
appetite for renewable energy development in the United States has provided a positive market
environment for EnviroMission to deliver Solar Tower power station development into.

EnviroMission has already achieved a landmark Power Purchase Agreement with the Southern
California Public Power Authority (SCPPA) following robust due diligence by SCPPA and
achieved the necessary collaborations of prominent US businesses to deliver on that PPA – a
PPA that also references an option for SCPPA to purchase the first of two Solar Towers to be
delivered in La Paz County, Arizona.

A recent (December) round of briefings attended by EnviroMission CEO and Chairman, Roger
Davey, in Phoenix Arizona with the La Paz Solar Tower Project Team received reports from:
Hensel Phelps; Faithful + Gould; Terracon; Ritoch - Powell & Associates; AON; Quarles & Brady;
and, Cemex.

Meetings were held with SCPPA and a briefing was provided to the La Paz County boar of
supervisors.

The development reports indicated the achievement of milestones necessary to support the terms
of the SCPPA PPA for the La Paz Solar Tower development to be on line Q1 2015

Details of development capital and project finance negotiations for the first EnviroMission Solar
Tower to be built in the La Paz County in Arizona are expected to be able to be made to the
market early in 2012.

Based on the progress of Solar Tower development in Arizona reported to shareholders at the
2011 AGM (2011 Chairman’s address), shareholders enquired about the likelihood of resuming
development in Australia.

The short answer to that question was, as it has consistently been, EnviroMission remains
development ready in the event incentives become available in Australia capable of attracting
investment capital to an energy infrastructure development of the size of a 200MW Solar Tower
proposal.

The more comprehensive answer that was not able to be provided as it was awaiting
EnviroMission board ratification, planned to occur following the AGM (now ratified), is that
EnviroMission now intends to commence a development strategy in Australia, (Western Australia
and South Australia in the first instance) that will specifically engage the mining sector in those
states to explore the role EnviroMission’s Solar Tower technology could have to meet
sustainability and carbon reduction/abatement targets and energy generation requirements for
that industry.

EnviroMission takes the view the progress of the La Paz development will inform development
feasibility and capability in the event incentives can be obtained from Federal and State
governments, and on that basis EnviroMission intends to resume discussions with the Federal
Government and State Governments of Western Australia and South Australia to consider the
necessary incentives to support large-scale grid connected solar power generation in Australia.

EnviroMission’s Australian Solar Tower intellectual property was independently valued at AUD$60M
(January 2011) on the basis of the value of EnviroMission’s enhancements that have enabled
EnviroMission to achieve a commercial PPA with SCPPA.

In 2012 EnviroMission will commence an active commercialization of its technology in other markets and
if commercially appropriate also in Australia either through partnership, joint venture or the assignment of
development rights.
Ends.

[tykundegex]

My favourite paragraph is this one:

"Finally EnviroMission has been active in development activities in jurisdictions other than the South West of the United States, with serious interest expressed by parties from Mexico, India, China, the Middle East and North Africa."

Remember, that solar towers (chimneys) are a 3rd type of solar power, never before commercialized and for which Enviromission has world-wide IP rights (details unclear)!

i.e. the future could be very very bright for this company as it seems (on paper) to be far more cost-competitive than solar PV and even CSP.

However, an investment in the company at this stage seems (IMO) premature -- until the details of project financing, operational roles, and revenue/royalty rights are clearly established.

That said, I took a position over 2 years ago that I'm still sitting on, and hope to take a bigger one once the above becomes clearer.

Tykün

[tykundegex]

Chairman's address to shareholders at 2011 AGM:

http://www.enviromission.com.au/irm/Company/ShowPage.aspx/PDFs/1334-31590288/ChairmansAddress2011EnviroMissionAGM

Dear Shareholder,

EnviroMission Limited (ASX: EVM) (OTCQX: EVOMY) 2011 year completes a decade of Solar Tower commercialization for EnviroMission – comprising seven very active years in Australia and three in the United States. And realizing the trajectory of development that is occurring in Arizona I can say with conviction the first two trimesters of this development gestation certainly served to inform the development model to the current advanced stage.

I would like to remind shareholders that there is a large-scale infrastructure development that stands behind this investment – investors’ objectives take many forms – some are in for the long haul – and in a sense they could feel somewhat long suffering; others have more short term objectives and then others again may have no idea what business EnviroMission is actually engaged in.

EnviroMission is commercializing large-scale, highly differentiated solar powered electricity generation for the wholesale electricity market – we are commercializing the first 200MW Solar Tower power station in the North West corner of Arizona at an arid site in La Paz – the exact coordinates remain commercial in confidence to protect EnviroMission’s interest in securing the most commercial arrangements for the development – the process to site lease is anticipated in 2012. As I mentioned I have recently returned from the US where I attended a key developers meeting with the Southern California Public Power Authority (SCPPA) one of the largest public power authorities in the US – EnviroMission has a power purchase agreement with SCPPA – this means that the power that the first of two 200MW power stations at the La Paz sites has been contracted for sale to SCPPA in order for SCPPA to satisfy the terms of its renewable energy portfolio. EnviroMission successfully bid into a request for project process and was the only solar technology selected to negotiate a power purchase agreement – the process itself was lengthy and EnviroMission was able to take the good news to market in Q2 2011.

I returned from the US on Wednesday following a very positive round of meetings, consultations and strategy sessions.
The power purchase agreement has served to place demanding imperatives on the development process and timeline and the La Paz Solar Tower Project Team I took reports from on Wednesday 7 December in Phoenix was impressive.

Members of the team present at the December Team meeting were:

Hensel Phelps
Faithful + Gould
Terracon
Ritoch - Powell & Associates
AON
Quarles & Brady
Cemex

(overview of participants)

Hensel Phelps
Hensel Phelps are a staff owned construction company with revenues exceeding US $3 Billion, and bonding capacity exceeding US $5 Billion that have been contracted to deliver the site specific project schedule and Guaranteed Maximum Price with the intent to construct the La Paz Solar Tower.

Faithful+Gould
New York headquartered Faithful+Gould have been appointed to provide local project management and integrated commercial services and will be a construction consultant to the La Paz Solar Tower – this is a business with current revenue in excess of $320 million

Terracon
Terracon has been engaged to provide US consulting engineering services specific to initial geotechnical engineering analysis, geo-seismic analysis for the La Paz Solar Tower. Terracon is ranked 38th on Engineering News-Record’s List of Top 500 Design Firms. Terracon’s reports inform and support Solar Tower front end engineering and design (FEED).

Ritoch-Powell & Associates
Ritoch-Powell & Associates are engaged to provide aerial mapping and land surveying services to inform Solar Tower development in La Paz, Arizona. Ritoch-Powell & Associates is an Arizona engineering and surveying consulting services company providing services to award winning private and municipal projects in Arizona for more than 33 years.

AON
Headquartered in Chicago, Aon Corporation is the leading provider of risk management services, insurance and reinsurance brokerage and human capital and management consulting - Aon have been engaged to provide risk management advice to the management of the La Paz Solar Tower project.

Quarles & Brady
Quarles & Brady LLP provides broad-based, national-level legal services through a network of regional practices and local offices have been engaged to provide external legal counsel to guide the La Paz Solar Tower development process through contract, compliance and legal governance responsibilities.

Cemex
Cemex is a global leader in the building materials industry and is providing EnviroMission with building material consultancy to achieve the highest concrete and aggregate materials performance for the La Paz Solar Tower – concrete and aggregate form a key materials logistic component of the overall materials profile of the Solar Tower design.

Companies actively involved but not present include the Melbourne based design engineering services group, Arup, GE Turbines, Atkins, and a raft of material suppliers that are undertaking research and development for the final design.

Fees that would be required to secure the level of talent that is assigned to Solar Tower development would require many hundreds of thousands of dollars even before the final site design is prepared.

The level of diligence and faith that all of these businesses have in the technology and the development paper trail to this point is expressed through those businesses agreeing to carry their development costs through to project finance.

Project finance discussions are advanced for working capital to take the company forward to the project finance stage and project finance.

To comply with the SCPPA PPA EnviroMission has had to restructure its 100% owned corporate structure in the United States and to this end has formed four new 100% owned corporations:

EnviroMission Inc
EnviroMission Management LLC
EnviroMission Capital LLC &
La Paz Solar Tower LLC

As these companies are all 100% owned EnviroMission will fill all the major corporate officer positions.

Under the terms of the SCPPA PPA the La Paz Solar Tower Project is to be on line during the first quarter of 2015 and to this end we should be turning the first sod of earth end 2012/ first quarter 2013. We are on target to meet this schedule.

Finally EnviroMission has been active in development activities in jurisdictions other than the South West of the United States, with serious interest expressed by parties from Mexico, India, China, the Middle East and North Africa.

I would like to thank all EnviroMission’s staff, consultants and collaborators - without them this dream would not have become a reality, all collaborators who obviously share the vision and all shareholders – old and new.

Thank you!

Ends

[valueseeker2]

Good article. It is AGS Capital Group out of New York who provided the funding, not AGS Capital from Indiana, a venture firm who only invests in private companies.

[tykundegex]

A new article: Updraft Technology - Tall & Visionary

Gives an overview of the concept, the project, costs, and timelines.

http://www.enviromission.com.au/irm/Company/ShowPage.aspx/PDFs/1324-89012753/TallVisionary

Published in the October 2011 edition of the magazine "Sun, Wind & Energy" (website http://www.sunwindenergy.com )

[tykundegex]

CNN article from Oct 10

http://www.cnn.com/2011/10/02/tech/innovation/solar-tower-arizona/index.html

[tykundegex]

Enviromission's Solar Tower makes top feature on Faithful+Gould website

http://www.fgould.com/north-america/projects/enviromission-solar-tower/

[tykundegex]

Enviromission Directors' Report 2011

http://www.asx.com.au/asxpdf/20110930/pdf/421gvsghj24j10.pdf

Some interesting bits that have been implied but never stated outright:

"EnviroMission is in detailed negotiations with two investment companies that have agreed, in principle, to provide project finance for the first of two 200MW Solar tower stations to be constructed at La Paz, Arizona."

"A third investment company is currently negotiating the provision of project finance through to financial close."

And of course they have virtually no debt...

"The consolidated group has reduced it borrowings to $228,140 in 2011."

[tykundegex]

A few recently found news coverages of the EVM Solar Tower, below.

Today the PPS (A$0.03) puts the valuation of the company at a meager A$12 million. Perhaps a good time to buy, despite the lack of clarity around project funding and future revenue/royalties from the first tower.

http://www.nypost.com/p/news/opinion/opedcolumnists/wonders_of_the_new_world_tRAh0Toq5qq2wS8qB3FOiN/1

http://www.huffingtonpost.com/2011/07/29/arizona-solar-tower-twice_n_913447.html

http://www.gizmag.com/enviromission-solar-tower-arizona-clean-energy-renewable/19287/

[tykundegex]

News: EnviroMission Signs Hensel Phelps as U.S. Solar Tower Contractor

http://www.prnewswire.com/news-releases/enviromission-signs-hensel-phelps-as-us-solar-tower-contractor-126855738.html


PHOENIX, Aug. 5, 2011 /PRNewswire-iReach/ -- EnviroMission Limited (OTCQX: EVOMY) (www.enviromission.com.au) has signed United States construction services contractor, Hensel Phelps Construction Co. (Hensel Phelps), to Solar Tower power station development in the United States.
(Photo: http://photos.prnewswire.com/prnh/20110805/CG48337)
Hensel Phelps has been contracted to provide a Guaranteed Maximum Price and deliver the 200MW Solar Tower power station in La Paz County, Arizona for EnviroMission.
Hensel Phelps, Western District Manager and Vice President, Steve Grauer, stated "Hensel Phelps is excited to be the builder and a collaborative team member for EnviroMission's unique and innovative Solar Tower in Arizona."
"Hensel Phelps has assigned a dedicated team to the project and has the Board's commitment of all corporate resources to support the successful completion of the project and will assume all of our pre-construction expenditures through the close of project financing," Mr. Grauer said.
EnviroMission CEO, Roger Davey, applauded the appointment of Hensel Phelps as a "project maker!"
"Infrastructure developments of the scale of EnviroMission's proposed 200MW Solar Tower require such specialized capabilities and resources as those identified and readily available at Hensel Phelps.
EnviroMission looks forward to working with Hensel Phelps to deliver the world's first Solar Tower power station in the United States.
Hensel Phelps' proven processes and procedures, and track record of delivering challenging, diverse, and complex projects will bring the necessary level of expertise to Solar Tower development," said Mr. Davey.
Hensel Phelps construction services expertise has delivered major projects including the renovation of the Pentagon, rocket launch facilities at Cape Canaveral and Vandenberg Air Force Base, numerous hospitality, healthcare, industrial, commercial and transportation projects, including San Jose and Denver International Airport's plus the People Mover systems at DFW International Airport in Texas and the PHX Sky Train at Phoenix Sky Harbor International Airport as well as AmericanEmbassy projects in Berlin, Germany and Cape Town, South Africa.
Hensel Phelps' continued commitment to the environment and sustainable projects has resulted in over eighty projects completed or in progress being LEED certified, resulting in the company being recognized as a leader in eco-friendly projects, employing at least 350 LEED Accredited Professionals.
Hensel Phelps is an employee owned construction management, design builder and general contracting company, established in the United States in 1937 with over 2,100 employees today, annual construction revenues exceeding $3 Billion and bonding capacity that exceeds $5 Billion.
Further information about Hensel Phelps Construction Co. is available at www.henselphelps.com

[tykundegex]

Sooo quiet lately on the EVM front, other than more share dilution.

The Australian government (whose policies many years back forced them to look to the USA to commercialize their first tower) has recently kicked-off a CEI (clean energy initiative) pouring A$5b into carbon-free energy:

http://www.deewr.gov.au/HigherEducation/Programs/EIF/Pages/CleanEnergyInitiativeCCSFlagshipProgram.aspx

And the Chinese surely have the spending power to make a solar tower a reality (perhaps more so than in Arizona), but ... alas... there is no news on non-US commercial progress (and no news on US construction progress).

Waiting for the sun, waiting for the sun... waiting... waiting....

[tykundegex]

Interesting news: SCPPA takes option to buy giant solar updraft tower

http://www.rechargenews.com/energy/solar/article255656.ece?WT.mc_id=rechargenews_rss

So the SCCPA had negotiated the right to buy out all the interest in the first solar tower at 10 or 30 years out. This is somewhat a show of confidence to the project, but also to the profitability (well, modeled anyway) of the tower (versus Solar PV or CSP).

What we still don't know, however, is who will own what %, who will operate it, and exactly what role (and thus revenues) EVM will have post-construction.

We have a long wait though... another year before they break ground I think...

Tykün

[tykundegex]

A (nothing) new PR:

http://www.enviromission.com.au/irm/Company/ShowPage.aspx/PDFs/1278-32590346/EnviroMissionSolarTowerJoinsSCPPAUtilityProjectList

Seems Enviromission feels the need to PR the fact that their solar tower project is now officially listed on the SCPPA website.

Pretty lame that they didn't update us about the FEED progress, and/or provide any guidance on timelines or other projecs.

Tykün

[tykundegex]

2011 OPERATIONAL OVERVIEW

http://www.enviromission.com.au/irm/Company/ShowPage.aspx?CPID=1272&EID=84459209


Operations Report
EnviroMission is pleased to report key milestones and outcomes achieved over the last half year of operations that indicate positive progress towards EnviroMission’s intent to commercialize the Australian Solar Tower concept in the United States.

Solar Tower commercialisation in the United States is supported by a development team at EnviroMission (USA), Inc; EnviroMission (USA) Inc is a Phoenix based 100% owned subsidiary of EnviroMission Limited.

The Phoenix office is well located to service EnviroMission’s Solar Tower development objectives in the northwest region of Arizona;

EnviroMission (USA), Inc provides time critical management interface with stakeholders in the United States for EnviroMission Limited.

Power Purchase Agreement Achieved
EnviroMission successfully secured a Power Purchase Agreement (PPA) to sell electricity from the first of two 200MW Solar Tower power stations that are planned for development in Arizona to the Southern California Public Power Authority (SCPPA), ie SCPPA will be EnviroMission’s first customer.

Securing a PPA is a significant milestone for power generators – A PPA provides certainty and detail to the financial model and is a critical aspect of commerciality that informs an overall project development decision.

Executive Engineering Services Secured
EnviroMission engaged the services of Arup, an internationally renowned independent firm designers, engineers, consultants and technical specialists that offer a broad range of professional services across building design, economics and planning, infrastructure design, management and project consulting, specialist technical services. Arup has been engaged by EnviroMission to provide the executive engineering services necessary to develop the Australian Solar Tower concept in the United States.

Arup is currently working on site specific Front End Engineering and Design (FEED) for EnviroMission’s first 200MW Solar Tower power station planned for development in Arizona to generate power for sale to the Southern California Public Power Authority.

Arup have completed a ‘dynamic simulation’ model to inform site specific design parameters. Arup is also in the process of identifying suitable contractors and suppliers to be involved with Solar Tower development.

Regulatory Process Underway
EnviroMission filed a notice of intent with the Arizona Power Plant and Transmission Line Siting Committee (‘Line Siting Committee’) that EnviroMission will soon file an application for a Certificate of Environmental Compatibility (“CEC”)’ for a 400MW Solar Tower renewable energy power station development in Arizona.

The Certificate of Environmental Compatibility is a ‘critical and all-encompassing’ permit for power station development in the State of Arizona and is the primary first step in the power plant siting process.

Technology Valued at AUD$60M
Solar Tower intellectual property, know-how and development rights currently owned and held by EnviroMission and its subsidiaries was independently valued by Acquity Technology Management, at AUD$60M.

A relief from royalties approach was applied that took into account a probability adjusted net present value of likely future cash flows, based on revenue projections supported in the Power Purchase Agreement documentation with the Southern California Public Power Authority.

Consideration was also given to the prospects for further Solar Tower facilities based on an economic model that included perceived risks to successful commercial development with project financing discounted to present value using a discount rate based on Capital Asset Pricing Model.

This valuation represents an independent assessment of the value of EnviroMission’s enhancements to Solar Tower technology that has resulted in new intellectual property, know how and commercial prospects, for example the recent Power Purchase Agreement to sell Solar Tower electricity to the Southern California Public Power Authority.

Summary
The Solar Tower development agenda has moved rapidly from strategy to delivery over the last half year of operations in the United States.

This is a major achievement given few large-scale solar technologies progress through to development regardless of the positive sentiment expressed globally for solar energy.

A hidden barrier to the development of many large-scale solar technologies that also tend to be high water users is a general lack of availability of water in regions with the greatest solar radiation gain.

Solar Tower technology is highly differentiated from all solar power station technologies because Solar Tower technology does not use water in the electricity generation method EnviroMission has two land applications for power station development in Arizona’s hot dry northwest.

The decision to develop Solar Tower technology in Arizona was further justified over the last half based on recent rule changes for power generators that were adopted by the Arizona Corporation Commission (ACC) and approved by the Arizona Attorney General (October, 2010).

All power station applications in Arizona are now required to provide an Integrated Resources Plan (IRP) for an open and comprehensive resource planning process in Arizona.

Under the rules, power station development applications will now be required to quantify all environmental costs associated with power generation including all fuels and resources including water; water has not always been taken into account in the power station approval process.

Less than one percent of Arizona’s electricity is currently generated from solar power despite Arizona having superior solar radiation gain.

Arizona’s new rules are expected to favourably benefit EnviroMission’s Solar Tower ‘pipeline development’ plans in Arizona based on the standout environmental benefits of EnviroMission’s clean waterless solar powered electricity technology.

Strong support for EnviroMission’s Solar Tower development plans in Arizona was expressed to EnviroMission’s Chief Executive, Roger Davey, at development briefings attended in Arizona in December.

EnviroMission’s development progress in Arizona was also highlighted in a positive, industry brief published in the US by Raymond James.

Raymond James is a leading US listed investment Bank, with extensive domestic and international investment banking and institutional sales and financial advice.

Raymond James referenced EnviroMission’s ‘flurry of progress in the US’ and named Solar Tower technology as the ‘third hybrid large-scale solar generation category’.

The rapid ‘march to market’ demonstrated in outcomes achieved over the last half represents two years of development focus in the United States that also benefited from the body of work undertaken for the Australia market.

[tykundegex]

Follow Enviromission on Twitter

http://twitter.com/#!/EnviroMission

[tykundegex]

EnviroMission Starts India Solar Tower Competitive Market Development

http://www.enviromission.com.au/irm/Company/ShowPage.aspx?CPID=1263&EID=36492570&PageName=EnviroMission%20Starts%20India%20Competitive%20Market%20Development

[tykundegex]

Excellent overview of the company, technology, recent activity, and road ahead in a new study published today by Raymond James:

http://bit.ly/fmn4Dl

[tykundegex]

ENVIROMISSION INTENT FOR CHINA SOLAR TOWER DEVELOPMENT

http://www.enviromission.com.au/irm/Company/ShowPage.aspx?CPID=1250&EID=72009762

A PR that clarifies the position EVM has vis-à-vis China. I didn't know that they had 20% of the development rights in China, and that a long-time early shareholder (and former board member) had the other 80%. That is great news.

I would hope/expect that EVM are engaging with the Chinese, projects like Masdar City, and initiatives like DESERTEC. This is the first hint they have made at casting their net wider than the US or Australia, I believe. As the Arizona tower gets more publicity and/or comes on-line, I would expect the interest in this technology to surge: cheap solar, waterless, no precious metals required, extremely low maintenance... what's not to like??

Tykün

[tykundegex]

News: Solar Tower Technology Shines at $60 Million

http://ih.advfn.com/p.php?pid=nmona&article=46101741&symbol=EVOMY

And some clarification from Kim Forte (IR) on this news:

"The valuation is great news & represents an independant assessment of the value of the IP & work done by EVM to secure the PPA with SCPPA and enhance the tech for greater commerciality."

"The report does not measure the market - if it did EVM is positioned to be serious supplier into evolving Renewable Energy sector"

"Acuity has not attempted to measure or predict what the renewable energy market size will be. Acuity only evaluated EVM & potential (more immediately) to develop Solar Toer power staions. The PPA was a key known factor. "


Question now is: what were the terms of the $30m "hybrid" (equity/debt) investment, how does this valuation affect the split, how far will that money take them, and what will EVM's role be in the first tower (i.e. operator? at what % of rev-share?).

Lots of questions still, but a very promising and unique technology in the renewable energy space. For what it's worth, SCP (solar concentrated power) and PV (photo-voltaic) are LESS profitable that solar tower tech. Whether they provide a third-party assessment of this, or just prove it with a profitable tower within a couple of years.. is unknown.

Tykün

[tykundegex]

EnviroMission Secures AUD $30MM Hybrid Debt/Equity Facility

http://www.enviromission.com.au/irm/Company/ShowPage.aspx?CPID=1231&EID=34302054&PageName=EnviroMission%20Secure%20$30,000,000%20Hybrid%20Debt/Equity%20Facility

[tykundegex]

Article in a local Arizona paper:
http://www.enviromission.com.au/irm/Company/ShowPage.aspx?CPID=1215&EID=15248298

Some snippits:

Est. cost of the first tower: $750m

"soon to announce financing that will carry the project through the design phase up to construction."

"[Enviromission has] much bigger plans for solar towers than the Arizona projects. Once they prove the concept, they want to develop them globally."

Tykün

[tykundegex]

2010 EnviroMission AGM Chairman’s Address to Shareholders

http://www.enviromission.com.au/irm/Company/ShowPage.aspx?CPID=1187&EID=38406984

Some excerpts:

"All intellectual property and ‘know how’ to come out of the Front End Engineering Design (FEED), including site related optimization will remain vested inside EnviroMission." --> good for EVM as it means they develop more IP about this technology (and more value)

"Negotiations for a hybrid capital raising are progressing to ensure EnviroMission has the necessary funds to support the delivery phase of development" --> but we still don't have any details

"it is known that the high solar efficiency at the Arizona sites suggest Solar Towers will achieve strong commerciality at those sites"

"the concept is currently undergoing an independent valuation to address the accounting treatment of the original Solar Tower license in the 2009/10 annual accounts" --> could the outcome of this help the share price? Clearly EVM (and shareholders) want this to significantly boost the share price, as they're going to need to fund the development by issuing more shares

"development in additional markets is being given full consideration." --> that is where it could get very interesting, but I suspect we won't see any movement there for at least a couple of years.

"board of directors will be expanded in the next quarter to include skills and expertise that will support EnviroMission’s project delivery objectives"

Tykün