FTSE 100: 7471.01 ▲ 17.53 (0.24%)

David Kempton: update on RedT Energy

David Kempton: update on RedT Energy

by Gavin Lumsden, David Kempton Jul 17, 2017 at 07:00

In the development of economical and effective renewable sources of energy, power storage is an essential part of the mix. 

In different parts of the world, climatic and geological conditions dictate the predominant source of renewable energy, but whether this is wind or solar, power storage is paramount for those windless days or when the sun doesn’t shine.  

Renewables have their critics, but the importance of clean energy is undeniable and Britain has already achieved a day this year when more than 50% of electricity came from renewable sources; Germany, where development has been faster, achieves this regularly.

Energy storage has seen emphasis on the use of lithium batteries to meet the demand for frequency response in various industries; predominantly the fast growth of electric and hybrid cars, but for large scale storage systems the vanadium redox flow batteries will produce consistent energy for much longer periods.

In my three New Year stock picks, which I updated last week, I included RedT Energy (RED), where the share price performance has been disappointing, not helped by last Thursday’s AGM statement of slower sales.

However, RED has 265 tank unit modules in final stages of customer selection, up from 101 indicated only three months ago with the final 2016 results and active customer enquiries increased to €314 million.

The Gen2 sales have been slower than projected but look to be gathering traction with a new focus on the development of Gen3. The market for durable long-term energy storage develops faster than expected, most significantly in the UK and Australia.

Mid term the markets for RedT’s products are looking stronger than the projections; I’m sticking with my RedT and would look to buy more on any good announcements from the company.  However, this is a new disruptive industry taking shape and you’re investing in a future technology, albeit well proven, if not yet fully understood in the market.

 

Add a comment

Comments  (2)

  • Micawber: 

    Meanwhile thanks for drawing Bango to our attention, David. Of your recent picks, that's the one I liked the look of and it's made me 31% already.

    17:15 on 18 July 2017

  • Crusty: 

    The prospects of updated/improved/cheaper models coming along must deter early mover customers. Needs to be taken over by much bigger outfit imo. Shell or BP for example. I hold a few.

    13:12 on 10 September 2017

Please use a browser with javascript enabled in order to post a comment

Mobile | Desktop