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.
Completed strategic transformation to sustainable energy solutions (SES)
Acquired Tembo e-LV; distribution partner potential commitments for nearly 5,000 electric vehicle conversion kits
Raised $32 million in net proceeds from equity offerings; balance sheet fortified
Annual revenues of $40.4 million, impacted by COVID lockdowns
Underlying EBITDA decline to ($1.4) million loss from $3.9 million profit in FY20
VivoPower today announced its preliminary results for the fiscal year ended June 30, 2021.
Highlights for the fiscal year ended June 30, 2021:
VivoPower’s Full Year Results Presentation can be found here. A recording of the results teleconference will be available on our Investor Relations page under ‘Events and Presentations.’
VivoPower is pleased to announce that the Company has signed a definitive agreement with Bodiz International Group for Bodiz to distribute electric light vehicles (e-LVs) in Mongolia using e-LV conversion kits from VivoPower’s wholly-owned subsidiary Tembo. Under the agreement, Bodiz intends to purchase 350 Tembo e-LV conversion kits through December 2026. The company estimates these orders to be worth up to US$29 million in potential revenue over the life of the Distribution Agreement. Bodiz will be responsible for acquiring original vehicles from Toyota, converting the vehicles to ruggedised e-LVs using the Tembo solutions, selling the units to end-customers, and providing ongoing servicing and maintenance. The Tembo kits transform diesel-powered Toyota Land Cruiser and Hilux vehicles into ruggedised e-LVs for use in mining and other hard-to-decarbonise sectors, including construction and defence. Alongside solar generation, battery storage, and on-site power distribution, Tembo e-LV products are a key component of VivoPower’s turnkey net zero solutions for corporate decarbonisation.
This Distribution Agreement marks VivoPower’s fourth major distribution deal in 2021 for Tembo e-LVs across four continents and continues to advance the company’s aim to build a global Tembo distribution network before the end of this year. The company previously completed distribution deals with GB Auto Group in Australia and Acces Industriel Mining Inc. in Canada and has also announced a non-binding Heads of Terms with Arctic Trucks Limited for distribution of Tembo e-LVs in Norway, Sweden, Iceland, and Finland. The latter deal is expected to be finalized in the coming weeks.
Based in Ulaanbaatar, Bodiz has been distributing ruggedised SUVs and other heavy-duty vehicles to the Mongolian market since its founding in 1997. In addition to Tembo vehicle distribution, the Distribution Agreement includes plans for Bodiz to send technicians to Tembo’s Netherlands headquarters to be trained in e-LV conversion, as well as a potential expansion of Bodiz’s facilities to service Tembo electric vehicles.
Kevin Chin, Executive Chairman and CEO of VivoPower, said: “We are pleased to continue expanding our global distribution network for Tembo e-LVs through this partnership with Bodiz. With the signing of this Distribution Agreement, Tembo e-LVs will be available to mining and other heavy industrial customers aiming to decarbonise their fleet operations through distribution partners on four continents. We look forward to building this relationship and working with Bodiz to support more customers on the drive to net zero.”
Dulguun Baatarsukh, CEO of Bodiz, said: “Bodiz is very glad to become a member of the Tembo e-LV family. Mongolia's economy, especially the mining sector, is growing rapidly with one of the world’s richest mineral resources. It is an honour to sign this Distribution Agreement with VivoPower for Bodiz to introduce Tembo e-LVs to our domestic market and take part in the global change of electrification. I hope we will continue to strengthen this partnership and cooperation in the long run and make a significant contribution to the mining sector in our region.”
VivoPower is pleased to announce that the Company has secured a settlement resulting in it gaining full ownership of the remaining 50% of the equity interest in its solar development portfolio in the US. Ownership of the portfolio was previously shared 50/50 with VivoPower’s former joint venture partner, Innovative Solar Systems LLC (“ISS”).
Ownership of the remaining 50% interest in the portfolio was acquired by VivoPower from ISS for nominal consideration under the terms of the settlement between VivoPower and ISS.
Investors have set their sights on the world’s innovation capitals.
Silicon Valley continues to set the gold standard for technology hubs around the world, consistently ranking #1 across different subsectors such as artificial intelligence, robotics, and life sciences. The region has an ecosystem value of US$677bn, according to research firm Startup Genome.
Global venture capital, however, is fuelling the growth of startups and scaleups outside of California. Even the more established names in tech, like Google and Facebook, have been investing heavily in building their own research and development centres beyond Silicon Valley.
Which world cities are transforming into innovation capitals?
Tel Aviv
Out of all the global tech hubs on this list, Tel Aviv might just be the fastest riser. This city on the Mediterranean coast leads the world in the number of startups per capita. It is currently home to more than 100 foreign R&D and innovation centres including Amazon, Barclays, Facebook, and Google.
Tel Aviv has positioned itself as a major hub for AI development. The sector makes up more than 40% of all startups in the city. AI companies also employ a quarter of the entire workforce in Tel Aviv. Other sectors thriving in the Nonstop City include the medical, automotive, aerospace, and cybersecurity industries.
Israel exports as much as US$6.5bn worth of cybersecurity products every year. It was also the first in the world to offer a cybersecurity PhD programme. There are now six cybersecurity university research centres operating in the country.
The Israeli government is also very supportive of local businesses. This is one of the many reasons the country is such an attractive place to invest in for startups.
Israel offers backed loans for businesses that need funding and encourages institutional investors to enter the market. The Ideation (Tnufa) Incentive Program, for example, was created to help fledgling entrepreneurs develop innovative concepts. It offers grants of up to 85% for approved expenses.
The Tnufa fund is available for both local and foreign investors. Entrepreneurs with no ties to Israel can apply for funding by first securing a visa. Once they do, they are eligible to get financial support on the condition their operations remain based in Israel. The Tnufa fund allows recipients to develop their business ideas without taking on debt.
The Israeli government also launched a US$462m+ support plan as part of its COVID-19 policy. The program includes a US$200m+ aid package to small and midsize companies through the Israel Innovation Authority.
Israel remains a very stable ecosystem. In 2020 alone, Israeli companies and startups raised nearly US$9.5bn in capital.
New York
The Big Apple has made significant strides in the tech space over the past few years. The subsectors powering this are AI, big data analytics, cybersecurity, and education technology. Overall, there are more than 100 startup incubators and 9,000 startups in New York. In 2020, 886 companies in this tech haven attracted VC funding of about US$16.2bn.
Shanghai
Shanghai is committed to helping businesses innovate. Zhangjiang Hi-Tech Park, often referred to as China’s Silicon Valley, can be found in the city. It has over 400 R&D centres and has attracted more than 1,000 startups, mostly from the education technology and gaming sectors.
China is also the world’s largest market for mobile gaming. More than 25% of global gaming revenue comes from the country. Shanghai, for its part, is home to over 130 gaming startups.
Deal-making in the city is also thriving. In fact, EdTech firms have received about US$1.3bn in venture funding between 2015 and 2017.
London
London, where Alicorn is headquartered, isn’t just Europe’s global financial centre anymore―it’s also fast becoming a major tech hub. Many consider the city as the third most important innovation centre in the world today.
According to a report by Business & Industry, UK tech investments reached £10bn for the first time in 2019. The local tech industry itself grew six times faster than any other industry.
The London tech hub owes much of its growth to a startup visa program. To attract potential investors, the city introduced in 2019 a two-year visa route that allows early-stage but high–potential entrepreneurs to enter the country and start a business.
If you’re about to launch your startup, you’ll have three things going for you in London: easy access to investors, consultants, and experts; opportunities at networking; and a great talent pool.
Meanwhile, if you are already an established entrepreneur, you can benefit from the guidance of 125 incubators in the city who can help you grow your business even further.
Tokyo
Tokyo is emerging as another hotbed for tech startups. For decades, Japan has served as the world’s most active industrial robot manufacturer, producing more than half of the global robotic supply. It didn’t take long for other tech sectors to grow.
Today, Japan is one of the best places for fintech companies and other tech startups to make their mark. The country ranks as the third most competitive financial centre in the world, according to the Global Financial Centres Index.
Moreover, in 2017, the Tokyo Metropolitan Government established the Tokyo Financial Award. The honour is given to financial institutions that provide innovative products and services that meet the needs of Tokyo citizens. It also helps promote ESG investments in the city.
The Japanese government also announced its “Beyond Limits, Unlock Our Potential” strategy. The initiative is meant to strengthen the country’s startup ecosystem. The plan includes providing entrepreneurship education, improving accelerator programs, and creating a startup hub in the city. In 2018, former Prime Minister Shinzo Abe also laid out the country’s plan to develop at least 20 tech unicorns by 2023.
Singapore
Singapore’s land area might not be as big as Tokyo or Shanghai’s, but it’s a financial and tech powerhouse in Asia, nonetheless. What the city-state lacks in geographical size, it more than makes up for in grit. Singaporeans are some of the hardest-working people in the tech industry.
The Southeast Asian hub also benefits from innovative business strategies and a highly skilled talent pool. The government’s primary goal is to create a culture of innovation by attracting talent with the right mindset.
Businesses enjoy several other advantages, such as low taxes and strong investment opportunities. They also benefit from the city’s IT infrastructure, which is deemed one of the best in the world.
As proof of Singapore’s resilience, the city-state attracted US$17.2bn in fixed asset investments in 2020, at a time when many other ecosystems faltered due to the COVID-19 pandemic.
The government also doubled down on its commitment to grow businesses by investing US$19bn into enterprises as part of its 2020 Research Innovation and Enterprise plan.
Toronto
Toronto is a haven for high-calibre tech professionals, and this talent pool has helped the city attract entrepreneurs looking to start their business. In 2017, Toronto produced the highest number of tech jobs in the world. It managed to beat other markets like the San Francisco Bay Area, Seattle, and Washington, D.C. In the same year, the city also edged out New York in a “talent markets” ranking.
Toronto is also home to academic institutions on the cutting-edge of development, such as the University of Waterloo and University of Toronto. Both schools are known for producing promising engineers and developers.
The city government also supports local investment and employment through its Economic Development and Culture Division.
The Australian federal government has recently announced plans to invest nearly $1.2bn for its Digital Economy Strategy, which aims to prepare the country for the challenges and opportunities that come with rapid digital transformation. Additionally, the strategy aims to deliver a modern digital economy by 2030.
“Every business in Australia is now a digital business,” says Prime Minister Scott Morrison. “This transformation is not merely a national one that needs to happen—it’s a global one that is happening. We must keep our foot on the digital accelerator to secure our economic recovery from COVID-19.”
Spotlight on digital skills
The Digital Economy Strategy will prioritise investing in emerging technologies, building digital skills, encouraging business investment, and enhancing digital government service delivery. In particular, the initiative earmarks a $101.8m investment towards improving digital skills, including a pilot program for work-based digital cadetships.
Recent estimates reveal that 87% of jobs now require digital skills across every sector and industry. Additionally, it is estimated that 250,000 new jobs will be created as a result of digitalisation by 2025. In 2019 alone, Australia had more than 770,000 technology workers—and this number continues to grow.
As such, this investment towards digital upskilling will help create a pipeline of graduates with advanced digital skills, all coming through Australia’s education and training ecosystem, of which EdventureCo is a part.
This is a step in the right direction. Our goal has always been to equip students with relevant digital skills in a fast-changing world. Today, work is changing faster than education. This significant investment towards digital skills helps strengthen the capabilities for our future workforce.”
Areas for improvement
While these investments are a welcome boost for the technology sector, there are still some areas that need a stronger commitment from the federal government.
Ron Gauci, CEO of the Australian Information Industry Association, says that while the $124.1m investment in artificial intelligence, for example, exhibits the federal government’s commitment to the Digital Economy Strategy, this may not be enough to fully develop the sector. In April, the Association demonstrated that $250m was needed to fully fund a national AI strategy. However, only half of that was allocated by the federal government.
Additionally, some technology leaders found that the federal government’s $50m investment towards enhancing cybersecurity was lacking. Ian Yip, CEO of cybersecurity firm Avertro, says that this speaks to how underinvested the national ecosystem is on the issue of cybersafety.
At EdventureCo, we drive upskilling for the digital economy. In step with the Australian federal government’s vision for a digital economy, EdventureCo will continue to equip students with relevant digital skills that will give them an edge in an increasingly automated world.
Tottenham Hotspur has today announced that its Official Battery Technology Partner, VivoPower has completed feasibility studies to assess initial opportunities for sustainable energy solutions (SES) at both Tottenham Hotspur Stadium and the Club’s Hotspur Way Training Centre in Enfield. The Club and VivoPower are now exploring the potential of moving forward with the implementation of one or more SES projects.
Following on from the announcement of the unique partnership in February, VivoPower completed an engineering review of both facilities to pinpoint optimal solutions and an array of potential projects to reduce both carbon footprint and energy costs. The Club is now working with VivoPower to assess the engineering and design of renewable energy infrastructure that could be installed at both the stadium and training centre.
This important milestone highlights Tottenham Hotspur’s ongoing efforts towards decarbonisation and minimisation of the environmental impacts of its activities across all Club operations. The Club has recently been recognised as the English Premier League’s greenest club following a study carried out by BBC Sport and the UN-backed Sport Positive Summit.
The Club is also a signatory of the UN Sports for Climate Action Framework, demonstrating its commitment to playing its part to ensure the sports sector is on the path to a low-carbon future, in line with the aims of the Paris Agreement. Additionally, last year Tottenham Hotspur became a founding partner of Count Us In, a global movement aiming to mobilise 1 billion people in the fight against climate change.
Donna-Maria Cullen, Executive Director of Tottenham Hotspur, said: “The Club is committed to achieving its sustainable goals and is encouraged by the findings of the feasibility studies carried out by VivoPower.
“Both our stadium and training centre have been built with sustainability in mind and we look forward to working closely with Vivo to assess the implementation of further measures.”
Kevin Chin, Executive Chairman and CEO of VivoPower, noted: “We are very pleased that the outcome of the feasibility studies confirm significant opportunities to deliver reductions in emissions as well as costs for Tottenham Hotspur. Our team will now be working closely with the Club to look at how we could implement holistic sustainable energy solutions.”
Joshua Krasnigor, Senior Engineer and Project Technical Director of VivoPower, said: “We are excited to progress the SES opportunities identified over the past few months for Tottenham Hotspur’s state-of-the-art facilities. The solutions we are developing through this partnership will represent a major step towards achieving Tottenham Hotspur’s sustainable goals while simultaneously reducing the Club’s operating costs.
“VivoPower looks forward to continuing to work with Tottenham Hotspur to discuss implementing these SES projects and continue developing bespoke solutions for the Club as they lead the way for sports organisations pursuing decarbonisation.”
VivoPower is pleased to announce that the company has entered a binding Letter of Intent with Toyota Motor Corporation Australia Limited to create a collaboration programme between VivoPower and Toyota Australia for the electrification of Toyota Land Cruiser vehicles using conversion kits designed and manufactured by VivoPower’s wholly-owned electric vehicle subsidiary, Tembo e-LV B.V.
The binding LOI sets out the terms for the purchase of preliminary goods and services and the basis upon which a Master Services Agreement (MSA) is expected to be finalised to govern an electric vehicle conversion partnership between VivoPower and Toyota Australia. Final terms of the MSA are under negotiation, but upon completion, it is intended that VivoPower would become Toyota Australia’s exclusive partner for Land Cruiser 70 electrification for a period of five years, with a further two-year option (seven years in total).
Kevin Chin, Executive Chairman and CEO of VivoPower, said: “We are extremely pleased to be collaborating with Toyota Motor Corporation Australia, part of the world’s largest original equipment manufacturer on the electrification of their Land Cruiser vehicles with our Tembo conversion kits. The Land Cruiser is the vehicle of choice worldwide for mining and other ruggedised industries. This partnership with Toyota Australia is a testament to the outstanding potential of Tembo’s technology to decarbonise transportation in some of the world’s toughest and hardest to decarbonise industries. More importantly, it is a tremendous opportunity for us to work directly with Toyota Australia to optimise the Tembo product and deliver it to more customers around the world, helping them to achieve their net zero carbon objectives in the process.”
While the MSA is still to be finalised, the LOI is a binding agreement between VivoPower and Toyota Australia to begin collaboration on Land Cruiser electrification efforts.
VivoPower and Toyota Australia intend to finalise the MSA as soon as practicable.
Leading Canadian industrial equipment distributor Acces Industriel Mining Inc. intends to purchase 1,675 electric vehicle conversion kits over five-plus years, marking VivoPower’s second major distribution agreement for Tembo e-LV products.
VivoPower has signed a definitive agreement with Canadian industrial equipment distributor Acces Industriel Mining Inc. for Acces to distribute electric light vehicles in Canada, using e-LV conversion kits from VivoPower’s wholly-owned subsidiary, Tembo e-LV B.V.
Under the agreement, Acces intends to purchase 1,675 Tembo e-LV conversion kits between now and December 2026. The company estimates these orders to be worth US$120m in total value over the next five-and-a-half years, with a delivery schedule weighted towards the latter part of the Distribution Agreement period. Acces will be responsible for acquiring original vehicles from Toyota, converting the vehicles to ruggedised e-LVs using the Tembo solutions, selling the units to end-customers and providing ongoing servicing and maintenance.
The Tembo kits transform diesel-powered Toyota Land Cruiser and Hilux vehicles into ruggedised e-LVs for use in mining and other hard-to-decarbonise sectors, including construction and defence. Alongside solar generation, battery storage, and on-site power distribution, Tembo e-LV products are a key component of VivoPower’s turnkey net zero solutions for corporate decarbonisation.
The Distribution Agreement follows January’s distribution agreement with GB Auto Group Pty Limited and GB Electric Vehicles Pty Ltd. The company has announced plans to complete a global Tembo distribution network by the end of this year, and discussions with other distributors are active and ongoing across Europe, Africa, the Middle East, the Americas, and Asia.
VivoPower selected Acces as the company’s distribution partner in Canada because of Acces’s established, long-term experience supplying, customising, and servicing Toyota Land Cruisers, as well as its extensive active relationships with dozens of mining companies which make Acces a leading provider of ruggedised vehicle solutions to Canada’s mining industry.
Kevin Chin, Executive Chairman and CEO of VivoPower, said: “We are very pleased to have finalised this Distribution Agreement with Acces, which will provide the springboard for VivoPower to deliver our Tembo e-LVs and complementary sustainable energy solutions to Canadian customers. As a leading and trusted provider of equipment and services to the Canadian mining industry, Acces’s selection of Tembo as their preferred electric vehicle solution is a testament to the quality of the Tembo product and the value it offers to mining and other industrial customers seeking net zero carbon solutions. Both VivoPower and Acces continue to see significant demand for corporate decarbonisation solutions, and we look forward to working together to help Canadian organisations achieve their net zero ambitions.”
Jean Dion, CEO of Acces, commented: “Acces is excited to complete this Distribution Agreement with VivoPower and to begin the work of delivering fully-electrified Tembo vehicles to our customers across the mining, forestry, industrial, and construction markets. We are confident that the Tembo product offers outstanding value to our customers who seek to reduce their carbon emissions, and Acces will not distribute any competing product over the life of the Distribution Agreement. As demand for net zero solutions continue to increase, we look forward to working with VivoPower and Tembo to provide the electric vehicle solutions our customers demand.”
Alicorn Global Ventures (Alicorn), which invests in late-stage technology companies, announces that its strategic investment, Glassbox Ltd (Glassbox), today started trading on the Tel Aviv Stock Exchange (TASE: GLBX). Alicorn is the global venture capital arm of Arowana International, the established B Corporation-accredited investment group.
Glassbox is a UK-headquartered global technology company that has developed an analytics platform that provides a complete view of all customer interactions across internet and mobile channels. The technology encompasses Traditional Web Analytics and Application Performance Management (APM), providing real-time analysis to identify issues and improve digital customer experience.
Today’s listing values Glassbox at pre-money valuation of US$350m, delivering another successful exit for Alicorn, which has invested $9m in the company since May 2020. Alicorn’s investment approach is to identify secondary and unique primary opportunities in top-tier, fast-growing technology companies. Alicorn leverages proprietary access to unlock value in harder-to-access, under-the-radar companies.
Alexander Assim, Principal at Alicorn says: “Glassbox is an attractive investment with proven, proprietary technology and a strong leadership team. Today’s successful listing reflects the company’s prospects and Tel Aviv’s increasing influence as a hub for technology investments.”
“At Alicorn, we focus on hard-to-access, tech-enabled companies at late-growth stages, which offer significant potential for investment performance.”
