This DOE deal was originally to be negotiated over 75 days. But it's been completed in less than 10 and the project is set to start on the 1st of January. Why is CONSOL energy investing a 25% stake this year and funding as much research as possible, and why are all these new investors accumulating and becoming substantial holders?
The reason is quite obvious from a macro perspective. The coal industry is on the brink of death. A 200 year old industry is about to die, the signs are everywhere. You can literally search for any news regarding the coal industry and this is what you find (all these articles are very recent).
Globally
In India.
In China
In the US
All around the world, millions and millions of people work in the coal industry, and not just directly. Manufacturers of mining equipment, truckers, ships, rural towns surrounding coal mines. This is one of the largest and most well-established industries in the world, spanning from the industrial revolution.
But the demand for coal as a fuel is decreasing rapidly in lieu of more greener sources of energy. The demand for electricity has decreased sharply too due to COVID-19 and many countries like the EU have pledged to achieve carbon neutrality. What happens to all the coal producers then, and those who rely on the industry? The biggest employment shift in history.
So now you sense the urgency, why the DOE wants the project to find large-scale applications for CFOAM to start immediately, why the negotiation period was expedited and also why CONSOL Energy, a 150-year old coal producer has invested a 25% stake (likely the maximum they could get). They see CFOAM as the near carbon-neutral solution for coal producers and a doorway to industries worth $20B+, and they are willing to throw big money at it to make it work. They are desperate as hell, as every day that passes could mean another coal factory is shut down and unemployment rises.
So this is it. The rebirth. One can look at the company's past performance, balance sheets etc. and feel a sense of hesitation which is fair, but I believe this is a pivotal point in this company's lifetime, and presents a great opportunity for speculative investment, as all the stars have finally aligned. Just my two cents.
(20min delay)