Plutus PowerGen PLC Indicative Partnership with Big Six Utility (6533P)
21 November 2016 - 6:00PM
UK Regulatory
TIDMPPG
RNS Number : 6533P
Plutus PowerGen PLC
21 November 2016
Plutus PowerGen Plc / Ticker: PPG / Index: AIM
21 November 2016
Plutus PowerGen plc ('PPG' or 'the Company')
Indicative Partnership with Blue Chip Utility Company
Plutus PowerGen plc, the AIM listed power company focused on the
development, construction and operation of flexible power projects
in the UK, is pleased to announce that it has received an offer by
a leading Big Six multinational utility company to fund up to 20%
of any 20MW renewable fuel or gas powered flexible energy projects
going forward.
This fits ideally with the Company's strategy to deliver
projects in which it holds an 80% interest and this relationship is
envisaged to provide sufficient equity to allow PPG to develop
majority owned assets while maintaining its zero dilution to
shareholders policy. The Board is confident that it will be able to
fund its portion of the development costs via debt, particularly
given the endorsement of this major energy and services company.
This belief is also underpinned by the Company's recent securement
of asset financing for the development of its recently commissioned
project in Plymouth.
PPG CEO Phil Stephens said, "This interest from a major
utilities company is transformational. Most importantly, it enables
PPG to start implementing the next phase of our strategy, which is
focused on retaining a much larger share of the value of our
projects for the benefit of our shareholders. It also endorses both
our business model, which is focused on delivering a consistent
source of power to mitigate the UK's risk of brown or black outs,
and the quality of our projects, given the blue chip nature of the
prospective partner. With our first project recently commissioned
and generating revenues, this is a very exciting time for PPG and
we look forward to providing updates in the near term as we
continue to implement our business plan."
**ENDS**
For further information, please visit www.plutuspowergen.com, or
contact:
Charles Tatnall Plutus PowerGen Plc Tel: +44 (0)
20 3705 8350
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Phil Stephens Plutus PowerGen Plc Tel: +44 (0)
20 3705 8352
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Ewan Leggat SP Angel Corporate Tel: +44 (0)
Finance LLP 20 3470 0470
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Laura Harrison SP Angel Corporate Tel: +44 (0)
Finance LLP 20 3470 0470
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Elisabeth St Brides Partners Tel: +44 (0)
Cowell Limited 20 7236 1177
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Hugo de Salis St Brides Partners Tel: +44 (0)
Limited 20 7236 1177
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Notes to Editors
Plutus PowerGen plc is an AIM listed company focused on the
development, construction and operation of flexible stand-by power
generation sites in the UK. At present, the market dynamics for
flexible power generation are positive as a result of the continued
downward pressure on capacity available to National Grid to balance
supply and demand, leading to their announcements about possible
power shortages over the next few years.
Flexible Power generators such as PPG offer a viable and timely
solution to the power capacity shortfall in the UK. To this end,
PPG is initially focusing on delivering 200MW of capacity by the
end of 2017 and currently has a project pipeline of potential
development sites with 700MW of power generation capacity.
PPG has a straightforward multi-revenue stream model with large
and stable counter-parties and is using project/EIS funding through
SPVs to finance construction of the generation assets. This
structure has the benefit of limiting dilution to plc shareholders
as the assets are financed and built.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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