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Powering the future with proven technology

 

Energy can be derived from a number of sources using a range of technologies at different stages of commercialization. Broadly, there are three generations of energy technologies.  First-generation technologies are well established and widely used. Second-generation technologies are entering markets. Finally, third-generation technologies are still at the research and development phase.

 

Element Renewables Group (ERG) believes that significant opportunities exist to utilize first-generation alternative energy technologies which are mature, commercially proven, and with established markets in several countries.

 

ERG has decided to concentrate its efforts on projects that employ first-generation technologies for base load (24/7) power production. These technologies are fully commercialized, and the Company believes that such projects will be relatively low risk and provide a quicker path to revenue generation.

 

The ERG foresees the following advantages in favoring established technologies to generate renewable and non-renewable energy:

 

  • While governmental support for alternative energy generation using mature technologies has increased in recent years, mature alternative energy technologies are often successful in competing in today’s energy markets even without such policy support particularly in higher energy tariff jurisdictions;

 

  • The cost of utilizing alternative energy technologies generally declines over time as a result of technological development and through the benefits of mass production and market competition. By leveraging this economic trend, the Company can avoid the higher costs associated with using unproven technologies which typically face market barriers and are accordingly less economically competitive;

 

  • By using mature technologies which have been fully commercialized and subject to testing processes in established markets over a period of time, the Company will have the benefit of hindsight of the track record of performance of these technologies when assessing the risks involved in utilizing such technologies. This will in turn, to the extent possible, reduce uncertainty of the operating performances of those projects. Further, the Company believes that its exposure to risk elements associated with new technologies and operational procedures will be mitigated; and

 

  • To the extent that the Company seeks equity or debt funding for its projects, the Company anticipates that it will be more likely to attract investors/financiers if its projects involve commercialized technologies, as opposed to unfamiliar technologies which involve uncertainties over operating performance.

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