1414 Degrees Accelerates Decarbonised Energy Shift with SiPHyR and Heat-as-a-Service Milestones
1414 Degrees Ltd advances its transformation into a full-service decarbonised energy provider, delivering key technology and commercial milestones in Q3 FY25 while maintaining a stable cash position.
- Delivered 20-year SiBox sales forecast to Woodside targeting 20% industrial heat market
- Engaged Deloitte to develop Heat-as-a-Service financial model for integrated renewable heat contracts
- SiPHyR Stage 1 prototype reactor entered pre-commissioning, on track for Q4 FY25 start-up
- Progressed Aurora Battery Energy Storage System due diligence toward grid connection
- Maintained stable cash reserves of $2.64 million at quarter end
Strategic Evolution Toward Decarbonised Energy Solutions
1414 Degrees Ltd (ASX:14D) has marked a pivotal quarter in its transition from a technology developer to a comprehensive provider of decarbonised energy solutions. The company’s latest quarterly report for the period ending 31 March 2025 reveals significant progress across its core technology platforms and commercial initiatives, underscoring its ambition to capture a meaningful share of the industrial heat market with sustainable alternatives.
Executive Chair Dr Kevin Moriarty highlighted the company’s strategic pivot, emphasizing the development of a Heat-as-a-Service (HaaS) framework. This model, supported by Deloitte’s financial expertise, aims to offer customers reliable, low-emission heat contracts analogous to electricity supply agreements. By leveraging its proprietary SiBox control systems, 1414 Degrees can dynamically blend electricity and gas inputs to deliver cost-competitive heat solutions that also reduce carbon emissions.
Commercialisation and Market Penetration Efforts
Under the 2021 SiBox Development Agreement with Woodside Energy Technologies Ltd, 1414 Degrees delivered a detailed 20-year commercialisation model projecting up to 20% penetration of the accessible industrial heat market. While this represents a fraction of the global heat market, the forecasted revenue uplift is substantial and enhances the company’s intangible asset valuation. The company also advanced pre-feasibility assessments across multiple industrial sites, demonstrating the SiBox’s ability to deliver heat at lower costs than conventional gas-fired boilers for the majority of the year.
Ongoing design enhancements focus on manufacturability and cost optimisation, positioning SiBox for scalable deployment. Concurrently, the company progressed customer-centric studies to tailor market entry strategies, reflecting a pragmatic approach to commercialisation.
Technological Advancements: SiPHyR and SiBrick
On the innovation front, the SiPHyR programme, a methane pyrolysis reactor integrated with thermal storage, reached a critical milestone with its Stage 1 prototype entering pre-commissioning tests. Scheduled for start-up in Q4 FY25, this technology promises low-emission hydrogen and solid carbon production using renewable energy. Catalyst selection and gas-sparging system development progressed in parallel, refining operational parameters ahead of commissioning.
Meanwhile, the SiBrick thermal energy storage modules continued to demonstrate robust performance under high-temperature testing. The company is also developing next-generation SiBrick variants to meet evolving industrial requirements, reinforcing its commitment to innovation in thermal storage solutions.
Aurora Battery Energy Storage System Progress
1414 Degrees advanced due diligence on the Battery Energy Storage System (BESS) at its Aurora Energy Precinct near Port Augusta, South Australia. Completion of generator performance assessments is expected to enable the transmission utility to commence network impact studies, a key step toward grid connection. Given recent sales of similar or larger battery projects in South Australia and the National Electricity Market, the company is optimistic about realising significant value from this asset.
Financial Position and Stakeholder Engagement
Financially, 1414 Degrees maintained a stable cash position of $2.64 million at quarter end, with modest operating cash inflows and controlled expenditure on research, development, and corporate costs. Payments to related parties were limited to director fees, reflecting prudent governance.
The company also strengthened its stakeholder network and talent pipeline through active participation in industry events such as Smart Energy 2025, the Long Duration Energy Storage Council Roundtable, and the SAHy Conference, alongside engagement with academic institutions.
Looking ahead, the market will be watching closely for the commissioning of the SiPHyR prototype and the finalisation of the Aurora BESS connection agreement, both expected in the coming quarter. These milestones will be critical in validating 1414 Degrees’ technology and commercial strategy as it seeks to scale its decarbonised energy solutions.
Bottom Line?
1414 Degrees’ Q3 progress sets the stage for critical technology launches and commercial breakthroughs in the race to decarbonise industrial heat.
Questions in the middle?
- Will the SiPHyR prototype meet its Q4 FY25 start-up timeline and performance expectations?
- How will the Heat-as-a-Service financial model influence customer adoption and contract structures?
- What are the prospects and timelines for the Aurora BESS to achieve grid connection and revenue generation?
