The April 2018 reorganisation (see Worth Knowing) has left Europlasma with a readable business model: it has a technology which is deployed in power plants it controls, it generates revenues from selling power and funds its capex, financing and operating costs from such revenues.
In effect, if its growth unfolds according to plan, Europlasma has become a power generation business. The earlier legal complexity wherein Europlasma was a junior partner in its power generation unit led to complex modelling and an overall “look” as an engineer and capex supplier play.
What remains true though is that the firm is a confidence-building exercise with minority equity providers and lenders such that it can fund the capital intensive nature of its business (say €60m capex per power unit).
The experience curve is an intangible asset that will help derive the best from power plants although every additional power unit will tie up this sort of capital spending
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