MendoCoastCurrent, September 18, 2008
One 200MW power station will provide enough electricity to around 200,000 typical Australian households and abates over 900,000 tonnes of greenhouse producing gases from entering the environment annually.
The monolithic scale of the project may also add value to the construction of the power station through tourism and associated economic benefits.
The prototype Solar Tower has been tested and proven with a small-scale pilot project in Manzanares, Spain, as a result of collaboration between the Spanish government and German designers, Schlaich Bergermann and Partner.
It even operated for seven years between 1982 and 1989, and consistently generated 50kW output of green energy, proving the concepts works as well as providing data for design modifications to achieve greater commercial and economic benefits associated with an increased scale of economy.
After an extensive search, EnviroMission selected the site for the world’s first Solar Tower power station to be built in the Buronga district of the Wentworth Shire in NSW and 25km NE of Mildura in Victoria, Australia. The proposed site shows EnviroMission’s commitment to the Australia’s Sunraysia Region of NSW and Victoria. The project still requires planning approval codes, regulations and legislation from Australia’s State and Local Governments.
Background on the Solar Tower and the Market in Australia
Formerly referred to as Solar Chimney technology in academic literature – the Solar Tower is now marketed without the reference to chimney (to avoid confusion with the pollution associated with chimneys – this technology is emission free) – the Solar Tower has had in excess of A$35 million and 20 years of research and development invested in it. EnviroMission believe that now, more than ever before, the time is ideal to apply this technology.
For more than 100 years it has been relatively cheap, environmentally unaccountable and simple to dig up coal as a fuel source to produce electricity. With concerns over climate change and increasing need for clean, renewable energy solutions account for still less than 10% of all electricity generated in Australia.
Community concern about Australia’s over reliance on coal-based ‘black’ and ‘brown’ energy and the negative impact on the environment has helped to drive political change. There is now a legislated market for clean, green renewable energy, legislated as a Mandated Renewable Energy Target (9500 gWh annual renewable energy target by 2010) has opened the way for investment in new approaches to renewable energy generation. This recent incentive is important to the growth of renewable energy development including Solar Tower technology.
A further political incentive in the form of the Renewable Energy Credit (REC) developed by the Australian Government in 2001 has encouraged new investment in renewable energy development, with the purpose of reducing greenhouse gases and increasing the amount of renewable energy output.
As new materials, construction methods and government policy are now available to the extent that there is environmental, social and commercial advantage in the development of Solar Tower technology.
EnviroMission claims that each 200MW solar thermal power station will abate over 900,000 tonnes of carbon dioxide from entering the environment annually. The Solar Tower technology will help Australia meet its Kyoto obligations, provide a bonus to the environment, and will be a major producer of scaleable renewable energy with flow on benefits to the community and our investors.
Terms of Recent Deal with SMT
Following the mutual termination of the 2007 merger proposal between EnviroMission Limited with SolarMission Technologies, Inc (SMT), EnviroMission and SMT have continued to explore alternative corporate actions and structures to facilitate the shared ambition and vision for the long-term Solar Tower development.
As a result, EnviroMission implemented an acquisition model to leverage off the advantage of its public listing, providing the inducement of listing liquidity to SMT common share and warrant holders under the terms of a Stock Exchange Offer, with the aim of securing at least majority control of SMT.
In the weeks leading up to the close of the Stock Exchange Offer (August 1, 2008), EnviroMission negotiated a license agreement with SMT to confirm the strategic intent of the acquisition and ensure the licence also contained sufficient commercial terms to provide equity to all SMT security holders, including security holders that may decline the EnviroMission Stock Exchange Offer. EnviroMission’s license agreement with SMT takes effect from July 31, 2008 to secure the global SolarTower development license in all markets, excluding China.
EnviroMission will issue 5,000,000 (five million) ordinary free trading shares to SMT as an equity consideration for the global Solar Tower license (excluding China), with additional ‘commercial in confidence’ provisions to satisfy the immediate and equitable assignment of the Solar Tower license to EnviroMission; subject also to EnviroMission shareholder approval of the Stock Exchange Offer to SMT.
Commercial terms are based on development milestones to provide an ongoing equity opportunity to SMT (EnviroMission anticipates owning 58.92% of SMT subject to shareholder approval). On this basis, EnviroMission has negotiated an agreement assigning the global Solar Tower license to EnviroMission.