Australia’s EnviroMission Limited and Qatar’s Q Analytica LLC (QA) have signed a non-binding agreement regarding a joint venture to commercialise EnviroMission’s Solar Tower technology in the Middle East and North Africa region.
The joint venture will provide EnviroMission with active involvement in Solar Tower development and also supply capital of US$1.5M from the placement of EnviroMission shares with QA.
Other aspects of the JV include EnviroMission receiving a US$3M development rights licence fee, an annual royalty and technology fee, and equity in all entities formed by QA for Solar Tower development under the licenced development rights.
“This HOA ( Heads Of Agreement) describes the terms of a Solar Tower development Joint Venture for the Middle East and North Africa that will accelerate EnviroMission’s disruptive energy technology into that market to provide reward for participants while maintaining EnviroMission’s proprietorship of all Solar Tower Intellectual Property,” said Roger Davey, EnviroMission Chairman.
A Heads Of Agreement is a non-binding document outlining the main features of a potential agreement.
EnviroMission’s technology, sometimes referred to as a “Solar Chimney” or “Solar Updraft Tower”, consists of huge tower surrounded by a massive canopy. The sun heats the air beneath the canopy, which races up the tower with enough force to drive pressure staged turbines that generate electricity. The turbines are similar to Kaplan Turbines used in hydro-electric power plants.
As an Australian company, Enviromission had originally intended to build a Solar Tower on our own shores, but incentives offered by the Australian Government were “never quite right” according to the company’s CEO at the time.
EnviroMission then set its sights on Arizona for its first commercial plant, which is yet to be constructed. The planned facility will have a tower 700 metres high – more than double the height of Australia’s tallest structure.
EnviroMission says a single 200MW Solar Tower power station development will produce enough electricity to service more than 100,000 typical American households.
Last month, Tokyo-based Valentia became an investor in Enviromission, pledging to source funds globally; beginning with US$10M as a first tranche of a US$110M commitment.
Valentia says a favourable policy landscape, including US President Barack Obama’s Clean Power Plan, was a key driver behind its decision to invest in EnviroMission’s first Solar Tower proposed at La Paz in southwest Arizona.
