EVM 0.00% 10.0¢ enviromission limited

News: EnviroMission attracts $110M in solar project funding, trading halt

  1. EnviroMission (ASX:EVM) has moved into a trading halt to divulge the terms of a US$110 million funding Heads of Agreement package.

    Earlier it revealed a major Japanese fund would to invest US$110 million (A$154.6 million) into EnviroMission's La Paz Solar Tower development in the US state of Arizona.

    The La Paz tower is proposed as a type of renewable energy power plant that uses convection currents of solar-heated air to drive wind turbines.

    A heads of agreement with the unnamed Japanese fund will be segmented into a $50 million investment at the company level and $60 million via direct equity transactions.

    The vote of confidence builds on EnviroMission’s new momentum in nearby Texas, where the company has recently received the first $250,000 tranche of a $1 million investment commitment for solar tower development with Apollo Development Inc.

    Under the funding terms for La Paz, EnviroMission is expected to receive an initial payment of $10 million by way of a US$0.20-per-share subscription to its shares, where were last trading at A$0.06 (US$0.04.3) per share.

    Subsequent payments from the Japanese fund will include US$50 million in share placements and an optional $50 million cash contribution.

    EnvironMission’s cash and cash equivalents position dropped 37.4% over FY2015 to  $609,000 although revenue gained 123% over the year to $496,000. Activity developing solar tower technology in three markets over the course of the year was indicated in a 25% increase in annual contracting and consulting expenses to $1.2 million.

    EnviroMission chief executive Roger Davey underlined investor enthusiasm for the technology by saying the Japanese fund was “totally committed to the EnviroMission investment and Solar Tower development success.”

    Meanwhile, the company’s recently extended funding agreement with Apollo is expected to allow for the establishment of a regional solar tower development case in the US.

    EnvironMission’s latest ambitions in Texas and Arizona represent an extension of its work started in 2001 with the world’s first solar tower power station in Buronga, New South Wales.

    The program to adapt the technology to US conditions and construct a large-scale solar thermal power station is hoped to deliver both an important investment destination and an extreme engineering icon.

    A single 200MW solar tower would provide enough electricity to power around 100,000 US households, similar to the number of homes in a city the size of Burbank, California or Palm Bay, Florida.

    The energy output will represent an annual saving of more than 900,000 tonnes of greenhouse CO2 gases from entering the environment.

    EnviroMission has called the new Japanese investment in La Paz a “company-changing” development that will provide the necessary funding to commercialise the technology and underwrite the company’s global rollout objectives.



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