Archive for Energy – Page 8

17 Nov

Week Ahead: More pain ahead for oil?

By ForexTime 

  • Oil tumbles into bear market on demand fears
  • Keep eye on incoming EIA report and US data
  • Oil slump throws OPEC+ into spotlight
  • Bears in power but RSI oversold
  • Key levels of interest at $75.30, $72.50 and $70

Despite the holiday-shortened week ahead in the United States, financial markets could see some action thanks to top-tier economic releases across the globe.

Monday, 20th November   

  • CNH: China loan prime rates
  • GBP: Bank of England Governor Andrew Bailey
  • USD: Conference Board leading index

Tuesday, 21st November 

  • CAD: Canada CPI
  • EUR: Eurozone new car registrations
  • NZD: New Zealand trade
  • USD: US FOMC minutes, existing home sales
  • NQ100_m: Nvidia earnings

Wednesday, 22nd November

  • EUR: Eurozone consumer confidence
  • GBP: UK government’s Autumn Statement
  • USD: US initial jobless claims, University of Michigan consumer sentiment

Thursday, 23rd November  

  • EUR: Eurozone/Germany S&P Global PMIs
  • GBP: UK S&P Global /CIPS Manufacturing PMI
  • US Markets closed – Thanksgiving holiday

Friday, 24th November

  • CAD: Canada retail sales
  • EUR: Germany IFO business climate, GDP
  • JPY: Japan CPI
  • USD: S&P Global manufacturing PMI
  • US markets close early – 1:00 pm ET

Sunday, 26th November

  • OPEC+ meeting

Our focus falls on crude oil which has collapsed into a bear market. 

The global commodity is under intense pressure, heading for its fourth straight week of declines.

Note: A bear market happens when an instrument drops by 20% or more from its most recent high.

The pain started mid-week as swelling US inventories fuelled demand-side fears with disappointing economic data from the largest economy in the world exciting oil bears further.

Before the hefty 4.7% selloff this week, oil prices were already being pressured by weak data from China and easing fears over the Israel-Hamas conflict disrupting supply from the region.

With the path of least resistance for oil pointing south, further losses could be on the cards.

Here are 4 key factors that may influence oil in the week ahead:

  1. US Energy Information Agency (EIA) report

It is worth noting that markets received 2 weeks of data from the EIA due to a planned system upgrade.

Crude oil inventories expanded for a fourth week, rising by 3.6 million barrels in the week ended November 10. This was followed by a huge 13.9 million-barrel build in the previous period.

The next EIA report published on Wednesday 22nd November may shape oil’s short to medium-term outlook.

  • Another build in US crude inventories may further darken the demand outlook, dragging the global commodity lower as a result.
  • A decline in US inventories could soothe fears around waning oil demand, potentially limiting downside pressures on crude.

  1. FOMC minutes + US data 

Much has changed since the Federal Reserve policy meeting on the 1st of November with the soft US inflation report extinguishing any remaining bets around the Fed hiking rates.

Nevertheless, the Fed minutes could offer additional insight into what Fed officials thought about the US economic outlook. On the data front, there will be some key economic releases including the US initial jobless claims, university of Michigan consumer sentiment, and manufacturing PMI which could trigger dollar volatility.

  • Should the minutes strike a cautious note and overall US economic data disappoint, this could feed fears around waning demand – dragging oil prices lower.
  • While a positive set of US economic data may quell fears around the demand outlook and supporting oil – a stronger dollar could limit upside gains.

  1. Anticipation ahead of OPEC+ meeting 

Note: the full impacts of what is decided during the OPEC+ meeting will not be reflected until Monday 27th November. However, the growing anticipation could influence oil prices ahead of this major event.

Oil prices are trading at their lowest levels since July ahead of the OPEC+ meeting on Sunday 26th November.

The latest selloff in oil prices has added more focus to the upcoming meeting, opening the doors for greater supply cuts as the cartel continues its quest to rebalance markets. It is worth keeping in mind that OPEC+ has been cutting production since late 2022 with a broader deal to limit supply throughout 2024.

Markets already expect the extension of production cuts by Saudi Arabia and Russia into the early parts of 2024. So, the cartel may need to offer something new to revive oil bulls.

  • Oil prices could be thrown a lifeline if the cartel moves ahead with deeper supply cuts.

  1. Technical forces 

Prices are under intense pressure on the daily charts with crude respecting a bearish channel. There have been consistently lower lows and lower highs while the MACD trades to the downside. However, the Relative Strength Index (RSI) is flirting near 30, indicating that crude may be oversold. While this has the potential to trigger a technical rebound, the scales of power remain in favour of bears.

  • A solid daily close below $74 could send prices back towards $72.50 and $70, respectively.
  • Should prices push back above $75.30, this could open the doors towards the 200-day SMA at $78 and $79.80.

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Energy Opinions
13 Nov

Brent Oil Price is Declining Again

By RoboForex Analytical Department

The commodity market started the week with a new wave of selloffs. The price of a barrel of Brent crude decreased to 80.65 USD.

Investors began reducing long positions on Friday amid uncertainty in the Middle East.

This week, the monthly reports from the International Energy Agency and OPEC are expected to be released. These documents will hold fresh assessments of the situation in the oil sector and, possibly, forecasted supply and demand parameters.

Also, the market eagerly awaits the latest inflation statistics from the US. This is one of the key indicators in shaping the Fed’s monetary policy, which is also significant for the oil market.

Brent technical analysis

On the H4 chart, Brent has completed an upward impulse reaching the level of 81.89. Today, the quotes might correct to 80.37. After the correction is completed, a new wave of growth to 84.00 could begin, from where the trend could continue to 87.87. Technically, this scenario is confirmed by the MACD indicator. Its signal line is below zero and strictly directed upwards.

On the H1 chart, Brent has completed an upward wave to 81.89. Today, a correction to 80.37 is forming. After the price reaches this level, a wave of growth to 81.89 could follow. A breakout of this level could open the potential for a rise to 84.09. This is a local target. Technically, this scenario is confirmed by the Stochastic oscillator: its signal line is below 20 and strictly directed upwards. The indicator is expected to renew the highs.

Disclaimer

Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

Energy Financial News
09 Nov

My Newest Electrification Play as Demand for Nuclear Surges

Source: Michael Ballanger  (11/6/23)

 As the demand for uranium grows, Michael Ballanger of GGM Advisory Inc. shares one stock he believes is worth looking into.

I have been bullish on uranium since 2017, which means I have seen two rallies, neither of which I traded.

At the start of the year, I came up with the concept of the “Electrification Trilogy,” calling for increases in demand for new sources of electricity (nuclear/uranium), transmission infrastructure (wiring/copper), and electrical storage (batteries/lithium) and while I maintained exposure to copper and lithium, I really only had a small position in one uranium developer forgetting all the while that the best proxy for uranium has to be Cameco Corp. (CCO:TSX; CCJ:NYSE).

While I find it difficult to own any stock after it has nearly doubled, I listened to the conference call this week after they reported blow-out earnings, and what grabbed me by the throat was the forward guidance in which they said: “We are seeing durable, full-cycle demand growth across the nuclear energy industry.”

That is really positive guidance, and with 57 new reactors currently under construction around the globe and with Germany reversing their decision to dismantle three of their power plants, the demand for uranium is going to kick in long before new supply can hit the market.

Accordingly, I decided to bite the bullet and take a punt on a few Cameco March US$40 calls in the US$5.00 range on the assumption that I will see all-time highs above US$46.41 by New Year’s Day and US$50 in Q1/2024.

I know I am late to the party, but with guidance so powerfully bullish and nuclear the only real solution to the global energy problem, I cannot see getting hurt despite the modest overbought conditions it moved into on Friday before backing off.

Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Cameco Corp.
  2. Michael Ballanger: I, or members of my immediate household or family, own securities of: Cameco Corp. My company has a financial relationship with: Cameco Corp. I determined which companies would be included in this article based on my research and understanding of the sector.
  3. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
  4.  This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

Michael Ballanger Disclosures

This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

Energy Financial News
08 Nov

Mid-Week Technical Outlook: Oil closes below 200-day SMA

By ForexTime 

  • Crude dives over 4% in previous session
  • Prices secure daily close below 200-day SMA
  • Monthly and weekly timeframe signal further downside
  • Bears in control on D1 charts but RSI near oversold territory
  • Key levels of interest at $82, $78 and $74

Oil struggled on Wednesday after sliding more than 4% in the previous session to levels not seen since July.

The global commodity was hammered by demand concerns which provided a platform for bears to drag prices below the 200-day Simple Moving Average (SMA) for the first time in over three months.

It is worth noting that technical indicators were already in favour of bears before yesterday’s steep selloff. Oil was already respecting a negative channel on the daily charts, creating lower lows and lower highs. The daily close below the 200-day SMA may open doors to lower price levels in the short to medium term.

Zooming out to the weekly charts, we see a similar bearish picture with crude on the path to securing its third negative trading week. Prices have broken through the $80 weekly support with the next key level of interest on the W1 timeframe around $73 and $68.

Peeking at the monthly charts, the bearish candlestick created in October further supports the bearish case, signaling the possibility of lower prices to come with key monthly support found at $66.50.

Redirecting our attention back to the daily timeframe, bears are certainly in control and may use the current momentum to drag crude toward the next daily support at $74. However, the Relative Strength Index (RSI) is flirting near 30, indicating that crude may be oversold. While this could trigger a technical rebound down the road, the path of least resistance remains south.

  • Sustained weakness below the 200-day SMA may send prices towards $74 and $72.50.

  • Should prices push back above the 200-day SMA, this could spark a move back towards $82

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Energy Opinions
03 Nov

Oil and Gas Company Trading at 25% Of Book Value Production Set to Double

Source: Jeffery Hunter  (11/2/23) 

Jeffery Hunter of BullishBriefs shares his thoughts on energy company Avila Energy’s stock.

Avila Energy Corp. (PTRVF:OTCMKTS;VIK:CSE) is an overlooked opportunity trading at a steep discount to book value. After the share price was hit hard after a dramatic SPAC merger breakdown, this diversified energy company currently has a market capitalization under US$5 million, despite having total equity of US$21.3 million on the books. That means Avila Energy’s stock trades at around 25% of its book value per share of US$0.15.

With the price of Western Canadian crude oil sustaining over US$64 per barrel, now could be the ideal time to take advantage of Avila’s discounted share price. The company is focused on ramping up near-term production to capitalize on high commodity prices.

Avila currently produces approximately 570 barrels of oil equivalent per day (boe/d) from its operations in Alberta, Canada. The company plans to double production to 950-1,040 boe/d through a combination of workovers, recompletions, and new drilling. Assuming the lower end of production, US$64 WCS oil and US$3.10 natural gas, my math gives me about 8.1m in annual revenue, considerably higher than their current market cap.

To help fund this growth, Avila Energy is undertaking a US$2.2 million private placement. The capital raised will go directly toward adding barrels and increasing cash flow at a time when market conditions are favorable.

Beyond conventional oil and gas production, Avila Energy is making moves into the clean energy space. The company is developing carbon capture and sequestration technology to reduce the emissions from its upstream operations. Avila is also launching a Vertically Integrated Energy Business using patented micro-turbine technology.

This micro-turbine technology enables modular power generation for homes and businesses. By selling the power directly to consumers, Avila can establish a stable recurring revenue stream. The company estimates each customer could generate around US$500 per month on average.

Avila Energy is positioning itself for the global energy transition. Through a balanced mix of oil and gas production and clean energy sales, the goal is to achieve carbon neutrality by 2024 and net zero emissions by 2027.

With fossil fuel production providing steady cash flow and clean energy initiatives driving future growth, Avila aims to become a unique diversified energy provider. The company has the team and vision to bridge the gap between traditional and renewable energy.

Trading at just a fraction of book value, with near-term production set to double and a pivotal move into clean energy, Avila Energy offers substantial upside for investors. With the CEO owning a whopping 28% of outstanding shares, the opportunity is compelling for those who see the long-term potential in the strategic transition Avila is undertaking.

 

Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Avila Energy Corp.
  2. Jeffery Hunter: I determined which companies would be included in this article based on my research and understanding of the sector.
  3. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
  4.  This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

Energy Financial News
02 Nov

What is a virtual power plant? An energy expert explains

By Daniel Cohan, Rice University 

After nearly two decades of stagnation, U.S. electricity demand is surging, driven by growing numbers of electric cars, data centers and air conditioners in a warming climate. But traditional power plants that generate electricity from coal, natural gas or nuclear energy are retiring faster than new ones are being built in this country. Most new supply is coming from wind and solar farms, whose output varies with the weather.

That’s left power companies seeking new ways to balance supply and demand. One option they’re turning to is virtual power plants.

These aren’t massive facilities generating electricity at a single site. Rather, they are aggregations of electricity producers, consumers and storers – collectively known as distributed energy resources – that grid managers can call on as needed.

Some of these sources, such as batteries, may deliver stored electric power. Others may be big electricity consumers, such as factories, whose owners have agreed to cut back their power use when demand is high, freeing up energy for other customers. Virtual power sources typically are quicker to site and build, and can be cleaner and cheaper to operate, than new power plants.

Virtual power plants are more resilient against service outages than large, centralized generating stations because they distribute energy resources across large areas.

A growing resource

Virtual power plants aren’t new. The U.S. Department of Energy estimates that there are already 30 to 60 gigawatts of them in operation today. A gigawatt is 1 billion watts – roughly the output of 2.5 million solar photovoltaic panels or one large nuclear reactor.

Most of these virtual power plants are industrial customers that have agreed to reduce demand when conditions are tight. But as growing numbers of homes and small businesses add rooftop solar panels, batteries and electric cars, these energy customers can become not only consumers but also suppliers of power to the grid.

For example, homeowners can charge up their batteries with rooftop solar when it’s sunny, and discharge power back to the grid in the evening when demand is high and prices sometimes spike.

As smart thermostats and water heaters, rooftop solar panels and batteries enable more customers to participate in them, DOE estimates that virtual power plants could triple in scale by 2030. That could cover roughly half of the new capacity that the U.S. will need to cover growing demand and replace retiring older power plants. This growth would help to limit the cost of building new wind and solar farms and gas plants.

And because virtual power plants are located where electricity is consumed, they’ll ease the burden on aging transmission systems that have struggled to add new lines.

New roles for power customers

Virtual power plants scramble the roles of electricity producers and consumers. Traditional power plants generate electricity at central locations and transmit it along power lines to consumers. For the grid to function, supply and demand must be precisely balanced at all times.

Customer demand is typically assumed to be a given that fluctuates with the weather but follows a fairly predictable pattern over the course of a day. To satisfy it, grid operators dispatch a mix of baseload sources that operate continuously, such as coal and nuclear plants, and more flexible sources such as gas and hydropower that can modulate their output quickly as needed.

Output from wind and solar farms rises and falls during the day, so other sources must operate more flexibly to keep supply and demand balanced. Still, the basic idea is that massive facilities produce power for millions of passive consumers.

Virtual power plants upend this model by embracing the fact that consumers can control their electricity demand. Industrial consumers have long found ways to flex their operations, limiting demand when power supplies are tight in return for incentives or discounted rates.

Now, thermostats and water heaters that communicate with the grid can let households modulate their demand too. For example, smart electric water heaters can heat water mostly when power is abundant and cheap, and limit demand when power is scarce.

In Vermont, Green Mountain Power is offering its customers incentives to install batteries that will provide power back to the grid when it’s needed most. In Texas, where I live, deadly blackouts in 2021 highlighted the importance of bolstering our isolated power grid. Now, utilities here are using Tesla Powerwalls to help turn homes into virtual power sources. South Australia aims to connect 50,000 homes with solar and batteries to build that country’s largest virtual power plant.

Virtual power, real challenges

Virtual power plants aren’t a panacea. Many customers are reluctant to give up even temporary control of their thermostats, or have a delay when charging their electric car. Some consumers are also concerned about the security and privacy of smart meters. It remains to be seen how many customers will sign up for these emerging programs and how effectively their operators will modulate supply and demand.

There also are challenges at the business end. It’s a lot harder to manage millions of consumers than dozens of power plants. Virtual power plant operators can overcome that challenge by rewarding customers for allowing them to flex their supply and demand in a coordinated fashion.

As electricity demand rises to meet the needs of growing economies and replace fossil fuel-burning cars and furnaces, and reliance on renewable resources increases, grid managers will need all the flexibility they can get to balance the variable output of wind and solar generation. Virtual power plants could help reshape electric power into an industry that’s more nimble, efficient and responsive to changing conditions and customers’ needs.The Conversation

About the Author:

Daniel Cohan, Associate Professor of Civil and Environmental Engineering, Rice University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Energy Opinions
31 Oct

Crude oil bears dominate the scene

By ForexTime 

  • Crude oil under pressure on D1 timeframe
  • H4 timeframe confirms that bears are in control
  • Keep eye on Parabolic SAR and MACD
  • Three potential bearish targets identified on H4 chart
  • If the 83.94 level broken, H4 bearish scenario invalidated

Oil prices remain dominated by bears on the daily timeframe as the global commodity creates a lower top followed by a lower bottom.

This represents a downtrend that could send prices toward the weekly support level of 80.45. However, bulls have the potential to jump back into the scene by starting a correction wave with their goal none other than the weekly resistance level at 84.47.

The H4 chart confirms that the bears are in charge with a downtrend in progress. Bulls started a correction wave in the downtrend with both the Parabolic SAR indicator and the Moving Average Convergence Divergence (MACD) oscillator sanctioning this direction.

Attaching a modified Fibonacci tool to a trigger level near the last lower bottom at 81.46 and dragging it close to the top of a large bearish candle at 83.94, three possible targets can be established:

  • The first possible target is at 80.71 (Target 1), just before a weekly support level. This target will help with risk management.

  • The second price target is likely at 78.72 (Target 2) if the bears can break through the weekly support level.

  • The third and last price target is feasible at 76.99 (Target 3).

If the price at 83.94 is broken, this scenario is no longer relevant.

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Energy Financial News
30 Oct

Brent Crude Holds Ground Around $90 Amid Geopolitical Tensions and Future Expiries

By RoboForex Analytical Department

Brent crude is maintaining a steady position, trading close to $89.50 as the market endeavors to find a balance.

Middle Eastern tensions remain the central focus for traders, as the on-ground operations in the region have introduced multiple uncertainties that can sway prices.

Adding to the mix of factors influencing Brent crude this week is the expiration of December Brent futures. This expiration could lead to short-term volatility and impact prices accordingly.

Recent data from Baker Hughes indicates that the number of active oil rigs in the U.S. is on the rise. This week saw an increase of two units, bringing the total to 504 rigs. This growth marks the third week in a row of expansion.

Technical Analysis: Brent Crude

Brent has witnessed a corrective move to the $86.50 mark and is currently crafting an upward trajectory targeting $89.50. Should prices successfully surpass this resistance, we might witness a rally towards $93.20, and potentially even further to the $95.00 mark. The MACD on this timeframe solidifies this bullish sentiment. With its signal positioned below the zero line, it’s on an upward trajectory, hinting at possible future highs.

On the hourly frame, Brent has wrapped up a bullish wave reaching $89.36, succeeded by a minor pullback to $87.90 earlier today. The stage appears set for a subsequent bullish move, aiming for the $89.50 resistance. Breaking above this level could potentially unlock the door to $92.50. The Stochastic oscillator on this timeframe amplifies this bullish stance. Its signal, currently below the 20 mark, is pointed sharply upwards, suggesting a possible rally to the 80 level.

Disclaimer

Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

Energy Financial News
26 Oct

Thermoelectric Generator Prototype Could Improve EVs, Solar Power

Source: Streetwise Reports  (10/19/23)

An improved tellurium-based thermoelectric generator being tested in Canada could increase the efficiency of electric vehicles, solar power, and combustible engines. Researchers say the markets are expanding.

First Tellurium Corp. (FTEL:CSE; FSTTF:OTCQB) announced an improved tellurium-based thermoelectric generator that could increase the efficiency of electric vehicles (EVs), solar power generation, and combustible engines.

The prototype was developed in the United States by First Tellurium’s 51%-owned thermoelectric-focused research and development company, 1406975 BC Ltd.

The generator is being delivered to Vancouver for further testing, the company said.

“Tellurium’s advantages for heat-to-energy conversion have long been recognized and understood,” said First Tellurium President and Chief Executive Officer Tyrone Docherty. “With the pressing need to increase the efficiency of alternative energy sources and both electric and combustion vehicles, we are in a strategic position to advance tellurium’s thermoelectric applications and contribute to the worldwide shift away from fossil fuels.”

The research company aims to explore new uses for tellurium and develop improved thermoelectric generators for the renewable and automotive industries.

“Completion of this prototype marks the next step of many towards what we believe will be innovative and valuable thermoelectric applications for tellurium,” Docherty said. “The generator, in its initial testing and development, has demonstrated potentially significant improvements in the conversion of heat to energy. We look forward to advancing the technology through further testing and research.”

The global market for thermoelectric generators was valued at US$472.5 million in 2020, according to Allied Market Research. It is forecasted to grow to more than US$1.4 billion by 2030, growing at a compound annual growth rate (CAGR) of 11.8% from 2021 to 2030.

“Increase in demand for fuel-efficient vehicles and implementation of stringent government regulations to curb the emission of carbon dioxide act as the key driving forces of the global thermoelectric generator market,” Allied Market Research noted.

The Catalyst: Finding New Ways to Generate Power for Green Economy

Tellurium (Te) is one of the least common elements on Earth, according to the U.S. Geological Survey. In addition to thermoelectric applications, it’s also used in solar photovoltaic (solar PV) panels, lithium batteries, vulcanizing rubber, tinting glass, and manufacturing rewritable CDs and DVDs.

The element’s role as a semiconductor has increased its use in solar PV panels, the company said.

Recent International Energy Agency (IEA) forecasts show that solar PV technology will generate more power by 2027 than any other source. The market for Te is expected to grow by about 60 metric tons (about 10% of current production) from 2020 to 2024, according to research by Technavio.

“Factors such as increasing urban population, rise in disposable income, strong supply chain, and high internet penetration are driving the growth of the global consumer electronics market,” the research firm said in a release. “The increase in demand for consumer electronics will, in turn, drive the demand for tellurium over the forecast period.”

Technical Analyst Clive Maund recently named First Tellurium as a part of his 8 Stocks that are Rated Immediate Buys list.

First Solar is spending big to increase its module capacity, which is sure to strain the tellurium market. According to researchers at the Institute of Environmental Science and Technology at the Autonomous University of Barcelona, annual demand for the mineral could jump 70%.

First Tellurium’s Deer Horn site in British Columbia is known to have the only positive preliminary economic assessment (PEA) for a tellurium project in North America and was named a world-class project by solar panel maker First Solar Inc. (FSLR:NYSE)

In addition, the company’s Klondike tellurium project in Colorado is considered America’s top tellurium exploration project and was previously owned by First Solar as a potential source of raw tellurium for its solar panels.

Technical Analyst Clive Maund recently named First Tellurium as a part of his 8 Stocks that are Rated Immediate Buys list.

“First Tellurium has been bumping along the bottom in recent months with heavy buying late in May and again late last month, that drove the Accumulation line sharply higher, suggesting that it is readying to advance,” Maund wrote. “Longer-term charts show big support in the (CA$0.10) area, from which it has repeatedly rallied, underpinning the price, and with it still only at 12 cents, it looks like a Strong Speculative Buy here. Even if it only makes it up to the top of the trading range of the past 18 months, it will double from here.”

Mineralized Systems Connected

An induced polarization (IP) geophysical survey last month followed upsampling, prospecting, and mapping at Deer Horn in 2022 and 2023 to extend the mineralized zone of the copper-gold porphyry and gold-silver-tellurium vein systems there to more than 17 kilometers, the company said.

The company will use the information and work from the previous two years to formulate a much larger drilling program next year.

Streetwise Ownership Overview*

First Tellurium Corp. (FTEL:CSE; FSTTF:OTCQB)

Retail: 89%
Management/Insiders: 11%
89%
11%
*Share Structure as of 7/21/2023
Source: First Tellurium Corp.

 

“Our prospecting, mapping, and sampling over the past two years has given us an extensive base of information to support the drilling and IP survey,” Docherty said. “What we have learned is that both the copper-gold porphyry target and gold-silver-tellurium vein system extend much farther than we first understood. Even more important is the discovery last month that the two mineralized systems are connected, supporting the premise that the property could support a large copper-gold porphyry across ground that has never been explored.”

Ownership and Share Structure

According to the company, 11% of First Tellurium is owned by management and insiders.

Docherty owns 10.6% or 7.7 million shares, Director Josef Anthony Steve Fogarassy has 1.38% or 1 million shares, and Director Lyle Allen Schwabe has 0.73% or 0.53 million shares. There are no institutional investors, and the rest is retail.

The company has a market cap of CA$8.66 million, with about 73 million shares outstanding and 63.3 million free-floating. It trades in a 52-week range of CA$0.245 and CA$0.085.

 

Important Disclosures:

  1. First Tellurium Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of First Tellurium Corp.
  3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

For additional disclosures, please click here.

Energy Financial News
25 Oct

Vertical Solar Startup Sells Third Tower, First in US Market

Source: Streetwise Reports  (10/24/23)

When we last reported on Three Sixty Solar Ltd., the upstart Canadian solar firm had just signed a letter of intent for its second tower installation. The company has now announced a third sale, its first in the US market.

Three Sixty Solar (VSOL:NEO;VSOLF:OTC) is a Canadian company specializing in vertically-oriented solar equipment supply. The company’s premier product line is the (patent-pending) SVS series commercial solar tower concept.

This high-density, clean energy solution is built on its own free-standing tower, meaning it can be built adjacent to structures requiring power, thereby minimizing line loss and maximizing energy delivery in cluttered environments where traditional renewable solutions are difficult to install.

In deploying Three Sixty Solar solutions as multi-tower installations, developers can capitalize on the spaces between towers to better leverage land assets for other revenue-generating activities. Each tower offers a reliable, clean energy solution with minimal environmental and habitat impact, maximizing power capture while at the same time minimizing utility structure footprint.

The company’s subsidiaries include Three Sixty Solar Operations Ltd, Victory Exploration Inc., and Liberty One Utah Inc.

The Catalyst: Third Tower Sale, First in the US

On October 19, Three Sixty Solar Ltd. announced that it had signed a non-binding letter of intent (LOI) with Rocky Mountain Log and Timber (“RMLT”). RMLT authorized the purchase of an SVS series solar tower for installation at its facility in Hamilton, MT. RMLT is a builder of premium log homes and produces its own lumber.

RMLT expects the electricity generated by the tower to offset power requirements in its milling operations. As per the LOI, the parties are undertaking an energy optimization study, intending to reach a binding purchase order by November 30, 2023.

In addition to acting as a secondary power source to drive operations, the new tower will include technology from Hook’d Broadband to provide site-wide broadband connectivity.

A recent Stratistics MRC report points out that the global solar farm sector accounted for US$76 billion in 2020 and is forecasted to reach US$296 billion by 2028, growing at a compound annual growth rate (CAGR) of 18.5%.

Brian Roth, Three Sixty Solar’s CEO, says he is “thrilled to have signed the letter of intent to secure our first commercial sale in the United States with Rocky Mountain. Rocky Mountain is focused on providing premium homes, often in remote locations.

I believe that our solar tower technology is an ideal solution to partner with many of the communities that they help build, and I’m excited for the opportunity to demonstrate the technology at their headquarters.”

Jake Hayes, owner of Rocky Mountain Log and Timber, explains that his company was “looking for ways to add renewable energy to power our operations and to offer to our customers.”

“I believe that the solar tower technology that Three Sixty has developed is a perfect fit for us to generate localized independent power,” he says. “I’m also excited to include the Hook’d Broadband technology and be able to provide a connectivity solution to our clients on future projects. We are looking forward to working with Three Sixty and becoming an advocate for the solar tower solution.”

For his part, Three Sixty Solar CEO Roth says, “I look forward to working with Jake and his team to deploy the tower in Hamilton and to then offer it cooperatively to their customers throughout the northwest.”

Why This Sector? Taking the Green Energy Revolution Skyward

Three Sixty Solar’s Tower-based solutions offer a relatively new twist on legacy solar technology, one that makes solar power a more appealing solution in far more potential use cases.

For example, when Three Sixty Solar signed its first LOI with Cattail Crossing Golf and Winter Club in Sturgeon County, Alberta, club owner Mark Beck said the club had been looking for ways to add renewable energy to the operation but couldn’t find solar cells arrayed in a suitable configuration.

“The solar towers offered by Three Sixty are such a unique approach that we can easily make it fit and generate power for our irrigation systems, cart charging, and more,” Beck said. “We are looking forward to working with Three Sixty and becoming an advocate for the solar tower solution to our friends in the golf community.”

“We, therefore, stay long, and Three Sixty is rated an Immediate Strong Buy as soon after the open as possible,” Technical Analyst Clive Maund said.

“[Cattail Crossing has] substantial power needs and don’t want to give up their land because, obviously, that takes up space they need for the course,” explained Three Sixty Solar’s CEO Roth at the time, adding that countries have been “throwing record amounts of money at these types of technologies and trying to green our electricity grid. There’s just a huge opportunity to clean up our electricity production while . . . being very cost competitive with the older technologies.”

Indeed, a recent Stratistics MRC report points out that the global solar farm sector accounted for US$76 billion in 2020 and is forecasted to reach US$296 billion by 2028, growing at a compound annual growth rate (CAGR) of 18.5%.

Canada is targeting net zero emissions by 2050 and has launched a CA$964 million program, while the United States Inflation Reduction Act commits US$370 billion to fund green energy. The European Union has an energy target of at least 32% from solar by 2030, while the European Green New Deal envisions a climate-neutral continent by 2050.

Why This Company? Legacy Solar Eats Footprint

Solar power offers many advantages but generally does so at a significant cost in terms of space. Solar capture generally requires considerable space, and in many tight real estate markets, space is at a considerable premium.

Most industrial facilities don’t have enough additional land nearby to host a legacy solar array large enough to provide all power needs. Some compromise by positioning solar cells on their roofs, but these solutions can be expensive to maintain, unsafe for workers, and even cause considerable fire hazards.

Roth explains that “Three Sixty Solar’s unique tower concept is a high density, clean energy solution that uses up to 90% less land space than conventional solar farms.”

This unique setup allows for proximity to legacy infrastructure, “minimizing line loss and maximizing energy delivery in places where renewables have been difficult to install until now.”

In addition to reducing the land space requirement for installation, the company’s vertical farms keep solar infrastructure off of commercial, residential, and industrial roofs.

It’s a foregone conclusion among many analysts that solar power will continue to grow as a major portion of the emerging green economy. Three Sixty Solar’s solutions are designed to make the real-world impact of this accelerating transition as soft-touch as possible.

Why Now? Three LOIs In the Bag, First US Client

With their first three projects well begun, it seems that Three Sixty Solar — Formerly Liberty One Lithium Corp., with an IPO date of 11-Aug-1994 — is finally off to the races.

On July 24, when the first LOI was announced, Technical Analyst Clive Maund opined that “Three Sixty Solar is an interesting solar company because it makes unique vertical array solar towers which have tremendous space-saving and aesthetic advantages in solar power generation. For this reason, the company and its stock are considered to have a lot of growth potential.”

Maund says that he “started looking at it in April, and after we bought it at that time, it had a sharp rally that was followed by a nasty steep drop into mid–late May when we bought it again, and so after the strong rally of recent weeks we are up on our last purchase but still slightly down on the first purchase.”

Streetwise Ownership Overview*

Three Sixty Solar (VSOL:NEO;VSOLF:OTC)

Retail: 51%
Strategic Investors: 28%
Management & Insiders: 21%
51%
28%
21%
*Share Structure as of 7/25/2023
Source: Three Sixty Solar

 

“It is thus interesting to see this morning’s news that the company is making its first sale of one of its vertical towers. Now, you may yawn at this and say, ‘So what? – big deal, they sold a tower to a golf course.’ But the point is there are a lot of golf courses and various other venues and places across the U.S. and across the world that have the need for this space-saving technology, and if they catch on to it, sales could be huge, so it really could be a big deal after all.”

“We, therefore, stay long, and Three Sixty is rated an Immediate Strong Buy as soon after the open as possible.”

Ownership and Share Structure

According to the company, about 21% of Three Sixty Solar is held by management and insiders. CEO Roth owns 3.43%, founder and Director Peter Sherba owns about 30%, and Director Scott McLeod owns about 0.21%, Reuters reports.

About 28% is held by strategic investors, and the rest, about 51%, is retail.

Three Sixty Solar’s market cap is CA$9 million, with about 43.5 million shares outstanding. It trades in a 52-week range of CA$0.14 and CA$1.29.

 

Important Disclosures:

  1. Three Sixty Solar has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Three Sixty Solar.
  3. Owen Ferguson wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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