Coldry sales in Victoria

Some comments from the update worthy of the spotlight and comment.

ECT is offering a cost effective solid fuel (i.e. Coldry Pellets) for use in steam and hot water boiler systems across Victoria.

The cost effectiveness of our solid fuel in the eyes of the local market is further highlighted against the rising costs of natural gas, with fears of greater price increases over the coming years threatening the viability of energy consuming industries largely reliant on natural gas for their utility energy requirements.

With gas at ~$12/GJ, solid fuel may be priced on an energy equivalent basis, at $252-$264 per tonne.

If industry sees gas prices rise to $22/GJ, the energy equivalent price for solid fuel could increase to $462- $484 per tonne.

Here is an example of why the company is fielding enquires for Coldry.

CSR warns of energy cost threat to viability
http://www.theaustralian.com.au/bus...y/news-story/bce6f31be8e1b90511cd5177d9f3bd4c

The below indicates to me that announcements of contracts for supply of up to 25,000 tonnes of Coldry are just around the corner, hopefully before the end of July to add confidence to conversion.

The Company is also pleased to advise that contract negotiations with multiple parties have commenced and if successful would take supply of solid fuel pellets up to the full capacity of our planned Stage 3 Upgrades at the Bacchus Marsh High-volume Test facility (HVTF).
The company will provide regular updates to the market in accordance with future supply contract developments, as the Company intends for these to become an important part of the company’s operational cashflows.

Then there is further enquiry that will exceed the near term 35,000tpa capacity of Bacchus Marsh

Current qualified interest in solid fuel supply now exceeds the estimated Stage 4 capacity of the plant.

The Company is therefore considering initiating a feasibility study for the construction of a commercial demonstration Coldry plant in the Latrobe Valley. The market will be further updated if and when the Company formally commences this process.

Any possibility that the informal process has commenced? Sounds like it with the below points being made, makes sense to build 1 in India and 1 in the LV at the same time.

Initiating activity with our EPC partner Thermax for manufacturing and procurement of key plant and equipment at similar scale needed for the Indian plant.

Demonstrating “Make in India” benefits to the Indian Government through our Indian partnership.

Demonstrating that plant and equipment sourced from India support delivery of the technology at the lowest possible cost.

Parallel trialling of key pieces of equipment at scale alongside the Indian project, potentially doubling the rate at which we can refine and improve operations.

If ever there was a time for consistent news flow in the making of this company, it's the next 5 weeks. IMO