There is something about the Smithfield purchase that doesn't sit well with me.
It isn't that it emits CO2, it is more about the high cost of gas currently $10-11Gj limiting its utility for 'firming'. Gas is currently so expensive, IFN will have to use Smithfield very judiciously.
Then we have IFN paying an extra $14m on the facility being re-rated to 123MW by NEMO - when IFN says it will use it 2-8% of the time. Sure, IFN will also bid high into the market when not needed for own-use and this double-use is an attractive synergy.
Maybe it is the opportunity cost - imagine instead a $60m big battery on the CAN-SYD transmission line to soak up spilled electricity at nil cost and providing frequency control and ancillary services. Or perhaps a synchronous condenser. Both would be warmly welcomed by government, perhaps even subsidised.
Maybe I am looking too far forward and seeing step two.
I have bought back in - a small watching position, now underwater,
IFN Price at posting:
46.0¢ Sentiment: None Disclosure: Held
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