475 million shares is quite decent for a nanocap stock - and the Top 20 hold 43% of these - including the Melbourne-based Liberman family (interesting to note that they are famous backers of early stage tech companies with an estimated family fortune of $2.2 billion.)
20 cents is quite realistic by the end of the year if all goes well. This company has been valued on the lighting business alone (which is great), and the NCF investment has long been dismissed as fanciful.
Now the CO2 to fuel conversion technology is not just a pipe dream but actually moving ahead. It turns carbon into usable product and a revenue stream, instead of representing an additional operating cost.
However, the price hasn't adjusted to reflect this (yet). If you crunch the numbers, even in the most pessimistic of scenarios, the cash flow potential alone is phenomenal.
From the Kohler interview:
Does it clip on to or attach to a plant such as a power generation plant, that generates CO2 and it just takes that and turns into fuel? Is that the deal?
Pretty much. It’s a modular system. So it’s very malleable from that sense. You can effectively develop the number of modules you need for the size of the plant. What it does is it takes all of the waste products, being the CO2 and evaporation of H20, along with waste heat. So if you look at a coal fired power station. When the power station’s running, you’ve effectively got CO2, H20 and 1000 – 1500 degrees of waste heat and quite a few other nasties that are coming out through the flu stacks. They have to scrub the nasties anyway. And then the C02 and the H20 evaporate into the atmosphere. And waste heat is literally pumped up through the flu stack.
So we would take the CO2. We would take the H20. And we would take the waste heat and turn that into liquid fuel. Now they could choose to either put that back into the coal fired power station in this example or they could sell it or bottle it or do something else and pump it down the line. It’s not perpetual motion. It won’t just keep churning through the coal fired power station but that’s one example of how it could be used. I think there’s many other ways we are working with many other companies at the moment. One is gas wells. When you drill a gas well in the middle of Australia, three things come to the surface. CO2, H20 and natural gas.
So we would take the CO2. We would take the H20 and by using solar in the middle of Australia, we could make syngas which is more natural gas. So it reduces all the emissions into the atmosphere, but it makes that fuel well, a substantial gas well, substantially more profitable. There’s no shortage of ways on which it could be bolted on, whether it is a concrete plant. Whether it’s a steel manufacturing plant, it continues to be very interesting for a lot of different heavy industry players.
VIV Price at posting:
6.1¢ Sentiment: Buy Disclosure: Held
