Unhyped Hydrogen Investments

 

Hydrogen finally seems on the road to fulfilling its “promise” of becoming a large contributor to the renewable energy mosaic. The interest in hydrogen energy was reignited last year with the push toward zero carbon emissions. Some other drivers of this elevated interest are increased government support and public interest in clean energy options. Hydrogen has been spoken about since the ’70s gas crisis as being the “answer.” It appears as though when it comes to lower emissions, power storage, and abundance, hydrogen is a prime candidate to be part of the answer.

There are many applications for hydrogen and hydrogen fuel cells, and as with most renewable energy solutions, there is some level of “baggage” that comes with each. We’ll discuss the baggage alongside the applications and provide the names of investable companies operating in and with the potential to benefit from the growth of hydrogen as a power source.

 

Powerful Applications for H

Processing Chemicals – Hydrogen’s primary use today is as a catalyst or agent in chemical and industrial processes. Among the chemical processes is the production of methanol and ammonia. The ammonia produced is used directly or indirectly as fertilizer. Hydrogen is also used to refine oil and as part of a process to remove impurities from crude oil. In steel production, it can be used to replace the traditional fuel (cokes) in a blast furnace. These processes are all currently being used and largely executed by what is called “dirty” or “grey” hydrogen.

 Automotive Fuel Cell– At the turn of the Millenium, hydrogen was going to be the clean-energy answer.   President George W. Bush even brought it up in his 2003 State of the Union address, saying, “the first car driven by a child born today could be powered by hydrogen and pollution-free.”

The unfilled expectations around hydrogen to power transportation have their reasons.  From a practical standpoint using a driver’s perspective, the shift would seem easy.  Fuelling a car with liquid H takes a similar amount of time as refilling with gas or diesel; the driving range would also be about the same. One issue preventing widespread use is the infrastructure for hydrogen refueling is not in place. And, as we have seen with electric vehicles, one can’t sell alternative “fuel” cars without the ability to fuel them along the road. On the other hand, building fuel stations isn’t economically feasible until there are customers. The solution to this chicken/egg question has yet to avail itself.

Heavy-Duty Transport– This category is comprised mainly of trains and boats. Hydrogen is a high-density energy source that can provide the appropriate power for heavy goods vehicles. It can provide power where we now implement diesel. Hydrogen is quick to refuel, which reduces downtime in these applications.

Forklifts– Fuel cells are already widely used in forklift fleets. One big advantage of hydrogen-powered fuel cells is it saves time compared to battery-powered machines. The benefits are particularly strong in a three-shift, round-the-clock operation. Fuel cells powered by hydrogen are also without carbon monoxide, which is preferable indoors. Large warehouses operated by Amazon and Walmart use hydrogen-powered forklift fleets.

Power Plants– Stationary Power plants are also using hydrogen fuel cells. They can be used as primary and backup power. The power is reliable and can support on-grid or off-grid power generation. These stationary fuel cells are able to connect directly to the gas infrastructure.

 

Grey Hydrogen vs. Green Hydrogen, What’s the Difference?

Hydrogen is as clean as the production method. Most hydrogen currently produced is called “dirty” or “grey” hydrogen. This means it was produced from natural gas and emits greenhouse gas. Grey hydrogen is produced using a process that isn’t the super clean hydrogen envisioned 20 or more years ago. That hydrogen, the one that emits no greenhouse gases, is referred to as “green” hydrogen. The difference provides a challenge and investment opportunities for this emerging field.  There is a lot of grey hydrogen used today that can be replaced by green hydrogen. It is estimated more than 95% of hydrogen production in 2019 was grey. Converting one to the other isn’t without cost, but it is then truly green.

Hydrogen can be produced using another method that is somewhat cleaner than grey. It uses natural gas and is called steam reforming. With steam reforming, it’s possible to capture 80% to 90% of the CO2 produced in the process. This CO2 is then used in other processes. You’ll hear hydrogen separated in this way called “blue” hydrogen. An alternative natural gas technique that doesn’t generate CO2 creates “turquoise” hydrogen.

 

Investments In Hydrogen

 There are many companies worldwide in this space.  The largest companies are hydrogen producers, which mainly use the method of steam reforming. Smaller niche companies focus on specific aspects of hydrogen. These can be sub-categorized into electrolyzer producers and fuel cell producers. Some companies will combine the two providing a fully integrated hydrogen producer.

There is a movement toward green hydrogen for most involved. This movement includes joint ventures, sometimes the small helping the big. Linde (LIN), for example, has a joint venture with ITM Power (OTCPK:ITMPF). ITM Linde Electrolysis provides industrial-scale turnkey solutions for green hydrogen production.

 

Electrolyzers

Electrolyzers are one way to invest in green hydrogen. There is a lot of wind, and solar-produced energy coming onto the power grid. One problem with this is the unstable production associated with these methods. By transforming this energy into green hydrogen, it can replace the current supply of grey hydrogen. electrolyzers may be the best way to invest in hydrogen.

Electrolyzers use a system that, with the use of electricity, breakdown water (H2O) into hydrogen and oxygen in a process known as electrolysis. McPhy Energy SA (OTC:MPHYF) is a designer, manufacturer, and integrator of hydrogen equipment. Its product range features two main categories: Electrolyzers (hydrogen production equipment) of all capacities and hydrogen refueling stations (refueling/distribution equipment) for hydrogen-powered mobility. Another company, Nel Hydrogen (NLLSY) covers the entire chain from hydrogen production to the manufacturing of hydrogen fueling stations, providing all fuel cell electric vehicles with fast fueling similar to conventional vehicles. The company’s segments include Fueling and Electrolyzer. ITM Power PLC (ITMPF) designs and manufactures integrated hydrogen energy systems for energy storage and clean fuel production.

The above companies are European with valuations that may cause concern in other industries. They are listed because they are pure-plays on green hydrogen and electrolysis.

SunHydrogen (OTCPK:
HYSR) could become an alternative to electrolyzer companies. SunHydrogen is working on an innovative hydrogen generator. The generator uses solar energy to split water into hydrogen and oxygen directly. The technology is still in the design and test stage.

 

Fuel Cell Companies

Fuel cells are necessary to convert hydrogen into electricity. They can be used in transportation or stationary power systems. Fuel cells can also be powered by other fuels such as natural gas. Most companies are focusing on fuel cells powered with hydrogen or flexible fuel cells. Ballard Power Systems (Nasdaq:BLDP) designs, develops, manufactures, sells, and services fuel cell products for a variety of applications, focusing on motive power (material handling and buses) and stationary power (backup power, supplemental power, and distributed generation). Fuel Cell Energy ((Nasdaq:FCEL) designs manufactures, sells, installs, operates, and services fuel-cell products, which efficiently convert chemical energy in fuels into electricity through a series of chemical reactions. It serves various industries such as wastewater treatment, commercial and hospitality, data centers and communications, education and healthcare, and others. Plug Power (Nasdaq:PLUG) just announced their plans to build a plant to create green hydrogen. The plant will produce 15 tons per day of liquid green hydrogen, produced using 100% renewable energy and intended to fuel transportation applications, including material handling and fuel cell electric vehicle fleets. Plug Power is investing $84 million in the facility, which is expected to create at least 24 jobs in the local community starting in 2022. Plug is an innovator of green hydrogen and fuel cell technology.

 

Conclusion

Wind, solar, nuclear, and other Renewables are getting investors’ attention. Hydrogen has been spoken about for decades, but like electric vehicles, technology had to catch up with the desire to benefit from the potential. Globally, a move toward renewables is being supported by the major economies, closing the gap on the needed technology is now happening and ramp speed.

 

Suggested Reading:

How Does the Gates Buffett Natrium Reactor Works?	Is the Future of Nuclear, Small Modular Reactors?

What Companies are Involved in Spaceflight?	The Future of Electric Vehicles

 

Sources:

https://www.fchea.org/stationary

https://safety4sea.com/seven-energy-and-maritime-companies-collaborate-on-hydrogen/

https://www.iea.org/data-and-statistics/data-products

https://www.iea.org/fuels-and-technologies/hydrogen

 

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Capstone Green Energy (Nasdaq:Cgrn) Secures Three New Rentals And Announces Expansion Of Its Rental Fleet, From 10.6 MW To 12.1 MW

 

Rented by an Oil & Gas Producer, Industrial Agricultural and Industrial Plastic Company

VAN NUYS, CA / ACCESSWIRE / June 23, 2021 / Capstone Green Energy Corporation(www.CapstoneGreenEnergy.com) (NASDAQ:CGRN) formerly Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) (“Capstone” or the “Company”), announced today that it continues to expand its long-term microturbine rental business as part of its growing Energy as a Service (EaaS) business model, with an additional 1.1 megawatt (MW) of new long-term rental contracts. As a result, Capstone also announced today that it has expanded its low emission microturbine rental fleet from 10.6 MW to 12.1 MW.

The first of the new long-term rental contracts is a five-year rental agreement for a new C200 Signature Series slated for a local independent oil and gas producer focused on mature field revitalization, acquisitions, and exploration. The company optimizes and develops existing and acquired assets, and also implements thermal enhanced oil recovery and other technologies to expand existing oil production. This contract was secured by Capstone’s local distribution partner, Cal Microturbine, Capstone’s exclusive distributor for California, Hawaii, and Nevada and nonexclusive for Oregon and Washington (www.calmicroturbine.com).

The second long-term rental contract is a minimum five-month rental contract for a C800S for a new industrial agricultural operation. This rental agreement was secured by Capstone’s new Direct Solutions Sales organization. The five-month rental was pre-paid and was commissioned in mid-June.

The third rental contract is a one-year rental of a C65 for an industrial plastic company looking to utilize waste gas from a plastic recycling process. “If the C65 rental system operates satisfactorily on this off-spec gas, the customer has additional gas it’s not using at multiple other locations,” stated Jim Crouse, Capstone Green Energy, Chief Revenue Officer. “The rental program offers a unique and efficient method to test customer’s off-spec fuels that will allow us to determine applicability and durability in a fraction of the time it’s taken us in the past,” added Mr. Crouse.

Like Capstone Green Energy, all three customers are committed to health, safety, and environmental excellence. Leveraging Capstone Green Energy’s innovative microturbine technology will help all three companies save money and reduce their carbon footprint.

“Expanding Capstone’s Energy as a Service business, which includes the long-term rental program, is an important element for the Company achieving its strategic goals. Capstone is an eminent green energy company, having focused for a long time on transforming the way businesses think about on-site energy production,” said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy.

“Growing our rental fleet is a key part of the business plan that we developed in conjunction with amending the Goldman Sachs Note Purchase Agreement on October 1, 2020, which includes the strategic expansion of the long-term rental fleet from 8.6 MW to 21.1 MW by March 2022,” said Eric Hencken, Chief Financial Officer of Capstone Green Energy. “Long-term rentals are a key to our future financial success as the recurring revenue stream they generate improves our gross margin and expense absorption,” concluded Mr. Hencken.

About Capstone Green Energy

Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.

For more information about the Company, please visit: www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding expectations for green initiatives and execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the Securities and Exchange Commission, including the disclosures under “Risk Factors” in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.

CONTACT:
Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
ir@CGRNenergy.com

SOURCE: Capstone Green Energy

 

Capstone Announces Closing Of $11.5 Million Bought Deal Offering Of Common Stock And Full Exercise Of The Option To Purchase Additional Shares

 

VAN NUYS, CA / ACCESSWIRE / June 22, 2021 / Capstone Green Energy Corporation (NASDAQ:CGRN) (“Capstone”, or the “Company”), a global leader in carbon reduction and on-site resilient green energy solutions, today announced the closing of its previously announced public offering of 2,190,477 shares of its common stock, including the exercise in full by the underwriter of its option to purchase an additional 285,714 shares of common stock, at a price to the public of $5.25 per share, less underwriting discounts and commissions.

H.C. Wainwright & Co. acted as the sole book-running manager for the offering.

The gross proceeds of the offering were approximately $11,500,000, before deducting underwriting discounts and commissions and offering expenses payable by Capstone. Capstone intends to use the net proceeds from the offering for working capital, general corporate purposes and growth initiatives, including organic growth and potential future acquisitions. However, the Company has no present arrangements, agreements or understanding in principle of any such acquisitions.

A shelf registration statement on Form S-3 (File No. 333-254547) relating to the shares of common stock that were offered was filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 22, 2021, and became effective on April 14, 2021. The offering was made only by means of a prospectus supplement and accompanying prospectus that form a part of the shelf registration statement. A final prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC and are available on the SEC’s website, located at www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus may also be obtained from H.C. Wainwright & Co., LLC, 430 Park Avenue, New York, NY 10022, by email at placements@hcwco.com or by phone at (212) 856-5711.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Capstone:

Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ: CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems. To date, Capstone has shipped over 10,000 units to 83 countries and in FY21, and estimates it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.

Forward-Looking Statements:

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the use of proceeds of the public offering as well as expectations for green initiatives and execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: market and other conditions, the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the SEC, including the disclosures under “Risk Factors” in those filings and in the Company’s preliminary prospectus supplement and accompanying prospectus related to the public offering and any other filings with the SEC. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason, except as required by law.

Contact – Investor Relations:

Capstone Green Energy
Investor and investment media inquiries:
(818)-407-3628
ir@CGRNenergy.com

SOURCE: Capstone Green Energy Corporation

 

Capstone Announces Closing Of $11.5 Million Bought Deal Offering Of Common Stock And Full Exercise Of The Option To Purchase Additional Shares

 

VAN NUYS, CA / ACCESSWIRE / June 22, 2021 / Capstone Green Energy Corporation (NASDAQ:CGRN) (“Capstone”, or the “Company”), a global leader in carbon reduction and on-site resilient green energy solutions, today announced the closing of its previously announced public offering of 2,190,477 shares of its common stock, including the exercise in full by the underwriter of its option to purchase an additional 285,714 shares of common stock, at a price to the public of $5.25 per share, less underwriting discounts and commissions.

H.C. Wainwright & Co. acted as the sole book-running manager for the offering.

The gross proceeds of the offering were approximately $11,500,000, before deducting underwriting discounts and commissions and offering expenses payable by Capstone. Capstone intends to use the net proceeds from the offering for working capital, general corporate purposes and growth initiatives, including organic growth and potential future acquisitions. However, the Company has no present arrangements, agreements or understanding in principle of any such acquisitions.

A shelf registration statement on Form S-3 (File No. 333-254547) relating to the shares of common stock that were offered was filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 22, 2021, and became effective on April 14, 2021. The offering was made only by means of a prospectus supplement and accompanying prospectus that form a part of the shelf registration statement. A final prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC and are available on the SEC’s website, located at www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus may also be obtained from H.C. Wainwright & Co., LLC, 430 Park Avenue, New York, NY 10022, by email at placements@hcwco.com or by phone at (212) 856-5711.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Capstone:

Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ: CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems. To date, Capstone has shipped over 10,000 units to 83 countries and in FY21, and estimates it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.

Forward-Looking Statements:

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the use of proceeds of the public offering as well as expectations for green initiatives and execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: market and other conditions, the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the SEC, including the disclosures under “Risk Factors” in those filings and in the Company’s preliminary prospectus supplement and accompanying prospectus related to the public offering and any other filings with the SEC. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason, except as required by law.

Contact – Investor Relations:

Capstone Green Energy
Investor and investment media inquiries:
(818)-407-3628
ir@CGRNenergy.com

SOURCE: Capstone Green Energy Corporation

Image credit: Can Pac Swire (Flickr)

Is the Taishan News Story a Buying Opportunity for Investors?

 

One week after uranium mining companies saw their stocks negatively respond to a situation with a nuclear plant in Southeast China, investors are deciding if this is now a buying opportunity. A decline in some uranium mining sector stocks, after a week, is similar to one week after Fukushima’s seemingly more serious problems. Currently the Taishan Nuclear Power Plant, which is two-thirds owned by the French and one-third owned by the Chinese, is still operating, but there have been operational performance issues reported. The French have asked for help from the U.S. in assessing the complete situation.

 

About the Nuclear Trend

Nuclear energy has recently become widely embraced by the move to eliminate burning fossil fuels that emit carbon into the atmosphere. There is now a need for electricity production from a source as productive and reliable as fossil fuels to supplement the growing solar and wind output. This need is evident today, with newspaper headlines already showing how states like California are concerned that generation may not keep up with their summer demand. 

 

News from China

The West often views information coming out of The People’s Republic of China with suspicion. To date, reports are that the reactor is still running, and there has not been a radioactive leak of any kind. On its website this past Sunday the Taishan Nuclear Power Plant published a statement, maintaining that environmental readings for both the plant and its surrounding area were “normal.”

The two nuclear reactors in Taishan are both operational, the statement said, adding that Unit 2 had recently completed an “overhaul” and “successfully connected to the grid on June 10, 2021.” The statement did not define why or how the plant was overhauled.

The situation is worth investors paying close attention to. If this is indeed somewhat routine and the market has overreacted, mining stocks could quickly recover and even continue their march upward as the trend toward lower emissions and more energy demand continue.

 

About the Dip

Below is a one-year chart showing four plots. The uranium mining ETF (as a benchmark), two mining stocks that have been far exceeding, it along with one that tracks it more closely.

The amber line is the ETF ticker symbol URA. Year over year the basket of stocks making up the ETF’s performance have increased 92.44%. It had reached its 12-month high in performance earlier this month when on June 8^th it had attained a 123.84% increase.  The decline from one week earlier, when news of the Taishen plant started circulating, the ETF is down 4.83%.

 

 

The light blue line is Energy Fuels (UUUU). Energy Fuels, based in Colorado, is the largest uranium producer in the U.S. and holds more production capacity and uranium resources than any other U.S. producer. Their year-over-year performance to date is an increase of 277.35%. The price change from one week earlier when CNN broke the news of the Taishen plant is down 2.2%.

The purple plot is enCore Energy (ENCUF). enCore Energy Corp. is focused on working towards becoming a domestic United States uranium producer. The company has existing resources in the southwest United States and licensed uranium production facilities in Texas. Their year-over-year has been 543.48%, it reached a peak just before the questions surrounding the Chinese plant. ENCUFs price decline over the past week has been 10%.

The orange line is Blue Sky Uranium (BKUCF). Blue Sky Uranium Corp is a junior mineral exploration company based in Canada. The company focuses on uranium exploration projects in southern Argentina. The year-over-year performance is now at 64.55%. Blue Sky had reached its one year high back in April. They are currently down 8.40% from their one-week earlier levels.

 

 

Take-Away

Investing always includes many unknowns. As it relates to uranium mining companies, what is known is the industry is experiencing triple-digit returns and trending higher. The sector has been helped by increasing support from those that are pushing the world toward lower carbon emissions, which is a global movement gaining more power.

What isn’t known is whether this is an event that is typical and will receive very little attention after this, or if there is a full-blown problem that will put in question how strongly the world embraces nuclear as the preferred road to meeting growing energy demands.

 

Suggested Reading:

How Does Uranium Fit Into the ESG Landscape?	How does the Gates Buffett Natrium Reactor Work?

Advanced Battery Storage Goals of the Department of Energy	Why Uranium Prices Have Been Rising

 

Sources:

https://www.cnn.com/2021/06/14/politics/china-nuclear-reactor-leak-us-monitoring/index.html

https://www.scmp.com/news/china/science/article/3138214/chinas-nuclear-safety-queried-over-taishan-reactor-it-wants-lead

https://www.thedailybeast.com/us-scrambles-to-investigate-leak-at-chinese-nuclear-plant

 

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Capstone Increases Previously Announced Bought Deal Offering Of Common Stock To $10.0 Million

 

VAN NUYS, CA / ACCESSWIRE / June 17, 2021 / Capstone Green Energy Corporation (NASDAQ:CGRN) (“Capstone”, or the “Company”), a global leader in carbon reduction and on-site resilient green energy solutions, today announced that, due to demand, the Company and the underwriter have decided to increase the size of the previously announced public offering, and accordingly the underwriter has agreed to purchase on a firm commitment basis 1,904,763 shares of common stock of the Company at a price to the public of $5.25 per share, less underwriting discounts and commissions. The closing of the offering is expected to occur on or about June 22, 2021, subject to satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the sole book-running manager for the offering.

The Company has also granted to the underwriter a 30-day option to purchase up to an additional 285,714 shares of common stock at the public offering price, less underwriting discounts and commissions.

The gross proceeds of the offering are expected to be approximately $10,000,000, before deducting underwriting discounts and commissions and offering expenses payable by Capstone and assuming no exercise of the option to purchase additional shares of common stock. Capstone intends to use the net proceeds from the offering for working capital, general corporate purposes and growth initiatives, including organic growth and potential future acquisitions. However, the Company has no present arrangements, agreements or understanding in principle of any such acquisitions.

A shelf registration statement on Form S-3 (File No. 333-254547) relating to the shares of common stock being offered was filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 22, 2021, and became effective on April 14, 2021. The offering will be made only by means of a prospectus supplement and accompanying prospectus that form a part of the shelf registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC and are available on the SEC’s website, located at www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus relating to the offering when filed with the SEC, may also be obtained from H.C. Wainwright & Co., LLC, 430 Park Avenue, New York, NY 10022, by email at placements@hcwco.com or by phone at (212) 856-5711. Before you invest, you should read the preliminary prospectus supplement and accompanying prospectus and the other documents that Capstone has filed with the SEC for more complete information about Capstone and the offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Capstone:
Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems. To date, Capstone has shipped over 10,000 units to 83 countries and in FY21, and estimates it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.

Forward-Looking Statements:
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the completion of the public offering and use of proceeds of the public offering as well as expectations for green initiatives and execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: market and other conditions, the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the SEC, including the disclosures under “Risk Factors” in those filings and in the Company’s preliminary prospectus supplement and accompanying prospectus related to the public offering and any other filings with the SEC. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason, except as required by law.

Contact:
Investor and investment media inquiries:
Capstone Green Energy
(818)-407-3628
ir@CGRNenergy.com

SOURCE: Capstone Green Energy Corporation

 

Capstone Increases Previously Announced Bought Deal Offering Of Common Stock To $10.0 Million

 

VAN NUYS, CA / ACCESSWIRE / June 17, 2021 / Capstone Green Energy Corporation (NASDAQ:CGRN) (“Capstone”, or the “Company”), a global leader in carbon reduction and on-site resilient green energy solutions, today announced that, due to demand, the Company and the underwriter have decided to increase the size of the previously announced public offering, and accordingly the underwriter has agreed to purchase on a firm commitment basis 1,904,763 shares of common stock of the Company at a price to the public of $5.25 per share, less underwriting discounts and commissions. The closing of the offering is expected to occur on or about June 22, 2021, subject to satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the sole book-running manager for the offering.

The Company has also granted to the underwriter a 30-day option to purchase up to an additional 285,714 shares of common stock at the public offering price, less underwriting discounts and commissions.

The gross proceeds of the offering are expected to be approximately $10,000,000, before deducting underwriting discounts and commissions and offering expenses payable by Capstone and assuming no exercise of the option to purchase additional shares of common stock. Capstone intends to use the net proceeds from the offering for working capital, general corporate purposes and growth initiatives, including organic growth and potential future acquisitions. However, the Company has no present arrangements, agreements or understanding in principle of any such acquisitions.

A shelf registration statement on Form S-3 (File No. 333-254547) relating to the shares of common stock being offered was filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 22, 2021, and became effective on April 14, 2021. The offering will be made only by means of a prospectus supplement and accompanying prospectus that form a part of the shelf registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC and are available on the SEC’s website, located at www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus relating to the offering when filed with the SEC, may also be obtained from H.C. Wainwright & Co., LLC, 430 Park Avenue, New York, NY 10022, by email at placements@hcwco.com or by phone at (212) 856-5711. Before you invest, you should read the preliminary prospectus supplement and accompanying prospectus and the other documents that Capstone has filed with the SEC for more complete information about Capstone and the offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Capstone:
Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems. To date, Capstone has shipped over 10,000 units to 83 countries and in FY21, and estimates it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.

Forward-Looking Statements:
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the completion of the public offering and use of proceeds of the public offering as well as expectations for green initiatives and execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: market and other conditions, the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the SEC, including the disclosures under “Risk Factors” in those filings and in the Company’s preliminary prospectus supplement and accompanying prospectus related to the public offering and any other filings with the SEC. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason, except as required by law.

Contact:
Investor and investment media inquiries:
Capstone Green Energy
(818)-407-3628
ir@CGRNenergy.com

SOURCE: Capstone Green Energy Corporation

Friday, June 18, 2021

Energy Services of America (ESOA)
PPP Loan Forgiveness Announced

Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is primarily engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical and automotive industries, and does incidental work such as water and sewer projects. Energy Service’s other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

PPP Loan of $9.8 million officially forgiven. In an 8-K filing after the market closed yesterday, the company disclosed that the Small Business Administration (SBA) had paid $9.8 million to its lender on June 16th. The SBA payment satisfies the requirements of the Payroll Protection Program (PPP) loan taken out in FY2020 and the PPP loan of $9.8 million has been fully forgiven. Importantly, the PPP loan helped maintain employment and dampen any potential financial impact during a very uncertain time.


No impact on FY2021 EBITDA estimate.  The forgiven PPP loan is expected to be recognized as other income and there should be no tax implications. While final accounting treatment has yet to be determined and the cash impact was a FY2020 event, we believe that net income and shareholder equity should be positively impacted by $9.8 million. We are updating our financial forecasts, but will adjust them …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Friday, June 18, 2021

Capstone Green Energy Corporation (CGRN)
Stock offering reflects new aggressive stance

Capstone Green Energy Corp is the producer of low-emission microturbine systems.The company develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications. Capstone Turbine’s products include onboard generation for hybrid electric vehicles; conversion of oil field and biomass waste gases into electricity; combined heat, power, and chilling solutions; capacity addition; and standby power.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

CGRN entered into a underwriting agreement to sell 952,380 shares of common stock at $5.25 per share. The offering less discounts and commissions should increase Capstone’s cash position by $5 million, $5.7 million if the overallotment is exercised. The proceeds will be used for working capital, general corporate purposes and growth initiatives.


A much-strengthened balance sheet becomes even stronger.  CGRN recently reported fourth quarter and fiscal 2021 financial results. Results were generally in line, but we did note that the company’s cash position had significantly improved to $50 million from $15 million. CGRN’s debt position, which increased with a debt restructuring that lowered interest rates, rose a more modest amount to $53 …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Gevo hires Kimberly Bowron as Chief Human Resources Officer

 

ENGLEWOOD, Colo., June 17, 2021 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO), is pleased to announce that Kimberly Bowron has joined Gevo as its Chief Human Resources Officer. Ms. Bowron has served over 20 years in senior management roles in the chemicals, utilities infrastructure, and IT industries. Most recently, Ms. Bowron was the Director of Human Resources at TPC Group and previously the VP of Human Resources at Heath Consultants, where she led all aspects of human resources and training.

“I’m delighted to have Kimberly join the Gevo team. Her diverse background certainly fits into what Gevo needs to continue to build an engaged, inclusive, and high-performing team for our Net-Zero Projects and beyond. Talent and skill acquisition are certainly one of the keys to success. We are going to grow. Kimberly will help us be successful in that growth,” said Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer.

“I am honored to become part of the team behind the groundbreaking work to transform renewable energy into hydrocarbons,” said Ms. Bowron. “I’m excited to help build the talent, leadership, and culture needed for our next phase of growth,” continued Ms. Bowron.

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their life cycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low-carbon products such as gasoline components, jet fuel and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, without limitation, including the hiring of Kimberly Bowron, Gevo’s technology, Gevo’s products, Gevo’s ability to produce products with “net-zero” greenhouse gas emissions, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Investor and Media Contact

+1 720-647-9605

IR@gevo.com

Gevo hires Kimberly Bowron as Chief Human Resources Officer

 

ENGLEWOOD, Colo., June 17, 2021 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO), is pleased to announce that Kimberly Bowron has joined Gevo as its Chief Human Resources Officer. Ms. Bowron has served over 20 years in senior management roles in the chemicals, utilities infrastructure, and IT industries. Most recently, Ms. Bowron was the Director of Human Resources at TPC Group and previously the VP of Human Resources at Heath Consultants, where she led all aspects of human resources and training.

“I’m delighted to have Kimberly join the Gevo team. Her diverse background certainly fits into what Gevo needs to continue to build an engaged, inclusive, and high-performing team for our Net-Zero Projects and beyond. Talent and skill acquisition are certainly one of the keys to success. We are going to grow. Kimberly will help us be successful in that growth,” said Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer.

“I am honored to become part of the team behind the groundbreaking work to transform renewable energy into hydrocarbons,” said Ms. Bowron. “I’m excited to help build the talent, leadership, and culture needed for our next phase of growth,” continued Ms. Bowron.

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their life cycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low-carbon products such as gasoline components, jet fuel and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, without limitation, including the hiring of Kimberly Bowron, Gevo’s technology, Gevo’s products, Gevo’s ability to produce products with “net-zero” greenhouse gas emissions, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Investor and Media Contact

+1 720-647-9605

IR@gevo.com

Image Credit: Charles & Hudson (Flickr)

The U.S. has Solidified its Support for Battery Technology Through 2030

 

The global lithium-based battery market is expected to grow by a factor of 5 to 10 over the next decade. The electric vehicle market often steals the headlines related to the needs of electric power storage systems, but lithium-based batteries are becoming increasingly important for commercial markets, stationary grid-storage systems, national defense, and aviation. Because of the increasing demand for power storage, particularly as it relates to global competition, the U.S. Department of Energy commissioned the Federal Consortium for Advanced Batteries to develop the National Blueprint for Lithium Batteries. The “blueprint” was released this month by the Secretary of Energy. It’s a 24-page document that contains five critical goals to guide collaboration between federal agencies through 2030. Understanding what’s guiding government resources and decisions can benefit investors that seek to benefit from the growth.

 

The 24-page report contains five main goals to achieve the overall vision. Below are the goals further defined by other information pulled from the report. (At the bottom of this article is a link for the full version of The
National Blueprint for Lithium Batteries 2021-2030).

• Secure access to raw and refined materials and discover alternatives for critical minerals for
  commercial and defense applications. This goal is set to reduce or eliminate U.S. lithium battery manufacturing dependence on scarce materials such as cobalt and nickel. Securing reliable domestic and foreign sources for critical minerals is a first step toward ultimately replacing the materials in the manufacture of lithium batteries.
• Support the growth of a U.S. materials-processing base able to meet domestic battery
  manufacturing demand. At present the US relies on international markets for the processing of most lithium-battery raw materials. The report recommends government involvement in creating greater processing ability within our borders.
• Stimulate the U.S. electrode, cell, and pack manufacturing sectors. It’s expected that domestic growth and onshoring of cell and pack manufacturing will need ongoing incentives and support for further consumer adoption of EVs. This goal urges developing a federal policy framework that supports manufacturing electrodes, cells, and packs within our borders and encourages incentives to propel demand for lithium-ion batteries.
• Enable U.S. end-of-life reuse and critical materials recycling at scale and a full
  competitive value chain in the United States. Recycling lithium-ion cells will help achieve maximize benefit of scarce materials while reducing harmful environmental impacts of mining or disposal. Currently, recyclers face a net end-of-life cost when recycling EV batteries. New more cost efficient methods of testing, transporting, recycling, will be required.
• Maintain and advance U.S. battery technology leadership by strongly supporting scientific
  R&D, STEM education, and workforce development. Integral to achieving US leadership is a strong pipeline of R&D, ranging from new electrode and electrolyte materials for next generation lithium-ion batteries, to advances in solid-state batteries, and novel material, electrode, and cell manufacturing methods. The R&D is to be supported by strong intellectual property (IP) protection and rapid movement of innovations from lab to market through public-private R&D partnerships.  

 

Take-Away

The US Department of Energy and the Federal Consortium for the Advancement of Batteries encourage cooperation and coordination across the US Government agencies’ advanced battery efforts to achieve a strong and clean manufacturing and development base. Investors looking to benefit from the newly laid out goals may find putting investment capital in companies focused on recycling, production, or materials procurement may be beneficial as the focus continues to gain momentum and support from Washington. 

 

Suggested Reading:

Can Mining be Green and Sustainable?	Inflation’s Impact on Stocks – Four Scenarios

Why Uranium Prices Have Been Rising	Who Benefits from the American Jobs Plan?

 

 

National
BluePrint for Lithium Batteries 2021-2030

 

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Noble Capital Markets Senior Research Analyst Michael Heim sits down with InPlay Oil President & CEO Doug Bartole for this exclusive interview. Research, News, and Advanced Market Data on IPOOF View all C-Suite Interviews About InPlay Oil: InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.