Texas One Step Closer to Commercialization of Solar Thermal Updraft Tower Technology
Texas Solar Thermal Updraft Tower Head of Agreement signed.TOWER HEADS OF AGREEMENT SIGNED
EnviroMission Limited (ASX: EVM, OTCQX: EVOMY) and Texas based Apollo Development, LLC (“Apollo”) has signed a landmark Heads of Agreement to commercialize Solar Tower renewable energy technology in Texas.
In consideration for granting the Texas development rights to Apollo, EnviroMission will receive equity in Apollo, a non-refundable US$2,000,000 development fee (US$400,000 received), and an annual royalty and technology fee from future Solar Tower developments in Texas.
It was previously announced EnviroMission would receive a 20% free-carried stake in Apollo that could be diluted to 10%; EnviroMission’s free-carried non-diluting equity in Apollo has been renegotiated to not fall below 15%.
“The 5% increase in the non-diluting free-carried equity threshold to 15% stands to deliver 50% greater value to EnviroMission shareholders,” said Roger Davey, Executive Chairman and EnviroMission founder.
“The commercial in confidence terms of the annual royalty and technology fee was also renegotiated with Apollo to provide greater mutual commercial benefit applying a methodology that will take into account the economic variables associated with capital cost and annual revenues.
EnviroMission will be represented on the Apollo board of directors with two seats, one of which will be taken up by EnviroMission’s Executive Chairman and Chief Executive, Mr Roger Davey.
EnviroMission continues to be the global developer and proprietor of Solar Tower technology and will provide lead developer services to Apollo for the timely commercialisation of Solar Tower technology in Texas.
“Apollo is planning to develop multiple Solar Tower power stations to benefit from the economy of scale of an integrated construction timetable and has planned initial siting studies for the high solar radiation regions of El Paso, Laredo and the Permian Basin,” Mr Davey disclosed.
“Apollo is confident the capital cost and conforming power profile of Solar Tower technology will deliver a highly competitive first-to-market renewable energy opportunity to the energy mix required to replace the current raft of carbon based power plants being retired for economic and environmental reasons in Texas,” Mike Rowley, Apollo spokesperson said from Dallas, Texas.
Solar Tower technology uses solar radiation to heat a large mass of air to drive turbines for electricity generation – the technology does not use water and a 200MW grid connected power plant will abate in excess of a million tonnes of greenhouse gases annually.Tags: renewable energy technology, solar tower, updraft tower
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