Good morning Matt,
Obviously what I previously sent has slipped under the radar, but it is not the first time an email has gone unanswered.
I have changed the original format to make it definitively clearer as to what I am asking.
Questions to management:
1: Why did GPP indicate they were commissioning a plant build in 2015 and not proceed?
Reference sources:
http://www.greenpowerenergy.com.au/…/OHD-Brochure-20.05.14
http://www.asx.com.au/asxpdf/20140603/pdf/42q01bqyyfhb69.pdf
2: What happened to all this work that was previously carried out?
In the 115th Annual Report 2014 under "Principle Activities" conceptual design work for a 20 tonne/day PP is underway.
The work being funded by GPP is being carried out by Thermaquatica and Impact Technology Development.
Chairmans address to the shareholders, 27th November 2014, Oxidative Hydrothermal Dissolution, Under the section of Development Status:
Engineering modelling for preliminary design/specification of multi tonne/day demonstration scale facility is in progress.
GAP analysis for the design/specification of a 20 tonne/day pilot plant (PP) has been completed.
This plant will be sited in Victoria (LaTrobe Valley)
http://www.asx.com.au/asxpdf/20141127/pdf/42v2jsn9y76y4b.pdf
3: Could you offer an explanation for this?
23rd March 2016 and GPP have released the Prospectus and what appears to be a little bit of a concern is the
company can offer no assurances that the research into or the development of an environmentally neutral coal liquefaction technology necessary to achieve commercial production will be successful!!!!!
Referencing Section 7.3, Research and development, part (a)
This is contrary to any of the previous announcements into the progress of the OHD project along with the premature mentioning of a pilot plant being planned for construction in 2015.......
http://www.asx.com.au/asxpdf/20160323/pdf/4361qgyp7dbjtl.pdf
4: Now correct me if I am wrong here, but initially this plant was to be commissioned in 2015 as it was mentioned more than once leading up to 2015, but there is also mentioning of design work, GAP analysis etc as well. So what happened to all that design work???? (question 2 above) Did we start that work again?? If so why??
When GPP released on the 2nd May 2016, Quarterly engineering design work has begun on a commercial demonstration plant which will be capable of processing 20 tonnes of coal a day.
http://www.asx.com.au/asxpdf/20160502/pdf/436xy9d9wwfjsf.pdf
5: Has the company moved to Bio Stimulant oil versus platform chemicals since the publication of Dr Seddon's report? Whereas all the announcements are now referring to Bio Stimulants and no mention of platform chemicals. Dr Seddon's report has never been mentioned in any of GPP subsequent announcements, not being a chemical engineer, was the report unfavourable?
9th May 2016 GPP release a shareholder update, of interest is the included report from Dr Duncan Seddon.
http://www.asx.com.au/asxpdf/20160509/pdf/4373mn8sbmn0tq.pdf
6: Did the company fail to attract any interest at all in JV partners or investors to fund the "Pilot Plant"?
29th July 2016 GPP quarterly announced, the standout inclusion in this announcement compared to the past is the addition of “The company can only make use of this process if it can build a pilot plant to demonstrate the process works at a commercial scale and then it can carry on a profitable commercial business selling the liquid so produced.” To do that, the company will have to raise the equity portion of sufficient funding to build the plant. GPP are actively seeking investors either as joint venture partners or as investors in the company to fund this step.
http://www.asx.com.au/asxpdf/20160729/pdf/438y6r1jt530c0.pdf
7: HRL are professionals in their field and as such has some of the countries leading businesses as their clients, why were they not able to meet this timeline?
21st Oct 2016 OHD Clean Tech Complete trials is announced.
Key element in the announcement the concept design and the capex and opex estimates for 20 tonne per day plant was initially commissioned by Thermaquatica to a US engineering firm named IMPACT Technology Development. Impact completed a techno-economic study and GPP engaged HRL Technology of Melbourne to verify the plant design then cost it in Australia.
HRL are engaged in that process now and will present all costings and a financial model
before the end of the year.
http://www.asx.com.au/asxpdf/20161021/pdf/43c58rrdg5crp0.pdf
30th January 2017 GPP Quarterly – OHD Project, the company continued its OHD technology, with the second phase of testing commencing with Monash University.
HRL Technology group have progressed in terms of reviewing the desktop studies, detailed designs and costings of an OHD plant in Victoria.
This missed the timeline of being available at end of 2016 year.
http://www.asx.com.au/asxpdf/20170130/pdf/43flvkb2h33fgt.pdf
8(a) Since the announcement in February, there has been no more information in regards to "Canola Oil" of "Palm Oil" trials, were these abandoned or are they still in progress?
8(b) Are we still in discussions with international firms?
15th February 2017 Successful OHD Cereal Crop Trials…….
The company with Monash University are planning further trials with OHD bio-stimulant fertiliser to cover oil cereals with a focus on Canola and at the request of international parties.
Also mention of unsolicited interest and is currently in discussions with international firms and national grower groups regarding off-take and partnering opportunities.
http://www.asx.com.au/asxpdf/20170215/pdf/43g0mvr9k5pq9d.pdf
With the issuing of the "Exclusive Licence" One of the bullet point key elements in this announcement allows GPP to produce the OHD Bio Stimulant in Australia and New Zealand but however market and sell the product internationally (subject to licence extension).
9(a) To produce the OHD Bio Stimulant in New Zealand, are we planning on building a manufacturing plant in New Zealand after we have proved the Pilot Plant?
9(b) Conjecture and a healthy debate ensued on HotCopper in regards to this licence as announced and highlighted in the key bullet points that it is for Bio Stimulant oil, but further in this announcements summary by Mr King, he mentions platform chemicals, does our licence actually cover the manufacturing of these platform chemicals?
9(c) If indeed the platform chemicals are included with GPP's OHD licence, will the "Pilot Plant" include the modules required to extract these platform chemicals?
9(d) If the further modules are added to the "Pilot Plant" will this encroach on the "agreement with Thermaquatica" to built a 20t/day pilot plant?
9(e) A query to the platform chemicals being included in the licence and requiring the module to extract them Thermaquatica are only in the process of securing the "patent" for this module 4 of the process, I would like to understand if they do not currently hold the patent, how can they grant a licence for its use?
9(f) As per the announcement on the 15th February 2017, in Mr King's summary he mentions that we have the rights to distribute the Australian manufactured Bio Stimulants internationally. Whereas, in this "Exclusive Licence" announcement it is a (bracketed) addition to a key bullet point. How can we infer that we can distribute internationally when 3 months after suggesting that we are indicating we need to apply for a "licence extension"?
9(g) The granting of the formal licence was a key requirement to the completion of the PFS, this again didn't eventuate, why?
http://www.asx.com.au/asxpdf/20170512/pdf/43j6pvvqh9tdhg.pdf
10: Again the PFS was to be released to the market this quarter, but never eventuated, and again, why?
24th May 2017 Corporate Update…..
http://www.asx.com.au/asxpdf/20170525/pdf/43jh654k62s877.pdf
11: PFS is still nearing completion, but the encouraging hydroponic trials have assisting in understanding the OHD market.
http://www.asx.com.au/asxpdf/20170608/pdf/43jt5dq1h5kwch.pdf
12(a) We have again missed the timeline for the PFS, were GPP actually waiting on the reaffirmation of the trials?
12(b) As stated in the announcement it was important and "
crucial" in helping the company finalise the OHD PFS, the word crucial makes all the previous announcements in regards to the PFS mean the PFS wasn't going to be achievable?
12(c) Do we now need to wait until
ALL current and proposed upcoming trials results are at hand before we can progress the PFS/Commercial Plan?
http://www.asx.com.au/asxpdf/20170622/pdf/43k3ds5m4t2ss0.pdf
13: Are we going to build a "Pilot Plant" bigger than what has been continually indicated in announcements?
There is obviously some conjecture on the size of the "Pilot Plant" with commentators indicating that it will be in fact larger than what Greenpower Energy have been indicating in all their ASX released announcements, these announcements dating back as far as the start of 2015 that mention a 20t per day pilot plant....
http://www.asx.com.au/asxpdf/20150818/pdf/430kvnwytb26by.pdf
http://www.asx.com.au/asxpdf/20151023/pdf/432bpcjcfhzm96.pdf
http://www.asx.com.au/asxpdf/20160502/pdf/436xy9d9wwfjsf.pdf
http://www.asx.com.au/asxpdf/20160509/pdf/4373mn8sbmn0tq.pdf
http://www.asx.com.au/asxpdf/20161021/pdf/43c58rrdg5crp0.pdf
http://www.asx.com.au/asxpdf/20170130/pdf/43flvkb2h33fgt.pdf
As an investor I would like to know if this is going to be the case as it could impact my investment thesis.
14(a) What has happened to the advanced discussions GPP were engaged in, with a final decision on coal, water, electricity and a site in Victoria, to be made shortly?
http://www.asx.com.au/asxpdf/20170525/pdf/43jh654k62s877.pdf
14(b) Where these discussions abandoned, if so why? as we have now engaged David Trench as a consultant to initially do these exact things that we were in advanced negotiations for and pending a final decision.
http://www.asx.com.au/asxpdf/20170811/pdf/43lb8hslkvjrvz.pdf
Also in the same announcement you have indicated "in the fullness of time" could you actually give me an indication of what that means?
The Cambridge English dictionary defines it as "it will happen if you wait long enough"!!!!!
http://dictionary.cambridge.org/dictionary/english/in-the-fullness-of-time
cheers
(20min delay)