Ann: WA Commercial Project Site Decision , page-18

At first I puzzled, "How could they possibly announce the 5MW plant details at this juncture, just before the REDP announcement!" The risk is that the Fed minister could say, "Oh, so you already have a commercial demonstration plant on the go, so that you don't really need an REDP grant?" However, the emphasis is very much on the small scale commercial demo so that it looks more like a pilot plant without saying it. This then becomes more desirable in case their table top pilot plant looks a bit lacking in credibility. Furthermore, all the fine detail given in the announcement makes the project look very imminent.

There is also a stick. This is the last sentence that Acees pointed out: "A decision on whether the first large scale commercial demonstration project will be located in Australia is expected soon." This clearly means of course, "If we don't get an REDP grant we could well take our bat and ball off shore". So they had better give us a grant. The now international standing of CWE has just been demonstrated with the formal REH documents having been signed.

Keeping the 5 MW and 50 MW projects separate for the time being has always allowed for greater options in case grants and other negotiations should not eventuate. For grant condition funding purposes the projects have to be distinguishable but could easily be integrated into a 55 MW plant if convenient. The funding in the form of 1 for 2 and 1 for 3 contributions have to be mutually exclusive. (This is contrary to what some posters here seem to think.)

Juke