there are some very interesting numbers which support the conversation.
Basically stage one to use 250,000 tonnes of carbon dioxide a year, saving MacGen over 5m per annum (at current prices). However they discuss full scale at 1.35m tonnes a year of carbon dioxide with potential savings of 30+m a year for MacGen. They also state that MacGens carbon tax bill this year is to be circa 500m..
Given the metrics above, I wouldn't be surprised to see MacGen pushing this hard to get it in place. Would they even provide short term development funding? (Probably not given they are government)
The other positive is that the government is setting MacGen up for sale at some point, so any dollar they save is worth 10+ to their return of capital (assuming a pricing of 10x).
Just speculation, however I think I will be taking up that extended allocation offer.
AEB Price at posting:
26.5¢ Sentiment: Buy Disclosure: Held
