I'm only guessing here, but it would seem likely that LLC would be arranging contracts and project managing them. LLC staff likely arrange for local contractors to perform the 'heavy lifting' work eg site preparation, install of pads, install of solar mountings and panels, conduits, main wiring and once that is complete, EMC can ship in pre-configured containers with the various electronics ready to connect up and commission.
EMC then manage/maintain the installation, providing ongoing revenue.
The final part of the process is what EMC specialise in and project management is LLC speciality. Between the two of them, I can see a very significant number of installations right across the country. This, IMO, is where the money is going to be made other that getting the next generation CETO wet.
Back in December 2016 when the JV was announced, the headline was "Carnegie Clean Energy’s wholly owned subsidiary Energy Made Clean (EMC) signs three-year 50/50 Joint Venture Agreement with Lendlease." (December 17 2106)
It appears then, that we have just under two years remaining of the initial agreement and I assume that the 50/50 means that EMC get half the profit.
In the annual report (13 October 2017, page 5), it was stated "While EMC was only 100% owned for the last seven months of the 2017 Financial Year, the standalone business had a turnover for the full 2017 financialyear of approximately $12 million. The Company looks forward to seeing EMC revenues grow and the first revenues flow from the EMC/Lendlease Joint Venture during the 2018 Financial Year."
Well, we are halfway through the 2108 financial year, and it appears revenues are indeed starting to flow. I look forward to an update from the company on additional projects and expected revenues for the coming years.
CCE Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
