Hydropower is the leading renewable source for electricity generation globally, supplying 71% of all renewable electricity. Reaching 1,064 GW of installed capacity in 2016, it generated 16.4% of the world’s electricity from all sources.
Hydropower is the most flexible and consistent of the renewable energy resources, capable of meeting base load electricity requirements as well as, with pumped storage technology, meeting peak and unexpected demand due to shortages or the use of intermittent power sources. There are many opportunities for hydropower development throughout the world and although there is no clear consensus, estimates indicate the availability of approximately 10,000 TWh/year of unutilised hydropower potential worldwide.
Hydro Investment Opportunity
Pacific American Holdings (ASX: PAK) has been actively reviewing additional investment opportunities over the last 12 months. As part of the rigorous assessment process, the board identified renewable energy as being an area of interest due to the significant levels of global investment in the sector, including in the Asia Pacific region.
Hydro-electricity and hybrid energy developments on the back of micro hydro power plants offer a significant opportunity for PAK, due to a number of factors including:
Hydro is a mature alternate energy power source
Hydro is a stable technology with a long-life cycle
Micro plants can be used with solar and battery technology for hybrid projects
There are numerous opportunities for off grid projects in the Australian and Pacific regions
Key elements of the comprehensive joint venture agreement, signed with world class technology partner Global Hydro, include:
PAK and Global Hydro are to form a new Singaporean based joint venture company to be called GP Hydro (“GP Hydro”).
PAK and Global Hydro are to each own 50% of GP Hydro.
GP Hydro will be focused on micro hydro and hybrid projects in the Pacific Region including Australia.
Why Global Hydro Energy GmbH?
Why Global Hydro Energy
PAK has selected Global Hydro as its joint venture partner due to its cutting-edge technology and products in the hydro space. Global Hydro is privately owned family business based in Austria with 100 years of experience in manufacturing and implementing hydro projects globally. With group global sales of +USD100m across the hydro space, Global Hydro provides PAK with a world class technology partner which will enable the joint venture to commencing business with a proven product that has been de-risked in various projects across the globe.
Global Hydro provides the best of European quality. They are a specialist in design, manufacture and installation of turbines and hydro plants with capacities ranging from 100 kW to 25 MW. The company provides the full range of services through development, production, automation and service capabilities. As a specialist in micro hydro technology, Global Hydro has developed its own SmartT technology which is an ideal product for outputs of 100kW to 1 MW per unit. SmartT power stations are fully assembled at the factory and delivered as ready-to-use power plant in 20ft containers. SmarT technology can be combined with other technologies such as solar and wind energy plus combined with battery storage for optimized operation. This low operating cost sustainable technology has no environmental impact and is therefore ideal for the Pacific regional markets, including Australia.
GP Hydro Joint Venture Company
PAK has been working with Global Hydro to develop a joint business plan which can take advantage of Global Hydro’s world class micro hydro technology (SmarT) and PAK’s project development and regional knowledge. The parties have signed a joint venture agreement. Key elements of the joint venture arrangement and business plan are:
A 50/50 joint venture company is to be established in Singapore and called GP Hydro (“GP Hydro")
GP Hydro is to be focused on micro hydro and hybrid projects in the Pacific Region, including Australia, through the introduction of Global Hydro products to these markets.
Develop and adapt Global Hydro’s technology for local environmental situations
Explore the addition of accessory products such as battery storage, wind or solar power with Global Hydro products
The Company will implement the following strategies to achieve its goals of becoming a leading provider of hydro products and services:
Create a compelling value proposition for both sponsors and consumers.
Build strong brand recognition and leverage the brand equities affiliated with GP Hydro.
Develop key industry relationships with government organizations, financial institutions, clean energy product suppliers, engineering groups and content partners.
Leverage existing technology investors to create a measurable operation
Provide a high level of personalized service.
Build a “A-list” of experienced professionals
SmarT is an economic product ideal for outputs of 100kW to 1MW per unit.
SmartT power stations are fully assembled at the factory
Ready-to-use power plant delivered in a 20ft container.
SmarT can be combined with other technologies
Solar and wind energy
Battery storage for optimized operation
Low operating costs and sustainable technology with no environmental impact