Investment Profile by Pink Investments

 Wasabi Energy

Wasabi Energy (ASX: WAS Aim: WAS)

Wasabi Energy Limited is a clean technology company dual listed in Australia on the ASX (WAS) and in London on AIM (WAS). Wasabi's core businesses provide commercially viable solutions to the worlds energy efficiency and water conservation challenges.

The core businesses operate through three separate companies:

Global Geothermal Limited (GGL) generates power from waste heat and geothermal sources, without fuel. GGL provides alternative energy solutions that are efficient, reliable, safe, clean and cost-effective by deploying the proprietary Kalina Cycle® energy conversion technology. Applicable to over 75% of the world’s power generation market, the Kalina Cycle® is a power cycle technology based on the superior thermodynamic properties of mixtures.

Global Geothermal was formed in 2007 to consolidate the various worldwide entities licensed to deploy the Kalina Cycle®. As a result GGL owns and controls the Kalina Cycle® rights and the over 200 international patents associated with the proprietary technology.The Kalina Cycle® is now gaining acceptance globally as the most efficient process to convert low grade heat into electricity. The Kalina Cycle® can deliver up to a 50% improvement in power generating efficiency over traditional or organic processes. This makes the Kalina Cycle® ideal for utilising heat generated from industrial processes, such as steel or cement making, to produce electricity to supplement the otherwise purchased power requirements of the manufacturing facilities. Global Geothermal has a licensing agreement with Siemens AG, which has so far resulted in the construction of two power stations. The Unterhagen plant in Germany and the Husavikur plant in celand .In Japan, Sumitomo Metal Industries has been utilising the Kalina Cycle® at its steel works since 1999 and a second plant operates at Fuji Oils Tokyo Bay refinery.

In the past year, an agreement was reached with Shanghai Shenge New Energy Resources Science and Technology (SSNE) of China to issue them with a licence to use the  Kalina Cycle®. This is viewed as a major step forward for Wasabi, one that could lead to multiple applications of the Kalina Cycle® and further its global acceptance as the preferred process in utilising industrial waste heat to generate electricity.SSNE paid an initial licensing fee of $2 million and will pay a continuing royalty per KWh of installed capacity of new plants utilising the Kalina Cycle.

The technology can already pay for itself given current power prices. However, the high cost of wind and solar energy means that governments may start classifying waste heat as a renewable. This could be the only way that the EU can realistically meet its target for 20% of energy to be renewable. This would greatly boost demand and increase margins.

Aqua Guardian Group Limited is a water conservation company which invests in and develops businesses, technologies, and solutions for the preservation and enhancement of water resources in Australia and internationally.Aqua Guardian’s first water conservation product, AquaArmour™, minimises the effect of sun and wind evaporation losses on large water storages servicing cities, towns,agri-business and mining projects.AquaArmour™ is an hexagonal‐shaped module made of high quality plastic that when launched on a reservoir or water storage dam takes in water for ballast. In a semi‐submerged state, the modules reduce the amount of light and heat entering that water and provide wind protection to reduce evaporation
by up to 88%. It is the only anti‐evaporation system world wide that is suitable in large scale application.Long term manufacturing licenses have been entered into with Venture Industries, covering Australia and New Zealand, and with Srithai Superware, covering South East Asia.

Australian Renewable Fuels Limited (ARF) is an Australian company currently producing biodiesel at two plants - one in Adelaide, South Australia and another in Picton,Western Australia. ARF produces biodiesel meeting the strictest biodiesel standards worldwide.Each of the plants has an annual production capacity of 44.5 million litres of biodiesel from tallow or oilseed. The plants utilise the Austrian-developed Energea process over which ARF has exclusive rights in Australia. ARF is funding research into the development of a suitable oilseed crop as a source of feedstock for the plants to supplement existing tallow supply arrangements.With increasing emphasis by the Australian government on renewable energy supplies, the company expects that demand for biofuel will increase to the level needed to justify a biodiesel industry. ARF Limited's vision is to become the pre-eminent Australian biodiesel producer by managing a planned roll-out of biodiesel plants within Australia.The Company's expansion program includes the establishment of biodiesel plants overseas.Wasabi now owns 155 million shares representing approximately 25% of the issued share capital of ARF.Wasabi and ARF announced in January 2010 an intention to merge the two companies

Wasabi also has stakes in Clean TeQ, which cleans up the water from mining and shale gas.

Wasabi Energy has grown significantly over the past 12 months and now has the key platforms in place for continued growth and future profitability. The company continues to deliver on its objectives and is building a portfolio of assets to make it a profitable company that delivers sustainable solutions to environmental problems.

The past year has been transformational in positioning Wasabi Energy for future growth, but obviously, given the field it operates in and its size, it’s not a stock for the faint hearted. But if you’re looking for an interesting speculative play on alternativeenergy that should be able to avoid the pain of a China slowdown, it could be worth a look. 

Wasabi Energy (ASX: WAS; Aim: WAS)