Gamechanging news for #SAE @simecatlantis today, on 3 fronts!
I) Tidal power: Contract for Engineering & Services subdivision, for a demo project in Japan. Successful demonstration could open up an enormous market for the E&S division, with major tidal resources in the region.
This follows on from recent major news for the other Tidal Power subdivision, Proprietary Projects. In both Scotland and Alderney, #SAE is forming innovative partnerships that will assist in the development of its tidal arrays without the need for Gov assistance.
II) Waste-to-Energy: Mitsubishi has just signed up to work on the pre-EPC at Uskmouth. This project will convert non-recyclable plastic waste, destined for landfill, into clean electricity.
Most important - the reference to numerous other conversion projects in the pipeline #SAE
Uskmouth is massive for the Co, and indeed the global energy industry. My opinion is that #SAE will sell the entire project to an infrastructure fund - likely Equitix - post FEED, for £150m to £200m cash. This will bolster their BS sufficiently to take on the project pipeline
III) Hydropower: #SAE aborted the deal that would have acquired all of GHR (including PPE), and instead has only acquired the workforce. This has negated the need to take on further debt. In fact, the deal is completely free. I believe that the GFG Alliance has been seeking.. 1/2
to reduce its debt, and so had to dispose of GHR. The assets went to a fund (Equitix, IMO, for c.£120m), and #SAE picked up the human capital. A fantastic deal. The div. will service all of the old hydro assets, plus SAE's non hydro assets. And it'll generate new hydro assets 2/2
So today has seen the acquis. of a profitable, high growth division - for free; the first serious contract (on 3rd party assets) for the tidal power div.; and a massive validation for the W-E div., via Mitsubishi's involvement, plus an indication of more conversions to come. #SAE
£45m cap, £45m debt. For me, the shareholders will fund it until it can stand alone. Two of the divs have genuine potential to disrupt the global energy industry.
Even if you don't believe in global warming, the threat of non-recyclable plastics is irrefutable. #SAE = the answer
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