25 March
2024
Gore
Street Energy Storage Fund plc
(the
"Company" or "GSF")
Increased
capacity in a growth market with balance sheet
efficiency
The
Company has increased its Irish asset base to 385MW, of which 130MW
is operational. This incremental capacity secured in a high-value
market further adds to the portfolio's diversification.
Gore Street Energy Storage Fund plc,
the internationally diversified energy storage fund, is pleased to
announce that it has increased its Irish asset base through the
acquisition of the remaining 49% in two of its existing Irish
projects alongside the addition of Project Mucklagh, a 75MW asset
in the Republic of Ireland. The total consideration for these
transactions was settled via the issuance of 9,700,000 new Ordinary
Shares in the capital of the Company (the "Ordinary Shares") issued
at 111.0 pence per Ordinary Share[1], plus
cash consideration.
Acquisition of Remaining 49% stake
in existing Irish Assets and 75MW Irish Asset Project Rights
Secured
The Company has acquired the
remaining 49% stake from Low Carbon in two of its existing Irish
projects: Porterstown, a 90MW[2] asset, and Kilmannock, a
120MW[3] construction
asset. Additionally, the Company has exercised its option
with Low Carbon to acquire a 51% stake in Project Mucklagh, a 75MW
pre-construction energy storage project located in the Republic of
Ireland. The Project has a target energisation date of
2028.
These transactions demonstrate
efficient use of capital and the ability of the Company to continue
to execute successfully against its strategy of delivering a
diversified asset base and driving returns for shareholders. The
Irish market has proven to be a consistently lucrative market for
the Company, and it is therefore pleased to have secured
incremental capacity in this high-value market. Following these
acquisitions, the Company's portfolio will comprise 28 projects,
with a total capacity of 1,248.2MW of operational and construction
assets across Great Britain, Ireland, Germany, Texas, and
California.
The Company is pleased to expand its
network of long-term strategic partnerships through this activity,
with Grid System Services Limited (JV between Low Carbon Ltd and
Irish Independent Developers) ("Low Carbon") joining its share
register. This follows the Nidec Share Issuance in December 2023.
Low Carbon is an internationally recognised developer with projects
across the UK, Ireland, Northern America, and mainland Europe. The
Investment Manager looks forward to continuing its long-standing
relationship with Low Carbon, which also retains its 49% stake in
the 100MW combined Mullavilly and Drumkee projects in Northern
Ireland alongside its 49% stake in Mucklagh.
Application of New Ordinary Shares
Applications have been made to the
FCA for the 9,700,000 new Ordinary Shares, which are being issued
under the share issuance authority approved by shareholders at the
Company's Annual General Meetings 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 am on Tuesday, 26 March
2024. Following Admission, the new Ordinary Shares will rank Pari
Passu in all respects with the existing Ordinary Shares.
The new Ordinary Shares issued to
Low Carbon will be subject to a lock-up and orderly market
arrangement, with one-third of the shares locked up until July
2024, a further one third locked up until October 2024, and the
final third until February 2025.
Immediately following Admission, the Company's
issued share capital will comprise 505,099,478 Ordinary Shares,
with no shares held in the treasury. Accordingly, the total number
of voting rights in the Company on Admission will be 505,099,478.
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 very pleased to further strengthen the
Company's relationship with long-term partner Low Carbon,
a key partner for the
Company since its first international
expansion back in 2019. The development platform joins an
increasingly varied selection of entities on the Company's
register, ranging from wealth managers,
institutional and retail investors to other strategic
corporations like Nidec, which built upon its existing relationship
with the Company in December. This diversity of holders ensures the
Company continues to maintain strong partnerships to support its
activities across multiple energy storage markets."
Alex
O'Cinneide, CEO of Gore Street Capital Limited, the Company's
investment manager, commented:
"This share issuance and acquisition cements
our continued commitment to the Irish Market, which has proved very
successful for the Company, illustrating
the value of the original agreement secured by the Investment
Manager in 2019.
"The benefits of the multi-year agreement with
Low Carbon have now entered a new stage for the Company as it
extends ownership over operational projects in the Republic of
Ireland while adding more capacity from Low Carbon's development
pipeline. The innovative structure of this ongoing strategic
partnership ensures all parties remain motivated to achieve success
and maintain the Company's position as a leader in Ireland's energy
storage market.
"The capacity covered by the latest agreement
joins a well-balanced portfolio with access to a diversified
revenue base that is key to the Company's continued growth,
alongside considerably low borrowing and healthy balance sheet. We
are constantly evaluating the Company's exposure to the markets in
which it operates to ensure the portfolio is correctly positioned
and optimised to deliver best value for investors. As we build out
more capacity in the coming 12 months and beyond, the value of this
approach will continue to be demonstrated."
Steve Mack, Chief Investment Officer at Low Carbon,
added:
"We are delighted to close this sale
transaction on our portfolio of Irish storage assets with Gore
Street, who are a long-term strategic partner for Low Carbon in the
Irish renewables market. Low Carbon were one of the first movers to
develop, build and operate utility scale battery storage in Ireland
and this announcement reinforces our track record in delivering
exceptional assets and operational performance across our
portfolio.
"Furthermore, these assets will play
an important role in Ireland's energy mix and act as a building
block paving the way for more clean energy to come online helping
the country to make progress on its climate change
objectives."
About Low Carbon
Low Carbon creates large-scale
renewable energy to fight climate change. We're building a net-zero
energy company that will protect the planet for future generations.
This defining purpose drives us to deliver for our communities,
investors, and the environment.
We are a long-standing certified
B-Corporation and recognised as gold standard for our environmental
impact.
We invest in, develop, and operate
solar, wind, energy storage, and energy from waste projects across
the UK, Europe, and North America. We're contributing to the
world's move to 100% renewable energy by creating and operating
20GW of new capacity by 2030.
Low Carbon is on a mission.
Together, we will power tomorrow.
https://www.lowcarbon.com/
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)
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