1) GDY decides to sell the bulk of its power to Olympic Dam and, for argument's sake, negotiates a generous price for it. GDY tells the world it is powering Olympic Dam. BHP tells the world it is using green energy to power Olympic Dam. No-one objects, but no-one really cares for long. Most people say it's good that BHP is using green electricity, but not much else.
Over time Olympic Dam doubles in size; GDY doubles its output. Both companies release their statements to the ASX. Shareholders get excited but no-one else really cares. So far as the public is concerned, GDY still provides power for Olympic Dam - if they even think of GDY at all. GDY's profile follows the electricity straight into a giant hole in the ground in the middle of nowhere.
In the meantime, no-one is offering environmentally responsible baseload power to the public. Anyone wanting to buy 'green power' pays a premium for coal-fired electricity topped up by a wind farm.
The vacumm remains, and is filled largely by the myth of 'clean coal' to come. Minor geothermal players try to tap the market but it's a slow process because they are punching too far above their weight.
2) GDY targets the NEM. It decides that the best way to succeed in the domestic electricity market - to become a household name - is to provide its power to households.
Instead of talking about powering Olympic Dam stage 1A7, GDY talks in terms of powering x thousand homes or, better still, capital cities (or percentages thereof) - things people can related to.
It sets about winning over more and more people by offering them what they want - the chance to buy zero-emission baseload power at a competitive price; a real solution.
And it shows that it cares - not just about the environment but people and towns. It powers Innaminka for free. It names its drills after supportive towns and regional centres. It reaches out to people at every opportunity.
GDY's profile grows and it quickly finds it is one of Australia's most loved companies, making it much easier to raise capital and lobby government than if no-one knew who they were.
Personally I'd hope GDY is thinking more along these lines.
RNE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
