ASX ANNOUNCEMENT 28 February 2020 Volt Power - 2019 Full Year Activity Report Highlights ATEN Technology (100% owned) • Volt presented ATEN ‘Waste Heat to Power’ technology briefings to power station owners in the resources and IPP sector. This initiated scoping studies to confirm ATEN zero emission generation performance and cost • These ATEN studies confirmed that ATEN achieves a Levelised Cost of Electricity (LCOE)* ~40% lower than gas generation and ~80% lower than diesel generation • The Company also completed an ATEN Vs Solar / Battery Comparison Study comparing the technical performance, CAPEX & OPEX of each zero-emission electricity generation technology (Solar Study) • The Solar Study was based on integration of ATEN and solar / battery installation with open cycle gas turbine generation assets • The Solar Study confirmed that ATEN Capital Costs are ~65% lower than a Solar / Battery installation that generates an identical annual quantity of electricity. The LCOE* comparison also confirmed that the ATEN LCOE* is ~40% lower • ATEN business development activities have resonated with large open cycle gas turbine power station owners focused on: o reducing operational carbon intensity; o grid stability and baseload performance efficiency; and o minimizing transition costs to a low carbon future • The Company is working with multiple parties to negotiate the installation of the ATEN waste heat recovery technology EcoQuip (54% owned) • EcoQuip achieved 65% utilization of its existing Mobile Solar Light Tower (MSLT) and Mobile Solar Comms Tower (MSCT) fleet during 2019 • 14 new MSLT Gen 4 units completed in December 2018 were shipped to Western Australia and commissioned for operation in May / June 2019 • 8 new MSLT Gen4 units were demonstration deployed to potential highvolume user customers including Chevron, RSEA Equipment Hire, Lend Lease and BHP • 2 new MSCT Gen4 units were demonstration deployed to Thiess Contracting as part of an autonomous drilling system trial with Caterpillar providing Wi-Fi Mesh, point to point microwave and CCTV system support • EcoQuip completed a MSLT Vs diesel fueled light tower cost comparison study. This study confirmed that the EcoQuip MSLT delivers a zero-emission mobile light solution for 50% lower cost than diesel fueled hire alternatives • EcoQuip also submitted expressions of interest to resource sector businesses for MSLT & MSCT solutions to support mobile mine site lighting, environmental monitoring and autonomous drilling system infrastructure. Discussions are ongoing • A national cross-hire alliance with RSEA Hire to deploy the MSLT Gen3 & Gen4 units across national road construction and traffic markets was signed and successfully initiated. Wescone (100% owned) • Wescone, the owner of the proprietary and unique W300 sample crusher extensively utilized in the global iron ore industry, continues to trade positively • Wescone completed the design development and prototype manufacture of a new W300 Series 4 crusher in response to a BHP requirement for a compact crusher solution capable of accepting 60% larger lump iron ore with improved reliability to displace the Wescone W300-3 crusher • During March to December 2019, BHP conducted two separate trials of the new prototype Wescone W300 Series 4 at the BHP Mt Whaleback iron ore mine (Mt Whaleback W300-4 Trial) and Finucane Island port ISO3082 sample tower systems (Finucane W300-4 Trial) • The Mt Whaleback W300-4 Trial was completed in September 2019 after an extended 26-week trial period without incident or failure. The W300-4 achieved an outstanding improvement in reliability, availability and throughput performance relative to the Wescone W300-3 crusher • The Finucane W300-4 Trial was completed in December 2019 after a 21-week trial period without incident or failure. As per the Mt Whaleback trial, the new W300-4 crusher achieved a significant performance reliability improvement • BHP and the Company are currently working through potential commercial terms for the supply of the Wescone W300-4 crusher to BHP’s WA iron ore operations • During 2019, the new Wescone W300-4 crusher secured ‘patent pending’ status and secured design registration status with the Australian Design Office • Wescone executed an exclusive Wescone OEM Distribution Agreement with IMP Automation (IMP) for the sale and service of Wescone crushing equipment across the African continent. IMP is owned by Danish global industrial company, FL Smidth. Contract supplier of innovative equipment solutions, Volt Power Group Limited (Volt or Company) today released its 2019 Full Year Activity Report & Appendix 4E – Preliminary Final Report. Volt’s CEO & Managing Director, Mr Adam Boyd said; “The Volt Board is pleased to provide shareholders with an update of the Company’s activities for 2019 and the Company’s 2019 Full Year Result. ATEN Technology (100% owned) – Lowest Cost Zero Emission Power “The ATEN technology (Patent Pending) was the subject of a significant business development push during 2019. “We completed an ATEN Vs solar / battery comparison study to highlight ATENs technical and cost benefits (ATEN Vs Solar Study). The ATEN Vs Solar Study compared the generation performance, CAPEX and OPEX of ATEN with an annual power generation equivalent solar / battery installation colocated at an open cycle gas turbine (OCGT) generation asset. “The results of the ATEN Vs Solar Study were outstanding and confirmed that (where a significant and consistent heat resource is available) ATEN Waste Heat to Power is a materially lower cost, zero emission power generation solution compared to a solar / battery installation. “The ATEN Vs Solar Study specifically confirmed that an ATEN retro-fitted to open cycle gas turbine power station delivers the following: • An additional 20% electricity generation (zero incremental OCGT fuel required); • ATEN Capital Cost is 65% lower than an equivalent electricity generation Solar / Battery installation; and • ATEN LCOE* is between ~20%-40% lower than an electricity generation equivalent Solar / Battery installation. “The Australian resource sector has a significant footprint of OCGT power stations supplying baseload electricity to significant mineral processing operations. Our business development engagement with potential customers has also confirmed that ATEN has a cheaper LCOE* than marginal gas fueled generation by existing OCGT power stations at site delivered gas prices of ~$4.00/GJ. “We are continuing to work with OCGT power station owners that have validated the Company’s ATEN value proposition. Importantly, an ATEN installation in no way excludes or curtails the opportunity to installation solar capacity. “The Board continues to believe ATEN is a step change ‘waste heat to power’ solution that will deliver the mining sector a material reduction in its electricity supply costs and carbon intensity where adopted with the added benefit of the system stability and efficiency achieved by baseload supply solutions. “We are working with several parties and the Volt Board remains excited about the opportunity to commercialise the ATEN. We are determined to secure our first ATEN installation contract as soon as commercially possible. EcoQuip (54% owned) – New MSLT Gen4 Demonstration Trials Underway “The EcoQuip business has had a busy 2019 striving to comprehensively commercialise and optimize our new “next generation” Mobile Solar Light & Communications Tower (MSLT / MSCT). “EcoQuip’s first 14 USA manufactured MSLT Gen4 units arrived in Australia during late April 2019. We experienced some minor delays commissioning the EcoQuip proprietary power management, performance control and data telemetry system. However, these issues were resolved ensuring the new MSLT Gen4 fleet was deployment ready by June 2019. “During H2 2019 EcoQuip secured MSLT demonstration deployment trials with Chevron (Gorgon), BHP, RSEA Equipment Hire and Lend Lease. Discussions with these potential high-volume clients remain encouraging and we continue to receive positive feedback from all operational personnel using our MSLT Gen4 units. “We confirmed with our MSLT Gen4 demonstration deployment clients the total cost of diesel fueled light tower operation. We are pleased to confirm our early work highlighting that the EcoQuip MSLT Gen4 is 50% cheaper than the hire and OPEX costs of a traditional diesel fueled light tower is accurate. “A zero-emission solar light tower alternative to a fossil fueled mobile light solution at 50% of the cost is a compelling proposition and with more focus on ESG policy in the resource sector we are optimistic about the growth potential of EcoQuip. “The Volt Board continues to anticipate the significant “first mover” value potential of a disruptive robust, reliable solar / battery powered mobile light tower in the mobile diesel light tower market over the com
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