Corcel PLC Burwell Battery Storage Partner Buyout (0775H)
01 December 2020 - 7:00PM
UK Regulatory
TIDMCRCL
RNS Number : 0775H
Corcel PLC
01 December 2020
Corcel PLC
("Corcel" or the "Company")
Burwell Battery Storage and Solar Project: Economic Review,
Project Sanction and Partner Buyout
01 December 2020
Corcel Plc, the natural resource exploration and development
company with interests in battery metals and flexible grid
solutions, is pleased to announce an update on its Burwell battery
storage and solar project (the "Burwell Project"), including the
completion of its project economic review and the buyout of the
other 50% shareholders.
Highlights:
-- Positive project economic review, resulting in Project
Sanction to proceed to "shovel ready" status and Financial
Close
-- Corcel to buy out the remaining 50% interest in Weirs Drove
Development Limited ("WDD") thereby becoming the 100% owner of the
Burwell Project for GBP90,000.
Burwell Update
Following a positive project economic review, the Company
confirms its conclusion that, based on current revenue projections
(provided by Limejump Ltd, a subsidiary of Shell New Energy
Ventures ("Limejump")) and current capital cost estimates, the 50MW
battery storage project at Burwell has the potential to offer a
robust investor return profile. The Company has therefore
sanctioned the project to proceed to "shovel ready" status and
thereafter Financial Close. The Company is securing the 100MW 132kV
UK Power Networks grid connection offer (previously announced on 22
September 2020) by paying the associated deposit.
The Burwell Project is expected to begin operations in 2022, and
as such the project will be entered into the Capacity Market
auction for 2025, which would provide a fixed guaranteed source of
revenue for the project over a 15-year initial period. The Capacity
Market is a government mandated scheme which offers developers
guaranteed returns to maintain a reliable energy supply and to
avoid potential blackout situations in the UK. Limejump will
utilize the battery's capacity for electricity trading purposes in
the years prior to the project entering the Capacity Market, at
which point the guaranteed revenue stream will come online
alongside ongoing trading activities.
Partner Buyout
The Company also announces the buyout of Tim Dobson's 40% and
Christian Yates' 10% interests in WDD for a total potential
consideration of GBP90,000, payable GBP15,000 in cash and GBP75,000
in Corcel new ordinary shares ("Consideration Shares") at financial
close of the initial 50MW of capacity of the Burwell Project.
Financial close is defined as having a fully funded SPV to take the
project forward to energization (i.e. operational capability) or
any potential disposal or sale before that point. Consideration
Shares are to be priced at the 10-day trailing VWAP at the time of
execution of this agreement and upon issuance will be locked up for
12 months.
The Company thanks Tim Dobson and Christian Yates for their
significant efforts originating and maturing the Burwell Project.
As future shareholders of Corcel, the Board is also delighted to
maintain Tim and Christian's support with both indicating that they
are available to the Company to assist with the funding of Burwell
and origination of other sites as required.
Scott Kaintz, Chief Executive Officer, commented:
"I am delighted to report that after our review we believe the
project economics at the Burwell Project are robust and have
therefore sanctioned the project to proceed to "shovel ready"
status. The Burwell Project has the potential to generate
significant revenue for Corcel and will be a key asset for the
business going forward.
"This review has also provided us with the confidence to buy out
our legacy partners, thereby positioning Corcel with a 100% equity
interest in the project. We expect to be initiating discussions
with project funders (likely at an SPV level) shortly whilst also
remaining open to the potential for a quick sale of the project to
a third party. "
For further information, please contact:
Scott Kaintz 020 7747 9960 CEO Corcel Plc
Roland Cornish/ Rosalind Hill Abrahams 020 7628 3396 NOMAD Beaumont Cornish Limited
Thomas Smith 020 7392 1432 Broker Monecor (London) Ltd (ETX
Capital)
Simon Woods 0207 3900 230 IR Vigo Communications
This announcement contains inside information under Article 7 of
Regulation (EU) 596/2014 .
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