DEBT PROCESS
As beforehand talked about, Altech has engaged ten business banks and two enterprise debt funds within the first spherical of financing discussions, receiving largely optimistic preliminary suggestions. Primarily based on this suggestions, the Firm has chosen a most well-liked monetary institution- a European financial institution with a confirmed observe file in offering debt funding for technology-driven tasks, notably these inside the innovation sector.
Though the mandate has not but been formally executed, Altech intends to make an official announcement as soon as this step is full.
In the meantime, the financial institution’s business and technical groups have been diligently conducting a complete overview of the Cerenergy tasks and its know-how. The technical due diligence course of is essential for guaranteeing that the venture meets the financial institution’s financing and danger standards. As a part of this course of the onsite Altech specialists are in detailed discussions with the financial institution’s consultant. The banks have visited Dresden and the Fraunhofer testing amenities and go to Hermsdorf, Germany the place the prototype manufacturing is situated within the coming weeks, which might be a key step in concluding the technical analysis.
In parallel with these efforts, Altech is progressing discussions for securing a federal authorities assure, which might additional strengthen its capacity to safe the required debt funding for the venture. Officers from the Ministry of Finance have already been briefed on the initiative, and the due diligence course of for the appliance is actively underway. This federal assure will function an underwriter and therewith derisk any debt funding for the venture considerably.
EQUITY FUNDING
In parallel with ongoing debt financing efforts, the Group has engaged a number of fairness advisers to help in securing the fairness part of the venture’s funding bundle. As a part of this technique, Altech plans to divest a minority curiosity within the venture to 1 or two strategic buyers. This partial divestment is meant to draw buyers who can contribute not solely capital, but additionally strategic worth, aligning with the CERENERGY(R) venture’s long-term targets of development and sustainability.
The Group on one hand is particularly concentrating on giant utility corporations, knowledge centre operators, funding funds, and firms which are deeply dedicated to the inexperienced vitality transition and however industrial companions with entry and know-how and sources related to Cerenergy battery manufacturing, implementation or market entry. These potential companions are seen as best as a result of their sturdy alignment with the venture’s sustainable vitality focus and their capacity to supply vital monetary help. Progress in fairness discussions has been promising, with a number of Non-Disclosure Agreements (NDAs) signed, enabling deeper engagement with potential buyers. Moreover, draft time period sheets have been circulated to events, outlining the important thing phrases and circumstances for funding. These paperwork present a basis for negotiations and facilitate extra detailed discussions across the fairness stake and partnership construction.
The choice to divest a part of the venture is strategically aimed toward easing the Firm’s monetary burden whereas bringing in skilled companions who can contribute to the venture’s success. By securing each fairness and debt financing, Altech goals to finalize the total funding bundle, guaranteeing the well timed building and commissioning of the CERENERGY(R) battery plant. Shifting ahead, the main target might be on advancing these discussions and changing curiosity into formal commitments, that are essential for the venture’s development.
GRANT APPLICATIONS
Altech has been actively making use of for numerous grants provided by the State of Saxony, Federal Authorities of Germany, and the European Union. The State of Saxony and Brandenburg, together with the European Union, provide substantial help for renewable vitality tasks, together with grants aimed toward changing lignite coal to renewable vitality sources. These grants are a part of broader efforts to transition areas depending on fossil fuels towards sustainable vitality options. Altech’s website, situated in these areas, stands to profit from numerous funding applications designed to help clear vitality tasks, together with EU grants for vitality transformation and innovation. Altech has utilized for a number of of those grants to advance its CERENERGY(R) venture, securing important monetary backing for know-how improvement, high-tech industries, professional employment and infrastructure upgrades.
OFFTAKE ARRANGEMENTS
Altech has secured three key Offtake Letters of Intent (LOIs) for 100% of its CERENERGY(R) manufacturing.
1. Zweckverband Industriepark Schwarze Pumpe (ZISP): An settlement was signed on 13 September 2024 for ZISP to buy 30 MWh of vitality storage capability yearly, consisting of 1MWh GridPacks, for the primary 5 years of manufacturing. The acquisition is contingent on efficiency exams and battery specs assembly buyer necessities.
2. Referenzkraftwerk Lausitz GmbH (RefLau): A second LOI was executed with RefLau, a three way partnership between Enertrag SE and Energiequelle GmbH. RefLau will purchase 30 MWh of CERENERGY(R) storage n the primary 12 months, growing to 32 MWh yearly for the subsequent 4 years. Moreover, Altech will buy inexperienced electrical energy for its deliberate manufacturing plant.
3. Axsol GmbH: A 3rd LOI was signed with Axsol, a number one renewable vitality options supplier. Axsol will solely distribute CERENERGY(R) batteries to the Western protection trade, facilitating early market entry and gross sales. These agreements are essential for financing and advancing the CERENERGY(R) venture.
About Altech Batteries Ltd:
Altech Batteries Restricted (ASX:ATC,OTC:ALTHF) (FRA:A3Y) is a specialty battery know-how firm that has a three way partnership settlement with world main German battery institute Fraunhofer IKTS (“Fraunhofer”) to commercialise the revolutionary CERENERGY(R) Sodium Alumina Stable State (SAS) Battery. CERENERGY(R) batteries are the game-changing various to lithium-ion batteries. CERENERGY(R) batteries are hearth and explosion-proof; have a life span of greater than 15 years and function in excessive chilly and desert climates. The battery know-how makes use of desk salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating publicity to essential steel worth rises and provide chain considerations.
The three way partnership is commercialising its CERENERGY(R) battery, with plans to assemble a 100MWh manufacturing facility on Altech’s land in Saxony, Germany. The ability intends to supply CERENERGY(R) battery modules to supply grid storage options to the market.
