Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a1034049

David Kempton: update on RedT Energy

A disappointing trading statement last week from energy storage technology company RedT is not discouraging our experienced investor.

 
David Kempton: update on RedT Energy

In the development of economical and effective renewable sources of energy, power storage is an essential part of the mix. 

In different parts of the world, climatic and geological conditions dictate the predominant source of renewable energy, but whether this is wind or solar, power storage is paramount for those windless days or when the sun doesn’t shine.  

Renewables have their critics, but the importance of clean energy is undeniable and Britain has already achieved a day this year when more than 50% of electricity came from renewable sources; Germany, where development has been faster, achieves this regularly.

Energy storage has seen emphasis on the use of lithium batteries to meet the demand for frequency response in various industries; predominantly the fast growth of electric and hybrid cars, but for large scale storage systems the vanadium redox flow batteries will produce consistent energy for much longer periods.

In my three New Year stock picks, which I updated last week, I included RedT Energy (RED), where the share price performance has been disappointing, not helped by last Thursday’s AGM statement of slower sales.

However, RED has 265 tank unit modules in final stages of customer selection, up from 101 indicated only three months ago with the final 2016 results and active customer enquiries increased to €314 million.

The Gen2 sales have been slower than projected but look to be gathering traction with a new focus on the development of Gen3. The market for durable long-term energy storage develops faster than expected, most significantly in the UK and Australia.

Mid term the markets for RedT’s products are looking stronger than the projections; I’m sticking with my RedT and would look to buy more on any good announcements from the company.  However, this is a new disruptive industry taking shape and you’re investing in a future technology, albeit well proven, if not yet fully understood in the market.

 

2 comments so far. Why not have your say?

Micawber

Jul 18, 2017 at 17:15

Meanwhile thanks for drawing Bango to our attention, David. Of your recent picks, that's the one I liked the look of and it's made me 31% already.

report this

Crusty

Sep 10, 2017 at 13:12

The prospects of updated/improved/cheaper models coming along must deter early mover customers. Needs to be taken over by much bigger outfit imo. Shell or BP for example. I hold a few.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts


In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

More about this:

Look up the shares

  • Redt Energy PLC (REDXX)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

What others are saying

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

Citywire ratings: small cap stars rise up the ranks

by Daniel Grote on Nov 17, 2017 at 12:29

Sorry, this link is not
quite ready yet