Vast Renewables Limited Announces Operational and Financial Results for First Half of Fiscal 2025

Rhea-AI Summary

Vast Renewables (VSTE) reported its H1 FY2025 financial results, highlighting a total revenue of $6.6 million from grants and a net loss of $5.7 million. The company had $6.9 million in cash and equivalents as of December 31, 2024.

Key developments include securing an AUD30 million non-dilutive grant from a previously announced AUD65 million funding package. Vast successfully completed large-scale testing of its CSP receiver tower in February 2025 and partnered with Mabanaft for pre-FEED work on SM1. The company also signed an agreement with GGS Energy to develop Project Bravo, a commercial-scale synthetic fuels project in the Southwest United States.

Additionally, Vast executed an Exclusive Collaboration Agreement with Masters & Young for PCB manufacturing and continued progress on VS1, its utility-scale power generation project in Port Augusta, South Australia.

Positive

• Secured AUD30M non-dilutive grant funding
• Successful completion of CSP receiver tower testing
• New partnership with GGS Energy for US expansion
• Exclusive PCB manufacturing agreement with Masters & Young
• VS1 project advancing toward FID

Negative

• Net loss of $5.7M in H1 FY2025
• cash position of $6.9M
• Revenue solely dependent on grants

Insights

Financial Analyst

Vast Renewables' H1 2025 results reveal a company still in pre-commercial phase with $6.6 million in revenue entirely from grants and a net loss of $5.7 million. The cash position of $6.9 million warrants attention given the capital-intensive nature of utility-scale CSP projects. The reported loss stems from increased engineering expenses for VS1, their 30MW reference plant in South Australia.

The AUD30 million non-dilutive grant from ARENA represents critical funding that mitigates near-term dilution risk for a company with just under 30 million outstanding shares. However, investors should recognize that significant additional capital will likely be needed to advance from the current pre-FEED engineering stages to completed commercial projects.

The development services agreement with GGS Energy for Project Bravo and collaboration with Mabanaft represent strategic diversification into synthetic fuels beyond pure electricity generation, potentially opening higher-margin markets. The exclusive manufacturing agreement with Masters & Young secures a critical supply chain component for core technology elements.

With a market cap of just $17.6 million against the scale of announced projects and funding commitments, the market appears to be applying a substantial discount due to execution risks and the extended timeline to commercial revenue generation beyond grants. The Final Investment Decision for VS1 in early 2025 will be a important milestone that could significantly impact valuation.

Renewable Energy Technology Expert

The successful testing of Vast's CSP receiver tower represents a significant technical milestone. CSP technology offers a critical advantage over conventional solar PV through its inherent thermal storage capability, providing dispatchable power that addresses intermittency issues.

What separates Vast in the CSP landscape is their focus on modular systems that can generate both electricity and industrial process heat—a versatile approach addressing multiple decarbonization challenges. The Australian government's continued financial backing through ARENA validates the technical approach.

The company's strategic pivot into synthetic fuels with Project Bravo is particularly notable. E-fuels represent a high-value application for CSP technology, as the consistent high temperatures achieved can efficiently drive the thermochemical processes required for fuel synthesis. This diversification beyond pure electricity generation potentially accesses markets with higher margins than competitive power generation.

The exclusive manufacturing agreement with Masters & Young for critical control systems components secures an important supply chain element as the company scales. However, the remaining pre-FEED and FEED work indicates substantial engineering and optimization still lies ahead before full commercial deployment. The VS1 project in Port Augusta will serve as a important reference plant to demonstrate commercial viability at utility scale before wider adoption can be expected.

Operational and Funding Highlights

• Subsequently announced AUD30 million non-dilutive grant will be released from AUD65 million of funding announced in February 2023 by the Minister for Climate Change and Energy, Hon Chris Bowen MP, and Australian Renewable Energy Agency ("ARENA").
• Vast and its consortium partner, global energy company Mabanaft, have awarded international engineering group Fichtner and German e-fuels leader contracts to commence pre-front-end engineering and design (FEED) work for SM1.
• Subsequently signed a development services agreement with GGS Energy LLC (“GGS Energy”), a leading energy transition development company with deep project development experience, to pursue a commercial-scale synthetic fuels project in the Southwest United States (Project Bravo).
• Vast successfully completes large-scale testing of its CSP receiver tower in February 2025, marking the final technical milestone ahead of deployment.

Financial Metrics for Six Months Ended December 31, 2024

• Total revenue of $6.6 million, consisting of grant revenue
• Available cash and equivalents of $6.9 million
• Net loss of $5.7 million primarily attributable to the business engaging more engineers and project consultants to deliver studies and basic design of “VS1” (a 30 MW / 288 MWh reference CSP plant located in Port Augusta, South Australia)
• Total diluted common shares outstanding as of December 31, 2024 of 29,973,504

SYDNEY--(BUSINESS WIRE)-- Vast Renewables Limited (“Vast” or the “Company”) (Nasdaq: VSTE), a renewable energy company specializing in concentrated solar thermal power (“CSP”) energy systems that generate zero-carbon, utility-scale electricity and industrial process heat, today announced operational and financial results for the first half of the Company’s fiscal 2025, comprising the six months ended December 31, 2024.

Funding Commitments

During the first half of fiscal year 2025, Vast announced several funding commitments from strategic partners, including signing an updated funding agreement to access up to AUD30 million of its existing AUD65 million grant from ARENA. The funding will support Vast’s green technology manufacturing and project development activities as it deploys its next generation CSP solution to deliver the clean, dispatchable power and heat that the world needs. CSP is an obvious technology to deploy in one of the sunniest countries on Earth in furtherance of Australia’s energy transition. By capturing and storing the sun’s energy as heat, CSP has the potential to power homes, industry and transport with green, reliable and affordable energy. The AUD30 million funding will also support Vast in the final project development activities ahead of Final Investment Decision (FID) on VS1 in early 2025.

Operational Events

During the first half of fiscal year 2025, Vast continued to make progress on its first utility-scale project for power generation, known as VS1, located in Port Augusta in South Australia.

To aid in this development, Vast executed an Exclusive Collaboration Agreement with Masters & Young, a manufacturer of printed circuit boards ("PCBs"). The parties have agreed to collaborate exclusively in relation to Heliostat PCBs, master transmitted PCBs, Vast Master Controller, Vast Master Transmitter and Vast Master Drive boards, with a view of Masters & Young supplying such products to any project developed by or supplied by Vast that uses Vast’s CSP technology, including VS1.

The Company has achieved a breakthrough with the successful launch of a first-of-its-kind CSP receiver tower. Craig Wood, CEO of Vast, said: “This innovation in our receiver tower is driving even greater performance from our clean energy solution. By harnessing Australia’s abundant natural resources, our projects aim to spark the growth of a domestic CSP industry while creating export opportunities to deliver Australian green technology to clean energy projects worldwide. We’re proud of the breakthroughs we’ve achieved, and the immense potential our technology has to play a vital role in the world’s decarbonisation efforts.”

The Company also announced that its wholly owned subsidiary, Vast Renewables Holdco Corp., signed a development services agreement with GGS Energy LLC, a leading energy transition development company with deep project development experience, to pursue a commercial-scale synthetic fuels project in the Southwest United States (Project Bravo).

About Vast

Vast is a renewable energy company that has 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 utilizes a proprietary, modular sodium loop to efficiently capture and convert solar heat into these end products.

On December 19, 2023, Vast was listed on the Nasdaq under the ticker symbol “VSTE”, while remaining headquartered in Australia.

Visit www.vast.energy for more information.

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 Port Augusta project, Vast's future financial performance, 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 "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "project," "should," "will," 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 Vast management's current expectations and assumptions 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, Vast disclaims 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. Vast cautions 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 Vast. These risks include, but are not limited to, general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; Vast's ability to obtain financing on commercially acceptable terms or at all; 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, including in relation to Vast's recent business combination; the inability to recognize the anticipated benefits of Vast's recent business combination; costs related to that 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 Annual Report on Form 20-F for the year ended June 30, 2024, dated September 9, 2024, as amended on November 7, 2024, and other documents filed, or to be filed with the SEC by Vast. 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 expectations can be found in Vast's periodic filings with the SEC. Vast'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/20250228551757/en/

For Investors:

Caldwell Bailey

ICR, Inc.

VastIR@icrinc.com

For US media:

Matt Dallas

ICR, Inc.

VastPR@icrinc.com

For Australian media:

Nick Albrow

Wilkinson Butler

nick@wilkinsonbutler.com

Source: Vast Renewables Limited

FAQ

What were Vast Renewables' (VSTE) key financial metrics for H1 FY2025?

VSTE reported $6.6M in grant revenue, $6.9M in cash/equivalents, and a net loss of $5.7M for H1 FY2025 ending December 31, 2024.

How much funding did VSTE secure from ARENA in H1 FY2025?

VSTE secured access to AUD30 million in non-dilutive grant funding from a previously announced AUD65 million ARENA package.

What major technical milestone did VSTE achieve in February 2025?

VSTE successfully completed large-scale testing of its CSP receiver tower, marking the final technical milestone before deployment.

What is Project Bravo and who is VSTE partnering with for this initiative?

Project Bravo is a commercial-scale synthetic fuels project in the Southwest US, being developed in partnership with GGS Energy

What is the status of VSTE's VS1 project in Port Augusta?

VS1, a 30 MW / 288 MWh CSP plant, is progressing toward Final Investment Decision (FID) expected in early 2025.