REG - SIMEC AtlantisEnergy - SAE achieves another BESS milestone

SIMEC Atlantis EnergyAnnouncement

28/03/2024 07:00

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RNS Number : 5787I  SIMEC Atlantis Energy Limited  28 March 2024

28 March 2024

 

 

SIMEC Atlantis Energy Limited

("SAE Renewables", "SAE" or the "Company")

 

 

SAE achieves another Battery Energy Storage System ("BESS") milestone

 

SAE is pleased to announce that it has received the first £5m milestone
payment under its agreement with EL (Uskmouth) Limited ("EL"), a subsidiary of
FPC Electric Land.

 

On 5 December 2023, SAE announced that it had agreed to sell the freehold land
owned by SAE to EL, for a milestone-linked total gross cash consideration of
£9.8m (the "EL Agreement").

 

The freehold land sold to EL is limited to the land used by Quinbrook
Infrastructure Partners, for their 230 MW BESS ("Quinbrook BESS") at SAE's
Uskmouth Sustainable Energy Park.

 

With the achievement of this first milestone and the payment of £5m to SAE,
EL has now taken ownership of this land.

 

The completion milestone required substantial mobilisation of the main
construction phase of the Quinbrook BESS with the importation of 30,000 tonnes
of aggregate via rail from a local quarry to begin laying the foundation for
the project and raising the levels on site. This was made possible by the hard
work of the SAE team, and all our partners, who are proud to be bringing new
business back onto this critical energy transition infrastructure site. In
particular, this phase included the first rail carriages coming to the site in
nearly 10 years.

 

The remaining balance of £4.8m payable under the EL Agreement will be payable
against three further milestones expected to be achieved over the next 12
months.

 

The freehold land utilised by the Quinbrook BESS represents only a small
proportion of the land owned by SAE at the Uskmouth site available for BESS
project development. This milestone payment is another demonstration of the
value to the Company and its shareholders of the Uskmouth site for the
development of BESS projects. SAE has identified and is actively developing a
total of over 1GW of further BESS projects at the Uskmouth site, the
development of which would transform the Uskmouth site and deliver to SAE and
its shareholders substantial value, which could be realised through a
combination of development premiums, income from land leases and future
continued ownership.

 

Graham Reid, CEO of SAE, commented:

 

"This is another milestone hit and demonstrates how we secure value for our
business and shareholders. We have the knowledge, skills and a fantastic site
to deliver an exciting pipeline of projects that are expected to provide
revenue for the business and increased value for our shareholders in the long
term. This experience and knowledge can also provide a platform for future
growth, and it's a truly exciting time at SAE."

 

 

For further information, please contact:

 

 SAE Renewables                                           +44 (0)7739 832 446

 Sean Parsons, Director of External Affair

 Strand Hanson Limited (Nominated and Financial Adviser)  +44 (0)20 7409 3494

 Richard Johnson

 Rory Murphy

 David Asquith

 Zeus Capital Limited (Broker)                            +44 (0)20 3829 5000

 Louisa Waddell

 Simon Johnson

 

Notes to Editors

SAE Renewables is a global developer, owner and operator of sustainable energy
projects. SAE owns the world's flagship tidal stream project, MeyGen. SAE is
also the owner of the Uskmouth Power Station site that is being repurposed
into a sustainable energy park, initially housing one of the UK's largest
battery energy storage projects. https://www.saerenewables.com/
(https://www.saerenewables.com/)

 

 

 

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