REG - Gore Street Energy - EPC contract signed and 14m new shares issued

Gore Street Energy Storage FundAnnouncement

19/12/2023 07:00

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RNS Number : 2131X  Gore Street Energy Storage Fund PLC  19 December 2023

19 December 2023

 

Gore Street Energy Storage Fund plc

(the "Company" or "Gore Street")

EPC contract signed for Texas asset

14 million new Ordinary Shares to be issued to Nidec Motor Corporation

 

 

Gore Street Energy Storage Fund plc, the internationally diversified energy
storage fund, is pleased to confirm the selection of Nidec Motor Corporation
("Nidec") as the Engineering, Procurement, and Construction (EPC) contractor
for its Texas-based energy storage asset "Dogfish". The 75 MW asset will
initially be built with a one-hour duration, while the design allows for
future retrofitting to extend the duration should it be determined in the
future that the additional potential revenue from a two-hour system justifies
the related additional cost.

The contracts include the EPC agreements and Operations and Maintenance
(O&M) contracts. The contract is fully wrapped, including warranties for
availability and energy capacity.

The asset will integrate into the ERCOT grid network with a target
energisation date of December 2024. The asset will participate in RRS,
Wholesale trading, the recently introduced ECRS market, and any subsequent
services introduced within the ERCOT market.

 

Nidec Strategic Partnership and Subscription for Ordinary Shares

The Company is pleased to announce that, as part of the long-term strategic
partnership with Nidec, Nidec will be subscribing for 14,000,000 new ordinary
shares in the capital of the Company (the "Ordinary Shares") at 112.9 pence
per Ordinary Share, being the 30 September 2023 NAV announced on 14 December
2023, resulting in gross proceeds of £15,806,000 to the Company. Nidec's
Ordinary Shares will be subject to a lock-up arrangement which prevents it,
save in certain specified circumstances, from disposing of any of its Ordinary
Shares for the six-month period after Admission (defined below). After the end
of this period, Nidec is able to dispose of up to 50% of its Ordinary Shares.
After twelve months from Admission, Nidec would then be able to dispose of any
remaining amount of its Ordinary Shares held at such time.

 

This strategic partnership between Nidec and the Company builds upon their
established relationship, with Nidec having previously been appointed as EPC
contractor for the Company's Ferrymuir (49.9MW) and Stony (79.9MW) assets.

Under the terms of this strategic partnership, Nidec will, for a period of
five years following Admission, be entitled to participate in upcoming
competitive bids for EPC contracts in respect of qualifying projects with the
Company. Additionally, Nidec shall be guaranteed participation in the second
stage of the process on the proviso that they can either match or enhance the
terms offered by other contenders in the strictly competitive process.

The Board maintains its confidence in the Company's competitive EPC contractor
selection process, which can include multiple iterative stages. This ensures
the Company's continued ability to consistently secure competitively priced
contracts, enabling it to build out its construction portfolio at one of the
industry's lowest prices per MW fully installed.

Applications have been made to the FCA for the 14,000,000 new Ordinary Shares,
which are being issued under the share issuance authority approved by
shareholders at the Company's Annual General Meeting held on 21 September
2023, to be admitted to the premium segment of the Official List and to the
London Stock Exchange for the new Ordinary Shares to be admitted to trading on
its main market for listed securities. Admission is expected to become
effective, and dealings in the new Ordinary Shares are expected to commence at
8.00 a.m. on 20 December 2023. Following Admission, the new Ordinary Shares
will rank pari passu in all respects with the existing Ordinary Shares.

Immediately following Admission, the Company's issued share capital will
comprise 495,399,478 Ordinary Shares, with no shares held in treasury.
Accordingly, the total number of voting rights in the Company on Admission
will be 495,399,478. Shareholders and other investors may use this figure as
the denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
Company under the FCA's Disclosure Guidance and Transparency Rules.

 

Pat Cox, Chair of the Company's Board, commented:

"We are pleased to see a large strategic corporation within the energy storage
value chain like Nidec taking a material position in the Company. The
Company's register now comprises wealth managers, institutional investors,
retail and a growing number of strategic corporations like Nidec. This diverse
mix of holders has enabled the Company to form strong strategic partnerships
across the energy storage value chain whilst ensuring the stock benefits from
good liquidity, with an average of c4.5m shares traded weekly over the last 12
months."

 

Alex O'Cinneide, CEO of Gore Street Capital Limited, the Company's investment
manager, commented:

"We are delighted to strengthen the existing relationship between Nidec and
Gore Street with this strategic partnership and share issuance. During the
current market dynamics, we are pleased to see a TOPIX 100 Company with a deep
understanding of the sector take a material position in GSF. We look forward
to working closely with Nidec over the coming periods."

 

Michael Briggs, Senior Vice President and President of the Motion & Energy
Business Unit at Nidec, commented:

"Strategic partnerships with leading players are essential in achieving the
scope and efficiency needed to address global demand for energy storage
solutions. For this reason, we are proud to continue and evolve our strategic
partnership with Gore Street Capital in a way that furthers our shared mission
to accelerate global adoption of sustainable energy technologies. This project
represents Nidec's largest US-based BESS installation yet, and this
partnership confirms our position as a global leader in this key market".

About Nidec

With headquarters in Kyoto, Japan, and its Motion & Energy business
headquarter in St. Louis, Missouri, Nidec is the world's leading electric
motor manufacturer, comprised of 340 group companies and 100,000 employees.
A pioneer in electrification, Nidec has worked across a wide array of
industries ranging from information technology, automotive, appliance,
commercial, industrial and machinery since its foundation in 1973. Nidec is a
trusted development partner in multiple high-growth spaces including
industrial automation, vehicle electrification and energy storage, providing
world-class technology, support, and localized manufacturing to support
industry leaders across the globe.

 

For further information:

 

Gore Street Capital Limited

Alex O'Cinneide / Paula Travesso
 
Tel: +44 (0) 20 3826 0290

Shore Capital (Joint Corporate Broker)

Anita Ghanekar / Rose Ramsden / Iain Sexton (Corporate Advisory)
Tel: +44 (0) 20 7408 4090

Fiona Conroy (Corporate Broking)

J.P. Morgan Cazenove (Joint Corporate
Broker)
Tel: +44 203 493 8000

William Simmonds / Jérémie Birnbaum (Corporate
Finance)                        Tel: +44 (0) 20 3493
8000

 

Buchanan (Media Enquiries)

Charles Ryland / Henry Wilson / George
Beale
                                Tel: +44 (0) 20
7466 5000

Email: gorestreet@buchanan.uk.com

 

Notes to Editors

About Gore Street Energy Storage Fund plc

Gore Street is London's first listed and internationally diversified energy
storage fund dedicated to the low-carbon transition. It seeks to provide
Shareholders with sustainable returns from their investment in a diversified
portfolio of utility-scale energy storage projects. In addition to growth
through increasing operational capacity and a considerable pipeline, the
Company aims to deliver consistent and robust dividend yield as income
distributions to its Shareholders.

https://www.gsenergystoragefund.com (https://www.gsenergystoragefund.com/)

 

 

 

 

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