Plutus PowerGen PLC Heads of Terms with JCB Power Products (6455P)
04 September 2017 - 4:00PM
UK Regulatory
TIDMPPG
RNS Number : 6455P
Plutus PowerGen PLC
04 September 2017
Plutus PowerGen Plc / Ticker: PPG / Index: AIM
4 September 2017
PLUTUS POWERGEN PLC ("PPG" or the "Company")
Heads of Terms with JCB Power Products
Plutus Powergen Plc, the AIM listed power-company focussed on
the development and operation of flexible energy generation
('FlexGen') projects in the UK, has signed a Heads of Terms (the
'Agreement') with leading UK provider of gas and diesel generators,
JCB Power Products Broadcrown Limited ('JCB'), to design, procure
and supply the required generators for the Company's UK FlexGen
Projects (the 'Projects').
Under the terms of the Agreement, both parties will cooperate
with the identification and suitability of sites and will leverage
their complementary skills and capabilities to bring FlexGen
projects into operation.
JCB will assist PPG on the design, procurement and supply of the
required generators for each individual FlexGen site and will also
provide long term repair and maintenance services. Furthermore, JCB
will introduce PPG to JCB Finance Limited, a member of the RBS
Group, who specialises in providing asset finance in connection
with the acquisition of JCB equipment.
All selected sites being advanced by both parties will be
developed within individual SPV structures, with terms negotiated
on a per site basis. PPG will be responsible for all commercial
contracts and arrangements with respect to power and benefits
related to each Project, including inter alia, Capacity Market
contract and Power Purchase Agreements and provide overall funding,
which may be through JCB Finance Limited or asset finance where
appropriate.
This security of supply is an important element of UK energy
infrastructure given the rise of intermittent renewable energy,
which puts considerable stress on the grid at peak times,
increasing the risk of blackouts and brownouts.
PPG's current focus is on completion of the 180MW of FlexGen
with Rockpool Investments LLP and the development of approximately
200MW of gas-fired FlexGen projects across the UK. These facilities
can be switched on at a moment's notice at times of peak demand and
help to mitigate the current and forecast risk of an energy
deficit. PPG has a pipeline of over 700MW and is targeting 120MW of
diesel to be operational by the end of the year with an additional
60MW which is at the post-planning stage to be built in 2018. PPG
also has a potential further 80MW of gas currently without planning
which the Company hopes to build on next year.
PPG Executive Chairman Charles Tatnall said, "JCB is a blue-chip
company that has the experience and equipment to assist in the roll
out of our FlexGen portfolio. It is an ideal commercial partner to
supply both gas and renewable green diesel generators for our
growth plans. We continue to build strong relationships with
companies that understand the UK's energy dynamic and the need for
flexible energy generation. With a pipeline of 700MW, we are
excited about the future in this highly dynamic and demanding
market."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the
publication of this announcement via a Regulatory Information
Service ('RIS'), this inside information is now considered to be in
the public domain.
**ENDS**
For further information, please visit www.plutuspowergen.com, or
contact:
Charles Tatnall Plutus PowerGen Plc Tel: +44 (0) 20
3705 8350
Phil Stephens Plutus PowerGen Plc Tel: +44 (0) 20
3705 8352
Andrew Craig Cantor Fitzgerald Tel: +44 (0) 20
Europe 7894 7000
Richard Salmond Cantor Fitzgerald Tel: +44 (0) 20
Europe 7894 7000
Isabel de St Brides Partners Tel: +44 (0) 20
Salis Limited 7236 1177
Olivia Vita St Brides Partners Tel: +44 (0) 20
Limited 7236 1177
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 due to 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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