Why the 1414 Degrees (ASX:14D) share price just reached a 52-week high?

The 1414 Degrees share price is soaring today as the company released a favourable case study. We take a closer look.

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Colourful explosion to symbolise ASX share price growth

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The 1414 Degrees Ltd (ASX: 14D) share price touched a 52-week high today after a positive update on the company’s Aurora business case study.

Shares in the green energy company reached as high as 23.5 cents in early afternoon trade, but have since retreated to 20 cents, up 8.33% at the time of writing.

What 1414 Degrees does

1414 Degrees designs and develops thermal energy storage systems. The company primarily focuses on making large scale energy storage for networks and industries. It claims that its solutions fill a critical gap in energy storage.

Its technology includes a process that utilises silicon’s high melting point of 1414 degrees, enabling it to hold more energy than other materials. Thus its system holds energy created from renewables, and supplies both heat and electricity to its customers.

What happened today?

The company announced that its Aurora business case study has projected up to $60 million in annual net revenues.

The case study compared 1414 Degree’s Thermal Energy Storage System (TESS) with the National Electricity Market (NEM). The results were hugely positive as it found that operating TESS over NEM would provide roughly $20-30 million more in revenue.

To this end, the TESS system generated between $45-60 million in revenue, with the net earnings including the plant operating costs.

Moreover, the study indicated that the company’s system was increasingly favourable with energy storage. TESS is able to profit from both low and high price markets due in part to its flexibility at being able to use energy from the grid or solar panels when being charged.

It is worth noting that the larger 1GWh TESS is not scheduled until 2028 when pricing is more favourable.

About the 1414 Degrees share price

The 1414 Degrees share price has fallen 11.3% since the start of 2020. In comparison, the All Ordinaries Index (ASX: XAO) is up 1% for the year.

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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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