"We have raised $X and now need $Y to complete our demo."
Agree BR.
After reading all the terms of the ALDP that is exactly what you have to do as an ALDP applicant.
The ALDP works like this - if exergen had all the money it needs to build the demo then the ALDP won't give it any.
But if exergen (and it is just exergen to consider, not Tata & Co as its shareholders as they, and their billions, are not 'the applicant' for the purpose of the ALDP co-funding application) has 'only' been able to raise $60 million of the $100 million it sought under the RFC CR then it can say to the ALDP assessors that IF the ALDP tips in the balance ($40 million) then exergen will guarantee that the demo plant will be built.
This scenario is somewhat cheekily outlined in the RFC flyer.
If exergen is to get $40 million in ALDP funds it will also need to produce enforceable agreements with the demo plant builders involved, and those builders will have to satisfy the ALDP that they have a 'prior track record' of delivering similar projects.
In exergen's case the demo plant builders will no doubt be the Sedgman/Thiess coal infrastructure JV - the world's largest supplier of coal processing and handling infrastructure. Their 'prior track record' in building coal processing plants is the best in the world in terms of tonnes handled, so this test is a formality.
And which BC tech did Sedgman & Thiess both invest in as partners 4 years ago?
yep - exergen.
if this demo plant doesn't get built then some of the world's largest and most capable coal players have wasted a lot of time and effort. that seems an unlikely outcome for businesses as efficient as Tata, Itochu, Sedgman, Thiess and Dale Elphinstone.
especially as the the Govt has given in to all their demands to date, and stands ready to hand over tens of millions of dollars in co funding 'free money' and, more importantly, tens of billions of S7 tonnes of BC in H2 2013.
MNM Price at posting:
5.2¢ Sentiment: Buy Disclosure: Held
