REDT
Posted: February 7th, 2018, 11:32 am
I've been following these for a while, now bought some!
they were mentioned by MrC recently, but what he failed to mention was that although they have exited their energy business, they have also made orders 3 fold over previous sales.
http://www.londonstockexchange.com/exch ... 38200.html
Now they have been a small company making these grid-scale energy storage units using NASA technology, and have been struggling to get acceptance of them in the market - after all, nobody really wants grid batteries as they're too busy adding more renewable generation. But that will end eventually as renewables are too intermittent to power the grid by themselves; but also there is a market for areas that cannot be added to the grid - either because the grid company wants too much money to upgrade the connection (eg NG, solar farms today get charged a fortune to be connected as the grid is designed around centralised generation) or places where there is no grid, such as Africa.
Its the latter where they are making strides now, I assume because the technology has proven itself, and their initial sites can show that the things work.
So South Africa is now a market with their units, and Botswana has bought 14 of them, and they have just sold a unit to Melbourne university. this later is the most exciting one for me - Australia has huge problems with its power network, brown outs are reasonably common and nobody wants to build more fossil fuel power plants. RedT's sales tactics seem to be to get a unit in place to demonstrate to the locals, and from there sales roll in.
It is a small cap, and it is early days for grid scale batteries, but these are much more cost effective long-term than Elon Musk's lithium-ion batteries and more environmentally friendly (relatively speaking!). they are also launching their 3rd generation units this year which (I assume) will be more cost effective. Given the push for renewable generation policies around the world, I think these are a good long-term bet. There's little other manufacturer that makes such things, if you exclude Musk, and Lithium-ion batteries really aren't suitable for grid-scale daily charge/discharge cycling, so Red''s units should be quickly cost effective compared to them (Musk has economy of scale to back his pricing)
So although its little known and thus a quiet stock that is reasonably volatile, its got huge potential and is only just starting to take off.
they were mentioned by MrC recently, but what he failed to mention was that although they have exited their energy business, they have also made orders 3 fold over previous sales.
http://www.londonstockexchange.com/exch ... 38200.html
Now they have been a small company making these grid-scale energy storage units using NASA technology, and have been struggling to get acceptance of them in the market - after all, nobody really wants grid batteries as they're too busy adding more renewable generation. But that will end eventually as renewables are too intermittent to power the grid by themselves; but also there is a market for areas that cannot be added to the grid - either because the grid company wants too much money to upgrade the connection (eg NG, solar farms today get charged a fortune to be connected as the grid is designed around centralised generation) or places where there is no grid, such as Africa.
Its the latter where they are making strides now, I assume because the technology has proven itself, and their initial sites can show that the things work.
So South Africa is now a market with their units, and Botswana has bought 14 of them, and they have just sold a unit to Melbourne university. this later is the most exciting one for me - Australia has huge problems with its power network, brown outs are reasonably common and nobody wants to build more fossil fuel power plants. RedT's sales tactics seem to be to get a unit in place to demonstrate to the locals, and from there sales roll in.
It is a small cap, and it is early days for grid scale batteries, but these are much more cost effective long-term than Elon Musk's lithium-ion batteries and more environmentally friendly (relatively speaking!). they are also launching their 3rd generation units this year which (I assume) will be more cost effective. Given the push for renewable generation policies around the world, I think these are a good long-term bet. There's little other manufacturer that makes such things, if you exclude Musk, and Lithium-ion batteries really aren't suitable for grid-scale daily charge/discharge cycling, so Red''s units should be quickly cost effective compared to them (Musk has economy of scale to back his pricing)
So although its little known and thus a quiet stock that is reasonably volatile, its got huge potential and is only just starting to take off.