Enerji powers up another MOU

THE BOURSE WHISPERER: Emerging power utility, Enerji Limited has entered into a memorandum of understanding with Energy Developments.

With more than 275 Megawatts (MW) of installed capacity at 32 remote sites EDL is Australia’s largest independent remote energy business in the one to 100 MW field.

Under the terms of the MoU, Enerji will work with EDL to assess the viability of its waste heat recovery system, with the Opcon Powerbox, at existing viable EDL nominated sites and selected new sites for which EDL is submitting tenders or proposals.

If a site is found to be commercially viable for both parties then bona fide negotiations for a binding supply agreement will commence.

Enerji said its preliminary estimate demonstrates potential for in excess of 10 Opcon Powerboxes over the next two to three years, with some sites having capacity for multiple Opcon Powerboxes in the near term.

“We are very pleased to enter into this MoU with EDL providing a framework for entering into future binding supply agreements should further studies prove the viability of our waste heat recovery system using the Opcon Powerbox,” Enerji Limited chief executive officer Greg Pennefather said in the company’s announcement to the Australian Securities Exchange.

“This MoU represents a great opportunity for Enerji to work with an industry leader and specialist in remote energy.

“It presents the scope for the company to scale its business in its target market sector.

“This is the culmination of more than a year’s work and clearly demonstrates our ability to build the necessary relationships in this business.”

Enerji has ordered six Opcon Powerboxes.

The company said this MoU with EDL, which follows quickly on the heels of another recently announced MoU with Poseidon Nickel, together with the other sales prospects Enerji is pursuing, has the potential to use the ordered units.

Enerji is targeting to be operationally cash flow positive from when the fourth Opcon Powerbox is installed and commissioned.