Clean Energy Opportunity

CBQ through its recent 25% investment in Utilitas presents an opportunity in the clean energy sector. I believe this sector has high potential with the Federal Government's CEFC (Clean Energy Finance Corporation) seeing the investment opportunity in cutting of greenhouse gas emissions between $3.5 billion to $5 billion by 2020. Coalbank's investment in Utilitas sees it position itself as an early mover on an underdeveloped bioenergy and energy waste market. I believe there is scope for CBQ to up its investment in Utilitas with the initial $1 million investment allowing utilitas to advance its first 2 bioHub projects to construction and demonstrate a new utility business model. These projects are a major step in Utilitas demonstrating a new regional utility business model which integrate the use of organic waste in generating energy, water and fertilizer while also providing employment, sustainable waste and water treatment and energy security for Australian farmers and food producers.

Germany is leading the way in the bioenergy sector with over 8,000 biogas plants established producing 4 GW of installed capacity and supplying more then 8 million households with clean, renewable organic energy each year. Other countries in Asia the Middle East and Africa are also looking too biogas as an energy future with China having a target of 300 million rural residents getting their electricity generated from biogas by 2020. CBQ via its investment in Utilitas has the opportunity to be part of the massive growth expected in coming years as the take up of cleaner energy fuels are increased as the sector evolves and is looked at as an exciting new energy participant.

In Queensland alone a joint Deloite Access Economic/QUT study predicts bio-refining in all its forms can contribute more then $1.8 billion in gross state product and create 6640 jobs. There is currently a major demand for sustainable cost effective ways to reduce petrochemicals and green chemicals are fueling a new wave of advanced technologies. Coalbank with Utilitas are in the right place at the right time as the globe becomes hungry for cleaner energy sources.

Recently the market has seen some keen interest in battery storage companies as a cleaner energy source and CBQ through Utiltas provides a very good risk reward play in the clean energy sector. With a market cap of 3 million and close to 1 mill cash the upside potential here is significant. Top that with a very tight registry with its top holder and director associated party having 54% of the stock this could move up quickly once the market catches on to the potential. The company holding off on cap raise so far while at lows for so long suggest they want and believe they can turn this company around and raise the price. CBQ also have coal assets with their lead project being the Blackall Project which has an inferred Coal Resource of 1.3 billion tonnes of thermal coal. With coal prices turning up these assets may provide significant value with the project close to several major coal mine and infrastructure development projects planned for the area. Great potential turn around play here with low cap and tight registry and potential on a number of fronts with possibly other acquisitions also in the pipe lines.