REG - Corre Energy B.V. - Offtake, Development and Investment Agreement

Corre Energy BVAnnouncement

22/01/2024 07:00

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RNS Number : 3713A  Corre Energy B.V.  22 January 2024

Corre Energy B.V.

("Corre Energy" and the "Company")

Corre Energy and Eneco sign landmark Germany offtake, development and
investment agreement

Corre Energy (CORRE.IR) and Eneco have signed an agreement for offtake,
co-development and co-investment for Corre Energy's first Compressed Air
Energy Storage (CAES) project in Germany. The agreement will see Eneco acquire
a 50% interest in the project, at economics to be agreed, comprising both
development capital and construction equity. The transaction, in line with
Corre Energy's co-investment plans announced in December, also means Eneco
will secure the entire storage capacity under a long-term offtake agreement
for the first phase project at Ahaus, Germany (formerly referred to as Epe).

The transaction represents Eneco's second agreement with Corre Energy
following its 15-year offtake agreement for the ZW1 project in the
Netherlands, announced in December 2022. The co-development, financing and
operating of the Ahaus project will be undertaken by LichtBlick, Eneco's
German subsidiary and one of Germany's largest green energy suppliers,
alongside Corre Energy's subsidiary, Corre Energy Germany GmbH. The agreement,
which is subject to respective board approvals, significantly de-risks Corre
Energy's pathway to both commercial close and FID.

Phase one of the Ahaus project will use the first two of the site's four
existing salt caverns to deploy Corre Energy's multiday CAES solution to
deliver 220MW of compression capacity and 320MW of generation capacity. The
first cavern is due to be handed over to Corre Energy in early 2027 and
construction of all four caverns is already well underway. The project
benefits from accessing caverns which already have permits in place for
construction, greatly de-risking overall project development. The project is
expected to use equipment by Siemens Energy following the launch of a global
collaboration with Corre Energy in November 2023.

Keith McGrane, CEO of Corre Energy, said: "This landmark agreement combines
offtake, development and co-investment arrangements to propel our first German
project while showcasing the latest demand for our CAES solution. It comes
just six months after securing the site in Germany and underscores the ongoing
success of our growth strategy. To sign a second deal with Eneco just 12
months on from our first agreement in the Netherlands is a testament to the
relationship we've forged. By locking in long-term investment partnerships
such as in Germany, we are accelerating the commercial development of our
portfolio underpinned by long-term offtake arrangements. These arrangements
are repeatable across the portfolio and for each project can capture c€1bn
of net revenue over the duration of a 15-year offtake agreement."

Kees-Jan Rameau, COO Integrated Energy of Eneco, added: "Energy storage is
essential for the sustainable energy system of the future. It helps us use
clean power even when there's no wind or sun available and we can also help
ease congestion on the power grid. We see a bright future for these storage
solutions and this second project with Corre Energy helps us get closer to the
goals in our One Planet Plan: to be climate neutral in 2035, together with our
customers."

Corre Energy secured the Ahaus site following a land and cavern option
agreement with Solvay, a multinational chemical company, in June 2023. Located
in North Rhine-Westphalia, Germany, the CAES site in Ahaus is well located
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. The project represents the first CAES facility to be developed,
constructed and operated in Germany since 1978 when the Huntorf plant was
built.

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.

 

ABOUT ENECO: 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

 

 

 

 

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