Mast
Energy Developments PLC
(Incorporated in England and
Wales)
(Registration Number:
12886458)
LEI :213800HFVHGJ9YGO9F71
Share code on the LSE:
MAST
ISIN: GB00BMBSCV12
('MED' or 'the Company')
Dated: 19 December 2024
Mast Energy Developments PLC
('MED' or 'the Company')
New Growth Capital
Partnership & Project Finance Facility
Agreement,
and Pyebridge
Update
Mast Energy Developments PLC is
pleased to announce that it has signed a conditional growth capital
partnership term sheet and executed an associated initial project
finance facility agreement, and further provide an update regarding
its Pyebridge flexible power plant, the highlights and details of
which are outlined below.
Growth Capital Partnership & New Facility
Agreement
·
MED has signed a conditional term sheet with
Powertree (Holdings) Ltd ("Powertree") under which Powertree would
form a long-term partnership with MED and deploy capital into the
portfolio of development flexible power generation projects that
MED owns, starting with Hindlip Lane (the "Growth Capital
Partnership");
·
The first definitive step in the new Growth
Capital Partnership with Powertree is a new project finance
facility agreement with Powertree regarding MED's 7.5MW
shovel-ready Hindlip site (the "Facility Agreement");
·
The Facility Agreement is entered into between
Powertree (as the lender) and the Hindlip SPV, ADV 001 Ltd (as the
borrower), with an initial advance of up to £70,000 and secured
over the Hindlip SPV;
·
The use of proceeds from the initial advance is
solely for the Hindlip site's development costs;
·
The Growth Capital Partnership is subject to
certain conditions precedent, including confirmatory due diligence
and contract (the "CP's"); and
·
Once the CP's have been satisfied, MED and
Powertree will enter into a binding definitive wider funding
agreement to support and enhance the Growth Capital
Partnership.
About Powertree
Powertree is joint venture between
Hartree Partners Power Holdings (UK) Ltd ("Hartree") and Power
Balancing Services Ltd ("PBS"). In headline terms Hartree provide
market leading optimisation services and PBS site development and
operation services to flexible power generation assets. The Hartree
and PBS JV is an existing long-term successful developer and
operator of a number of flexible power response facilities very
similar to the ones that MED have developed. As well as capital,
economies of scale, optimization and site management services,
Powertree bring other benefits that will help make projects they
are involved with, a success.
Pyebridge Update
·
Further to the Company's previous RNS announcement
dated 3 December 2024, the commissioning of the refurbished
2nd 2.7MW genset has been successfully completed, and
the genset has been operating commercially since 17 December
2024;
·
Following the successful completion of the
2nd 2.7MW genset refurbishment, Pyebridge has 2x
2.7MW (i.e. 5.4MW) in optimal commercial production and generating
income, effectively doubling the site's trading revenue generation
capacity;
·
GB intraday electricity prices reach multi-year
high of over £600/MWh during December 2024 due to extended periods
of low wind generation, which results in increased demand for and
revenue of flexible power plants, such as Pyebridge;
·
Pyebridge has successfully qualified for an
additional new T-1 and T-4 Capacity Market ("CM") contracts at the
site's maximum generation capacity of c. 8.1MW during the recent CM
qualification assessment window;
·
The price auctions for the new contracts are
expected to take place at the end of February 2025; and
·
Subject to the new CM contracts being issued in
due course (which is expected), means that Pyebridge will have
uninterrupted Capacity Market contracts until 2029 providing a
significant contribution to the site's income profile by way of
guaranteed gross margin income payments, in addition to the site's
PPA trading revenue.
Pieter Krügel, MED CEO, commented: "We are very excited
about the new Growth Capital Partnership with Powertree. Powertree
have a long, proven track record of being able to successfully
fund, develop and operate flexible power plants. Their willingness
to enter into a long-term partnership with MED, is testament to the
Company's ability to attract quality partners."
"The new Growth Capital Partnership with Powertree will
complement the Project Finance Framework Agreement recently entered
into with RiverFort. The combined support of RiverFort and
Powertree, both of which are successful businesses, will bolster
and fast-track MED's strategy to build a portfolio of 300+ MWs. The
Company appreciates the ongoing support of RiverFort. Moreover, the
Company has received interest from and are in discussions with
3rd party financing providers, including commercial
banks, regarding the debt financing of its portfolio of
projects."
"Our ongoing positive progress and performance at Pyebridge
are very encouraging, and proves that we can successfully fund,
develop, and operate a flexible power plant, and paves the way to
grow our portfolio to 300+ MWs."
"We are looking forward to an exciting 2025 during which we
plan to advance and progress MED's strategy at some
pace."
Stay up to date with MED's latest news and updates by joining
our emailing list and social media channels, as
follows:
MED emailing list -
https://med.energy/email-alerts/
MED LinkedIn page -
https://uk.linkedin.com/company/mast-energy-developments-plc
MED X (formerly Twitter) handle -
@mastplc
Further details of Growth Capital Partnership & New
Facility Agreement:
MED has signed a conditional term
sheet with Powertree (Holdings) Ltd ("Powertree") under which
Powertree would form a long-term partnership with MED and deploy
capital into the portfolio of flexible power generation projects
that MED owns (the "Growth Capital Partnership"). The Growth
Capital Partnership is subject to certain conditions precedent,
including confirmatory due diligence and contract (the "CP's").
Once the CP's have been satisfied, MED and Powertree will enter
into a binding definitive wider funding agreement to support and
enhance the Growth Capital Partnership. The details of the wider
funding agreement will be announced in due course. Based on current
progress and planning, it is expected that the wider agreement will
be completed during Q1 2025. Whilst preliminary due diligence has
been carried out prior to signing of the Growth Capital Partnership
term sheet and, as such, the MED board is confident that the CP's
will be satisfied and the binding definitive wider funding
agreement will be completed in due course, it cannot be
guaranteed.
The first definitive step in the new
Growth Capital Partnership with Powertree is a new project finance
facility agreement with Powertree regarding MED's 7.5MW
shovel-ready Hindlip site (the "Facility Agreement"). The Facility
Agreement is entered into between Powertree (as the lender) and the
Hindlip SPV, ADV 001 Ltd (as the borrower), with an initial advance
of up to £70,000 and secured over the Hindlip SPV. The use of
proceeds from the initial advance is solely for the Hindlip site's
development costs. The facility carries an interest rate of 10% per
annum, and is repayable within 12 months from the date of draw. The
plan and intention is to roll up the outstanding balance under the
initial Facility Agreement into the wider funding agreement with
Powertree in due course.
ENDS
This announcement contains inside information for the purposes
of the UK version of the Market Abuse Regulation (EU No. 596/2014)
as it forms part of United Kingdom domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('UK MAR'). Upon the
publication of this announcement, this inside information is now
considered to be in the public domain.
For further information please
visit www.med.energy or contact:
