VivoPower announces rebrand and Power-to-X strategy for US solar business

VivoPower is pleased to advise that the company has rebranded its US solar development unit, formerly known as Innovative Solar Ventures, I LLC, renaming the business Caret LLC, coupled with a new Power-to-X strategy for the business unit, in order to maximise value with a view to a future potential exit (as has been previously announced).

Caret comprises 12 development-stage solar projects totalling 682 MW-DC, of which 11 are in Texas and one is in New Mexico. The projects are geographically diversified and strategically located in areas with relatively low solar project penetration. Each of the Caret projects has reached mid- to late-stage development status, with major interconnection and environmental studies completed and land secured for up to 40 years.

Since taking over full economic and management control of the Caret projects, the VivoPower team has been able to enhance the economics of the portfolio through value-added development activities including reduction of lease rates for several key projects. In addition, the company is currently undertaking a re-evaluation of previously abandoned projects, given the increasing potential demand from Power-to-X applications and partners.

Kevin Chin, Executive Chairman and CEO of VivoPower, said: “Power-to-X represents the use of excess renewable energy over and above baseload power for other energy-intensive applications. These include mining of cryptocurrencies, where we are seeing an increasing appetite from cryptomining groups to vertically integrate their operations to include renewable generation plants. Another area where we expect to see strong demand is from the green hydrogen sector. This will especially be the case if the $1.2 trillion US Infrastructure Bill is passed given the attractive incentives in the Bill for green hydrogen developers and producers. We believe the Power-to-X potential of Caret’s projects present a strategic pathway to maximising value, even though solar development in isolation is no longer our core activity. Our intention is to re-invest proceeds generated from any potential monetisation of Caret’s projects (with Power-to-X applications) back into our core sustainable energy solutions (SES) strategy.”

Once constructed and energised, the company believes Caret’s projects have the combined potential to generate more than 1.3 TWh of zero carbon electricity annually, enough to avoid over one million tonnes of carbon emissions each year (excluding previously abandoned projects).

To read our full press release, and to keep up with all VivoPower’s releases, visit our Press Releases page.

Renewable Energy Insights: Powering the shift to Net Zero Carbon

Energy underlies the entire fabric of society and the global economy. It's the basis of everything we do and everything we produce. However, we also know now the major side effects of this carbon-hungry economic growth that we've had.

The most pressing issue the world faces this decade is the transition from fossil fuels to sustainable renewable energy. To drive exponential growth in sustainable energy use, first there must be political will globally. The good news is that, especially considering the COVID-19 pandemic, governments around the world have committed to a sustained focus on creating net zero carbon economies.

However, political commitments will only take us so far and are not enough and not sustainable in their own rights.

VivoPower: Providing turnkey energy solutions

Our mission at VivoPower is to provide accessible solutions to corporates to accelerate their own decarbonisation. We are part of a new generation of B Corps acting as a catalyst for change, marrying the needs to decarbonise our future with solutions that fit current economic realities. We take a total solutions approach to the problems that companies are looking to address.

VivoPower has been designed from the ground up as a practical, effective, end-to-end decarbonisation solution for corporates. Over the years, we have assembled the components that a sustainable energy solution requires. From a base of solar power projects and equipment, we are now a single turnkey supplier of all sustainable energy hardware and infrastructure, and this includes our Tembo electric vehicles.

Our integration takes sustainable energy solutions out of the early adoptive phase. Without VivoPower's integrated solutions, the complexity of putting together sustainable energy components into an effective and economic solution would still somewhat hinder corporates from addressing energy challenges.

VivoPower launches upgraded website following Tembo acquisition

VivoPower is excited to ring in the New Year with a new look!

Check out our new website, now featuring more information on how our sustainable energy solutions―including Tembo eLV, B.V. electric vehicles, solar systems, batteries, and critical power services―can work for you and your business.

Visit here.

VivoPower and GB Auto enter US$250m distribution deal for Tembo e-LVs

With a new year on the horizon, we are pleased to announce that we have inked a new deal.

VivoPower and our 51% subsidiary, Tembo e-LV B.V. (Tembo), have entered into a non-binding Heads of Agreement with GB Auto Group Pty Limited and GB Electric Vehicles Pty Ltd (collectively, GB Auto), in which the New South Wales-based GB Auto will be the exclusive Australia-wide distributor of Tembo’s current core products. These include the Tembo 4×4 e-LV:

Should Tembo offer any additional products for sale during the proposed seven-year agreement term, GB Auto will have first right of refusal for their distribution rights in Australia as well.

During the term, GB Auto has committed to purchasing at least:

Combined with the electric vehicles, these orders would be worth an estimated USD$250 million in revenues.

Kevin Chin, our Executive Chairman and CEO said: “We are very pleased to be entering this partnership with GB Auto in Australia, given their long-established track record and reputation with their customers, who comprise some of the world’s pre-eminent mining houses.”

VivoPower will maintain and own all operating data in the Tembo products, granting GB Auto a licence to use the data to sell and service the vehicles. The company will also be GB Auto’s partner of choice for delivering sustainable energy solutions (SES), meaning we will have the right to sell, build, install, and maintain all products and services supporting Tembo e-LVs. This aligns with our three-pronged sustainable energy solutions (SES) strategy, and includes products and services related to:

VivoPower will also be GB Auto’s preferred partner for any rental, lease, or other financing solutions for the Tembo products or above solutions.

Graeme Bensley, CEO and Founder of GB Auto said: “We believe SES to be ideally suited to the requirements of our mining sector customers. We are already witnessing strong demand from these customers for electric vehicles and are confident of the strong long-term growth outlook.”

Read the press release here.

Gemma Godfrey joins VivoPower as Non-Executive Director

We are pleased to announce that Gemma Godfrey―a serial entrepreneur with global board experience in financial services, technology, media, public policy, and sustainability, as well as a degree in quantum physics―today joins our Board of Directors.

Kevin Chin, our Executive Chairman and CEO said: “Gemma brings a really unique mix of skills and experience. With a track record of building and advising fast-growing companies, her knowledge and expertise will be invaluable as we continue to hyperscale our electric vehicle and sustainable energy solutions offerings.”

Along with her extensive experience, Gemma was Founder and CEO of an award-winning fintech company enabling digital investing, served as Head of Investment Strategy at wealth management firm Brooks Macdonald, and advised Arnold Schwarzenegger in “The Apprentice” boardroom. During her tenure as CEO, she was named to the Innovate Finance “Standout 35” Women in the FinTech Power list. The company, which was later acquired by FTSE 250 insurance group JLT, also earned “Best Startup” at the Digital Entrepreneur Awards.

Based in London, Gemma has also served as an advisor to the UK government on its 10-year strategy to improve financial wellbeing country-wide. This complements her work launching The Times Money Mentor, a digital media business that helps consumers make smarter financial choices.

Gemma Godfrey, upon her appointment, commented: “I’m thrilled to join a company certified as “using business as a force for good” as it continues to accelerate its growth and harness the power of digital transformation. We can all understand the need to cut energy costs, improve efficiency, and help the planet. VivoPower’s electric vehicles and sustainable energy solutions help its customers to do just that.”

Gemma began her career at Goldman Sachs and later was responsible for Latin American investments at GAM. Currently, she:

Given Gemma’s track record in helping businesses achieve their strategic goals, we are eager to collaborate and execute on our hyperscale efforts.

Read the press release here.

Tembo presents at the Energy and Mines Virtual World Congress

The Energy and Mines Virtual World Congress is just a few days away. Visit our virtual booth and check out our content pod, "Decarbonising Material Movement" to learn how our Tembo e-LV and other sustainable energy solutions can power your mining operations while reducing your carbon footprint.

To read more on this, head here.

VivoPower announces closing of US$28.75m underwritten public offering of shares on NASDAQ

Shortly after the announcement of VivoPower’s successful signing of a definitive agreement to acquire Tembo e-LV B.V., we are proud to announce that VivoPower raised USD$28.75 million in an upsized public share offering.  

On October 20, VivoPower closed an underwritten public offering to sell 2,941,176 ordinary shares to the public at the price of $8.50 a share. 

On top of the original 2.9+ million shares, the underwriters have exercised an option to purchase 441,174 ordinary shares at the public offering price, less the underwriting discounts and commissions. 

Due to strong demand from a range of institutional investors, the offering was upsized from its initial USD$15 million target. Gross proceeds―before underwriting discounts and commissions, and estimated offering expenses―will now be about USD$28.75 million.  Net proceeds from the offering will supplement VivoPower’s existing cash and cash equivalents, which will be deployed to fund working capital needs and accelerate the expansion of operations into the commercial electric vehicle space. That expansion includes the recent acquisition of Tembo e-LV B.V., a specialist electric battery and off-road vehicle company. 

VivoPower signs definitive agreement to acquire 51% of Tembo e-LV

We are proud to share that VivoPower signed a definitive agreement and is moving forward with the USD$4.7 million acquisition of Tembo e-LV B.V., a Netherlands-based specialist electric battery and off-road vehicle company.

This exciting acquisition confirms Tembo’s integral position in VivoPower’s sustainable energy solutions (SES) platform.  

Tembo’s expertise suits VivoPower’s accelerated SES rollout 

Tembo designs and develops a comprehensive fleet of customised electric vehicles (EVs), often for rugged applications. It services a diverse range of sectors from mining, infrastructure, and utilities to government services, game safaris, and humanitarian aid. 

Given that VivoPower’s established customer base in mining, infrastructure, and utilities are some of Tembo’s core markets, it is eager about the prospects this acquisition presents. The company’s customers are already seeking unique opportunities to reduce their energy costs, increase productivity, and become more sustainable in the long-term. With Tembo, VivoPower can now offer them the compelling option to electrify their fleets. 

The VivoPower and Tembo teams look forward to working even more closely to scale up their capacity to deliver customised and/or ruggedised commercial fleet electrification solutions.  Tembo will enable VivoPower to accelerate the rollout of its sustainable energy solutions (SES) offerings, with an initial focus on the mining, infrastructure, and utilities sectors globally.

Our analysis of publicly available industry data indicates that the acquisition could triple our global addressable light vehicle (LV) fleet market to USD$36 billion in the markets where Tembo is currently active. That estimate does not include Asia, South America, or the US, which could represent even further potential.  

Tembo will transform growth trajectory 

Under the agreement, delivering EVs will become a pillar of VivoPower’s SES business.

Tembo Founder and CEO Frank Daams noted: "VivoPower’s investment will allow us to build capacity to meet pent-up demand from our customers and improve efficiencies of scale. Given that the Tembo and VivoPower teams have already started working together on customer requests for proposals, we believe that this will translate into a growing order book."

While Frank remains with Tembo to oversee its growth, VivoPower has the option to acquire the remaining 49% in the future. The transaction is subject to standard closing conditions, including capital structuring and funding mix requirements. 

VivoPower reports 63% revenue growth and jump in EBITDA profits for half-year ended 31 December 2019

VivoPower Reports Unaudited Financial Results For the Six Months Ended December 31, 2019

VivoPower comprises one of the largest solar project portfolios in the United States, solar development projects in Australia as well as a fast growing Australian critical power services group, Aevitas (which comprises two businesses, J.A. Martin and Kenshaw). The VivoPower business has not been without challenges, which we have documented in the past, read more on that, here. 

The exceptional turnaround was fuelled by Aevitas, the critical power services group that was once considered an “unfixable write off” by a number of former stakeholders. In fact a former chairman strongly advocated to place the group into voluntary administration a few years ago. However, following a strategy transformation initiated by Arowana and with focussed execution, especially in the last 12 months, Aevitas is becoming another #hyperturnaround out of the Arowana stable of companies. This unfixable writeoff has now completed its turnaround phase and is experiencing a new set of challenges, associated with hypergrowth businesses.

However, as Arowana parachuted in to support the management team, together we were able to execute on this #hyperturnaround, and this period, the VivoPower group delivered the following key results: 

VivoPower Australia also contributed to the result by successfully monetising the Sun Connect solar portfolio, comprised of 53 operating solar projects, representing a 2.0x multiple on invested capital and an unlevered IRR of 20.1% before tax. 

The Aevitas group is now focused on building its forward order book and growing its business development pipeline across a range of new industry sectors with significant growth tailwinds, including solar, data centres, and healthcare to further drive sustainable growth.

VivoPower is also executing on its strategy to drive value maximisation in relation to its U.S. solar project portfolio with a view to monetization. This includes discussions with the joint venture partner to enable VivoPower to take control of the joint venture. 

Kevin Chin, Arowana CEO and VivoPower’s Chairman, stated: “We have had to overcome a myriad of challenges for VivoPower since its IPO. The focus, dedication and resilience of the leadership team over the past 12 months has been key to the strong turnaround and growth of VivoPower, particularly in Australia. Our objective now is to build on the base that we have created and continue to scale up the business in a sustainable and profitable manner. In addition, we remain very focused on driving value creation for our US solar portfolio with a view to maximising proceeds from monetisation. This will then pave the way to consideration of a strategic pivot at the appropriate time, as previously flagged.”

Read the full VivoPower story here.

Read the press release here.

VivoPower announces sale of Australian solar portfolio and contract wins

VivoPower is pleased to announce that it has sold its remaining Sun Connect portfolio of operating solar projects for A$1.6 million. Over the life of VivoPower’s investment, the sale represents a 2.0x multiple of invested capital and an unlevered IRR of 20.1% before tax.

The company is equally gratified that its Australian critical power services business, J.A. Martin Electrical Pty Ltd, has been awarded two additional contracts for solar farm construction worth A$4.4 million.

To review a copy of the VivoPower announcement, please click on the link below.