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The UK energy industry is incredibly innefficient. The way in which the country’s power production is organised – via centralised plants – means that as much as 65% of the energy input is lost before it gets to your house. But the advancement of a new technology by a UK company could change all that, and provide an opportunity for investors.
AIM listed Inspirit Energy (INSP) is a developer of micro Combined Heat and Power, or mCHP, boilers. These are able to produce both useful heat and electricity at the same time from an energy source, and at 90% have high levels of energy efficiency. Due to this efficiency they can help to significantly reduce carbon emmissions.
Inspirit’s flagship product is the Inspirit Charger, a highly efficient mCHP boiler, which can be used by large households and small businesses to create their own power on site. Any excess power can be sold back to the electricity grid, potentially benefitting from the government’s Feed in Tariff scheme. The main economic argument here though is that by creating their own power on site, customers can make large savings on their utility bills.
Having been in development for several decades the Inspirit Charger is now about to go into trials with commercial partners. Following that, by the end of 2016 a move towards commercial production is planned. Further funding will be required to manufacture the initial units but with a target UK market of c.600,000 commercial boiler installations per annum we see excellent opportunities for Inspirit.
We have a minimum fair value price of 0.61p for the shares, based upon the money spent on acquiring and developing the technology. We see fair value rising as further commercial milestones are passed and as sales targets are met.
To see our full report on Inspirit Energy CLICK HERE.
DISCLOSURE: Inspirit Energy is a research client of Align Research. Align Research owns shares in Inspirit Energy. A Director of Align Research holds a personal interest in Inspirit Energy & is bound to Align Research’s company dealing policy ensuring open and adequate disclosure.
