REG - Gore Street Energy - Issue of Equity

Gore Street Energy Storage FundAnnouncement

25/03/2024 07:00

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RNS Number : 0408I  Gore Street Energy Storage Fund PLC  25 March 2024

25 March 2024

Gore Street Energy Storage Fund plc 

(the "Company" or "GSF") 

Increased capacity in a growth market with balance sheet efficiency

 

The Company has increased its Irish asset base to 385MW, of which 130MW is
operational. This incremental capacity secured in a high-value market further
adds to the portfolio's diversification.

 

Gore Street Energy Storage Fund plc, the internationally diversified energy
storage fund, is pleased to announce that it has increased its Irish asset
base through the acquisition of the remaining 49% in two of its existing Irish
projects alongside the addition of Project Mucklagh, a 75MW asset in the
Republic of Ireland. The total consideration for these transactions was
settled via the issuance of 9,700,000 new Ordinary Shares in the capital of
the Company (the "Ordinary Shares") issued at 111.0 pence per Ordinary
Share 1 , plus cash consideration.

 

Acquisition of Remaining 49% stake in existing Irish Assets and 75MW Irish
Asset Project Rights Secured

The Company has acquired the remaining 49% stake from Low Carbon in two of its
existing Irish projects: Porterstown, a 90MW(( 2 )) asset, and Kilmannock, a
120MW(( 3 )) construction asset.  Additionally, the Company has exercised its
option with Low Carbon to acquire a 51% stake in Project Mucklagh, a 75MW
pre-construction energy storage project located in the Republic of Ireland.
The Project has a target energisation date of 2028.

 

These transactions demonstrate efficient use of capital and the ability of the
Company to continue to execute successfully against its strategy of delivering
a diversified asset base and driving returns for shareholders. The Irish
market has proven to be a consistently lucrative market for the Company, and
it is therefore pleased to have secured incremental capacity in this
high-value market. Following these acquisitions, the Company's portfolio will
comprise 28 projects, with a total capacity of 1,248.2MW of operational and
construction assets across Great Britain, Ireland, Germany, Texas, and
California.

 

The Company is pleased to expand its network of long-term strategic
partnerships through this activity, with Grid System Services Limited (JV
between Low Carbon Ltd and Irish Independent Developers) ("Low Carbon")
joining its share register. This follows the Nidec Share Issuance in December
2023. Low Carbon is an internationally recognised developer with projects
across the UK, Ireland, Northern America, and mainland Europe. The Investment
Manager looks forward to continuing its long-standing relationship with Low
Carbon, which also retains its 49% stake in the 100MW combined Mullavilly and
Drumkee projects in Northern Ireland alongside its 49% stake in Mucklagh.

 

 

Application of New Ordinary Shares

Applications have been made to the FCA for the 9,700,000 new Ordinary Shares,
which are being issued under the share issuance authority approved by
shareholders at the Company's Annual General Meetings 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 am on Tuesday, 26 March 2024. Following Admission, the new Ordinary
Shares will rank Pari Passu in all respects with the existing Ordinary Shares.

 

The new Ordinary Shares issued to Low Carbon will be subject to a lock-up and
orderly market arrangement, with one-third of the shares locked up until July
2024, a further one third locked up until October 2024, and the final third
until February 2025.

 

Immediately following Admission, the Company's issued share capital will
comprise 505,099,478 Ordinary Shares, with no shares held in the treasury.
Accordingly, the total number of voting rights in the Company on Admission
will be 505,099,478. 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 very pleased to further strengthen the Company's relationship with
long-term partner Low Carbon, a key partner for the Company since its first
international expansion back in 2019. The development platform joins an
increasingly varied selection of entities on the Company's register, ranging
from wealth managers, institutional and retail investors to other strategic
corporations like Nidec, which built upon its existing relationship with the
Company in December. This diversity of holders ensures the Company continues
to maintain strong partnerships to support its activities across multiple
energy storage markets."

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

"This share issuance and acquisition cements our continued commitment to the
Irish Market, which has proved very successful for the Company, illustrating
the value of the original agreement secured by the Investment Manager in 2019.

"The benefits of the multi-year agreement with Low Carbon have now entered a
new stage for the Company as it extends ownership over operational projects in
the Republic of Ireland while adding more capacity from Low Carbon's
development pipeline. The innovative structure of this ongoing strategic
partnership ensures all parties remain motivated to achieve success and
maintain the Company's position as a leader in Ireland's energy storage
market.

"The capacity covered by the latest agreement joins a well-balanced portfolio
with access to a diversified revenue base that is key to the Company's
continued growth, alongside considerably low borrowing and healthy balance
sheet. We are constantly evaluating the Company's exposure to the markets in
which it operates to ensure the portfolio is correctly positioned and
optimised to deliver best value for investors. As we build out more capacity
in the coming 12 months and beyond, the value of this approach will continue
to be demonstrated."

Steve Mack, Chief Investment Officer at Low Carbon, added:

"We are delighted to close this sale transaction on our portfolio of Irish
storage assets with Gore Street, who are a long-term strategic partner for Low
Carbon in the Irish renewables market. Low Carbon were one of the first movers
to develop, build and operate utility scale battery storage in Ireland and
this announcement reinforces our track record in delivering exceptional assets
and operational performance across our portfolio.

"Furthermore, these assets will play an important role in Ireland's energy mix
and act as a building block paving the way for more clean energy to come
online helping the country to make progress on its climate change objectives."

 

About Low Carbon

Low Carbon creates large-scale renewable energy to fight climate change. We're
building a net-zero energy company that will protect the planet for future
generations. This defining purpose drives us to deliver for our communities,
investors, and the environment.

We are a long-standing certified B-Corporation and recognised as gold standard
for our environmental impact.

We invest in, develop, and operate solar, wind, energy storage, and energy
from waste projects across the UK, Europe, and North America. We're
contributing to the world's move to 100% renewable energy by creating and
operating 20GW of new capacity by 2030.

Low Carbon is on a mission. Together, we will power tomorrow.

https://www.lowcarbon.com/

 

 

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)

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 (mailto: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/)
 

 

 

 1  Being the 31 December 2023 NAV as announced on 12 March 2024.

 2  Porterstown comprises a 30MW operational asset and an expansion 60MW
construction asset.

 3  Kilmannock comprises a 30MW construction asset and an expansion 90MW
construction asset.

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