350 PPM UPDATE + STL, MHK, WES AND OTHERS

350 PPM UPDATE + STL, MHK, WES AND OTHERS

350 PPM Companies Update

Please note, all of the companies detailed below have their own investor relations teams, which are specially trained on the company, its developments and prospects. If we introduce you to any of these businesses, we gain an introduction fee, which pays wages and finances our research, which you can view here for free: FREE of Charge or Obligation.

All information provided for information only.

If you do wish to forward this update onto friends and colleagues, you may wish to sign an Introducer Agreement first. If you do so, their will be an introducer Success Fee paid to you, in shares by the specific raising company that is invested in. This will not affect the Introducer Fees paid by the company, it will just affect, who receives the benefit.

The legal justification for this is in the raising agreement and it is an approved method as per the Financial Conduct Authority of The United Kingdom. Further details at the end of the update or contact Alexe@350ppm.co.uk for further information.

Updates as follows:

350 PPM LTD 

350 PPM

For those of you that voted in the Shareholder Vote to remove two Directors of 350 PPM (thank you for your votes), you would have realised that a difficult year was in store.
 
It has only been since February of this year that we have been able to start the recovery process. It is unprofessional for me to comment ongoing issues, suffice to say things have moved strongly in our favour. I will happily tell you the full story at a later date.
 
Before this happened, I was offered £7M for 30% of the business, which means a £21M valuation or 21,000,000/2,333,096 = circa £9.00 per share. Obviously, this is a significant paper profit for those that bought at 0.25, 0.80, 1.50, 2.40, 3.60, 4.20. At the time we had  circa £260,000 in the bank, so I did not need additional cash and didn’t proceed. But I am afraid, if I was offering right at this minute, we would be down at £1.50 (a valuation of circa £3.5M) or maybe £2.00 / 2.50.

On the positive side, the break and breather has given me time to reimagine 350 PPM and build back 350 PPM 3.0 stronger and more nimble; and yes, I have been through tough times before and reimagined and relaunched the business successfully; however, nothing has been as challenging as the last 15 months. From what I have read, things come back pretty quickly, as is happening now, and this has been helped by positive developments within the companies we have consulted with. Ironically, it has probably done the raising companies good well, as they stop trying to raise funding from investors and start billing client companies – in other words monetising their efforts.

350 PPM’s strategy now is to assist in making a huge success of one of the businesses and in doing so will gain the connections to assist the others and other viable companies in the process. Our development strategy has also changed and we now intend to focus on innovation, in the same ways the raising companies do.

A summary of the companies we have consulted on over the last 4 years are detailed below. New additions to the fleet are detailed further down and then there are specific reports on Storelectric, My Healthy Kick (+ MHK Sustainable Aquaculture) and Waste to Energy Solutions.
 
So:

  1. Disarmco: we assisted in raising £260,000 for Disarmco Ltd in 2017, but have no update (if you are a shareholder you might want to drop Arpana a line –  Arpana Gandhi  arpana@disarmco.com): my primary objection to funding the business was that there was no global treaty forcing countries to dispose of abandoned ammunitions, but in this world of ethical ESG investing it’s got to be coming.
     
  2. Waste to Energy Solutions; is detailed below and is making progress but has had a tough time;
     
  3. Shine Australia One, has expanded its project portfolio to 10 * 7 MW projects with the first project close to being sold at Pre-construction development – i.e being sold at Ready to Build..
     
  4. Solar 350 and Subsidiary PAPA ONE LTD; have one 100 MW / 30 MW Battery project in development in Mexico, partnering with a major EPC. Development has been delayed due to COVID, but they are now planning significant expansion.
     
  5. 350 PPM, already detailed above has had a tough 12 months. The company did however make profits of £366,871 to November 2019 and while the last year has been difficult I anticipate will bounce back very strongly. The structures I am putting in place now, should enable us to take things to the next level, but we have some catching up to do.
     
  6. Plastic Green Power Ltd, has developed a zero waste system that deals with plastics. Because of the huge subsidies and penalties on dealing with plastic, these plants are exceptionally profitable. However, they still have undergo Pre-Construction Development and Development. A Chairman and Managing Director are due to be appointed to PGP, also creating an board, and there is apparently considerable interest from the oil/plastic majors, who are keen to acquire the plants once built. A bond for €180M is rumoured to be being considered in order to finance the three plants. For further information please contact ndimmock@plasticgreenpowerltd.com or visit www.plasticgreenpowerltd.com
     
  7. Storelectric Ltd, has been granted a Green Hydrogen Production, Storage and Energy Generation Patent. They filed this in 2015 before anyone was really talking about Hydrogen and in my opinion it covers circa 50% of the green hydrogen market. They now just have to get their project pipeline going. Further details below.

In development, we have:

My Healthy Kick Ltd; with subsidiaries; MHK FCMG (fast moving consumer goods) and MHK SASL (Sustainable Aquaculture Sociedad Limitada – which aims to completely disrupt the food value chain by creating zero emissions high quality protein from bivalves – the CO2 is permanently sequestered in the shell which is made roughly of CACO3 – Calcium Carbonate – which you might know more commonly to be called Limestone. Nacre – which is other of pearl is simply crystallised CACO3) – more below;

Carbonise Ltd; (with full European rights to modular technology which “carbonises” municipal solid waste and landfills reclaiming now valuable real estate post urban sprawl and generating energy in the process). This is most likely to be a less technical solution than Waste to Energy Solutions and Plastic Green Power, but has its own applications. Details to follow at a later date.

I am hopeful we can now move back to quarterly updates. Next one should therefore be due in January.

STORELECTRIC LTD 

So let me just take you through the significance of the problem. Figures are best estimates and mostly from Jeff Draper, Storelectric’s CFO. Opinions are my own from discussions with various parties over time:

  1. The world uses 36,000 TWh’s of electricity and 180,000 TWh’s of heat. So that’s 210,000 TWh’s per year. Even though we think that everything will go through electricity distribution in the future (please lets forget about the madness of Hydrogen Boilers in the home – I maybe wrong), lets just focus on the electricity portion: 36,000 TWh’s – or 36,000,000,000 MWh’s.
     
  2. Without fossil fuel generation kicking in when needed, electricity prices would be even more volatile. Yet even now we regularly see minus £50 MWh (windy nights) and when the Beast from The East hit Europe in 2018, circa £3,000 per MWh, even with fossil fuel generation. Prices will only get more volatile now as we take the baseload fossil fuel generation off line and the real problem moves from being weekly storage to seasonal storage.
     
  3. There are two vectors to deal with renewables intermittency. One option is to build say 10 times the amount of renewables you need across a variety of technologies including relatively predictable ones like tidal. The second option is to have utility scale energy storage to the tune of 12,000 TWh’s of Energy Storage on the generally accepted ratio of: 3 Renewables to 1 Energy Storage.
     
  4. However, to put this into context and ascertain how far away from a net zero system we are; the largest battery site (in Australia) can hold 1/8000 of a TWh or 125 MWh’s. A decent CAES system can hold 1/500th of a TWh or 2000 MWh’s.
     
  5. The ultimate solution would be utilising decommissioned oil rigs in the north sea and their associated oil wells as CAES systems, Hydrogen CAES, or straight hydrogen production facilities. The rough field in the North Sea used to hold 30 TWh’s of Methane which is more energy dense than hydrogen but cannot be compressed so easily. According to Statista, it is forecast that 615 oil wells on the United Kingdom continental shelf (UKCS) will be decommissioned between 2020 to 2029.
     
  6. Let’s say, on average, each platform and well combination can hold 5 TWh’s of Hydrogen. Then we need to repurpose 7,200 Oil Well / Rig combinations by 2050 to achieve net zero. In absence of a better solution. Storelectric have investigated this strategy and most likely will now be pursuing it. 

Jeff Draper, Storelectric CFO,  comments on the situation with Renewables and The Solution:
 

Hi Nick

The equation is approximately:

Summer makes twice as much RE as in Winter (mainly solar)
Winter has twice the energy demand as Summer (mainly heat)

So the imbalance is 4:1 and it will get worse.

ie. if there was no storage, and just enough RE was built to power for the Summer, then come Winter, that RE will go down by 0.5x (as not as much sun) but the demand will go up by 2x (mainly heat but light for longer nights as well). So where will the extra energy come from, if not fossil fuels?

The problem is not evident right now, because fossil fuels make up the imbalance. People like to think getting rid of fossil fuels is easy just by building wind and solar, but you will have to build 4x the amount of wind and solar that you use in the Summer, if you are not going to run out of energy in Winter, if no storage. 

Most people just don’t understand the scale of the problem, or the absolute need for storage unless you are going to build an unnecessary $300 Trillion of renewable energy capacity for Winter time that will mainly be unutilised in the Summer due to lack of demand.

Build the storage capacity at 1/10th of that cost, $30 Trillion (this is a guess but will probably be much lower, maybe as little as $3 Trillion as the infrastructure, like oil rigs and depleted gas fields, is there already) and you just need the excess Summer RE, stored for Winter use. Like squirrels storing nuts for Winter! It’s that simple.

A lot of people get the concept but don’t know the solution. Renewable hydrogen stored geologically in the disused infrastructure of the fossil fuel industry is the answer.

In 3 words – Store hydrogen geologically.

Hope that helps, but please ask if you need further clarification. Quote anything I have written in these emails directly if you want, Nick.

Kind regards

Jeff Draper
Director
Storelectric Ltd
 
Supporting information below:


Video from Storelectric Winning Shell Springboard is here:
Video from Storelectric Winning NAM Challenge is here: (Scroll down)
Latest Promotional Video is here:
Storelectric on CNBC here:
Storelectric’s CTO Comments on Gigawatt Scale Storage for Renewables here:
350 PPM’s Research on Grid Scale Energy Storage is here:
350 PPM’s Research Note on Hydrogen is here

Please come back to me for further details on investor-relations350@storelectric.com or visit: www.storelectric.com

MY HEALTHY KICK LTD

Stephen Knockton, My Healthy Kick Ltd’s Managing Director has over 40 years’ experience in the food industry. His grandfather sold the family’s Fish business in 1951 for £11,000,000, so it is in his and his family’s blood. Roger Mckechnie, MBE for services to business, is Chairman. Roger was founder of Phileas Fogg Foods. Both of them have two signicant exits in food business, but try and get out before big company politics kicks in.

The rumour is that Costa Coffee commissioned Stephen for the development of a healthy bottled milk drink that they could sell to their customers for “elevenses”. Since then My Healthy Kick Ltd has been formed, branding for drinks: Moo-Vit and Vit-Kick, and confectionary bars; Nibble-Vit and Choco-vit have been developed. The company is running through its development milestones expecting a exit to FMCG major in 3 years’ time for circa £125 Million. At this point it is anticipated that investors will have the opportunity to exit in whole or in part.350 PPM may have an earlier exit for investors should they want it – more later.

Stage 2 – MHK Sustainable Aquaculture SL: Utility Scale Production of Bivalves (Limpets, Mussels, Oysters, Scallops etc) using Upwelling Technology that creates Phytoplankton Bloom and Emission Reduction Subsidies from UNFCCC.

When I first became involved in the environmental markets in 2007, agriculture was tabled at 13% of global emissions. I believe deforestation for cattle grazing was excluded as was environmental degradation from trawling, as well as food production and many other components that are attributable to the food value chain. Now it is rumoured that the food value chain accounts for 51% of global emissions and TV shows like Cowspiracy, Seaspiracy and Gamechangers have focused investors and consumers attentions on it and the health benefits of a non-meat diet.

Ultimately, we need to get away from meat. This is due to the Carbon Emissions produced from Meat especially Beef – 1 KG of steak has a carbon foot print of circa 100Kg CO2e (btw before you say that this is impossible, the way they calculate CO2e emissions is based on the time it takes the natural processes of the earth to turn the CO2e back into its constituent parts, which is generally considered 100 years. This is why a litre of petrol has a carbon footprint of 2.4 Kgs, and you’d say naturally this is impossible as 1 litre of petrol weighs less than a litre (https://www.carbonindependent.org/17.html#:~:text=CO2%20from%20fuel%20use%3A,1%20gallon%20is%204.546%20litres), and a water requirement of 90 Gallons. So it’s either going to be plants, seafood and insects or a combination.

The breakdown of emission from various foods can be found here: https://ourworldindata.org/carbon-footprint-food-methane, Scroll Down…..

So here is the rub Part 1: Once Article 6 of The Paris Agreement is agreed in Glasgow at COP 26, there should be very significant emission reduction subsidies for Bivalve production against Beef Production. If the subsidy agreed is priced at €25 against an EUA (European Union Allowance)  price of €100, or say 1/10th (€10), and we can get our utility scale process registered as a Methodology with the UNFCCC, then for every 10Kg of Bivalve we sell, replacing beef, we would get a €25 or €10 subsidy. Obviously, if we can farm bivalves using the upwelling wave technology offshore which then creates phytoplankton blooms and ecology develops rapidly where previous there was none, and there will be little restriction on scale because we are far from the coast, we can probably franchise the solution worldwide. We would also receive subsidy based on the CO2 sequestering properties of other vegetation that grows rapidly such as kelp and seaweed.

Here is the rub part 2: although this has little financial value: For years, Limestone has been used as a building material. Most churches are made of limestone and is still used widely throughout the construction industry. The chemical formula of Limestone fundamentally is CACO3; calcium carbonate. The CO3 means that it sequesters CO2.  The chemical formula of bivalve shells is fundamentally CACO3. I am not an anthropologist or a geologist so I am not sure of the role that bivalves have historically had in reducing the amount of CO2 in the atmosphere down to the long term low of 275 parts per million (a trend we are now bucking through manmade emissions), but if there is all this stone around that is CACO3, how was it originally created – bivalves over billions of years ?

Regardless, what is evident is that bivalve production for nutrition is close to a zero emissions activity. Adding to this we are adapting an existing wave technology to create upwelling in deep water of up to 300-500 metres, meaning cheap rents and no restrictions on scale (as you would get close to shore) and based on these four factors; subsidies for emission reductions; upwelling and the move to shellfish and away from beef/meat, plus the ability of Stephen and team distribute the shellfish and to monetise the FMCG for circa 125M giving us some decent cash to deploy and dominate, the future looks rather bright.

 Please come back to me for further details on nickd@350ppm.co.uk or visit: www.myhealthykick.com

Waste to Energy Solutions LTD

Autumn 2021 Update

The last 18 months have been the very toughest period for Waste to Energy Solutions (WES) since it was created in November 2018. During the extended Covid lockdown and restrictions of movement and face to face contact, WES found it extremely hard to continue developing the various projects, where site visits were fundamental, and where so many onsite activities needed to take place to enable projects to continue to be developed.

This put back at least two of our major projects significantly and we lost the rights to two others where we had invested a significant amount of time, resources and investment of land deposits, legal costs, and various other real fund expenditure. WES management have however continued to persevere with two main projects in Corby and St Helens and have worked very hard to retain these projects, spending extraordinary amounts of time and various team and zoom calls to keep the projects moving forward.

Government support was very limited to help support our desperately needed working capital requirements, and only a Bounce Back Loan has helped maintain our very survival. However, we are still working currently without any working capital, using our own personal resources and pushing very hard towards our eventual goal of financial close on our Corby project, and maintaining our presence at our St Helens project.

Financial close at our Corby project will mean, finally, income being received via development fees for WES and from this we can then finalize the start of an EIS scheme, which HMRC will not let us set up until revenue has actually started. We have advised our accountants however to look at an SEIS scheme for our early investors, (which is limited to only the first £150k of total investment into the company) which we understand now should be allowed and are currently awaiting this structure to be enacted to provide our early Investors potential tax relief and other SEIS benefits.

On a more positive note, one of the Directors of WES has been in discussions with new technology providers, at least one new site and engaged with new Infrastructure Capital Investors, which provides a more positive optimistic outlook for the future. The fundamental basis of WES being a smaller waste to energy developer, dealing in more localized solutions for the benefit of the immediate local economy continues to be our key objective where we know from various industry reports is the future in using residual waste, as a resource, to benefit the communities where the waste is generated.

Smaller WTE facilities are now very much the future and WES is getting back on track to be at the forefront of this fundamental shift to more localized solutions to generate off grid microgeneration power and heat plant facilities.

We look forward to your continued support as investors in WES, and if you also feel you wish to further invest further with us, we would be only too pleased to hear from you directly
Naturally we will aim to keep you updated as we progress our current and future projects.

Thank you

Yours faithfully

Phil Allan
Managing Director
Waste to Energy Solutions Ltd
25th August 2021

Please come back to me for further details on nickd@350ppm.co.uk or visit: www.wastetoenergysolutions.com

To Conclude

It’s been a tough time for everybody, and if managements didn’t think there was a future in their endeavours, Covid would have provided a suitable excuse for them to fold. There is no reason for them to think that, they just have to keep going and at some point their relative competencies will intersect with market demand and they will catch the wave.

Conceptually, in my opinion the structures that have assisted in reducing emissions and generating environmental wealth so far are: 1. The Clean Development Mechanism (2000-2012), Emissions Trading Schemes (2005 onwards) and Kyoto Protocol 2007-2012 (which are all really part of the KP but just started at different times); and 2. Reductions in costs of renewable energy generation.

What will now make a huge difference are a return to the Securitization of Emission Reductions through agreement for Article 6 of The Paris Agreement, due to be agreed in Glasgow in November 2021 and utility scale energy storage at around 33% of the density of renewable energy. In other words for every 3 MWh of Renewable Energy produced we will need 1 MWh of Energy Storage, which can be called upon when needed

I don’t want to be overly optimistic, but if this revolution started in 2000 (which it did), I got in in 2007, and the target of net zero is 2050, the best is definitely yet to come. Yes, I know we are all getting old, which is why one of 350 PPM’s new innovations will be an exchange that allows the trading of private companies – which means you can sell when you want, subject to liquidity.

If you have friends, colleagues, business associates, wealthy ex-wives, wealthy ex-husbands or rich and powerful enemies, that are crazy enough to back early stage companies in the environmental space, please don’t hesitate to forward them this update. However before you do this, you are very welcome to email Alexandra (alexe@350ppm.co.uk) and register as an Introducer.

We own shares in all of the above companies and getting some additional investment into a nascent business means giving away our Introducer Fee in return for a new investor, that works for us. On average, it generally works out as about 4% paid to you in shares in the company, that your introduce subsequently invests in. There are some restrictions, which we will make you aware of, but in essence they are as follows: that you cannot do this professionally. Essentially, it should be “word of mouth” / “in passing” –  You can’t be organising conferences to promote investment in these companies.

Please don’t hesitate to come back to me if you have any other questions (nickd@350ppm.co.uk), but please do be ready for some innovations that I hope will be game changing for investors within the above companies.

Kind regards
Nick Dimmock
Managing Director
350 PPM LTD
 

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