Volt’s ATEN Waste Heat Tech Poised to Disrupt Energy Market Amid Rising Costs

Strong Revenue Momentum

Volt Group Limited (ASX: VPR) has kicked off FY25 with a solid operational update, reporting a 26.8% increase in quarterly revenue to $1.18 million compared to Q1 FY24. This growth was primarily driven by the company’s EcoQuip and Wescone businesses, which continue to expand their market footprints in mining and energy sectors.

EcoQuip’s Mobile Solar Light & Communications Tower (MSLT) fleet grew by 30% during the quarter, now totaling 130 units. The business secured two new demonstration contracts with major mining contractors Macmahon Holdings and Westgold Resources, deploying MSLTs across five sites by mid-May 2025. These contracts follow successful trials and signal potential for larger long-term hire agreements.

Wescone’s Global Reach and New Partnerships

Wescone, the OEM of proprietary sample crushers widely used in iron ore and assay laboratories, maintained steady sales aligned with budget forecasts. The business strengthened its African presence by appointing a new distribution partner, Innovative Mining Technologies (MIT), after resolving previous partnership issues. MIT has actively engaged with existing and prospective customers, aiming to normalize distribution arrangements by Q3 FY25.

ATEN Waste Heat to Power: A Commercial Breakthrough

Volt’s ATEN Waste Heat to Power technology, designed to convert industrial waste heat into zero-emission baseload electricity, reached a significant milestone with a concept study completed for Synergy, Western Australia’s government-owned energy retailer. The study confirmed the technology’s commercial viability, estimating a capital expenditure of approximately A$85 million, a levelised cost of electricity (LCOE) of 7.6c/kWh, and a payback period of around four years. The project promises to reduce carbon emissions by about 82,800 tonnes annually and deliver an internal rate of return (IRR) near 18%.

Volt and its engineering partner NRW Primero have commenced preparations for a definitive feasibility study, expected to be presented to Synergy in May 2025. This positions Volt at the forefront of integrating zero-emission solutions into Australia’s evolving energy landscape, particularly as natural gas generation gains renewed acceptance as a complementary power source alongside renewables.

Financial Position and Outlook

At quarter-end, Volt held $1.8 million in cash, supporting ongoing investments in product manufacturing, research, and development. The company’s cash flow report indicates disciplined spending with a net cash outflow from investing activities of $568,000 and a modest financing outflow of $40,000. The board remains confident in Volt’s ability to sustain operations and capitalize on emerging opportunities in zero-emission energy equipment and mining technology markets.

Volt’s strategic focus on expanding its EcoQuip fleet, stabilizing Wescone’s international distribution, and advancing the ATEN technology underscores its commitment to delivering innovative, ESG-aligned solutions that address both cost efficiency and environmental impact in heavy industry and energy sectors.