Minesto
Analysis of Minesto at georgssons.com
Published: 2021-11-12
Updated: 2021-12-06
Analyst: Daniel Georgsson
Own holding: No
Extracts renewable energy from slow sea- and tidal currents
Minesto has developed, patented and sells a completely new type of electric power plant that extracts renewable energy from slow sea and tidal currents.
The product is a Swedish invention. Looks like a flying kite and is stuck in the bottom while it spins around in eights and drives a generator.
The number of customer installations is still few and it is now that you can start scaling up to more power plants and more power plant parks. The product is ready even if it is continuously further developed. The market capitalization is SEK 2.8 billion in October 2021.
The company was founded in 2007 and the company's patented offshore power plant DeepGreen has been tested for many years in the sea and is now available in several sizes with different capacities for electricity production..
The stock
The share is traded on Nasdaq First North Growth Market Stockholm under the short name MINEST and ISIN-kod SE0007578141. G&W Fondkommission is Certified Advisor.
Analyst comment
I have been following Minesto for several years. The company is based on a Swedish invention, they have patents and it is a revolutionary new way of producing renewable electricity. Minesto is in an exciting phase where they prove that production works continuously over a longer period of time in the sea. The power plant has been in the sea for many years before, but it is a shorter time that both electricity production and transmission of electricity to the mainland has worked.
The market potential is enormous because they basically add a whole new kind of energy. There are offshore power plants before but there is no one else that can produce electricity from slow flowing water in the way Minesto can.
About the analysis
The analysis is based on public information. I, who wrote the analysis, have no more insight into the company than other shareholders and do not own any shares in the company at the moment. I had the privilege of being a shareholder early on with a substantial increase in value. The stock is one of the ones I want to own when I get old.
Selection criteria
Presents a new solution to a known problem
Extracting electricity from the sea has been done before. Minesto Introduces a new technology that can be used in a much larger proportion of the planet's water because the power plants operate in slow flowing water. The company will make money by supplying renewable energy. Production of electricity.
Has a patent of importance to the business
Several patents. The dragon-like device that drives the power plant in the sea is patented.
Great future potential if they implement their business idea
There are more examples of companies selling power plants to extract electricity from wind or sea and with them as a reference, we can assume that Minesto is at the beginning of its journey and can provide great value increase for its shareholders in the future.
The number of customer installations is still few and it is now that you can start scaling up to more power plants and more power plant parks. The product is ready even if it is continuously further developed.
Business model
Minesto produces renewable energy. Electricity is produced in the sea and transferred to the mainland, where partners to Minesto are responsible for distribution via the electricity grid.
Potential
There are other companies that offer solutions for the production of renewable energy both from the sea and from the wind. Several of them have high market values. Minesto has been allocated over € 40 million from the European Regional Development Fund and is the largest investment the EU has made in marine energy. Minesto's market capitalization is SEK 2.8 billion in October 2021.
Argumentation
The longer the time passes, the clearer it becomes for the shareholders that the technology in Minesto's offshore power plant works. Extracting energy in the way that is done from slow sea and tidal currents opens up completely new possibilities. It is a sustainable alternative to several of today's established ways of producing electricity. Large parts of the world mean business opportunities and opportunities to contribute to sustainable production of electricity with low carbon dioxide emissions.
More information
More information is available on the company's website
Read on minesto.com
There are movies to watch at Minestos youtube channel
Follow the development
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