(This blog has also been distributed via email).
Dear 12J Investors,
In this issue of the newsletter, we detail the following:
TL;DR:
- We are thrilled to announce that we already commenced with the first 3 MW of our recently acquired 5 MW mega-project. Our target is to commence energy generation from this site by February 2024. We are also in the process of developing and launching the next two 1 MW projects soon, coupled with 12B funding.
- We are furthermore proud to announce securing our first project in the Western Cape agri-sector, supported by an industrial-scale Battery Energy Storage System - a significant milestone for our fund.
- The growth of a company is also measured by the caliber of its team. We extend a warm welcome to James Rothmann, the former CFO of Anuva Energy, who has joined the Futureneers Energy family and has already made his mark.
- Some less sunny news (excuse the pun): Regrettably, we must report that an unforeseen windstorm in Centurion inflicted severe damage to the roofs at our Sunderland Ridge Plant. We would like to assure you that the situation is under control, and we have initiated the necessary actions and insurance claims. A comprehensive report will follow in our next newsletter.
- On a financial note, we are pleased to inform you that dividend payments have been successfully disbursed. Furthermore, the special resolution to streamline future share sales has been duly accepted and approved. The detailed voting results can be found within this newsletter.
- Lastly, a reminder for your calendars: Our first Zoom feedback session and shareholder meetings are scheduled for October 25th. We look forward to the opportunity to discuss our solar ventures and address any questions you may have.
NICOLOR 5MW GOLD PROCESSING PLANT: 5 MW PPA SECURED
As you may recall from the previous newsletter, we've secured a 5 MW Power Purchase Agreement (PPA) with Nicolor, a well-known gold processing plant 40 kilometers from Potchefstroom and 27 Kilometers from Klerskdorp, wth the PPA being concluded for 25 years. The mining site has a rich history dating back to the 1950s, and the processing plant was recently taken over by local operators from a Chinese mining group.
We're very proud to have been selected as Nicolor's preferred energy supplier, and this project is a significant step forward for us. It's the largest project we've taken on so far.
In line with our phased approach, we've already started working on the engineering and procurement for the first 3 MW ground-mounted solar plant, including a complicated connection of the plant to a nearby Eskom substation. Construction at the site has already kicked off and we're aiming to start generating energy there in February 2024.
We'll keep you updated on our progress and how we plan to potentially commercialize the additional 2 MW in the medium term.
INTRODUCING OUR NEW CLIENT IN WELLINGTON
We're thrilled to announce that we've recently partnered with a farming operation in Wellington. This client not only farms but also runs a nursery and fruit processing plant from the same property. This project furthermore marks our first venture into battery technology and is also our first collaboration with Forest Energy Solutions as our Engineering, Procurement, and Construction (EPC) partner. As you may recall, we started implementing our strategic partnership models a few months ago, which is now starting to result in successfully securing projects.
This project comprises a 300 kWp roof-mounted solar system combined with a 600 kWh battery energy storage system. The solar power will be provided through a 15-year Power Purchase Agreement (PPA), while battery support will be available for 10 years.
Our timeline is looking like this: We plan to start construction in the last week of October with the anticipated date for commercial operation being January 2024.
A WARM WELCOME TO JAMES ROTHMANN
We're delighted to introduce a valuable addition to our Futureneers Energy team. James comes to us with a rich background, having served as the CFO at Anuva Energy. He boasts extensive experience in the solar industry and is well-versed in tax structuring. What's particularly exciting is that James, along with the Anuva team, was instrumental in launching the first Section 12B energy fund a few years ago - well ahead of the enhanced 125% incentive recently announced by government. We're thrilled to have his expertise and energy on board, and we look forward to all he will bring to our team. Welcome, James!
UNEXPECTED WIND STORM DAMAGE
While Gauteng didn't recently experience the heavy rains of the Western Cape, we faced an unexpected and severe wind storm in the last week of September This powerful storm caused significant damage to the roof tops (including solar panels) at our Sunderland Ridge Site in Centurion, Pretoria - see some pictures above.
Fortunately, we do have insurance coverage for such situations. However, it's important to note that there may be some delays in repairs and definitely revenue losses not covered by the insurance. Currently, the investigation and insurance claims are underway, and we'll keep our investors informed about the progress on this matter in our next newsletter.
SHAREHOLDERS RESOLUTION FOR EASIER SALE OF SHARES
As part of the dividend package sent to our shareholders, we proposed a simpler method for selling and restructuring shares. We're pleased to report voting as follows:
- Approved by 96 shareholders and Rejected by 1 shareholder.
This means the special resolution is now officially adopted, making it easier for us to streamline future share sales and maintain your investments effectively. Thank you all for participating..
ZOOM SHAREHOLDERS MEETING
As previously mentioned, as part of our efforts to ensure our investors are better informed, our first zoom shareholders meeting and feedback session has been scheduled for Wednesday, 25 October at 18:00. Please diarise. This zoom session will also serve as a shareholders meeting similar to an AGM and we aim to also present and approve financial statements of Futureneers Capital for the year ended 30 August 2023 at the meeting.
Please refer to the zoom link below for the scheduled meeting:
https://us02web.zoom.us/j/7109185267
Meeting ID: 710 918 5267
We will also send out the link again, closer to the event, while the zoom session will be recorded for those shareholders wishing to view it later. Please diarise accordingly and let us know if you are planning to attend the zoom session.
SECTION 12B OPPORTUNITIES
Our 12B fundraising is going really well and we have various project opportunities available for interested investors, which opportunities are highlighted below:
The 12B investment options above have been structured applying various debt / gearing options. In other words, the higher geared, more risky funds, offer the largest tax breaks (even offering investors a tax benefit in year 1 exceeding their investment value), while the 20% geared option offer the benefits of enhanced tax deductions while risk is minimal since 80% of the project is funded by way of equity contributions. The 20% geared product provides investors 70% of capital back by way of a tax benefit in year 1, while enhancing annual pre-tax yields on the remaining investment at risk to more than 15% per year over the 25 year life span of the project, even after being inflation adjusted.
Any investors wanting to learn more about the above offerings, please contact Deon Lewis, James Rothmann or myself in this regard.
FINAL REMARKS
As always, we appreciate your ongoing support and trust in our solar and energy fund. It takes time to build a business and the solar fund is no exception. We do however believe that we are now crossing the proverbial rubicon as we embark on a number of exciting projects, sharing the journey (good and bad) with our investors.
If you have any questions or concerns, please don't hesitate to reach out to us. As always, we are invested next to you..
Kind regards,
The Futureneers Energy and Key Solar Exchange Team