Periodic Reporting for period 1 - NextWind (Harvesting airborne wind energy using rigid kites.)
Reporting period: 2017-06-01 to 2017-11-30
Meetings were held with representatives of utility companies and a report on AWE was evaluated.
Potential suppliers for our commercial products have been selected and binding agreements have been made. Kitemill has thus established a supply chain that ensures a smooth launch of its commercial activities.
Due to the opportunity provided by the EU support, Kitemill has been able to do a thorough assessment which improved the technology and its impact on the commercial introduction.
During the project, Kitemill had several discussions with leading utility companies that indicated the potential within the repowering market. The size of that potential market is however significantly larger than what was anticipated before this project.
Furthermore, several mechanisms were identified involving Norway to facilitate market introduction into new countries. Several of the emerging markets have support mechanisms in place to help the introduction of new technology which will ensure the business case of the demonstration plant.
Technically, Kitemill has been presenting at the latest Airborne Wind Energy Conference , where it was confirmed that Kitemill is a leading company on the technology front. Especially the control system seems to be the root cause for the excellent performance of Kitemill its test platform. Hence the company is confident that it will have the technology in place required for commercialization in demonstration plants.
Kitemill is dependent on continued support to execute its business plan. That support can be in various forms as mentioned in the caption.
Kitemill is dependent on future cash injections to have sufficient liquidity. It is currently anticipated that the company must raise around 5 M€ to become a cash flow positive company. During the past 10 years Kitemill has shown its ability to do so. It is planned to reach out to large multinational companies but also to utilize crowd-funding campaigns as was done in the past . In parallel to share emissions, the company is dependent on public funding through agencies as Horizon2020, Innovation Norway and the Norwegian Research council. It is anticipated that this will contribute on an equal basis to our budgets.
Furthermore, to make the product introduction attractive for customers and potential investors, Kitemill is dependent on the support from local governments in the form of subsidy, feed-in tariffs or other mechanisms. Discussions with the Norwegian agencies are currently happening.
Having a large partner e.g. a utility would of course leverage the whole business of Kitemill. It would give access to potential markets, increased resources and potentially also accelerate access to funding. During this study, such initial dialogues have happened and potential agreements could be reached in the foreseeable future.