REG - Corre Energy B.V. - Offtake Agreement Underpinning Construction of ZW1

Corre Energy BVAnnouncement

19/12/2022 07:00

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RNS Number : 0800K  Corre Energy B.V.  19 December 2022

Corre Energy B.V.

("Corre Energy" or the "Company")

Offtake Agreement Underpinning Construction of Zuidwending Energy Storage
Project

 

Corre Energy is a leader in the origination, development, construction, and
commercialisation of Long Duration Energy Storage (LDES) projects and services
that will accelerate decarbonisation and enhance the security and flexibility
of energy systems.  Today the Company announces the signing of binding
commercial terms for a 15-year offtake agreement, with extension rights, with
Eneco, for the entire storage capacity of the Zuidwending Compressed Air
Energy Storage (CAES) project in the Netherlands.  Eneco is a leading
renewable power supplier and energy service provider in the Netherlands and
Belgium, operating and expanding its activities in the UK and Germany, and is
committed to accelerating the energy transition.

Zuidwending is located in the Province of Groningen in the Netherlands.
Corre Energy has exclusive rights to build a CAES facility using salt caverns
at the site, in conjunction with its cavern development partner.  The
facility will have 320 Megawatts of power generating capacity, with a maximum
storage discharge duration of approximately 3.5 days and a target commencement
date around the end of 2026.  It will be constructed as hydrogen fuel enabled
from commencement.

Under the terms of the arrangement, Corre Energy will construct, operate and
maintain the facility and Eneco will optimise the entire output of the storage
site on behalf of Corre Energy.  Eneco will provide market access services,
enabling Corre Energy to benefit from revenue linked to the high flexibility
value of the asset, while also guaranteeing a base level of income.  This is
supported by the anticipated rapid growth in renewable generation
capacity and Eneco's requirements for flexible energy sources to deliver its
target of becoming climate-neutral by 2035.

This type of facility will be an essential element, in conjunction with other
energy storage solutions, in providing the flexibility required to prevent
grid congestion in the Netherlands, and to ease the supply/demand balancing
challenges associated with the transition from fossil-fuel generation to
long-term sustainable renewable sources, such as wind and solar.  CAES works
alongside smaller, shorter duration lithium-ion battery installations, to
cover longer duration renewable downtime, offering balancing solutions
within-day and across multiple days.

This is a ground-breaking partnership, with both partners fully committed to
bringing this project to completion.  The planned facility is progressing
through the normal permitting procedures associated with an asset of this
significance and, when realised, will be the first large-scale CAES facility
to be constructed in Europe in almost 50 years.

Keith McGrane, Chief Executive Officer of Corre Energy, commented:

"We are delighted to have entered into this partnership with Eneco, a
world-class energy generation and supply company, which helps to enable its
strategic vision and underpins the project economics for Corre Energy.  Eneco
shares our deep belief in the requirement for and the value of large-scale
Compressed Air Energy Storage, and it is making a very significant commitment
to enable this project.  It also shares Corre Energy's commitment to making a
tangible contribution to the energy transition and the journey to net zero in
Europe.

"Zuidwending will be hydrogen fuel enabled from Day One and we expect the
maturing of the hydrogen market to allow the facility to operate entirely on
surplus renewable energy and green hydrogen, making an increasingly positive
environmental impact.

"We have made great progress over the last few years and, with the global
regulatory backdrop improving rapidly and ongoing renewables build enhancing
the economics of energy storage, I am confident we can deliver this
game-changing project."

Kees-Jan Rameau, Chief Strategic Growth Officer for Eneco, said:

"With this partnership with Corre Energy, Eneco takes another big step in
further reducing CO2-emissions, and providing the flexibility required for the
renewable energy system of the future.  This will help solve congestion
issues and pave the way for more renewable energy for our customers.  This
unique project will be an important contributor to our One Planet ambition and
becoming climate-neutral by 2035."

Corre Energy is a leader in the development and operation of Long Duration
Energy Storage (LDES) projects and products, accelerating the transition to
net zero and enhancing the security and flexibility of energy systems.  Our
projects address the increasing balancing requirements of renewable power and
provide essential and cost-effective services to system operators in the form
of storage and balancing services.

We also unlock the value of renewables by combining hydrogen production with
long duration and flexible energy storage, and by doing so we can help to
deliver more affordable, green energy to customers.  www.corre.energy
(http://www.corre.energy)

Eneco is an international energy company committed to accelerating the energy
transition.  Our One Planet Plan forms the basis for our ambition to be
completely climate-neutral as early as 2035, in terms of both our own and our
customers' energy consumption.  This requires radical electrification,
phasing out natural gas in the production and supply of energy and
accelerating sustainable heat.  We invest in sustainable means of production,
energy storage possibilities and smart energy solutions for consumers and
businesses.  Together we work on everyone's sustainable energy.
 www.eneco.com (http://www.eneco.com/)

 

This announcement is released by Corre Energy B.V. and contains inside
information for the purposes of Article 7 of the Market Abuse Regulation (EU)
596/2014 ("EU MAR") and is disclosed in accordance with the company's
obligations under Article 17 of EU MAR.

 

For further information, please visit www.corre.energy or contact:

 

 Corre Energy                                IR@corre.energy

 Davy (Euronext Growth Listing Sponsor)

 Barry Dixon, Head of Decarbonization        +353 87 689 9195

 Niall Gilchrist, Corporate Broking

 Barry Murphy, Corporate Finance

 Aoife Foley, Corporate Finance

 Murray PR (Financial PR and IR)

 Pat Walsh, Managing Director                + 353 1 498 0300

 

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