REG - Mast Energy Dvlpmts. - Bordesley Update

Mast Energy DevelopmentsAnnouncement

08/12/2022 07:00

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RNS Number : 9792I  Mast Energy Developments PLC  08 December 2022

Mast Energy Developments PLC

(Incorporated in England and Wales)

(Registration Number: 12886458)

Share code on the LSE: MAST

ISIN: GB00BMBSCV12

("MED" or "the Company")

 

8 December 2022

 

Mast Energy Developments PLC ("MED" or "the Company")

 

 Bordesley Update

 

Mast Energy Developments PLC, the UK-based multi-asset owner and operator in
the rapidly growing Reserve Power market is pleased to announce a further
update to its last announcement (see RNS dated 23 August 2022) on its
Bordesley peaking power project ("Bordesley" or the "Project") in central
Birmingham, which is in early construction stage.

 

The Company has now fully optimised and has been granted a gas connection
route and has also received approval from network supplier, Cadent Gas, for
the required pressure and volumes of gas to fuel the Project. The specialist
energy connection company, Distributed Energy Connections Limited, have been
contracted to provide an all-in gas connection design and construction
solution.

 

Additionally, the Company has concluded an EPC contract optimisation with
Clarke Energy, during which it emerged that replacing the currently planned 2
x 2.5 MW Jenbacher engines with 1 x 4.5 MW Jenbacher engine, will provide
significant savings in capital construction costs and improve overall engine
output efficiencies. The revised EPC configuration more than compensates for
the small reduction in the output generating capacity and most importantly,
improves the overall financial feasibility of the Project.

 

With the developments and progress outlined above now in place, the Project's
debt funders, Close Brothers (who have signed a capex debt funding term sheet,
see RNS dated 20 October 2021), will now resume their due diligence with
anticipated financial close targeted during Q1 2023. It should be noted that
Close Brothers have already completed a significant portion of their due
diligence during late 2021 and early 2022 but paused their process until
issues arising from the gas connection route were de-risked to their
satisfaction, which has now been successfully done.

 

Following financial close, the Company will expedite the Project's
construction and it is anticipated that Bordesley will be fully constructed,
commissioned and in revenue generation by Q4 2023, subject to successful
completion of the associated funding process outlined above.

 

The Project has already secured a 15-year T-4 Capacity Market contract in
April 2022 at an unprecedented price of £30.59 /kW/p.a., which will also
contribute significantly to the revenue generation from the Project once in
steady-state production. Further, based on the latest independent financial
modelling performed by the Company's leading energy markets data consultant,
EnAppSys, it is expected that Bordesley will generate an average total annual
revenue of c. £1.5m.

 

Pieter Krügel, MED CEO, commented: "We are pleased with the significant
progress and developments on Bordesley the past while and most notably that
the hurdle to proceed with the Project's capex debt financing process can now
be resumed. We are looking forward to financial close which is expected during
Q1 2023 and to then expedite the completion of the Project's construction and
commissioning during 2023, in order to start generating revenue as soon as
possible.

We look forward to providing the market with further updates in due course as
we progress."

ENDS

This announcement contains inside information for the purposes of the UK
version of the Market Abuse Regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR"). Upon the publication of this announcement, this inside
information is now considered to be in the public domain.

 

For further information please visit www.med.energy (http://www.med.energy) or
contact:

 

  Pieter Krügel                          info@med.energy                                                       Mast Energy Developments Plc  CEO
  Jonathan Critchley & Keith Swann       +44 (0)20 3869 6080                                                   Clear Capital Markets         Joint Broker
  Zainab Slemang van Rijmenant           zainab@lifacommunications.com (mailto:zainab@lifacommunications.com)  Lifa Communications           Investor and Media

                                                                                                                                             Relations Advisor

 

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