SOURCE: EnviroMission, Ltd.
December 11, 2007 11:39 ET
EnviroMission Chairman's Address to Shareholders
NEW YORK, NY--(Marketwire - December 11, 2007) -
Some shareholders here today, like a number of current shareholders, have
been shareholders since EnviroMission (PINKSHEETS: EVOMY) first listed in
2001. Some of our earliest investors have also increased their initial
shareholding inline with important development milestones that have either
been achieved or were close to being achieved.
There are shareholders that have also invested at various intervals along
the way in the shared belief that some ground would soon be broken or
events like potential for landmark funding would compel a more certain
development outcome. And, there are shareholders that have not maintained
their investment in EnviroMission due to their personal investment needs
for more immediate value.
It is fully appreciated that shareholders seek value from their investments
and as we know from EnviroMission shareholder feedback, many EnviroMission
shareholders also hold an altruistic desire to be part of a clean and
sustainable energy outcome for every good reason such as concern about the
environment and the effects of pollution on climate change.
As a developer without an income stream, EnviroMission offers no short or
medium term prospect for shareholder income growth from dividends;
EnviroMission is therefore cognizant of the importance of the achievement
of milestones and inroads to provide the opportunity for capital growth
relative to development certainty.
And EnviroMission is also cognizant that development certainty has never
appeared more challenged than after the former Federal Liberal Government's
award of substantial Low Emission Technology Demonstration Fund (LETDF)
grants to 'clean coal' technologies ahead of renewable energy technologies.
That challenge was further increased following the then Federal Liberal
Government's call for nuclear energy development as the panacea to
Australia's future electricity needs.
The LETDF decision and policy indication to nuclear energy served a blow to
new renewable energy developers that also signaled low prospects for much
needed government investment in the commercialization of new renewable
energy projects in Australia.
That is not to suggest that development entirely hinges on government
funding, rather, development it is dramatically affected by any
circumstances that unduly benefits the competitiveness of one technology
over another in the context of the overall private equity financing
As a result of the out-of-step policy direction that was maintained right
up to the Federal Election, EnviroMission recognized the urgent need to
approach the issue of development certainty by looking outside the box and
looked to consideration of markets outside Australia, where the development
of new renewable energy is fostered through attractive mandates, incentives
and higher energy prices. This decision was also taken in order to
increase the competitiveness of Solar Tower technology to thereby increase
development certainty for shareholder value.
Which leads to the focus of EnviroMission's work over the last financial
year, the implementation of that strategy in the most viable market was to
gain access to the US market via the merger proposal with SolarMission
The proposal was designed to maximize and build on our development
experience and enhanced intellectual asset, know how and formal
relationships with a diverse pool of experts already collaborating on Solar
Tower development, by merging those strengths with the market access
currently vested in SolarMission, to form a single development entity aimed
at adding shareholder value through increased development opportunity,
certainty and leadership.
The merger proposal, having met with SolarMission shareholder approval, was
only mutually terminated due to a matter that sat in conflict with the
terms of the merger agreement and potentially stood to impact on
EnviroMission shareholder value if the merger were to proceed unresolved.
The relationship between EnviroMission and SolarMission remains positive
and cooperative for Solar Tower development without effect to the
Australian license or EnviroMission's clear role as the lead Solar Tower
developer that will also maintain a key collaborative role in development
in the US.
It is understandable that frustration has been felt by shareholders who
reasonably ask if the project is stalled based on EnviroMission's unmet
objective to have a Solar Tower under construction at this point in time.
Reference to 'stalled' is acknowledged here as the suggestion of some
EnviroMission observers who are inclined to measure success as the
commencement of construction.
However, the many phases and milestones that are required to give substance
to any major project's prospects for success have been executed in the
timeliest way available from EnviroMission's resources.
Front end engineering and design has continued over the last year to refine
the best case scenarios for development, contextualized against evolving
market needs. For example, the inclusion of heat storage to achieve base
load generator status has been evidenced in current modeling by Arup to be
unnecessary on a cost to benefit analysis given the growing demand for peak
power in Australia.
The change of government is now hoped to provide the necessary incentives
to maintain and attract a healthy renewable energy sector in Australia.
EnviroMission plans to implement an immediate program to lobby and brief
Federal Ministers of the new Federal Labor Government to prioritize energy
investment in the cleanest sustainable energy technologies (like our own)
to meet the carbon emission targets announced in pre-election policy
There are now strong grounds to be positive that the circumstances for
Solar Tower development and investment in Australia will improve for the
first time since the disappointing LETDF announcements were made.
In closing, I want to confirm that EnviroMission's commitment to Solar
Tower development in Australia is back on our front page, not withstanding
our intent to participate in the global rollout of Solar Towers.
Shareholders are thanked for their support and enthusiasm for Solar Tower
technology and patience that is not underestimated nor taken for granted.
We look forward to moving the project forward in this current financial
About EnviroMission Limited
EnviroMission is a renewable energy developer and innovator of commercially
viable large-scale power generation driven by solar radiation for zero
greenhouse gas emissions. http://www.enviromission.com.au
Notes about forward-looking statements
Except for any historical information contained herein, the matters
discussed in this press release contain forward-looking statements that
involve risks and uncertainties.
Certain Statements contained in this release that are not historical facts
constitute forward-looking statements, within the meaning of the Private
Securities Litigation Reform Act of 1995, and are intended to be covered by
the safe harbors created by that Act. Reliance should not be placed on
forward-looking statements because they involve unknown risks,
uncertainties and other factors which may cause actual results, performance
or achievements to differ materially from those expressed or implied.
Forward-looking statements may be identified by words such as "estimates,"
"anticipates," "projects," "plans," "expects," "intends," "believes,"
"may," "should" and similar expressions and by the context in which they
are used. Such statements are based upon current expectations of the
company and speak only as of the date made. The Company undertakes no
obligation to update any forward-looking statements to reflect events or
circumstances after the date when they are made.