REG - Gore Street Energy - Sale of US Investment Tax Credits

Gore Street Energy Storage FundAnnouncement

14/04/2025 07:00

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RNS Number : 7949E  Gore Street Energy Storage Fund PLC  14 April 2025

14(th) April 2025

Gore Street Energy Storage Fund plc

(the "Company" or "GSF")

Sale of US Investment Tax Credits

Gore Street Energy Storage Fund, the internationally diversified energy
storage fund, is pleased to announce that its Texan asset, "Dogfish", has
entered into an agreement for the sale of Investment Tax Credits ("ITCs") for
a consideration of c.£18-19 1  (#_ftn1) million of gross proceeds.

The transaction is expected to close by the end of June 2025, with the cash
received as a single upfront payment shortly thereafter. The pricing announced
today aligns with the previous guidance of $60-80 million for both the Big
Rock and the Dogfish ITCs.

The sale of the Big Rock ITCs continues to progress well, and the Company will
provide a further update in the near term.

The Board will provide an update to the market in due course with a detailed
allocation strategy for excess cash.

CEO of Gore Street Investment Management, the Investment Manager of the
Company, Alex O'Cinneide, commented:

"I am pleased to announce this significant milestone for the Company,
underscored by the strong pricing and favourable commercial terms we have
secured.

Today's announcement continues our recent progress of execution against the
key deliverables which we outlined to shareholders at the start of the
2024/2025 financial year, including the energisation of over 530 MWhs across
multiple markets and the successful negotiation of the resource adequacy
contract for the Big Rock asset.

The fundamentals of the asset class remain robust, supported by increasing
structural demand and a favourable policy environment that reinforces the
long-term need for energy storage across the multiple markets in which we
operate. Given the recent significant geopolitical volatility, we are also
pleased to report that a month ago, we hedged our USD income until the end of
2030, whilst we continue to have hedged our Euro income.

This significant cash inflow enhances the Company's already strong balance
sheet. The strong cash position, low-leverage and disciplined capital
allocation, affords the Company multiple options to increase long-term
shareholder value, which the Board and the Investment Manager are actively
assessing.  Among those attractive options are increasing the capacity and
duration of existing assets and constructing our pre-construction assets which
would benefit from rapidly declining capex costs."

For further information:  

Gore Street Investment
Management

Alex O'Cinneide / Paula Travesso / Ben Paulden
 

Email: ir@gorestreetcap.com (mailto:ir@gorestreetcap.com)
 
Tel: +44 (0) 20 3826 0290

 

Shore Capital (Joint Corporate Broker)

Anita Ghanekar / Sophie Collins                (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

 

Burson 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)

 1  (#_ftnref1) The £18-19 million range (equal to $23-25 million, the ITC
contract is fixed in dollars) represents the gross amount before transaction
costs. In relation to this transaction, a total of $20 million was hedged at
an exchange rate of 1.30 USD/GBP. The final tax credit amount will be
determined based on the total qualifying costs associated with the project
build-out, which are expected to be finalised by June 2025 upon the completion
of the final milestone payments.

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