relevance of an off-take agreement

In July CNX announced that they would secure revenue of $2 million from their off-take agreement with Ergon Energy. Now I believe that the facility they will be using is a 5MW generator, and therefore with 8,760 hours in a year there is a maximum of 5 MW x 8760 h = 43,800 MWh's worth of electricity they can sell, which would make the price $45.66 per MWh.

Key for me is what size of generator CXY are planning through the first cycle. If at the same size then revenue would be similar, if bigger, revenue would be much greater . . so say generation was around 20 MW. On an equivalent basis, we could expect revenue of around $10 million per year.

It'll be fascinating to see what size generator CXY settles for in this early stage. With construction running so well so far, we can only expect things to get better on the Market Capitalisation stakes. Bout time eh?