TIDMGSF
RNS Number : 2131X
Gore Street Energy Storage Fund PLC
19 December 2023
19 December 2023
Gore Street Energy Storage Fund plc
(the "Company" or "Gore Street")
EPC contract signed for Texas asset
14 million new Ordinary Shares to be issued to Nidec Motor
Corporation
Gore Street Energy Storage Fund plc, the internationally
diversified energy storage fund, is pleased to confirm the
selection of Nidec Motor Corporation ("Nidec") as the Engineering,
Procurement, and Construction (EPC) contractor for its Texas-based
energy storage asset "Dogfish". The 75 MW asset will initially be
built with a one-hour duration, while the design allows for future
retrofitting to extend the duration should it be determined in the
future that the additional potential revenue from a two-hour system
justifies the related additional cost.
The contracts include the EPC agreements and Operations and
Maintenance (O&M) contracts. The contract is fully wrapped,
including warranties for availability and energy capacity.
The asset will integrate into the ERCOT grid network with a
target energisation date of December 2024. The asset will
participate in RRS, Wholesale trading, the recently introduced ECRS
market, and any subsequent services introduced within the ERCOT
market.
Nidec Strategic Partnership and Subscription for Ordinary
Shares
The Company is pleased to announce that, as part of the
long-term strategic partnership with Nidec, Nidec will be
subscribing for 14,000,000 new ordinary shares in the capital of
the Company (the "Ordinary Shares") at 112.9 pence per Ordinary
Share, being the 30 September 2023 NAV announced on 14 December
2023, resulting in gross proceeds of GBP15,806,000 to the Company.
Nidec's Ordinary Shares will be subject to a lock-up arrangement
which prevents it, save in certain specified circumstances, from
disposing of any of its Ordinary Shares for the six-month period
after Admission (defined below). After the end of this period,
Nidec is able to dispose of up to 50% of its Ordinary Shares. After
twelve months from Admission, Nidec would then be able to dispose
of any remaining amount of its Ordinary Shares held at such
time.
This strategic partnership between Nidec and the Company builds
upon their established relationship, with Nidec having previously
been appointed as EPC contractor for the Company's Ferrymuir
(49.9MW) and Stony (79.9MW) assets.
Under the terms of this strategic partnership, Nidec will, for a
period of five years following Admission, be entitled to
participate in upcoming competitive bids for EPC contracts in
respect of qualifying projects with the Company. Additionally,
Nidec shall be guaranteed participation in the second stage of the
process on the proviso that they can either match or enhance the
terms offered by other contenders in the strictly competitive
process.
The Board maintains its confidence in the Company's competitive
EPC contractor selection process, which can include multiple
iterative stages. This ensures the Company's continued ability to
consistently secure competitively priced contracts, enabling it to
build out its construction portfolio at one of the industry's
lowest prices per MW fully installed.
Applications have been made to the FCA for the 14,000,000 new
Ordinary Shares, which are being issued under the share issuance
authority approved by shareholders at the Company's Annual General
Meeting held on 21 September 2023, to be admitted to the premium
segment of the Official List and to the London Stock Exchange for
the new Ordinary Shares to be admitted to trading on its main
market for listed securities. Admission is expected to become
effective, and dealings in the new Ordinary Shares are expected to
commence at 8.00 a.m. on 20 December 2023. Following Admission, the
new Ordinary Shares will rank pari passu in all respects with the
existing Ordinary Shares.
Immediately following Admission, the Company's issued share
capital will comprise 495,399,478 Ordinary Shares, with no shares
held in treasury. Accordingly, the total number of voting rights in
the Company on Admission will be 495,399,478 . Shareholders and
other investors may use this figure as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change to their interest in, the
Company under the FCA's Disclosure Guidance and Transparency
Rules.
Pat Cox, Chair of the Company's Board, commented :
"We are pleased to see a large strategic corporation within the
energy storage value chain like Nidec taking a material position in
the Company. The Company's register now comprises wealth managers,
institutional investors, retail and a growing number of strategic
corporations like Nidec. This diverse mix of holders has enabled
the Company to form strong strategic partnerships across the energy
storage value chain whilst ensuring the stock benefits from good
liquidity, with an average of c4.5m shares traded weekly over the
last 12 months."
Alex O'Cinneide, CEO of Gore Street Capital Limited, the
Company's investment manager, commented:
"We are delighted to strengthen the existing relationship
between Nidec and Gore Street with this strategic partnership and
share issuance. During the current market dynamics, we are pleased
to see a TOPIX 100 Company with a deep understanding of the sector
take a material position in GSF. We look forward to working closely
with Nidec over the coming periods."
Michael Briggs, Senior Vice President and President of the
Motion & Energy Business Unit at Nidec, commented:
"Strategic partnerships with leading players are essential in
achieving the scope and efficiency needed to address global demand
for energy storage solutions. For this reason, we are proud to
continue and evolve our strategic partnership with Gore Street
Capital in a way that furthers our shared mission to accelerate
global adoption of sustainable energy technologies. This project
represents Nidec's largest US-based BESS installation yet, and this
partnership confirms our position as a global leader in this key
market".
About Nidec
With headquarters in Kyoto, Japan, and its Motion & Energy
business headquarter in St. Louis, Missouri, Nidec is the world's
leading electric motor manufacturer, comprised of 340 group
companies and 100,000 employees. A pioneer in electrification,
Nidec has worked across a wide array of industries ranging from
information technology, automotive, appliance, commercial,
industrial and machinery since its foundation in 1973. Nidec is a
trusted development partner in multiple high-growth spaces
including industrial automation, vehicle electrification and energy
storage, providing world-class technology, support, and localized
manufacturing to support industry leaders across the globe.
For further information:
Gore Street Capital Limited
Alex O'Cinneide / Paula Travesso Tel: +44 (0) 20 3826 0290
Shore Capital (Joint Corporate Broker)
Anita Ghanekar / Rose Ramsden / Iain Sexton (Corporate Advisory) Tel: +44 (0) 20 7408 4090
Fiona Conroy (Corporate Broking)
J.P. Morgan Cazenove (Joint Corporate Broker) Tel: +44 203 493
8000
William Simmonds / Jérémie Birnbaum (Corporate Finance) Tel: +44
(0) 20 3493 8000
Buchanan (Media Enquiries)
Charles Ryland / Henry Wilson / George Beale Tel: +44 (0) 20
7466 5000
Email: gorestreet@buchanan.uk.com
Notes to Editors
About Gore Street Energy Storage Fund plc
Gore Street is London's first listed and internationally
diversified energy storage fund dedicated to the low-carbon
transition. It seeks to provide Shareholders with sustainable
returns from their investment in a diversified portfolio of
utility-scale energy storage projects. In addition to growth
through increasing operational capacity and a considerable
pipeline, the Company aims to deliver consistent and robust
dividend yield as income distributions to its Shareholders.
https://www.gsenergystoragefund.com
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END
IOEFFDFWAEDSEIE
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