As we countdown to this year’s AGM (24th) here’s a key paragraph from last years, still very relevant, and twelve months nearer fruition, maybe it should have been a capital S in Substantial!!
Markets
As you are aware, we are in a period of unequalled concern about climate change and the need to reduce greenhouse gases. The time could not be better for the introduction of our product. Recently in Germany, legislation was announced that provides a subsidy of up to €3,300 (or about $A6,500) for each fuel cell driven CHP unit installed. This is in addition to a German ‘feed-in tariff’, of about 5 Euro cents per kilowatt hour of power exported to the grid from CHP units. The UK Government has recently proposed a similar feed-in tariff. The markets for domestic CHP products are large. Each year more than 6 million home heating units are sold in Western Europe alone. If we achieve a very conservative 1% penetration of this replacement market, we will generate over $A400 million revenue per year. If we achieve 5% penetration we will generate about $A2 billion revenue. We believe a 5% market penetration is highly achievable. In addition we have the Japanese market, and in the future the North American markets for this product, as well as markets for other products that can be developed. The potential revenue streams for the Company are substantial.
CFU Price at posting:
23.3¢ Sentiment: ST Buy Disclosure: Held
