Investor Presentaiton
INCENTIVES
Energy Incentives:
The Australian Government has had an inconsistent approach to
renewable energy with various schemes proposed, introduced and
scrapped. Currently the only direct government incentive for commercial
generators is the Large Scale Generation Certificates (LGCS) scheme¹
which is scheduled to close in 2030. However, other schemes are
expected to replace it. The figure on the right shows both previous and
projected LGC prices. (One LGC equates to one 1MWh of electricity.)
1 http://www.cleanenergyregulator.gov.au/RET/About-the-Renewable-Energy-
Target/How-the-scheme-works
MWh
$90
$80
$70
$60
$50
$40
Investor Tax Incentives:
Spa*ark Eenergy is expected to qualify as an Early Stage Investment
Company (ESIC)2. In which case:
Investors would be entitled to a 20% tax offset to a maximum of
$200,000 in each income year; i.e., for an investment of $1M or more.
Investors would not pay any capital gains tax (CGT) if exiting within ten
years of entry
2
https://www.ato.gov.au/Business/Tax-incentives-for-innovation/In-detail/Tax-
incentives-for-early-stage-investors/
$30
$20
$10
LGC spot price
$-
Jan-2018
Apr-2018
Jul-2018
Spa*ark Energy_11
Cal19s
Cal20s
Cal21s
Cal22s
Oct-2018
Jan-2019
Apr-2019
Jul-2019
Large scale Generation Certificate (LGC) previous
and forward prices to October 2019
http://www.cleanenergyregulator.gov.au/RET/Pages/About%20the%20Renewable%20Energy%20Target/How%20the%20scheme%20works/Large-
scale%20generation%20certificate%20market%20update%20by%20month/Large-scale-generation-certificate-market-update---October-2019.aspx
Corporate Tax Incentives:
Given that Lemont is a new type of geothermal target, Spa*ark has been (informally) advised that many of the project steps
would be eligible for the ATO's Research and Development Tax Incentive³ which would provide a 43.5% cash refund of eligible
expenditure. Thus as a first step, Spa*ark would expect to receive nearly one half of the cost of its test drilling program back
as a cash refund regardless of the results.
3
https://www.ato.gov.au/business/research-and-development-tax-incentive/about-the-program/View entire presentation