AGM notes part 3 of 4

Slide 19
This is the most complex of Hybrid power projects for any project so far with the CSIRO and the SKA.
It used to be a big battery but things change fast such as the Tesla SA battery. It’s certainly the largest battery to be constructed in Australia though.

The client (CSIRO) is very very demanding and very very technically competent. The complexity is in bringing the control systems into place with the solar farm, BESS & diesel generator and managing the load the customer needs at any particular point in time.

The CSIRO are scrutinising this project very closely but this is only the first power station to go into this project. Over the coming years CCE will be building many many more here.

Having the experience and track record of getting this project on the ground is invaluable and will pay off very well over the coming years.

MO was very excited about this project in conjunction with the CSIRO and the complexity & learnings of building a power station out in the middle of nowhere is something you need to get exactly right.

It costs a great deal of money to get there so the components are built in the factory and shipped to site. You only want to be onsite for minimal time, as time is money that far from support structures.

No EM radiation is emitted from the containers and that was a very specific requirement that brings in high end complexity for this project. They are faraday cages which prevent emissions. Every future project will have these same requirements and no one has done this before.

The DoD are also asking for this same spec as the have similar radio transmission interference requirements.

Slide 22-23
A very demanding client again – Horizon Power wanting a secure & quality 24x7 standalone system. MO expects calls for tenders for more of these power systems possibly within weeks. Having first mover advantage is a definite help here.

Slide 24 – RAAF Delamere
MO advised this DoD project is their 2^nd project of real scale. This project is perfect for CCE.
This project is a Design & Construct (D&C) project not a BOO. Meaning they sell this to the DoD to operate.
There are a new round of tenders coming out for the DoD which are BOO. This is where CCE are technically good but also have the financial agility to perform BOO projects that most others don’t have. Design is largely complete and they will be onsite within weeks to start construction.

Slide 25
Real time monitoring slide presentation which shows when clients use their power and how to build future projects.

MO said he would expect some large orders coming through in the next weeks and months.

Questions were:

What types of tethers are you using are they single string or double string?
MO would not answer this question but the tether relates to the PTO technology inside the Buoy. It was not in his interest he said to talk about this.

Whats happening with Profitability?
Margins are tight to get a foot in the door for EMC as would be expected, but they did expect to turnover more $$$. The EMC business did not perform as well as expected. MO would expect to go beyond $20m revenue this financial year. The order book is already $15m for this financial year. There are approx. 11,500 shareholders.

Are we looking at projects bigger than Northam?
Perhaps a bit bigger than Northam but we can’t compete on the 200MW scale. We are better off focussing on the Northam Size projects. Financing is a need to be managed very well at the moment.

Why have we only just put out a Wave Buoy into Albany?
We need to determine the wave source data at exactly the site of the wave farm. We have measured the wave resource before at Albany generally but we need to be extremely precise in dealing with everything we do & especially government projects.