TIDMGSF
RNS Number : 3686Z
Gore Street Energy Storage Fund PLC
10 January 2020
10 January 2020
Gore Street Energy Storage Fund plc
("Gore Street" or the "Company")
Significant EPC Contracts Secured
Gore Street Energy Storage Fund (ticker: GSF), London's first
listed energy storage fund investing in income producing assets in
the UK and internationally, has awarded to NEC Energy Solutions
fixed-price[1] Engineering, Procurement and Construction ("EPC")
contracts and long-term Operations and Maintenance (O&M)
contracts for 100MW of energy storage projects in Northern Ireland
("NI assets).
As outlined our acquisition announcement on 5 June 2019, the two
50MW projects, at Drumkee, County Tyrone and Mullavilly, County
Armagh, are among the largest in Ireland and are expected to derive
revenue from the new "Delivering a Secure Sustainable Electricity
System" (DS3) program. These projects, alongside the two 30MW
projects owned by the Company, in the Republic of Ireland, will
participate in the DS3 market and will make a significant
contribution to Ireland's climate change goals.
Under the EPC and O&M contracts, NEC Energy Solutions has
committed to construct the projects at a fixed price(1) by a
specified completion date, to provide for performance and
availability warranties and to operate the projects for up to 15
years. The combination of fixed prices(1) , warranties backed by
liquidated damages and guaranteed completion dates further de-risk
these projects. As both projects progress to operation, the
Investment Manager believes the NI Assets will present an
opportunity to increase projects' valuations.
In-line with previous guidance, the projects are on track to be
commissioned in Q1 2021 as expected.
Alex O'Cinneide, CEO of Gore Street Capital, the Company's
investment manager, commented:
"We are pleased to deliver this significant positive news and
major milestone in the development of our important Northern Irish
assets on schedule. We look forward to working with our partners
NEC Energy Solutions again and collaborating on our first tranche
of projects with the developer, Low Carbon.
Gore Street continues to be the frontrunner in UK and
International energy storage investment, our 6MW Boulby asset was
the largest project of its kind in the UK at the time of
energization in 2017 and now our two 50MW Northern Irish assets are
among the largest projects in Ireland and the UK, becoming part of
the Company's overall portfolio of 189MW. We have one of the
largest portfolios of its kind and we also have a portfolio which
is made up of the newest, most technologically advanced and
therefore the most cost effective assets. We look forward to
further updating shareholders on the progress of these important
projects in due course."
The Legal Entity Identifier of the Company is
213800GPUNVGG81G4O21.
For further information:
Gore Street Capital Limited
Alex O'Cinneide Tel: +44 (0) 20 3826 0290
Shore Capital
Anita Ghanekar / Hugo Masefield (Corporate Advisory) Tel: +44 (0) 20 7601 6128
Henry Willcocks / Fiona Conroy (Corporate Broking)
Media enquiries:
Buchanan
Charles Ryland / Steph Watson / Henry Wilson Tel: +44 (0) 20 7466 5000
Email: Gorestreet@buchanan.uk.com
JTC (UK) Limited, Company Secretary Tel: +44 (0) 20 7409 0181
Notes to Editors
About Gore Street Energy Storage Fund plc
Gore Street is London's first listed energy storage fund and
seeks to provide shareholders with a significant opportunity to
invest in a diversified portfolio of utility scale energy storage
projects. In addition to growth through exploiting its considerable
pipeline, the Company aims to deliver consistent and robust
dividend yield as income distributions to its shareholders.
Further information below, on the two energy storage projects in
Northern Ireland, as contained in Gore Street's interim results for
the six months ended 30 September 2019, announced in December
2019.
Mullavilly Project
On 4 June 2019, the Company acquired 51% of Mullavilly Project
in Northern Ireland with a total installed capacity of 50.0 MW. Low
Carbon, the seller and developer, maintains 49% ownership of the
Project.
The estimated total capex required for the Mullavilly Project is
c. GBP 20 million. The capex will be funded either from operating
cash flow from the asset or by GSF by way of a shareholder loan
(SHL) carrying 10% interest, stepping down to 9% upon
commissioning. GSF will share excess profits (following loan
repayment) with Low Carbon.
The Mullavilly Project is expected to derive revenues from the
"DS3" or "Delivery Secure Sustainable Electricity System" Programme
operated in Northern Ireland as well as the Irish Capacity
Remuneration Mechanism and wholesale trading revenues (the latter
after the end of DS3 services). The Company intends to participate
under the DS3 Standard Contracts tender in October 2020 and proceed
with testing throughout December and January. Operations are
estimated to start at the end of Q4 2020.
The project is on track and in its design stage.
Drumkee Project
On 4 June 2019, the Company acquired 51% of Drumkee Project in
Northern Ireland with a total installed capacity of 50.0 MW. Low
Carbon was the Projects' seller and developer; and are 49% equity
partner is each Project.
The estimated total capex required for the Drumkee Project is c.
GBP 20 million. The capex will be funded either from operating cash
flow from the asset or by GSF by way of a shareholder loan (SHL)
carrying 10% interest, stepping down to 9% upon commissioning. GSF
will share excess profits (following loan repayment) with Low
Carbon.
Similarly to Mullavilly the project, the Drumkee Project is
expected to derive revenues from the "DS3" Programme as well as the
Irish Capacity Remuneration Mechanism and wholesale trading
revenues (the latter after the end of DS3 services). The Company
intends to participate under the DS3 Standard Contracts tender in
October 2020 and proceed with testing throughout December and
January. Operations are estimated to start at the end of Q1
2021.
The project is on track and in its design stage.
The fair market value of the Company's 51% share (inclusive of
equity and debt) of the Northern Ireland Portfolio was
GBP10,973,092 calculated using the discounted cash flow
methodology.
[1] Subject to potential rights to price adjustment based on
client variations
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
CNTKKCBBDBKBDDK
(END) Dow Jones Newswires
January 10, 2020 02:00 ET (07:00 GMT)
Gore Street Energy Storage (LSE:GSF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Gore Street Energy Storage (LSE:GSF)
Historical Stock Chart
From Jul 2023 to Jul 2024