bloomingruby, the demonstrations currently being tendered for funding under the ALDP are small scale, one publicly listed company states that their output would be in the region of only 150-200kt.
Quite simply it is very difficult to fund BC projects in the LV without suitable rail and port infrastructure as the project would need to be very large to offset the initial capex. Also as mostly the technologies are at pilot stage no one is willing to fund the large expense.
Instead of picking favourites the Government has decided to split the cash on 3 or 4 companies. The aim of the program is to both find new cleaner lignite derived energy sources for Vic supply and to pay for that they will open up the vast reserves of coal for export. Being greener isn't free.
Until the transport infrastructure is built in the LV there will be at least 3 other techs either already built or planned at LY, plus Exergen then Ignite etc all making a small amount of lignite derived products and power stations that can only use a small percentage because of power station design, the domestic black coal price is roughly $50/t which would mean most BCE products would be unprofitable locally, marginal at best. The surplus will need to find its way on trucks somehow to a barge then to a port....
BM is a different proposition and that is why it has Exergen's involvement. The rail infrastructure and port is there, with room to expand. This is of course why Exergen have their first income, their IPO all dependent on BM with construction flagged to start in 3-4 years.
MNM Price at posting:
5.8¢ Sentiment: Buy Disclosure: Held
