The last two times Envirostar has looked hopeless, it stages a remarkable recovery, gets support and runs wild... The frequency is increasing. EEL hit 12 or 13c when I called it as a buy in the first week of March 2002 and then moved nicely on heavy buying to 32c. It then slowly but surely slid down again on light volume to 13c by the end of May and then like magic, the buying and the volume came back in and up it goes to 27c.
In short, this stock has been quite regular in falling and then running hard.. a good trade if you pick your entry levels.
Generally when all looks helpless on this stock and Market Depth looks sick then it is getting ready to turn the corner.. watch for sellers to thin and bids to increase but be quick as the window of opportunity is small.
Interestingly enough Tricom Securities, one of the net buyers of EEL is sitting patiently with a 500,000 bid at 14c hoping to cash in on the trading cycle.
I doubt if we will see it any lower than 14-15c before it runs.. especially with the Turbine arriving in QLD any day and the New Green Waste to Energy Power Plant launching in the very near future!
Current Bid 16c, Ask 18c but it may come back a touch..
ENVIROSTAR ENERGY LIMITED 2002-06-11 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++ HIGHLIGHTS:
* Steam Generator/Boiler and FBC system fabrications complete and dispatched. It is expected to arrive on site on 29 June.
* Turbine Generator (Westinghouse 5MW) final balancing at workshop completes ready for dispatch and is expected to arrive on site on 19th June.
* EnviroStar Green Power Accreditation granted by SEDA.
* EnviroStar Generation Licence granted by the Queensland Office of Energy.
* Renewable Energy Registration issued by the ACT Office of Renewable Energy Regulator (ORER). Accreditation application submitted.
* NEMMCO approval for Unscheduled/ Market Generation expected shortly.
* Interconnection Works to Electricity Grids finalised with Energex.
* Power Sales Contract signed with Energy Australia.
* Fuel Supply Agreements signed.
* Project is utilising commercially proven technology.
* Authority Approvals and comprehensive Environmental Protection Authorities (EPA) Licenses for the projects have been granted.
IN DETAIL:
EnviroStar Energy Limited is pleased to announce that the final major equipment (the key component of the Stapylton Plant), namely the Steam Generator/Boiler have now been completely fabricated and are in transit to site where they are to be installed by the EPC Contractor, Energy Equipment Australia Pty Ltd. Commissioning is scheduled for 29th June.
The steam generator weighs approximately 100 tonnes having dimensions of 8 metre wide by 8 metre in length, and stands 22 metre tall.
Transporting these key components for the Plant is a major task involving significant traffic disruption and requiring comprehensive permitting from and the assistance of the RTA and the DMR.
The Energy Equipment Fluid Bed Combustion (EEFBC) system being the patented technology employed at Stapylton under exclusive license to EnviroStar, operates as a single unit with the Steam Generator. This "one of a kind system" is designed and fabricated to prevent multiple aggressive expansions and contractions when the two sections are exposed to a high pressure and temperature of up to 1,200 deg C. This system also prevents any gas leakage from the combustion chamber operating under negative pressurization.
The bottom part of the combustion chamber, known as the 'bed', is filled with sand and when pressurized through injectors the sand moves in a liquid form referred to as 'fludised'. The chamber is heated to a high temperature and the sand retains the heat. The process is known as Fluid Bed Combustion (FBC).
The EEFBC will be operating at a temperature of 850 deg C in the bed section where fuel (green waste) with high moisture contents, for example grass off cuts, is fed. The fuel simultaneously combusts and produces hot gas which ignites to create a step-up in temperature to 1200 deg C releasing enormous heat energy. The heat energy is fired directly below the superheated water tubes in the Steam Generator to produce a superheated steam with a high pressure (35MPa) and a high temperature (400 deg C). The superheated steam is then injected into the Steam Turbine, which drives the electricity generator.
The EEFBC worldwide patents which relate to processes which control the extreme combustion temperatures in EnviroStar's Stapylton Plant creates a system which prevents the formation of toxic and greenhouse gases and thereby prevents toxic gas emissions. Therefore, EnviroStar's Electricity Plant at Stapylton qualifies for both Renewable Energy Credits and Carbon Credits.
The FBC technology has been recognised to be the world's best practice for waste to energy conversion as stated by the University of California.
The foundation slabs completed at Stapylton include more than 650 anchor bolts which weighing over 20 tonnes and which have been fixed under survey with high precision. The key components will be installed on these anchor bolts.
The Fuel-Handling Unit is progressing into its first week of installation. This state of the art technique includes a positive displacement and feed system for the green waste and is designed to have the capacity to store enough fuel for 12 hours operation with a feed rate system which can handle 150 tonnes of green waste per day.
On the 8th of February this year, EnviroStar announced it had received its Generating License from the State Government of Queensland, Generating Authority G01/02.
On 26th March, EnviroStar announced its registration with the Office of Renewable Energy (ORER). Progress in the final construction of EnviroStar's 5MW Stapylton Plant puts the Company in a position where it can begin electricity generation to meet sales contracts with Energy Australia and thereby enjoy the benefit of a long term and sustainable cash flow commencing in the third quarter of this year.
EnviroStar is now in a position to begin to plan the next phase which is to initiate Stage 2, the implementation of the Company's Green Power projects which have obtained Approvals, EPA Licenses and Signed Power Sales Contracts for 20MWe at Stapylton and 20MWe at Morwell in Victoria.
For further information, please view our website (http://www.envirostar.com.au) or contact James Kwok CEO, via the communication points shown below.
