React Energy Share Discussion Threads

[big7ime] 24/4/2014 16:41

Getting a little desperate here aren't you trout.

[troutisout] 24/4/2014 14:24

The online offer was 75k at 20.25p this morning, so believe the last 3 trades to be buys, the last definitely is :o)

DYOR,

Trout.

[troutisout] 24/4/2014 09:29

What's ahead?

1. Closing of remaining £900k of additional loan notes - no news on this as yet, but would expect it to be soon.

2. Old Buckenham School commissioning of system - expected in Q2.

3. Enfield Biomass - Financial close - expected in Q2, this has been delayed and is now a very important step forward and will give confidence to the market that they can deliver these large projects.

4. Plymouth Biomass - expected to be fully permitted and construction ready by Q4.

5. Altilow and Moneygorm single wind turbines have received grid connection confirmation and are expected to be construction ready by mid 2014.

"The Group intends to finance groups of small-scale projects together, thereby creating a small-scale wind portfolio. Pluckanes, Altilow and Moneygorm will be the first of such portfolios into which further projects can be added."

6. Together with the above a total of six single wind turbine sites have now received planning permission, each awaits a grid connection.

7. The Altilow (co-development) 12.5MW wind project - Planning decision expected in H1 2014.

8. Boleybaun (co-development) 10MW wind project - planning application was to be submitted early 2014

9. GGES also has five other Biomass Heat projects in development, which are expected to be built and operational over the next 12 months.

10. Newry phase 2 2MW - funding secured and the construction process for phase two has started and is expected to be fully commissioned by year end.

11. Newry phase 3 4MW - planning application expected to be submitted shortly.

12. Both Clay Cross 10MW and Londonderry 25MW are going through the planning process.


There is a lot happening and surely the most important is financial close on Enfield at the moment, but other projects are moving ahead and each one that gets closer to producing sees it's value rise significantly.

There is no doubt the Company will need to manage finances, there are several projects that have funding in place and/or have co-developers, but the completion of the additional loan note subscription will help and we could hear about that shortly.
The company intends to keep equity stakes of 50%+ in it's projects where possible, this will mean they benefit from both the production of energy and value of the asset increasing as loans against it are paid down.

DYOR!

Trout.

[troutisout] 23/4/2014 20:33

I have been seeing more and more about district heating and the Scandinavian experience has lead to where GGES are now and targeting this smaller Biomass marketplace.

[troutisout] 23/4/2014 14:50

If the EU say the Govt cannot subsidise one company with so much of the budget it would be Drax's problem.

As far as I can see Drax will get the previous rate on the second generator and the third one will get the new rate (which no-one knows what it will be anyway at the moment), so it could be little difference.

[stockonomist] 23/4/2014 14:42

That's the Governments problem not Draxs.

[troutisout] 23/4/2014 14:23

An example of the sort of thing that GGES can be chasing, it's not all schools...



I thought I saw that GGES were ready to start on a project for a council, can't find it at the moment, will keep looking.

[troutisout] 23/4/2014 14:23

GGES in the non domestic biomass heat generation market, new changes coming look promising,

"Proposed changes to the non-domestic RHI

The government response published on 4 December 2013 sets out a series of improvements and increased support under the non-domestic scheme. Response documents for the three consultations are available below:
•Expanding the non-domestic scheme
•Air to water heat pumps and energy from waste
•Non-domestic RHI early tariff Review

Key features of the new policy are:
•An increase in support for renewable CHP, large biomass boilers (over1MW), deep geothermal, ground source heat pumps, solar-thermal and biogas combustion;
•New support introduced for air-water heat pumps and commercial and industrial energy from waste;
•An evolved approach to budget management, using improved market intelligence to allow credible growth rates across the range of renewable heating technologies supported, whilst ensuring that the scheme remains affordable and achieves value for money

We estimate the policy changes set out here could incentivise around 5,000 non-domestic installations and an additional 6.4TWh of renewable heat by the end of 2015/16.

A summary of revised tariff levels and other policy changes are included in the fact sheet below. Full details can be found in the Government Response.

Summary of changes to the non-domestic RHI (PDF, 219KB, 1 page) .

The regulations which will bring these changes into force were laid before Parliament on 9 April 2014 and, subject to Parliamentary approval, we expect them to come into force later in spring 2014."

[troutisout] 23/4/2014 14:23

Based in Eire, the company has a project pipeline in Northern and Southern Ireland and the UK mainland.
The wind generation projects are in Ireland with Biomass projects in all areas.

The are trying to aggregate businesses in the small to medium market especially Biomass.

They have a good track record of getting greenfield projects through planning and permitting, with offtake agreements in place and ready for construction.

They have just started to se the first projects generate revenues and this will build as more projects come online.

In the meantime every planning consent and agreement signed adds value to the project.

They have secured finance deals with large banks, VCTs and other organisations and have good relationships with these partners.

[troutisout] 23/4/2014 14:22

The Company acquired Reforce Energy in December 2012, one of it's founders and CEO Steve Dalton became an Executive Director at REAC.

Recently REAC have Acquired GGES and again have retained some of their senior management to bolster the team.

Farmers Business Developments are also a large shareholder and loan note holder. They have been very supportive and own the other 50% of the Newry project. Dermot O' Connell React's Executive Chairman is a director of FBD.

[troutisout] 23/4/2014 14:22

This is wexboy's recent look at the company (please press on the prior year's link to the 2013 piece as well)

[troutisout] 23/4/2014 14:22

First post and it is important to say now that this is a very unloved share and very illiquid.
With so few MMs making a market, dealing in size especially selling can be difficult.
I have built up a holding here over the past few months and have averaged my buying in.
Anything on this thread does not constitute a recommendation to buy the share, any investment decision is down to the investor.

Caveat Emptor and Good Luck.

Trout.

[troutisout] 23/4/2014 14:22

REACT Energy plc is a developer and operator of energy infrastructure using clean technologies in the UK and Ireland.

Rather than fill the header up have a look through the websites, GGES was a recent acquisition and brings the biomass heating market into view for schools, hospitals, care homes, country house hotels, etc.





The difference between REAC and other smaller renewable energy developers, is that REAC aim to retain at least a 50% stake in each generating project. Therefore not just profiting on the development of the asset but also to profit from it's generating capacity going forward.

[troutisout] 23/4/2014 13:58

Not sure they will, DRAX were taking the lion's share of the UK subsidies and EU weren't likely to allow that.

"1002 GMT [Dow Jones] Societe Generale downgrades its recommendation on UK power generator Drax (DRX.LN) to 'sell' from 'hold' as it reckons the valuation looks stretched following the strong share price performance. The power station generates nearly 4000MW (the highest in W Europe, and about 7% of the UK's entire electricity requirement) mostly from coalburning, but is also capable of co-firing biomass and petcoke. In this regard, SocGen notes that Drax has been allocated around 40% of the entire UK Final Investment Decision Enabling for Renewables Levy Control Framework budget and over 80% of the country's biomass conversion budget. The proportionality of this aid is likely to receive specific EU scrutiny, reckons SocGen, particularly given the high returns for Drax. The target price is lifted to 710p from 700p. The shares drop 1.5% to 810p in London morning trading."

[stockonomist] 23/4/2014 12:57

Government will get legally smashed here. Clowns.

hxxp://www.thetimes.co.uk/tto/business/industries/utilities/article4070515.ece

[topbanana1973] 23/4/2014 06:50

Stock like david moyes, was the chosen one with loads of potential but after slipping down the table is worth getting rid of.

[big7ime] 22/4/2014 23:29

This co will be bleeding shareholders before long, financial position looking very weak, chart says it all IMO.

[big7ime] 14/4/2014 23:45

I think when free float is low the shrs even more volatile bringing it in radar. If this was a growth stock and likely to have ebitda at all then maybe you might have a bagger but it's not and loss making and going the other way eating into equity to become worthless. So you will get the opposite I.e. A fraction of what it is now as it has been for the past performance. If you don't like it move on like CBuy?

[big7ime] 14/4/2014 21:58

"under the radar" for a reason, think about it.
REH, HEGY, All rubbish.
Try ELCO for an under the radar co doing well, haha.
Do you know how many stocks like this disappear each yr?

[troutisout] 14/4/2014 21:45

Lastly, Newry,

"REACT Energy plc invested Stg£5.5m and retains 92% of the economic benefit of the project whilst Farmers Business Development plc retain the balance of 8%.

Heads of terms have been signed with a UK based VCT fund to invest a further Stg£1.5m to facilitate the completion of Phase 2 of the project.

The first 2MW gasification line was fully commissioned in June 2013 following a series of commissioning and acceptance tests on the gasifier and gas engine. The plant commenced exporting electricity to the electricity grid in September 2012."

Ulster Bank have agreed funds to complete phase 2 of the project which will be commissioned this year and will provide £4m in annual revenues and £2m in EBITDA.

[troutisout] 14/4/2014 21:40

LOL, that's the longest stutter ever....

You becoming a stalker? I thought that was the MO for the likes of Harebridge.

Hmmm, start with the old 'I had a look a year ago' comment, not sure how you would have found this as it is very under the radar.

Anyway you won't be investing so see you elsewhere....

Trout.

[big7ime] 14/4/2014 21:38

Not looking good here. I took a look about yr ago but glad I came to the conclusion it wasn't investable. I have done well with power stocks, doubling on Drax, nrly 60% on NGrid and so on. Looked at the Biomass opportunity a while back and the larger players are doing well, Id keep away from the tiddlers. Financially the co looks Very weak the conversion of debt to equity the last red flag and dont like the tie up with Farmer. Shareholders will be bled dry like a high proportion of Aim stocks. A little chart analysis says it all, I give it a yr left

[big7ime] 14/4/2014 21:29

Not looking good here. I took a look about yr ago but glad I came to the conclusion it wasn't investable. I have done well with power stocks, doubling on Drax, nrly 60% on NGrid and so on. Looked at the Biomass opportunity a while back and the larger players are doing well, Id keep away from the tiddlers. Financially the co looks Very weak the conversion of debt to equity the last red flag and dont like the tie up with Farmer. Shareholders will be bled dry like a high proportion of Aim stocks. A little chart analysis says it all, I give it a yr left