Red24 Share Discussion Threads

[gbjbaanb] 18/9/2018 13:43

The most interesting bit there:

Infrastructure funds get 4-6% return from solar, which they're happy with.

But putting solar+storage means double the solar potential, meaning more return on solar and a 10% return over 20 years for the combined infrastructure.

That makes storage a really good thing for these funds, which should mean finance becomes more readily available, and that means much more opportunity for sales.

[gmr64] 18/9/2018 11:17

redT video: Update on German Grid Project Funding

[gbjbaanb] 17/9/2018 12:51

And today, we have an announcement that the German contract will be financed by an infrastructure fund to the tune of €37m - not bad! Saves on another rights issue.

I think this one has finally grown up, almost, and that sales start here. Their H1 interims mentioned this, I think the finals will say very good things in terms of revenue. That's even before the German stuff gets recorded.

To put it into context, the H1 report says they have 37 units sold, but 1800 units worth of sales either in development (ie being installed) or quoted. The €37m German finance is for 80 units.

they also have the Anglian Water pilot project, if that works as anticipated (and there's no reason to think it won't) then they will see orders coming in for other far-flung installations that can use storage for handling cheap electricity. The saving for AW are significant (40% saving IIRC)

I don't think it will treble - it'll go further than that once it gets into a steady stream of selling these units to other utilities, but that won't happen for a few years. However, I do think its put itself on a stable footing at last and is ready to transform from some speculative tech startup type into a real company.

this year's finals will see quite a difference in revenue, that will surely push the price up even if you think it has no long-term future.

[brucie5] 28/7/2018 21:49

Just checking: has everyone now managed to filter the two dogs? Best way to make them stop barking. DO NOT RESPOND. Simply turn off the noise.

[dogrunner11] 28/7/2018 21:47

- But the company says it is confident that it will obtain the required project finance in the near term and this is n o mickey mouse outfit company saying anything to please

Mickey Mouse for sure, no accounts and zero assets

[brucie5] 28/7/2018 21:35

jestercat, good to have the story brought to a wider audience, even if very superficially. Looks like a journalist scratching around for weekend tips; where was it, may I ask? Nothing as yet in the IC.

[jestercat2] 27/7/2018 14:17

Just tipped:

The July Share tip of the month is RedT Energy at 7.4p offer - some think it could treble!
PUBLISHED: 27 Jul 2018 @ 14:33

We let you into a secret. We were looking at two stocks as today’s share tip of the month. It was a coin toss as at last night. RedT Energy (LSE:RED) is up 16% today but can still double from here easily.

It is an energy storage business, a developer of vanadium redox flow machines. That is one of the new big thing. Think about it this way. Right now the UK’s wind farms are producing almost no power as there is no wind. But in order to meet ( very silly ) green targets we will have to build tens of thousands more bird chopping machines. However it may be that when the wind blows we do not need all that power so storage – in a green world – becomes ever more important.

Shares in RedT have enjoyed a great week thanks to news of an exclusive deal to develop 690MWh of energy storage projects to support the German electricity grid, with an initial two 40MWh projects (1,066 tank unit modules) to be built in 2019 and 2020, subject to financing.

Ok so there is a caveat there, “subject to financing” (i.e. debt) But the company says it is confident that it will obtain the required project finance in the near term and this is n o mickey mouse outfit company saying anything to please. So what are the maths?

According to broker VSA:

“Based on the current Gen3 price for a 60-300kWh system, the initial two projects could result in revenues of c€50 million for REDT split across FY 2019 and FY 2020”.

It notes that the initial projects have planning approval, grid connection and approval to supply Secondary Control Reserve (SCR) to German and Austrian markets and will replace coal-fired power plants which typically supply Secondary Control Reserve by ramping up generation when required.

VSA says this is “the first” mega project. To date the company has done much smaller scale work but the clear implication from the house broker – which should know – is that there is a pregnant pipeline behind it. Again quoting VSA:

“Aside from the order value, this agreement also confirms the suitability of long-duration flow machines for grid supporting projects across Europe. Recent regulatory changes in Germany, which have also been seen in the UK, are clearly favouring long-duration storage technology, as opposed to lithium-ion battery projects that are targeting short-term grid service revenue streams in what is an increasingly crowded sector.”

VSA says this underpins 2019 fotrecasts and goes a long way to underpinning 2020. For 2019 VSA forecasts sales of £20 million and a small loss But 2020 will see it break into profit in a material way on much higher sales. VSA values the company on a DCF basis at 22p per share.

We believe that confirmation of funding ( soon) for the German project and potentially other large orders will drive a re-rate towards that target.

The trade: Buy at 7.4p ( market cap £54 million) and at up to 8p with a target to sell of 11p + by the end of the summer.

[dozey3] 26/7/2018 11:04

In fairness Centrica have shown an interest in the Cornwall installation, but the risk/reward balance has been transformed imo. Interested to see what is said at the AGM which I hope to attend.

[dozey3] 26/7/2018 07:54

See today’s announcement at

Ahead of tomorrows AGM this is the breakthrough news we have been waiting for. A mega installation in Germany for ironing out grid fluctuations - just what these engines are ideally suited for. No credit to U.K. Grid and electricity majors always behind the curve, and govt with ridiculously expensive nuclear give-aways. Financial Close is still awaited, but shares already up over 30% now, and cheap as chips.

[ts0mev] 14/6/2018 08:26

why is the discussion under "RED24" and not "Redt Energy"? Not really the stock for vanadium redox flow machines here?

[ts0mev] 14/6/2018 08:17

cost, i.e. capex is irrelevant other than when calculating ROI. you have to look at TCO vs potential for revenue/savings after deploying this. 20-25 year lifespan. The benefits outweigh the cost, but I guess it depends on your budget?

[paleje] 20/3/2018 15:49

Rolls Royce looking to build a presence in the energy storage market.

[gunsofmarscapone] 16/3/2018 18:16

I would love to start cross pollinating last years hydrocarbon gains into renewables, but which companies? When? How much? Which genre of battery or method of generating electricity? How do we value these companies? What innovation is just over the horizon?(ok that is a tricky one).

These installations are fixed, they have huge current flow capability, an be recharged an absolutely colossal number of times.

A negative, the energy density of the contained fluids is a weak point; not far of 1/1000th of gasoline.

I’m up for the challenge of diversifying into a portfolio of technology and/or energy generation companies of this genre but definitely not ready to commit; it will take several months to research the above points and more as questions are generated.

Until then its watch and wait...

[sleveen] 16/3/2018 14:22

next lower level...3p by June if no big orders received.

[runthejoules] 05/3/2018 07:57

Well, £75k grant and now this - still lossmaking for the foreseeable but I have commenced research & opened a small tracking spread bet. Seems to be toward the bottom of its range. Wondering what distinguishes vanadium from other lithium ion energy storage solutions and whether the application of graphene tech to lithim batteries will sink this...

redT energy plc



("redT" or the "Company")



Update on flagship South African mini-grid project



South Africa's largest installed flow machine connects to the grid



redT energy plc (AIM:RED), the energy storage technology company, is pleased to announce that its 15kW-75kWh energy storage machine is now fully operational at the Thaba Eco Hotel ("Thaba") site in South Africa. This is the third commercial energy storage machine redT has connected to the grid in South Africa.



The Thaba project is the largest flow machine to be successfully installed at a commercial site as part of a solar mini-grid system in South Africa. Thaba is a remote resort and suffers from a weak local grid connection, making power cuts a frequent occurrence. The machine sits alongside Thaba's 100kWp of solar generation, enabling the resort to reduce its reliance on diesel generators, creating significant savings on fuel costs and reducing carbon emissions as a result.



By timeshifting excess energy produced from the solar panels during the day for use at night, when guests need electricity the most, redT are creating a cheap, reliable and sustainable source of energy for Thaba's guests and staff.



The project has already yielded substantial results for Thaba. Since the mini-grid system came online, it has generated 13MWh of renewable energy, reducing the need for Thaba to import energy from the grid, leading to significant cost savings and a sizeable reduction in the level of greenhouse gases omitted by the resort. The project is expected to result in 175MWh of renewable energy generation per annum and a yearly reduction in greenhouse gas emissions of 143 tonnes of carbon dioxide equivalent (tCO2e). In addition to this, the machine will also be used for demand charge avoidance, significantly reducing the site's costs of importing electricity from the grid at peak times.



The project will be a key asset for redT in South Africa and the site will be used to demonstrate the environmental and financial benefits redT's patented vanadium redox flow machine technology will offer other renewable asset owners in the region. A formal launch event at Thaba will take place in due course, details of which will be made available on the Company's website.



The project has been fully funded by The Energy and Environment Partnership in Southern and East Africa. For more information on EEP please go to: hxxp://eepafrica.org/



For more information about the project: hxxps://redtenergy.com/story/solar-mini-grid-for-resort-hotel/#video



Scott McGregor, CEO, redT energy commented:



"Accelerated growth of low cost solar power in Africa has opened up a significant market opportunity for us, as our robust energy storage machines are an ideal solution to unlock more solar for use by customers in off-grid or weak-grid markets. We are proud to lead the successful deployment of flow machines into essential energy infrastructure in Africa with our redT machines established now in South Africa and also enroute to Botswana.



In sub-Saharan Africa alone there are c.580 million people with no access to electricity. Unlocking more solar using robust long duration energy storage machines is a key driver to ensuring a low cost secure power supply to the continent of Africa.



We are very honoured to be working with our partners at the Thaba Eco Hotel and look forward to holding a formal launch event at the site in the future.



Reuben Louw, CEO, Thaba Eco Hotel commented:



"At Thaba, we are passionate about reducing our impact on the local environment, making redT's flow machine technology a perfect fit for us. This solar mini-grid system will enable us to greatly reduce our reliance on diesel generators, which are expensive to run and pollutive, whilst ensuring that we have a stable and consistent supply of energy throughout the day and into the night."