Dukemount Capital PLC Joint Venture Signed With HSKB (2721Z)
20 May 2021 - 4:50PM
UK Regulatory
TIDMDKE
RNS Number : 2721Z
Dukemount Capital PLC
20 May 2021
Dukemount Capital Plc
20 May 2021
Dukemount Capital Plc
("Dukemount" or the "Company")
Joint Venture Agreement with HSKB for Environmental Energy
Projects
Further to its announcement of 22 March 2021, Dukemount Capital
Plc, the property management and long dated income specialist is
pleased to announce that it has entered into a Joint Venture
Agreement in relation to flexibility power expert HSKB Ltd
("HSKB"), of which Dukemount non-executive director Paul Gazzard is
a founder. Pursuant to the Joint Venture Agreement, Dukemount will
acquire 50% of the issued share capital of HSKB for nominal
value.
As part of this process, it is proposed that HSKB will be
renamed DKE Energy Holdings Limited. As previously announced, the
Joint Venture will initially develop two gas peaking facilities
which together will produce around 10MW of power for a total
approximate cost of GBP6.25 million. Dukemount believes that this
Joint Venture and the opportunities it presents is an important
milestone for Dukemount to meet its projected growth targets.
Dukemount will manage the construction of the two sites and
provide its knowledge of long-dated income funding and finance.
HSKB brings its technical, operational and market expertise of the
UK flexibility power market, as well as access to a pipeline of
further deals.
The Joint Venture is targeting Capacity Market contracts for the
two sites which should secure a 15-year, CPI linked long-dated
income. Dukemount expects the projects to generate revenues for
longer than fifteen years. In addition to the two initial sites,
there are several further sites under consideration for future
development.
Gas peaking and battery storage assets are hugely important to
the UK Government's policy of net zero emissions by 2050. As the
grid transitions from legacy fossil fuel to more environmentally
friendly sources of generating power, such as wind and solar, the
intermittent nature of the generation of electricity rises. If
there is a drop in generation during peak demands, instead of
relying on coal or nuclear to bridge the gap, battery storage sites
react immediately shortly followed by gas peaking facilities which
can operate for as long as required to satisfy demand.
The Joint Venture will aim to ensure all of its operations are
fully compliant with current, Environmental, Social and Governance
("ESG") guidelines and legislation.
Matt Thompson Dukemount CEO said, "Long dated income can be
provided from many sectors in business and our business model
provides us with the flexibility to investigate and enter many
sources of long-dated income. The UK has set ambitious targets for
cleaner energy, and we are excited to be able to play a part in
this. This Joint-Venture provides the Company with a strong future
of revenue growth, with the potential for further deals in this
fast-growing and dynamic sector".
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014 (as in force in the United
Kingdom pursuant to the European Union (Withdrawal) Act 2018).
For further information, please visit
www.dukemountcapitalplc.com or contact:
Dukemount Capital Plc Via St Swithins PR
Geoffrey Dart / Matthew Thompson
St Swithins PR (Media and Investor Tel: +44 (0) 1732 521132
Enquiries)
Gary Middleton gary@swithins.com
Peterhouse Capital Limited Tel: +44 (0) 207 469 0930
Lucy Williams/Duncan Vasey
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END
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