REG - Corre Energy B.V. - Germany Underground Cavern Construction Progress

Corre Energy BVAnnouncement

13/02/2024 07:00

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RNS Number : 8861C  Corre Energy B.V.  13 February 2024

Corre Energy B.V.

("Corre Energy" and the "Company")

Corre Energy's underground cavern construction in Germany now 75% complete

Corre Energy, a leader in the design, development and commercialisation of
long duration energy storage (LDES), has achieved a major new milestone at its
two Ahaus energy storage projects in Germany, with underground construction of
all four salt caverns now 75% complete. This represents the equivalent of over
60 hours of storage capacity at each project, with a completed target of 84
hours each and a combined generating capacity of 640MW. This progress
underpins the Company's target of delivering c.€500m of project value and
c.€2bln in net revenues through 15-year contracts at the Ahaus site.

Permits for underground construction are already in place at Ahaus and Corre
Energy is now amending the existing operating permits from natural gas to air
storage as part of the site's transition to clean energy. Works are being
carried out by Solvay, a multinational chemical company, as part of its
agreement with Corre Energy to hand over all four salt caverns in an
above-ground, build-ready state. Based on the strength of the relationship,
Corre Energy is also exploring further potential new locations with Solvay in
Germany and southern Europe. A video showcasing the Ahaus site can be viewed
at https://www.corre.energy/2024/02/13/ahaus-construction-update/
(https://www.corre.energy/2024/02/13/ahaus-construction-update/) .

The first Ahaus project is now also backed by the strategic partnership with
Eneco, a major Dutch energy company, as announced in January 2024. Eneco is to
provide 50% of all development capital and construction equity for the
project, at economics to be agreed, as well as becoming the 50% owner of the
completed project alongside Corre Energy. Adding to its existing offtake
agreement for Corre Energy's ZW1 project in the Netherlands, Eneco (through
its Lichtblick subsidiary in Germany) has also agreed to be the sole offtaker
for all of the first project's electricity output.

Keith McGrane, CEO of Corre Energy, commented: "This latest milestone combined
with our recent strategic investment and offtake partnership with Eneco shows
vast momentum in Germany, with critical read-across to the rest of our
portfolio. With underground construction so advanced, we believe this is the
biggest multi-day storage project in development anywhere in the world outside
China. With the total German site targeting c€500m of value and 15-year net
revenues of c€2bln, our substantial value-creation plans are even closer to
being crystalised."

Philippe Kehren, Solvay's CEO, commented: "Corre Energy's substantial progress
in repurposing Solvay's salt caverns into efficient clean energy storage
solutions is a source of satisfaction for us. These strategic and timely
endeavors reinforce our dedication to promoting sustainable energy practices.
The transformation of salt caverns is crucial in our collective energy
transition, and we anticipate ongoing collaboration to nurture initiatives
similar to Corre Energy's. This reaffirms our joint commitment to advancing
clean energy solutions for the future of Europe."

Project success is further supported by the German Government's published
strategy for electricity storage which sets out plans to speed up the delivery
of integrated technology to underpin the country's future grid. Corre Energy's
technology solution, backed by a global collaboration agreement with Siemens
Energy, uses compressed air to store energy for multiple days, with a typical
single project delivering 320MW of generating capacity (26GWh) to help balance
the supply and demand of renewable energy.

The Ahaus facility in North Rhine-Westphalia was selected owing to its
location between increasing offshore wind power production in the north and
the significant power consumption regions to the south. It is close to the
future national hydrogen backbone grid (H2-Startnetz) and will complement the
regional establishment of an industrial scale renewables-based green hydrogen
value chain.

For further information please visit https://corre.energy/
(https://corre.energy/) or contact:

 Corre Energy                                       +31 (0) 50 799 5060
                                                    ir@corre.energy

 Davy (Euronext Growth Listing Sponsor)             +353 87 689 9195

 Barry Dixon, Head of Decarbonization Finance       barry.dixon@davy.ie

 Murray PR (Financial PR and IR)                    + 353 87 226 9345

 Pat Walsh, Managing Director                       pwalsh@murraygroup.ie

 

ABOUT CORRE ENERGY: Corre Energy designs, develops, constructs, and operates
utility-scale Long Duration Energy Storage (LDES) projects in Europe and North
America. Through our project development activities, Corre Energy is working
to accelerate the energy transition to net zero, while enhancing the security
and flexibility of large-scale energy systems.

 

 

 

 

 

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