Infrastrata PLC Islandmagee Project - New EU Grant Application (9698D)
15 October 2018 - 5:00PM
UK Regulatory
TIDMINFA
RNS Number : 9698D
Infrastrata PLC
15 October 2018
15 October 2018
InfraStrata plc
("InfraStrata" or the "Company")
Islandmagee Gas Storage Project - New EU Grant Application
InfraStrata plc (AIM: INFA), the UK quoted company focused on
the development of natural gas storage capacity, is pleased to
announce that it has submitted a new "grant for works" application
in respect of its Islandmagee gas storage project (the "Project")
to the EU (European Union) pursuant to the requirements of the
Connecting Europe Facility grant reference: "CEF-Energy-2018-2". It
should be noted that this new application does not impact the
Company's existing EU grant for FEED ("Front End Engineering
Design") works. As announced on 11 October 2018 FEED is progressing
ahead of schedule with almost 70% of the pre-established milestones
having been achieved.
The application has been submitted for a grant intervention rate
of 33.14%. This equates to a grant amount of circa GBP40 million
towards the total construction cost of the Project's first phase of
an initial two storage caverns.
The Company will receive notification from CEF-Energy-2018-2 in
February 2019 (or such later date as publicly notified by the EU)
detailing whether the application was successful, and if so, the
level of funding granted. The notification timeframe aligns with
the Company's planned H1 2019 programme of activities for final
investment decision ("FID"), procurement of a contractor and the
commencement of the engineering works.
A key element that must be submitted as part of the grant (for
it to be eligible for funding) is an independently prepared Cost
Benefit Analysis ("CBA") for the Project. The Company duly
commissioned this independent report from Energy Reform Consulting
Services and the results demonstrated the clear need for the
Project. The report highlighted the fact that just a single day's
power outage will cost the UK economy in excess of GBP1.1 billion
at its peak, with an average daily cost of GBP700 million.
The CBA demonstrates a strong investment to benefit ratio and
clearly underpins the Directors' belief that this Project could be
a key piece of strategic infrastructure for the UK. A copy of the
CBA will be uploaded onto the Company's website by the end of the
day tomorrow. Whilst a Brexit "No Deal" generally increases
uncertainty, the Directors do not believe that it will affect this
application as the UK government (as part of the "no deal" papers
published) has stated that it will honour PCI (EU Project of Common
Interest) project funding in the event of leaving the EU with no
deal.
John Wood, Chief Executive Officer commented "I would like to
thank the team for their extremely hard work and efforts in
submitting the grant application by the designated deadline and we
look forward to receiving the decision in February 2019. We now
continue to focus on the last few elements of the FEED works and
the conclusion of key discussions with our preferred offtake
partners and project level equity partners".
For further information, please contact:
InfraStrata plc c/o Yellow Jersey
John Wood, Chief Executive +44 (0)20 3735
8825
Allenby Capital Limited (AIM Nominated
Adviser & Joint Broker) +44 (0)20 3328
Jeremy Porter / Alex Brearley / Liz Kirchner 5656
SI Capital Limited (Joint Broker) +44 (0) 20 3871
Nick Emerson 4038
Yellow Jersey +44 (0)20 3735
Tim Thomson 8825
-ENDS-
Notes to editors:
InfraStrata is an independent gas storage company focused on the
UK and Ireland. Further information is available on the Company's
website: www.infrastrata.co.uk.
Background on the Islandmagee Storage Project
The Islandmagee gas storage project is a proposed salt cavern
gas storage facility located on Islandmagee in County Antrim,
Northern Ireland. The Board of InfraStrata believes that the
proposed 500 million cubic metres Natural Gas Cavern Storage
facility will provide over 25% of the UK's Natural Gas Storage once
constructed, and will be situated adjacent to the Scotland Northern
Ireland (gas) Pipeline (SNIP) and the Moyle 500 Megawatt
Electricity Interconnector. Work commenced in 2007 with the
acquisition of 3D seismic data to image the Permian salt in the
Larne Lough area. During 2012, planning permission was granted for
the project and a gas storage licence was issued by the Utility
Regulator. In 2015 a well was drilled to core the salt and confirm
the technical feasibility of the project, supported in part by the
European Commission. The Front End Engineering and Design (FEED)
element of the Project is scheduled for completion by the end of
2018. To date approximately GBP11.5m has been invested in the
project.
Further information is available on the company's website:
www.infrastrata.co.uk
The Front End Engineering & Design (FEED) and Insitu
Downhole Testing programme for the Islandmagee gas storage project
is co-financed by the European Union's Connecting Europe
Facility.
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terms of the content of the dissemination materials:
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author. The European Union is not responsible for any use that may
be made of the information contained therein."
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END
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