REG - Mast Energy Dvlpmts. - Acquisition of 25 MW of New Sites

Mast Energy DevelopmentsAnnouncement

Tue 07:00

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RNS Number : 9501R  Mast Energy Developments PLC  22 July 2025

Mast Energy Developments PLC

(Incorporated in England and Wales)

(Registration Number: 12886458)

LEI :213800HFVHGJ9YGO9F71

Share code on the LSE: MAST

ISIN: GB00BNG90H86

('MED' or 'the Company')

 

Dated: 22 July 2025

 

Mast Energy Developments PLC

 

Acquisition of 25 MW of Development Projects

and New Project Development Framework Agreement

 

Mast Energy Developments PLC is pleased to announce that it has signed a
binding definitive agreement to acquire the exclusive rights to an initial
portfolio of c. 25 MW of flexible generation development projects, as well as
a new project development framework agreement (the "Project Development
Agreement"), the highlights and details of which are outlined below.

 

Highlights:

·    Acquired the exclusive rights to five flexible generation development
sites of c. 5 MW each, totaling an initial portfolio of up to c. 25 MW;

·    Each site strategically located in attractive power demand areas of
England, and includes confirmed access to grid connection notwithstanding the
moratorium on new grid connections;

·    The acquisition of the initial development sites will effectively
double MED's current portfolio of operational and development flexgen sites
from c. 23 MW to c. 48 MW;

·    The new development portfolio is scalable with a target to reach 100
MW in the near term;

·    Each flexgen site has the capability of being developed as a
low-carbon gas turbine, battery energy storage system ("BESS"), solar, EV
charging, or a hybrid combination of technologies; and

·    In addition to the acquisition of initial development sites, the
agreement also includes a project development framework which establishes the
route to scale the portfolio.

 

Pieter Krügel, MED CEO, commented: "We are very excited about this new
agreement which establishes MED as an early mover in the industry to obtain
new grid connections under the grid connections reform, substantially increase
our current projects portfolio, and provides us with exclusive access to a
qualified pipeline of further sites. All of which will expedite MED's goal to
build a portfolio of 300+ MWs. The UK energy industry is ever evolving and
with this new agreement we prove again that MED is proactive and ready to
benefit from ongoing changes in the market."

 

Transaction Rationale and Details:

The UK Government and NESO have recently announced a moratorium on any new
grid connection applications with a gate queue until 2037 as part of the
national grid connections reform. That creates a significant hurdle for new
power generation sites to obtain a grid connection which is a key part of the
development process to get a site constructed and into production. However, as
part of the ongoing consultation and review of the national grid connections
reform, Ofgem has approved a key rule change that will speed up grid
connections for small energy projects across England and Wales. The move,
announced on 12 May 2025, raises the threshold for projects needing a
Transmission Impact Assessment (TIA) from 1MW to 5MW under modification
CMP446.

 

MED management identified this as a key opportunity to establish MED as an
early mover to capitalise on the CMP446 modification. As such MED worked to
identify suitable qualifying sites and to acquire exclusive rights to such
sites.

 

Resultingly, MED signed a binding definitive agreement with Green Light Energy
("GLE") to acquire the exclusive rights to five flexible generation
development sites of c. 5 MW each, totaling an initial portfolio of up to c.
25 MW, and further to jointly develop the initial and new additional sites.
GLE was founded by David Gregory, bringing extensive experience in building
software and technology-enabled businesses, infrastructure, and power
projects. GLE is focused on identifying and assessing suitable flexgen sites
across GB and developing each greenfield site to feasible stage. Historically
MED acquired development sites from third-party developers at a significant
premium. The developers and associated development sites have dried up, mainly
due to the national grid connections reform. By partnering with GLE, MED is
now in a position to acquire suitable feasible sites at an early stage for a
nominal cost, and then further develop the sites at cost, thereby saving the
significant premium historically paid to third-party developers.

 

Each site has passed a rigorous feasibility and due diligence assessment by
MED, and includes all the key components for a site to reach shovel-ready
stage, such as confirmed access to grid and gas connections, property rights,
and local planning consent precedent. Each site is strategically located in
attractive power demand areas of England. Each flexgen site has the capability
of being developed as a low-carbon gas turbine, battery energy storage system
("BESS"), solar, EV charging, or a hybrid combination of technologies. The
development portfolio is scalable with a target to reach 100 MW in the near
term, which will be supported by the Project Development Agreement.

 

The five initial sites are:

 Site Name  Location            Grid Connection Size & Voltage
 MI         South-East England  c. 5 MW, 11kV
 RN         South-East England  c. 5 MW, 11kV
 RW         South-East England  c. 5 MW, 11kV
 WF         South-East England  c. 5 MW, 11kV
 DR         South-East England  c. 5 MW, 11kV

 

 

In consideration for the acquisition of the initial portfolio of five sites,
MED will pay to GLE a fee of £10,000 per site, totaling £50,000 for the
first five sites (or £2,000 per MW) (the "Purchase Consideration"). For
context, MED sold its Rochdale 4.4 MW shovel-ready site last year for c.
£60,000 per MW, thus illustrating the significant developer premium. The
Purchase Consideration is payable 50% in cash and 50% with new MED shares.
Resultingly, MED will issue 32,468 new MED shares to GLE at an issue price
equal to the closing price on 18 July 2025 of £0.77 (the "Consideration
Shares"). GLE has agreed to a hard lock-in of its Consideration Shares for a
period of 6 months from today's date.

 

Total Voting Rights

Applications have been made to the FCA and the London Stock Exchange for
admission in respect of the Consideration Shares. It is expected that
Admission will become effective, and that dealings in Consideration Shares is
expected to commence, at 8.00 a.m. on or around 28 July 2025.

 

Following Admission, the Company expects to have 13,005,177 ordinary shares in
issue, each with one vote per share (and none of which are held in treasury).
The total number of voting rights in the Company is therefore expected to be
13,005,177.

 

 

Stay up to date with MED's latest news and updates by joining our emailing
list and social media channels, as follows:

 

MED general enquiries - https://www.med.energy/contact
(https://www.med.energy/contact)

MED email alerts - https://www.med.energy/rnsannoucements-1
(https://www.med.energy/rnsannoucements-1)

MED LinkedIn page -
https://uk.linkedin.com/company/mast-energy-developments-plc
(https://uk.linkedin.com/company/mast-energy-developments-plc)

MED X (formerly Twitter) handle - @mastplc

 

 

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 (mailto:info@med.energy)  Mast Energy           CEO

                                                              Developments PLC
 Guy Wheatley, CFA  +44 (0)74 9398 9014                       Fortified Securities  Corporate Broker
 Jon Belliss        +44 (0)20 7399 9425                       Novum Securities      Corporate Broker

 

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