Wave Energy in the North Sea.


The Slow Mill Florin

The Slow Mill Florin (fl.) allows SMS Projects to tokenize and sell wave energy it will produce in the future. By selling before delivering, investments are raised to develop the technology and start implementing it. It's a good way to raise enough money for fast development and scale up without the hassles of interest on loans or having a guaranteed income before even getting one. For the buyer this system offers the knowledge that he will consume clean energy from a local wave farm and it provides the possibility of a ffixed price.

One fl. is the amount of wave energy that can be bought for the going rate divided by 0,04. It's a right to buy wave energy and it provides the possibility of a ffixed low price. It certifies that energy so bought comes from a specific local wave farm. This system has no fees but is still benefficial for the company as it becomes less dependent on market prices and it's good for the buyer who knows he gets local green energy without commissions. The buyer can buy a fl. and offer it to the company at the same time at the same rate and thus guarantee a ffixed 0,04/kWh. The company gets the fl. and delivers the equivalent amount of kWh wave energy after which it sells the fl. again for another future delivery. Investors are made aware that ffirst they're mainly making it possible for the company to develop its technology and then scale up much faster than the normal route through venture capital or banks. The energy they can buy with their fl. will be available in the future and only in places where wave farms are connected to the grid.

Of course the fl. can be traded, but it can be offered to the company only in exchange for wave energy at places with wave farms and if more fl. are offered than energy can be delivered, they will enter a waiting list. Slow Mill expects to sell more fl. than the amount of energy that can quickly be delivered, necessitating a future delivery system. Investors know the risk of fluctuating rates and market entry at a later time than planned due to technical barriers that still have to be tackled. This may increase the waiting period but it is still the fasted way to large scale wave energy development as a waiting list is a constant reminder of the necessity to develop local wave sites and start delivery in time. Current and historical energy prices are visible on trading platforms. Investors gain better investment terms as well as access to wave energy across the globe in the fastest way possible.