On January 20th, 2011 EnviroMission Ltd. (South Melbourne, Australia) announced that it has received an independent valuation at USD$60 million of its Solar Tower technology, associated intellectual property and developm
EnviroMission Limited (Pink Sheets: EVOMY) to maintain ownership of China Solar Tower development rights. EnviroMission owns the rights to develop Solar Tower renewable energy power station technology in China and is party to a 20% non-diluting, free carried agreement to develop Solar Towers in China with Shanghai based EnviroMission investor/shareholder, Mr. Guo Xiang Ma, Chairman, Shanghai Xiang Jiang Company Limited.
EnviroMission shareholders did not return Mr. Ma as a non-executive director at the 2010 EnviroMission Annual General Meeting (AGM). "Mr. Ma had served on the EnviroMission board since 2004; the outcome of the resolution was contrary to the recommendation put to shareholders by the board of EnviroMission.
"Shareholders exercised their right to determine the membership of the EnviroMission board; the outcome shouldn’t be confused with EnviroMission’s ongoing objectives for Solar Tower development in China. "Despite speculation put to EnviroMission, there are no plans to sell EnviroMission’s Solar Tower development rights for China.
"The recent $60,000,000 valuation of the Australian Solar Tower Intellectual Property, know-how and development rights was not sought to inform a sale of EnviroMission’s Solar Tower development rights in China or other markets. "The valuation of EnviroMission’s Solar Tower Intellectual Property, know-how and development rights was sought to provide a value of the technically and commercially enhanced Solar Tower technology soon to be developed in the United States.
"EnviroMission is in the process of delivering the world’s first Solar Tower renewable energy power station in Arizona and it’s reasonable to expect success in the United States will add to the value of the technology and prospects for the development rights in other markets, particularly in China, where EnviroMission currently owns all development rights and has an active development relationship.
"Success in the United States would naturally impact a global development strategy," Roger Davey, EnviroMission Chief Executive said to clarify EnviroMission’s overall development plans.
EnviroMission has a 200 MW Power Purchase Agreement to sell electricity from the development of the first Solar Tower in Arizona to the Southern California Public Power Authority (SCPPA); delivery of the Arizona Solar Tower development is EnviroMission’s primary strategic intent.
The company states that it will reference this valuation in its half-year financial statement for the second half of 2010. "This valuation represents an independent assessment of the value of EnviroMission’s enhancements to Solar Tower technology, new intellectual property, know-how and commercial prospects and outcomes such as the recent Power Purchase Agreement to sell electricity generated from the proposed Arizona Solar Tower to the Southern California Public Power Authority," stated EnviroMission CEO Roger Davey.
The Solar Tower is a solar thermal electric design which uses a large volume of heated air to drive turbines in a central tower. The design does not require the use of water or other fluids as heat transfer mediums, unlike concentrating solar power (CSP) systems.
Acuity Technology Management Pty. Ltd. (Malvern East, Australia) conducted the assessment of the value of the Solar Tower. EnviroMission states that it sought the valuation to provide a value to the intellectual property, know-how and licenses, as they are currently owned and held, as distinct from the Solar Tower license which it has progressively amortized and fully impaired in the company’s 2010 annual accounts.