The work plan has consisted of one 6-month Work Package, the Feasibility Study. Detailed tasks have been performed as per the below:
Task 1: Market and competitor analysis
Review of actions taken and deliverables: The original plan was followed based on a combination of a top-down (market reports etc.) and bottom up (interviews, industry meetings etc.) approach. Tomorrow’s Business (
http://tomorrows.biz(se abrirá en una nueva ventana)) provided input to the market study, and we also had significant benefit from interaction with industry players during the feasibility study period. In particular, we have appreciated the dialogues with ENGIE, that is looking to pilot AWE in France and have provided input to market applications and test requirements. An LoI has been shored up to that effect. In terms of main movements by competitors during the period, we highlight the investment by Shell Technology Ventures, Schlumberger and Eon in Kite Power Systems (UK). Broader discussions related to market and competitor development have taken place in workshop settings, e.g. at the WindEnergy Hamburg fair in September 2016 and in additional "expert cafés" and in interaction with our Advisory Board.
Task 2: Cost assessment
Review of actions taken and deliverables: We have completely revised our financial model with significant detail on all variables related to cost development - both for development costs and the operational phase. 3'rd party input from the consultancy Compelling AS and the investment bank Lazard have been supportive to firm up realistic cost assumptions while maintaining flexibility to cater to alternative scenarios.
Task 3: Detailed business plan
A detailed business plan and financial model is forthcoming and set for delivery by the end of March 2017. Significant effort has been put in by the internal team, while we in addition have sparred on strategic issues with the investment bank Lazard, and have received support from the local technology accelerator HighTech Startbahn Netzwerk eV. Based on work in the study, our business plan should be considered "investor ready" and we've seen significant synergies to a parallel capital raise initiative.
Task 4: IPR analysis and strategy
Review of actions taken and deliverables: Work related to our IP portfolio (4 PTC patent pending) has progressed in national phases with the support of external patent attorneys. In addition, we've revised what could be foreseen as future IPR, but keep this for now as industry secrets based on a cost/benefit/criticality assessment. An updated Network Patent Analysis has confirmed our "freedom to operate".
Task 5: Regulatory feasibility
Review of actions taken and deliverables: We see that this is a topic where we benefit strongly from industry collaboration. To that effect, we are an active part of the HNW500 AWE cluster and network organization(
http://www.hwn500.de/(se abrirá en una nueva ventana)) to address regulatory feasibility for AWE. Progress has been made during the study period to align on common views and focus areas. The dialogues with ENGIE also very much focused on regulatory feasibility and the overall potential of AWE, leading to additional steer being provided on test locations, taking a conservative approach. A particular focus has been directed towards Germany and France where we have developed comprehensive documentation detailing proposed piloting activity and plans for operations.
Task 6: Detailed Phase II development plan
Review of actions taken and deliverables: We have spent internal resources to fully understand the SME Instrument Phase 2 program objectives, and how our project can progress to this phase. Given the complexity of AWE and need to cater to dependencies in an all integrated system, we are looking to become a single applicant with various sub-contractors. The signed LoI from ENGIE anchors the development and demonstration project with a strong industry partner. The breakdown of Work Packages and tasks are being firmed up, and we are looking to address the 6/4/2017 cut-off, alternatively the next on 1/6/2017.
