EnviroMission Ltd. (EVOMY)

[tykundegex]

Article: EnviroMission Submits Application for Certificate of Environmental Compatibility in Arizona

"..the initial step in the plant siting development process"

http://www.azocleantech.com/Details.asp?newsID=13000

[tykundegex]

Some figures!

In this article entitled "IID to consider purchasing power from 3,281-foot solar tower", found here:
http://www.ivpressonline.com/news/ivp-news-iid-to-consider-purchasing-power-from-3281-foot-solar-tower-20101111,0,7898903.story

you can find the following noteworthy excerpts:

"If agreed upon, IID would be entitled to a 15-megawatt share for 30 years."

"IID would begin paying $95.50 per megawatt-hour ($0.0955/kWh) once the tower begins operation. Prices would begin to increase at $1 per megawatt-hour ($0.001/kWh) in year 16."

"The Enviro Mission Solar Tower will be constructed in Arizona east of Lake Havasu, which straddles the Arizona-California border. Construction will likely begin in 2012, with an estimated June 2014 operation date..."

"The company that constructed the 160-story Dubai Burj Khalifa skyscraper will construct the La Paz Solar Tower. ..it would have an observation deck and could withstand an 8.5-magnitude earthquake"

"Generally, solar operates for about six to seven hours per a day, ... This operates about 16 hours a day because of latent heat buildup underneath the greenhouse.”

Tykün

[tykundegex]

Great study on solar subsidies in Spain, and how SCP and solar PV is uneconomical.

http://theenergycollective.com/willem-post/46824/impact-csp-and-pv-solar-feed-tariffs-spain

I hope EVM will make some statements about how their style of solar energy is a class above "old solar". Until EVM makes some more noise and pounds their chest a little more, this stock is destined to linger under $1.50 (EVOMY) for a while yet.

Tykün

[tykundegex]

Recent answers from EVM about commercialization:

(all quotes from Kim Forte who is EMV's PR contact, emphasis added by me)

There are a number of financing scenarios - they include owner vendor, vendor partner, licensee. Project finance is material to this question.

EVM is raising capital at the moment for working capital and FEED (front-end engineering and design).

Arup have started some of the work under the MOU and now a formal contract is in place it will be a more dedicated time driven outcome in line with the SCPPA PPA.

There are grants and rebates available to ST development. The tax rebate has always been a drawcard to US commercialisation. Utilities could not formerly apply for the tax rebate however this is now changed and utilities are not prevented from owning a utility that qualifies. Naturally this has been up for discussion with SCPPA in many forms.

A 200MW Solar Tower will not cost $1b and a second Solar Tower will not cost as much as the first and I am not able to disclose the revenue per kWh - I can say that it is commercial, with a strong ROI.

There are two Arizona sites earmarked alongside each other (they are side by side divided by a road) the PPA announced in Oct relates to power to be sold from AZ ST 1, the AZ ST 2 is more of a 'two birds with one stone' scenario re land acquisition, planning and marketing and also in terms of creating value for project/development owners - whoever that may evolve to be. Acquisition of the second site provides a stronger business case for the initial development via scope for further development.

It is bewildering that there has not been more traction since the last four announcements:

PPA Approved by SCPPA
Solar Tower Fits the Bill
EnviroMission Signs Arup
EnviroMission Starts Regulatory Process

Support translated through to a higher market capitalisation is important as finance negotiations had - the higher the market capitalisation the less dilution results from placement and/or even draw down facilities.

Existing shareholders will always want to see the least amount of securities exchanged for the most amount of investment - it is the way of the world.

I sense that you wonder why certain details ie price per kWh are not released - it is extremely sensitive information with capacity from the second power station as yet not committed under a PPA - however it is expected this will change.

Operating Development Capital / Revenue

i) Sale of development rights and/or licensing of technology market by market - value will be increased with AZ ST 1 commercialisation success (IP is currently being revalued)

ii) M & A activity - not something on the EVM agenda however the current market capitalisation creates its own vulnerability to M & A

iii) Partnering or JV - asset security

iv) Developer of AS ST 1 via a novated structure - remember utilities in the US are now able to benefit from the tax credit rebate

v) Capital Raisings staggered to meet ongoing FEED need

[tykundegex]

EVM takes 2 steps to break ground in Arizona:


Arup Engineering Services Engaged by EnviroMission
http://www.enviromission.com.au/EVM/Company/ShowPage.aspx?CPID=1178&EID=27674141&PageName=ARUP%20Engineering%20Services%20Engaged%20By%20EnviroMission

..and...

EnviroMission’s Arizona Development Takes First Step in Regulatory Proces
http://www.enviromission.com.au/irm/Company/ShowPage.aspx?CPID=1181&EID=99692904

In this last one, they go on-record as stating that the 2x200MW towers will generate 2 billion kWh per year. In another article I read, EVM estimates the total cost of each (?) tower to be $1b.

Based on a separate RFP from the SCPPA, the power generated would likely fetch $0.12/kWh (source: http://www.scppa.org/Downloads/RFP/RenewableEnergyProjects013111final.pdf)

That means the towers would generate in revenue roughly $120m in revenue, or about 1/8 of the construction cost. Given that they are extremely inexpensive to operate, and would likely qualify for some major tax rebates, this is definitely a profitable solar story -- so much more so that PV or Solar Concentrated that seems to grab all the attention lately.

Of course there remain MANY obstacles before this is a done deal, but it's certainly a company to watch.

Ty

[tykundegex]

A new article about Enviromission in Fast Company: http://www.fastcompany.com/1699562/enviromissions-solar-tower-would-be-the-tallest-man-made-structure

Key paragraph taken from it:

"Despite the agreement from SCPPA, the EnviroMission tower remains in something of a limbo state. The details of the Power Purchasing Agreement are confidential, but it's likely that the utility has only committed to buying a certain amount of energy at a particular kilowatt-hour price--and if EnviroMission doesn't meet it, then the utility wouldn't have to buy. Still, asserts Davey in a press release, the agreement "is an important milestone that will allow finance to be secured." It's working on front-end engineering and design now."

[mineguy]

I agree with you except if they start disclosing some plans now that this approval took place, this stock will or should trade more consistantly and probably over $2 relatively soon. Its a matter of how much they want to disclose.

[tykundegex]

Yeah, this company is completely under the radar today -- they have done virtually no PR in the US, but I don't blame them as until yesterday they didn't really have anything more than prospects. They aren't a typical OTC company .. they don't hope to flaunt their technology to drive up the stock price.

However with the PPA approved in SoCal, and the next steps that will certainly attract attention (building plans), I expect that they will try to promote themselves in the media a fair bit in the coming months. That, together with concrete announcements about their business model could spark a lot of interest in the stock.

This is ground floor pricing IMO... but they still have a lot to prove with their revenue model, so I think it may be as much as a year or more before this stock does any sort of interesting volume and the ADRs climb above $2-3.

Still, if you believe in the technology, and the ability for the current management team to promote it and execute the business plan, then I think it's a great long-term investment (with zero liquidity in the short term).

Tyk

[mineguy]

I cant answer your private messages. But I have known about the company since 2004/2005 thereabout. A friend of mine introduced me to them and here we are 5 years later and seem be making some good progress.

I am surprised this is not trading today considering the news is pretty substantial.

[mineguy]

I wonder why these last two PR;s are not under the ticker on IHUB. They are everywhere else but not here. any reason.

[tykundegex]

Thought about this investment:

Firstly, unlike many OTC stocks I consider EVOMY to be a buy & hold (long) kinda stock.

The company has the exclusive world-wide rights to the Solar Tower/Chimney technology (except China), which is a huge asset if this technology is adopted on even a modest scale. A single 200MW tower is expected to run 365 days/year at produce at least 100MW on average. That equals 876 million kWh in a year. If the feed-in rate they get is $0.12/kWh (source: http://www.scppa.org/Downloads/RFP/RenewableEnergyProjects013111final.pdf ), then that's $105m of power revenue per year per tower.

What is not clear (to me) is whether EVM plans to own & operate these towers at all, or merely license the technology to third parties. I believe, at least for the SCPPA deal and with the 2 AZ towers, that they intend to at least partially own them.

The funding needed to construct a 200MW tower could be as much as $1b according to some sources (http://www.livescience.com/technology/080702-pf-solar-tower.html), but I believe it has come down in the past years. The operational costs are very very low -- only moving parts are the turbines which are at ground level.

What's clear is that with 370m shares issued, the company is valued (today) at $24m, which leaves a LOT of upside if they are able to successfully commercialize or license this technology!

If I get more information about the financial model & EVMs specific business model w/r to commercialization, I'll post here.

Ty

[tykundegex]

SCPPA approves Power Purchase Agreement with Enviromission!

http://www.asx.com.au/asxpdf/20101026/pdf/31td5p3h19w450.pdf

Excerpts:

SCPPA: "SCPPA is excited to support a large scale solar technology that when successfully deployed could change the renewable energy landscape. The pricing and load profile of the Solar Tower coupled with its zero water power production cycle makes it a compelling alternative."

Enviromission: "finalization of this PPA with the SCPPA is an important milestone that will allow finance to be secured and Front End Engineering and design (FEED) that is required to break ground at the site earmarked in Arizona to commence."

So that's indeed great news! After a long struggle, Enviromission appears to finally be firmly upon the commercialization path.

Next up: find out timelines and revenue model. If I recall correctly, from breaking ground to operational for a single tower can be 2 years.

[tykundegex]

EVM halted on the ASX pending the PR of the SCPPA meeting last week.

http://www.asx.com.au/asxpdf/20101025/pdf/31tbtfd9s4nsd1.pdf

But not before the pre-market ASK moved to A$0.08 (~$1.60 for EVOMY @ USOTC).

[mineguy]

I am hoping for big things from this company over the next 3-6 months. It feels like things are slowly falling into place.

[mineguy]

SCPPA Schedules EnviroMission Power Purchase Agreement APPROVAL
A Power Purchase Agreement (“PPA”) for the sale of electricity from EnviroMission’s proposed USA Solar Tower development in Arizona to the Southern California Public Power Authority (“SCPPA”) has been placed on the agenda for approval at the next
SCPPA board meeting on October 21, 2010.

EnviroMission was selected as the only suitable solar energy project at the time of EnviroMission’s successful submission to a 2008 SCPPA Request for Proposals (“RFP”).

The 2008 SCPPA RFP sought suppliers of suitable renewable energy for SCPPA member utilities to meet their Renewable Portfolio Standard (”RPS”). SCPPA members have adopted a 33% mandate by 2020 to be generated from renewable energy.

SCPPA is a California joint power authority consisting of eleven municipal utilities and one irrigation district. SCPPA members deliver electricity to approximately two million customers over 7,000 square miles to a population of nearly five million people.

EnviroMission has been negotiating the sale of clean renewable electricity from the first of two planned 200 MW Solar Tower power stations in Arizona to SCPPA and its member utilities since qualifying as a suitable renewable project in 2009.

SCPPA board approval requires member utilities, identified as ‘Project Participants’ (end user utilities), to seek approval from their respective governing bodies to purchase agreed amounts of Solar Tower power from SCPPA via individual Power Sales
Agreements (”PSA”) that will be met by the EnviroMission SCPPA PPA.

While ratification of each PSA is a condition precedent to the SCPPA PPA with EnviroMission, all PPA negotiations have been conducted in consultation with SCPPA member utilities with the objective of satisfying a collective renewable energy appetite of
a number of SCPPA member utilities through a single PPA executed between SCPPA and EnviroMission.

Development of EnviroMission’s Solar Towers in Arizona’s hot, arid west will create regional development opportunities from new green jobs and positive economic impact from power station construction and electricity generation in a region where water constraints severely limit the development of large-scale water intensive power generation technologies, for example concentrated solar power (“CSP”), coal, gas and nuclear; EnviroMission’s Solar Tower power stations do not use water in the electricity generation method.

“This much anticipated Power Purchase Agreement with SCPPA will provide a commercial outcome that will resonate ‘project viability’ once the economic basis of a PPA is able to be factored into the already compelling social and environmental case for Solar Tower power station development” said EnviroMission’s Chief Executive, Roger C.
Davey.

“EnviroMission couldn’t be happier with the momentum and progress Solar Tower commercialization has taken since EnviroMission shifted the development priority to the USA.

“Whilst details of the SCPPA Power Purchase Agreement must remain confidential at this point in time, I take great pleasure being able to announce this very significant outcome from those negotiations,” Mr. Davey said.

Ends.

Media Enquires
Kim Forte
[phone]
Communications General Manager
Enviromission Limited
Director
EnviroMission (USA), In

[tykundegex]

Kim Forte (PR) told me they will receive the answer at 7:30am US Eastern time today (i.e. already passed), so I would expect it to be release shortly.

Unless of course it's bad news, in that case I could imagine them wanting to craft a way to break the news to shareholders gently.

If it passes, and they start to build 2 towers in Arizona, I expect it will trigger many more deals/sites within the US and abroad in the coming years.

Unclear to me how EVM earns their money though: license fees only, rev-share, as operators, or all of the above.

Tyk

[mineguy]

Not sure why but the news release from Tuesday is not listed under the company announcements.

[tykundegex]

FYI, anyone contemplating getting into this stock, if you have easy access to foreign exchanges I'd recommend you trade it on the ASX (symbol EVM). Liquidity is much better there (for now anyway).

It's also unofficially traded in Germany as E8B, but also with very very low volumes.

If the decision from the SCPPA is positive, then I expect this company will generate a lot of interest, as it represents a "new" type of solar energy. I'd expect to see the concept (well, it would no longer be just a concept anymore if they get a PPA (Power Purchase Agreement) in California) covered in major media and popping-up on green-tech websites around the world.

It would be a WORLD'S FIRST for the solar tower/chimney design.

Tykün

[tykundegex]

SCPPA decision meeting has happened -- EVM themselves will be notified of the outcome sometime during the US day today, so I expect a PR before the weekend (if it's positive).

EVM was up 66% at A$0.065 with very heavy volume last night on the Australian exchange, so we should expect the ADRs traded in the US to follow suit and trend toward $1.20 - $1.30 at the open today.

Live 6-month chart (live = this post/chart will look different tomorrow, which could be fun):

[tykundegex]

Information on the science & technology @ wikipedia here:

http://en.wikipedia.org/wiki/Solar_updraft_tower

("solar tower" is the term Enviromission uses, but it's ambiguous with a more common solar-based energy source: concentrated solar, which uses towers too).

N.B. I personally (and others too) disagree with the math in the "Financial feasibility" section of the wiki page, but I'm not a wikipedia kinda guy. There are other sources that show Solar Towers to be the most cost effective renewable technology available today, even with the gains in efficiency that solar PV has made in the past years.

Worth noting that the worlds largest operational solar energy installation (?) is in Spain (Andasol), and is HEAVILY subsidized by the Spanish government to the tune of something like 25 cents/kWh, which is ridiculous.

Tyk

[tykundegex]

For those of you new to Enviromission, it's listed on the OTCQX (premier OTC) exchange in the US, but has been traded in Australia since 2001. They are fully reporting, and only started doing business in the US a few years ago (and a subsequent public listing too).

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

The company has exclusive rights to develop the Solar Tower concept worldwide (? at least US, Australia anyway), which is a very simple concept the generated power by convection from a greenhouse effect under the transparent skirts of a very (very) tall tube. Cheap to build, cheaper to operate, and as cost effective ($/kWh) as the latest generation of nuclear plants (GE's A1000 for example).

The company website: http://www.enviromission.com.au

Details on their US aspirations in Arizona: http://www.enviromission.com.au/EVM/content/media_releases.html

Video animation of the concept: http://www.enviromission.com.au/irm/content/images/videos/SolarTower_Animation_Metric.wmv

Video of the "story" (from working small-scale prototype built in Spain to current US plans): http://www.enviromission.com.au/irm/content/images/videos/modernmarvels/index.html

Old video about the solar tower in Spain:

Tykün

[tykundegex]

Some tidbits of e-mails received in the past from Kim Forte (PR @ Enviromission):

May 11, 2010:

I can say with a high degree of confidence that if there were impediments to the process or issues stalling negotiations it would need to be reported to the market in line with continuous disclosure rules it is therefore reasonable to surmise that negotiations are tracking well.

EnviroMission is as anxious for an outcome as individual investors - it may help to put the need for patience into perspective if you consider the potential of the financial prospects of EnviroMission in the event that details of power purchase negotiations are ratified.

July 13, 2010:

Re your Q about discussions with US promoter - EVM is the US promoter. If you mean discussions with financiers and venture capital companies - I can confirm discussions are in progress.

SCPPA remains the key negotiation.

(emphasis added by me)

[tykundegex]

Decision time:

http://www.asx.com.au/asxpdf/20101019/pdf/31t6rb8ztcmyzf.pdf

In 2 days we will see if the SCPPA decides to purchase power from the two planned solar towers in Arizona. Folks, this company has been all about solar towers for well over a decade now, and this decision will make or break them IMO.

There don't appear to be any other tangible leads for commercialization of this unique technology, so it's do-or-die time.

The company has about 360 millions shares issued & outstanding I believe (including issued stock options). Remember that the ADRs traded in the US are worth 20 shares on the ASX, which closed around A$0.035 yesterday (so about $0.7 for the ADRs traded as EVOMY). That puts the ASX valuation at about A$12 million today. It should be multiples higher if the decision is positive on Thursday.

Very exciting. I have been following this company for years, and wondering if/when they would finally build a commercial-scale solar chimney. Well on Thursday we may finally have our answer. Leave it to the Californians to be the true innovators! They will profit where the Australian government blundered.

Tykün

[tykundegex]

FYI: 1 ADR (US OTCQX) = 20 ordinary shares (ASX)

EnviroMission Ltd.'s ADRs will trade in the United States on OTCQX under the symbol "EVOMY", where each ADR will represent 20 ordinary shares. EnviroMission's shares are also listed on the Australian Stock Exchange under the symbol EVM.

[tykundegex]

As of their filing on May 20, 2010, the company has 324,928,382 shares outstanding.

http://www.asx.com.au/asxpdf/20100520/pdf/31qfpgrk3wb8b1.pdf

On the ASX (Australia, where they're based) last trade was at AUD 0.028, which gives it a market cap of A$9.1m (US $7.9m).

Market cap of this company is seeing it all-time lows (seen before in 2008), and they're awaiting a ratification of the SCPPA to purchase power from 2 planned towers in Arizona.

http://www.prnewswire.com/news-releases/enviromission-solar-tower-wins-scppa-approval-66381117.html

They have no other developments as far as I can tell .. only Arizona. They halted the construction of a tower near Sydney a couple of years ago citing a negative political environment (funding, support, etc.) as their reason.

Now they're looking for big funds, and retained Raymond James a while back to promote their technology & help them find bigger money.

http://www.prnewswire.com/news-releases/us-energy-analyst-profiles-enviromissions-solar-tower-technology-solar-tower-technology-makes-us-debut-69278362.html

I like this company's technology -- simple, clean and even cost-competitive with next-gen nuclear on a $/W basis (not to mention miles ahead of Solar PV and CSP).

Anyone else done any digging into this tech or this company? Would love to share thoguhts & analysis.

Tykün

[zomniac]

Seems to have hit calm waters here at 1.28
Lack of volume is of concern as is adequate funding going forward.
I need do DD, maybe tonite.

[zomniac]

Nice article Jan 6, 2010
http://www.inhabitat.com/2010/01/06/enviromission-plans-massive-solar-updraft-towers-for-arizona/

[Soapy Bubbles]

I'd like to do the iBOX.

[Soapy Bubbles]

Name: EnviroMission Limited
Business Description:

EnviroMission has been the sole developer and promoter of Solar Tower technology in Australia since listing on the ASX in August 2001. EnviroMission's objective is to bring the world's first enterprise of Solar Tower innovation from concept to reality.

Company Profile
Established: 2 November 2000
Shares on Issue: 307,808,681 as at 12 August 2009
Listings:

Australian Stock Exchange ( Code: EVM)

OTCQX - (Code: EVOMY)

Pink Sheets - USA (Code: EVOMY)
Market Capitalisation: 15,340,970 as at 6 July 2009
Head Office: Ground Floor
3 Raglan Street
South Melbourne, Victoria 3205
Australia
Chief Executive Officer: Roger Chalmers Davey
Company Secretary: Andrew Draffin
Board of Directors:

Roger Davey (Executive Chairman, CEO)
David Galbally QC (Director)
Guoxiang Ma (Non Exec. Director)
Yue Tang (Alternate Director)

Board of Directors
Auditor: MSI Wragg Weir
Level 2,
50 Burwood Road
Hawthorn
Victoria
Share Registry: ComputerShare Investor Services Pty Ltd
Yarra Falls
452 Johston Street
Abbotsford
Victoria
T [phone]
W www.computershare.com

[Soapy Bubbles]

http://www.enviromission.com.au/EVM/content/home.html

[Soapy Bubbles]

Just landed OTCQX

[Art2Gecko]

Solar Tower to Marvel on History Channel

NEW YORK, NY -- (MARKET WIRE) -- 02/27/08 -- EnviroMission's (PINKSHEETS: EVOMY) Solar Tower marvels the imagination at History Channel's "Modern Marvels" program on February 28 at 11pm and February 29 at 3:00am.

"Modern Marvels" includes EnviroMission's Solar Tower technology in a series about environmental technologies and innovations 'designed to hold off global warming meltdown.'

Viewers can see how a Solar Tower power station will use energy from the sun to generate clean electricity and learn how clean electricity technologies, like Solar Towers, are key in the global challenge to global warming.

Solar Towers are planned for development in the south west corner of the US at locations with high to extreme levels of solar radiation to increase the economic and environmental benefits from the technology's marvelous renewable energy capability.

"EnviroMission values the inclusion of Solar Tower technology in the 'Modern Marvels Environmental Technologies II' series, because the program's viewers that stand to immediately benefit from the environmental benefits of the development of Solar Towers are the same viewers that can influence environmental decisions and outcomes for future generations using the information and experiences available to them today.

"The program will be an excellent opportunity for many people to see the iconic design of a Solar Tower for the first time and better understand how it will make clean power when it is developed in the US," EnviroMission Chief Executive, Roger Davey, said.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements.

Contact:
Ms. Kim Forte
Communications Director
Phone: [phone]

[Art2Gecko]

Just saw a piece on this technology and company on the history channel, on Modern Marvels.. looks pretty cool, need to do some reading up on this one..
http://www.enviromission.com.au