REG - Gore Street Energy - Operational Energy Storage Acquisition in Germany

Gore Street Energy Storage FundAnnouncement

04/03/2022 08:00

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RNS Number : 5946D  Gore Street Energy Storage Fund PLC  04 March 2022

04 March 2022

 

Gore Street Energy Storage Fund plc

(the "Company" or "Gore Street")

 

Operational Energy Storage Acquisition in Germany

 

First Investment in Continental Europe

 

Gore Street, London's first listed energy storage fund supporting the
transition to a low carbon economy, is pleased to announce that, in line with
its mandate to expand outside of the UK and Ireland, it has successfully
completed the acquisition of a 90% stake in a 28 MWh operational energy
storage asset based in Cremzow, Germany (the "Acquisition").

 

The acquisition of an asset in mainland Europe signifies an exciting
opportunity for Gore Street, as it diversifies its exposure to new revenue
streams across the inter-connected European grid network. Cremzow has been
operating since 2019; providing a critical suite of balancing and frequency
services across eight countries and eleven associated Transmission Network
Operators (TNOs) in the European grid system. Cremzow can participate in
wholesale and intra-day arbitrage, presenting additional revenue stacking
opportunities similar to GB and Irish markets. In addition, the intent by the
EU to diminish co-dependency on gas and other fossil fuels, reinforced by the
current Ukraine crisis, will likely further enhance the already pressing need
for energy storage infrastructure in the region.

 

The Acquisition represents the first step in Gore Street's announced strategy
to diversify beyond the UK and Irish markets. Following the Acquisition, the
Company's operating assets will have increased to 232 MW, and total portfolio
assets under management increased to 629 MW.

 

The site was developed in two stages by Leclanche, Enel Green Power and
Enertrag, starting with an initial 2.0 MW asset and followed by an additional
20.0 MW expansion. The system is based on LG Chem lithium-ion batteries. LG
Chem is a leading battery supplier and existing relationship of Gore Street.
Enertrag, a leading German renewable developer, will retain a 10% stake and
will support the technical management of the project.

 

The asset was purchased from Enel X Germany Gmbh, a subsidiary of Enel X,
which is Enel Group's global business line offering services that accelerate
innovation and drive the energy transition, which manages demand response for
around 7.7 GW of total capacity globally.

 

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

 

"The Company has, as part of its growth plans, achieved international
expansion firstly in 2019 with our move into the Irish energy system, and now
in 2022 into mainland Europe. Gore Street has a unique skill set, drawing on
our first mover advantage in GB, in owning and operating an international
portfolio, and will continue to aggressively pursue critical markets such as
Germany.

 

This is a landmark acquisition with compelling fundamentals which not only
demonstrates our entry into new markets but also increases our operational
cash generating assets, and further diversifies Gore Street's portfolio. We
are very pleased to have worked with ENEL on this transaction and look forward
to continuing to partner with Enertrag to optimise the asset going forwards.

 

Energy storage is an ever-increasing infrastructure requirement, and we will
continue to seek out the best opportunities from our considerable pipeline
across our key markets."

 

ENDS

The Legal Entity Identifier of the Company is 213800GPUNVGG81G4O21.

For further information:

 Gore Street Capital Limited
 Alex O'Cinneide / Paula Travesso / Maria Vaggione                   Tel: +44 (0) 20 3826 0290

 Shore Capital (Joint Corporate Broker)
 Anita Ghanekar / Rose Ramsden / Iain Sexton  (Corporate Advisory)   Tel: +44 (0) 20 7 408 4090

  Fiona Conroy (Corporate Broking)

 

 J. P. Morgan Cazenove (Joint Corporate Broker)
 William Simmonds / Jérémie Birnbaum (Corporate Finance)    Tel: +44 (0) 20 7742 4000

 

Buchanan (Media enquiries)

 Charles Ryland / Henry Wilson / George Beale  Tel: +44 (0) 20 7466 5000
                                               Email: Gorestreet@buchanan.uk.com

 

JTC (UK) Limited, Company Secretary Tel: +44 (0) 20 7409 0181

Notes to Editors

About Gore Street Energy Storage Fund plc

Gore Street is London's first listed energy storage fund and seeks to provide
Shareholders with a significant opportunity to invest in a diversified
portfolio of utility scale energy storage projects. In addition to growth
through exploiting its considerable pipeline, the Company aims to deliver
consistent and robust dividend yield as income distributions to its
Shareholders.

Disclaimer

This announcement has been issued by, and is the sole responsibility of, Gore
Street Energy Storage Fund plc (the "Company").

This announcement is for information purposes only and is not intended to and
does not constitute or form part of any offer or invitation to purchase or
subscribe for, or any solicitation to purchase or subscribe for shares in any
jurisdiction in which such an offer or solicitation is unlawful.

The information and opinions contained in this announcement are provided as at
the date of the announcement and are subject to change without notice and no
representation or warranty, express or implied, is or will be made in relation
to the accuracy or completeness of the information contained herein.

The information in this announcement may include forward-looking statements,
which are based on the current expectations, intentions and projections about
future events and trends or other matters that are not historical facts and in
certain cases can be identified by the use of terms such as "may", "will",
"should", "could", "expect", "anticipate", "project", "estimate", "intend",
"continue", "target", "believe" (or the negatives thereof) or other variations
thereof or comparable terminology. These forward-looking statements, as well
as those included in any related materials, are not guarantees of future
performance and are subject to known and unknown risks, uncertainties,
assumptions about the Company and other factors, including, among other
things, the development of its business, trends in its industry, and future
capital expenditures and acquisitions. In light of these risks, uncertainties
and assumptions, the events in the forward-looking statements may not occur
and actual results may differ materially from those expressed or implied by
such forward looking statements. Given these risks and uncertainties,
prospective investors are cautioned not to place undue reliance on
forward-looking statements.

 

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