Geopower Energy

It is with pleasure to announce that we have lodged our IPO prospectus for approval by ASIC. This is an exciting time for Geopower as we push ahead with our $6m IPO raising, using the funds to acquire an interest in an electricity producing and income generating renewable energy project and for the development of additional opportunities.

Geopower is a diversified renewable energy developer that has a highly commercial approach to the identification, development and operation of low-risk renewable energy projects. Geopower is not a technology company, and is not aligned with any specific ideology or particular field of renewable energy generation. Rather, Geopower is a development company with a very pragmatic and commercial approach to the sector, focused on energy production and generation of income for shareholders. Geopower provides investors with a diversified and risk mitigated exposure to what we believe will continue to be an expanding sector.

Renewable energy is a rapidly developing sector. In 2011, Global renewable energy investment reached US$257 billion, a six-fold increase to 2004, and 93% higher than 2007. The Australian government is also beginning to recognise the importance of this area, having set a renewable energy target of 20% for Australia’s energy generation by 2020.

Immediately prior to the company’s public listing, Geopower will acquire a joint venture interest in a US-based biogas project known as the Blue Mountain Project. This energy and income generating project harnesses the methane produced by many hundreds of thousands of pigs through an agreement with the world’s largest pork producer, Smithfield Foods. The methane is burned to produce renewable power, initially generating enough electricity to satisfy around 2,500 homes and plans to expand. This is just the first project for Geopower, but is important in the early cash flow it provides, overcoming what has been a significant issue for a number of renewable companies that often take many years to commence producing revenue.

The Blue Mountain Project will supply energy under a long-term purchase contract and generate significant income from Carbon Credits and Renewable Energy Certificates. Phase one of the project is fully funded and operational, with a competitive debt facility provided by a leading US financier. The project has also qualified for an attractive cash and tax rebates from the US Government. An expansion of phase one is now underway which is expected to significantly increase the production of biogas.

The Right Investment for 2013

The company’s development strategy is to build a diversified project portfolio that focuses only on proven and commercialised technologies. Partnering this approach with a Board with strong technical and commercial expertise confirm Geopower’s position as a risk-managed investment for the future. Geopower is a project developer and operator not wedded to specific ideologies or methodologies of energy generation – largely side stepping the risks associated with new technologies.

As an independent project developer Geopower enjoys a uniquely flexible and pragmatic position in the industry – a position focused on profitable energy production and the generation of income for shareholders. The company provides investors a diversified and risk mitigated exposure to this rapidly expanding sector.

We believe the Geopower IPO presents a unique opportunity to become part of an emerging energy success story. A recent survey from Deloitte showed that on average, IPOs in Australia outperformed the market substantially in 2010, returning average year-end premiums of 33% above their listing prices. The fact that Geopower’s initial focus is on low-risk projects with emphasis on immediate cash flow sets Geopower apart from many other early stage companies.

Geopower is headed by an experienced, motivated and reputable management and Board with a strong track record of delivering results. With the “proof of concept” provided by Blue Mountain, Geopower expects to be able to rapidly accelerate its pipeline of advanced projects – including other methane capture opportunities in the US, diverse Australian opportunities, and other prospects under considerations in countries with attractive prospects for development due to limited energy supply, high power prices or government policies that facilitate and encourage development.

The board and management of Geopower are extremely appreciative of your support to date; you are an important part of where we are today, poised to prosper from the ongoing growth of the renewable sector. We ask you to tell your friends and family about Geopower, to share this exciting story. If you do have interest from others please have them call or email Bell Potter in Hobart who are assisting with management of this IPO process:

Sam Young, (03) 6218 6201 or syoung@bellpotter.com.au
Luke Rybarczyk, (03) 6218 6203 or lrybarczyk@bellpotter.com.au

We look forward to welcoming you as a shareholder.