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Solar Millenium (SMLNF.PK) speculative investment in Solarthermal with biggest solar plant on the world

|Includes: Abengoa S.A. (ABGOF)

 
Solar Millenium PINK:SMLNF is with Abengoa ABGOF.PK on of the still few possible Investment in the Solarthermal (CSR-Technology) area.

The Company has a Market Cap, of about 250 Mio. EUR and has become the target of traders, due to its project driven Business Model.

With its three Andasol plants in the South of Spain, the german-based company could successful prove its ability to finance and construct projects of an impressive size, which are still the biggest working CSP-plants on the planet.

The Advantage of CSP is, that it is possible to store the electricity until 8 hours and the plants are cheaper then PV-plants, but need more space, and cannot be installed decentralized. Therefore it could be the core element of renewable energies, because it can be scaled out and accompany the unsteadily windpower

California has passed the project proposals for Abengoas Mojave and also for Solar Milleniums Blythe, with 1000MW the biggest solar plant on the world so far, which will cost up to 6 billion USD, which is in comparison to the market size a interesting investment possibility.

But here also lies the problem, because many Investors still have doubts about the ability of the company to finance the project, although Chevron should be on board.

It is a little like a Biotech Investment, which is depend on one project, but if you think that the probability of successful financing Blythe is higher than 50% you should think about an investment, not only due to the reason, that CSP could reach the size of PV in 10-20 years and we experience now the very beginning of the marketability of this technology. In Germany there are plans to get a substantial part of their electricity from Africa with this technology ( http://www.spiegel.de/spiegel/print/d-70500973.html )

However, SM remains a speculative Investment, due to internal problems , in a exciting industry


Disclosure: PINK:SMLNF

Disclosure: SMLNF.PK