Vast and Nabors Energy Transition Corp. Announce Closing of Business Combination, Establishing Public Concentrated Solar Thermal Power Company
- Vast's innovative CSP v3.0 technology addresses the issues of intermittency and limitations of battery storage in traditional solar power.
- The company has received a total of approximately USD $60 million of gross proceeds from the transaction, which will be used to fund acceleration of Vast's commercial operations and other corporate purposes.
- Vast has achieved significant milestones, including partnerships with leading corporations and substantial support from the Australian and German governments.
- The delisting of NETC's shares of Class A common stock and warrants from the New York Stock Exchange may impact investor sentiment negatively.
- The press release does not provide specific financial figures or percentages to quantify the company's growth and development.
Insights
The merger between Vast Renewables Limited and Nabors Energy Transition Corp. represents a significant consolidation within the renewable energy sector, particularly in the CSP technology space. Vast's CSP v3.0 technology offers a solution to the intermittency issues of traditional solar power by enabling storage and dispatchability of solar energy. This is a critical development, as the ability to provide consistent energy supply is a primary challenge facing renewable energy sources.
The financial commitment from entities such as EDF Australia and Canberra Airport Group, along with government grants, indicates both confidence in Vast's technology and a broader trend of investment in decarbonization efforts. The transition of Vast to a public company via this business combination could potentially increase its access to capital, accelerating its growth and project deployment.
For investors, the implications of this transaction are multifaceted. The increased funding and public status could lead to more rapid expansion and technology deployment, which may result in long-term revenue growth. However, the renewable energy market is highly competitive and subject to regulatory changes, which could impact Vast's performance. Moreover, the execution of Vast's project pipeline and technology scalability will be crucial in determining its market position and profitability.
The completion of Vast's business combination with NETC and the subsequent listing on Nasdaq under the ticker 'VSTE' is a transformative event for the company and its investors. The transition to a public entity often provides a company with enhanced visibility and liquidity, which can be beneficial for attracting investment and fostering growth. The delisting from the NYSE and the shift to Nasdaq could also reflect a strategic positioning, as Nasdaq is known for attracting technology and growth-oriented companies.
From a financial perspective, the capital raised through this transaction—approximately USD $60 million—will support Vast's operational and developmental objectives. This influx of capital is critical for a company in the renewable energy space, where upfront costs for technology development and project execution are substantial. Investors should monitor how effectively Vast deploys this capital towards its commercial operations and R&D to evaluate the potential return on investment.
Given the global push for sustainable energy solutions, Vast's advancements in CSP technology could position it well within the green energy market. However, investors should consider the risks associated with the sector, including technological obsolescence, policy shifts and market penetration challenges. The stock's performance on Nasdaq will be an indicator of market confidence in Vast's business model and growth prospects.
Vast's CSP v3.0 technology addresses two of the most pressing issues in solar energy: efficiency and storage. By using a modular tower design and sodium loop heat transfer, Vast claims to have improved upon conventional central tower CSP plants. The potential to generate dispatchable power and industrial heat around the clock could be a game-changer for renewable energy's role in heavy industry and transportation sectors, which are historically difficult to decarbonize.
The strategic partnerships and governmental support highlight the technology's potential and the company's ability to forge significant relationships within the industry. However, the scalability of the technology and its competitiveness against other renewable energy forms and storage solutions will be critical factors in determining its market success.
For the broader renewable energy sector, Vast's CSP v3.0 technology could set new benchmarks in efficiency and storage, potentially influencing future investments and R&D focus areas. The company's progress post-merger will be closely watched by industry stakeholders for its potential to contribute to global decarbonization efforts.
On December 19, 2023, Vast’s ordinary shares expected to begin trading on Nasdaq under the ticker symbol “VSTE”
In connection with the closing of the Business Combination, NETC merged with and into a wholly owned subsidiary of Vast, and NETC’s shares of Class A common stock, warrants to purchase shares of Class A common stock and units consisting of one share of Class A common stock and one-half of one redeemable warrant will cease trading on and be delisted from the New York Stock Exchange as of market open on Tuesday, December 19, 2023. Also on December 19, 2023, Vast’s ordinary shares are expected to begin trading on Nasdaq under the ticker symbol “VSTE” and its public warrants to purchase ordinary shares are also expected to begin trading on Nasdaq under the ticker symbol “VSTEW”.
“We are thrilled to complete this transaction with the NETC team and to take the next steps towards globally scaling our innovative CSP technology as a public company, while continuing to develop our growing pipeline of Australian projects,” said Craig Wood, Chief Executive Officer of Vast. “We believe that the completion of the transaction and our status as a new public company will help facilitate our ambitious growth plans to bring low-cost, zero carbon, dispatchable energy to the world.”
“Vast’s innovative and proven CSP v3.0 technology, advanced project pipeline, and the substantial potential to reduce emissions in industries that have historically been difficult to decarbonize, provide the elements for a successful business combination with NETC. Grants and other support from the Australian and German governments, along with partnerships with leading corporations, demonstrate growing support for Vast’s breakthrough solution. This transaction is a significant milestone as we advance our commitment to ‘Energy Without Compromise’,” stated Anthony G. Petrello, Chairman, President and Chief Executive Officer of NETC. “We remain very excited by the global opportunities, including the
World-Leading Innovator in Concentrated Solar Thermal Power
The challenges for traditional solar power have been intermittency and limitations of battery storage. Vast solves these issues with its advanced CSP v3.0 technology. Founded in
Vast’s proprietary CSP v3.0 technology reflects and concentrates the sun’s rays onto multiple solar receivers that capture the sun’s energy as heat in sodium, then transfer the heat to molten salt for high density storage. The stored heat can then be used to generate dispatchable clean power 24/7 by generating steam for a turbine, produce heat directly for industrial purposes, or to deliver a mix of power and heat for the efficient production of green fuels such as green hydrogen, green methanol and sustainable aviation fuels, among others.
Continuing Strong Commercial Momentum
Since the announcement of the proposed Business Combination on February 14, 2023, Vast has continued to make significant strides, both commercially and technologically. Over the course of the past year, Vast has achieved a number of project updates and partnership agreements. These include Vast’s VS1 Port Augusta project receiving approval for AUD
EDF Australia commits
Vast receives equity commitment for up to USD
Vast, a world-leader in concentrated solar thermal power (CSP), appoints experienced CSP executive Federico Sandoval as Project Director for VS1 in
Vast Announces Appointment of Mark Smith as Chief Financial Officer (August 23, 2023) – Vast announced the appointment of Marshall D. (Mark) Smith as the Company’s new Chief Financial Officer, effective as of September 18, 2023.
Vast, a world-leader in concentrated solar thermal power, announces partnership with CYD to model molten salt tank performance as VS1 project moves forward (August 11, 2023) – Vast announced a partnership with global design and manufacturing firm Contratos y Diseños Industriales (CYD) as the Company advances VS1, its 30MW / 288MWh CSP project in Port Augusta,
Vast Advances Utility-Scale Concentrated Solar Thermal Plant as Worley Commences Engineering (June 6, 2023) – Vast announced it has awarded Worley Ltd. (Worley) (ASX: WOR) key engineering contracts for its VS1 CSP project.
Vast Unveils LOI with Mabanaft for Potential Equity Investment in World-First Solar Methanol Project at the Maritime Industries Australia Decarbonisation Summit (May 18, 2023) – Vast announced that it has executed a LOI with German energy company Mabanaft for potential offtake and equity investment in Solar Methanol 1 (SM1), a world-first green methanol demonstration plant.
Vast Solar Becomes Vast (May 8, 2023) – Australian renewable energy company Vast is proud to announce its rebrand, effective from May 8, 2023.
Vast CSP reference plant, VS1 Port Augusta, to receive
Vast selected by Australian and German governments for AUD
Transaction Overview
As a result of this transaction, Vast has received funds or commitments totaling approximately USD
Proceeds from the transaction will be used to fund acceleration of Vast’s commercial operations (including capital requirements associated with planned electricity, sustainable aviation fuel and methanol production facilities), project sourcing and development activities, deployment of manufacturing facilities for Vast’s proprietary CSP v3.0 systems, continued research and development and general corporate purposes. Certain proceeds will also be used to pay fees and expenses related to the Business Combination. Vast will continue to be based in
Vinson & Elkins L.L.P. and King & Wood Mallesons acted as legal advisors to NETC. Milbank LLP acted as legal advisor to Nabors. Guggenheim Securities, LLC acted as exclusive financial advisor to NETC. White & Case LLP and Gilbert + Tobin acted as legal advisors to Vast.
About Vast
Vast is a renewable energy company that has developed CSP systems to generate, store and dispatch carbon-free, utility-scale electricity and industrial heat, and to enable the production of green fuels. Vast's CSP v3.0 approach to CSP utilises a proprietary, modular sodium loop to efficiently capture and convert solar heat into these end products.
Visit www.vast.energy for more information.
About Nabors Energy Transition Corp.
Nabors Energy Transition Corp. is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganisation or similar business combination with one or more businesses or entities. NETC was formed to identify solutions, opportunities, companies or technologies that focus on advancing the energy transition; specifically, ones that facilitate, improve or complement the reduction of carbon or greenhouse gas emissions while satisfying growing energy consumption across markets globally.
NETC is an affiliate of Nabors, a leading provider of advanced technology for the energy industry. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors, which owns the global industry's largest fleet of land drilling rigs and equipment, is committed to innovate the future of energy and enable the transition to a lower-carbon world.
Forward-Looking Statements
The information included herein and in any oral statements made in connection herewith include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included herein, regarding the Business Combination, the benefits of the Business Combination, the partnerships with EDF Australia (“EDF”) and Canberra Airport Group, and Vast's future financial performance following the Business Combination, as well as NETC's and Vast's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used herein, including any oral statements made in connection herewith, the words "could," "should," “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on NETC and Vast management’s current expectations and assumptions, whether or not identified in this press release, about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, NETC and Vast disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date hereof. NETC and Vast caution you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of NETC and Vast. These risks include, but are not limited to, general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; the inability to recognize the anticipated benefits of the Business Combination; costs related to the Business Combination; Vast’s ability to manage growth; Vast’s ability to execute its business plan, including the completion of the Port Augusta project, at all or in a timely manner and meet its projections; potential litigation, governmental or regulatory proceedings, investigations or inquiries involving Vast or NETC, including in relation to the Business Combination; changes in applicable laws or regulations and general economic and market conditions impacting demand for Vast’s products and services. Additional risks are set forth in the section titled "Risk Factors" in the final prospectus, dated November 22, 2023, as supplemented, and other documents filed, or to be filed with the SEC in connection with the Business Combination by Vast and NETC. Should one or more of the risks or uncertainties described herein and in any oral statements made in connection therewith occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact Vast’s and NETC’s expectations can be found in Vast’s and NETC’s periodic filings with the SEC. Vast’s and NETC’s SEC filings are available publicly on the SEC’s website at www.sec.gov.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231218549845/en/
Vast
For Investors:
Caldwell Bailey
ICR, Inc.
VastIR@icrinc.com
For US Media:
Matt
ICR, Inc.
VastPR@icrinc.com
For Australian media:
Nick Albrow
Wilkinson Butler
nick@wilkinsonbutler.com
Nabors Energy Transition Corp.
For Investors:
William C. Conroy, CFA
Vice President – Corporate Development & Investor Relations (Nabors)
william.conroy@nabors.com
For Media:
Brian Brooks
Senior Director, Corporate Communications (Nabors)
brian.brooks@nabors.com
Source: Vast Renewables Limited
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