It depends on the cost savings. They still list "up to $US50 million" as the cost of the demo plant. On the assumption there are significant cost savings then I view it as a positive however it does potentially impact the NPV of the project and will reduce the near-term EBITDA for FYI.
As they are building the demo plant at Kwinana I wonder if there will be some cost synergies by having the demo plant at the same location as the production plant. I would be interested to learn more about their plans for the site.
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