FLC 2.94% 16.5¢ fluence corporation limited

Norfolk Island SUBRE Plant

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    A few of us have shown interest in a potential 360 m3/d greenfield concrete SUBRE plant that has been discussed for Norfolk Island since 2019.
    It was originally quoted by Fluence Australian partner Aquatec Maxcon to Balmoral Group Australia.

    https://hotcopper.com.au/posts/40526294/single
    https://hotcopper.com.au/posts/41601591/single
    https://hotcopper.com.au/posts/42950500/single

    https://hotcopper.com.au/data/attachments/3569/3569322-93bf7671120a050e3e50e1b32aab06f2.jpg
    https://hotcopper.com.au/data/attachments/3569/3569325-b3f71b8828e2d1a0f66eeaf9a1a67952.jpg
    https://hotcopper.com.au/data/attachments/3569/3569343-d30fd80d8d96730210c1b6989a9ca09b.jpg

    Balmoral Group Report
    http://www.norfolkisland.gov.nf/sites/default/files/Norfolk%20Island%20Wastewater%20Options%20Report%20Draft_1.pdf

    There has been an update in the latest Norfolk Island Council meeting.

    https://hotcopper.com.au/data/attachments/3569/3569328-2f76d4c819cc5526273e2549d9318eb5.jpg
    From 50.35 to 108.19 they discuss moving from Option 1 of a MABR plant with 100% recycle, to Option 2 of a MABR plant with 30% recycle, in order to save $5 million of upfront capital costs to approx 250 residential ratepayers.

    https://hotcopper.com.au/data/attachments/3569/3569331-757204e361642efad237fc600851f62a.jpg
    https://hotcopper.com.au/data/attachments/3569/3569334-d32d96bedf1276c66e08e332d15d052b.jpg
    https://hotcopper.com.au/data/attachments/3569/3569335-0276ef84ba88c4e68132a60c6b3cead5.jpg
    https://hotcopper.com.au/data/attachments/3569/3569338-fde4ad0b1becc9a39e38a13a6803fa72.jpg
    https://hotcopper.com.au/data/attachments/3569/3569341-161010534138d749751a8f03ab25ee02.jpg

    There are a few steps now.
    New detailed report on Option 2 costs (approx $12 million AUD installed, not all of that goes to Fluence).
    Apply for external funding: 80% Commonwealth Gov + Funding Partner (Lender)
    Appoint a Procurement Consultant for scope of works for design and construction of the WWTP.

    Norfolk Island's Regional Council is currently suspended and is under interim administration.
    This may cause some delays if a new council is formed once it comes out of admin and has to adopt and administer this project.
    https://www.regional.gov.au/territories/norfolk_island/governance/nirc.aspx

    At the rate Norfolk have been moving, it will probably be close to 2023 before we see any tender won by Fluence/Aquatec Maxcon for this plant seeing as they also need to apply for Commonwealth funding once their reports are finalized. With this project, you can really see the pitfalls (time + resources) of dedicating your business to trying to win Australian government tenders where everything needs to go through multiple council meetings and funding rounds. This is why Richard Irving is following the path of least resistance in Asia, where the governments are actively pushing for projects to go ahead, and there is a full regional opportunity. Rather than this custom designed project in Australia that may take 5 years to complete all up for a 360 m3/d plant. (Compare to Cambodia 5200 m3/d and 7200 m3/d as first installs). It would be a nice win though to at least appease some Australian shareholders who want a plant in Australian territory. Hopefully they deem Norfolk Island to be Australian enough.

    @nequalsone
    @sell
    @frostieshake
    @ywtoh
 
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