Altech Batteries Ltd (ASX:ATC, OTC:ALTHF) has appointed global corporate advisory firm KPMG to assist in securing finance to construct the 120MWh CERENERGY® battery plant in Germany.
The decision follows the recently announced definitive feasibility study for the project, with Altech now moving forward to obtain sales offtake for the project and sourcing finance to construct the plant.
KPMG will be financial adviser to the company on potential financing transactions and provide service on public grant/subsidies programs. The company says that “all financing options” will be considered including project equity, green bonds, grants and subsidies.
"Potential to be revolutionary"
Altech chief financial officer Martin Stein said: “Altech has battery technology in CERENERGY® that has the potential to be revolutionary as the world transitions to a renewable energy future. Altech has the worldwide rights to manufacture, license and distribute the battery globally.
“In appointing KPMG with its global network, strong reputation and credibility, Altech believes that KPMG will greatly assist with the financing process for its 120MWh CERENERGY® battery plant in Germany and will strengthen Altech’s position in securing the finance required.”
The CERENERGY® project
The CERENERGY® project — being developed by Altech Batteries GmbH (75%) and its German government affiliated joint venture partner Fraunhofer IKTS (25%) — is planned for construction on Altech’s land in Saxony, Germany.
Altech’s recent DFS demonstrated a net present value (NPV9) of €169 million (A$279 million), at a conservative capital cost estimated at €156 million (A$258 million), and generates significant net cash flow of €51 million (A$84 million) annually from operations.
The internal rate of return is estimated at 19%, ensuring a capital steady state payback in just 3.7 years.
Once the project moves to full production capacity of 120 1MWh GridPacks, annual revenue is anticipated at €106 million (A$175 million). With an EBITDA of €51 million (A$84 million) — for a margin of 47% — the project has compelling economics, even at this relatively small first production line capacity.