LNC 0.00% 99.5¢ linc energy ltd

buy back, page-87

  1. 138 Posts.
    Electricity generation can be an option the issue is demand.

    I don't know the answer to this question be connected to a but electricity requires one to a grid with sufficient capacity to take the power and for demand to be there for the power.

    The good thing about liquids is that they can be moved to where the demand is without a grid. (Rail or road are simple options). Liquids deliver much better revenue per unit of energy.

    If you look at some of the research on Cougar's site you can see that a power project will have a 7 year payback. A GTL plant will have a 2-3 year payback. The difference is because of the low energy unit selling price.

    If capital is the issue you build a smaller plant. IRR of liquids is much higher. There is a different case for companies like CNX in Chile because the opportunity cost of electricity is much higher the unit selling price makes electricity generation more competitive.
 
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