RCS - Triple Point Energy - Investing to incentivise carbon reductions

Triple Point Energy TransitionAnnouncement

12/12/2022 07:00

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RNS Number : 2449J  Triple Point Energy Transition PLC  12 December 2022

12 December 2022

Triple Point Energy Transition plc

(the "Company" or, together with its subsidiaries, the "Group")

Sharing best practice in incentivising carbon reductions through investment
structures

 

The Board of Directors of Triple Point Energy Transition plc (ticker: TENT)
is pleased to announce that the Company, alongside Virmati Energy Ltd (trading
as "Field"), has partnered with The Chancery Lane Project ("TCLP") to publish
a version of the "Interest Ratchet Clause for Carbon Saving" contained within
the recent debt facility agreed between the Company and Field in March 2022
(the "Facility"), linking the interest rate to carbon savings.

 

The Chancery Lane Project is a collaborative initiative of legal
professionals, publishing practical contractual clauses that help to mitigate
carbon emissions. A user-friendly, peer-reviewed template of the clause will
be available on the TCLP portal, to be used in a wide-variety of applications
for any company whose operations result in carbon savings. By making this
clause publicly available, the Company and Field aim to support companies that
avoid carbon in achieving lower costs of capital, accelerating the Energy
Transition.

 

Recognising the opportunity to maximise the contribution of Battery Energy
Storage Systems ("BESS") to Energy Transition, the clause, as originally
designed, incentivises the asset operator to utilise the systems to balance
the supply of intermittent renewables with steady daily demand curves. Carbon
savings are maximised, and costs of capital reduced, by preventing the
curtailment of renewable generation and reducing demand for gas peaking
generation. The linking of interest rate and carbon savings is the first of
its kind in the BESS sector.

 

This innovative interest ratchet clause contributed to the Company and Field
winning the Battery Storage of Deal of the Year, at the Inspiratia Awards in
November 2022.

 

John Roberts, the Company's Chair, said:

 

"We were pleased to offer the interest rate ratchet to Field, the first of its
kind in the market, and which followed an extensive collaborative design
process. The clause is one of several ESG-related provisions included in the
Facility, which also allows for enhanced supply chain visibility, end-of-life
cell recycling, and Scope 3 emissions data collection. By making this clause
available to all, the Company hopes to facilitate Energy Transition within the
wider market."

 

 

For further information, please contact:

 Triple Point Investment Management LLP                                                                 +44 (0) 20 7201 8989

 Jonathan Hick

 Christophe Arnoult

 J.P. Morgan Cazenove (Corporate Broker)                                                                +44 (0) 20 7742 4000

 William Simmonds

 Jérémie Birnbaum

 Akur Limited (Financial Adviser)                                                                       +44 (0) 20 7493 3631

 Tom Frost

 Anthony Richardson

 Siobhan Sergeant

 Sapience Communications (PR
 Adviser)

                                                                                                      +44 (0) 20 3195 3240
 Richard Morgan Evans

                                                                                                      +44 (0) 73 0850 9608
 Jamie Gittings

LEI: 213800UDP142E67X9X28

 

Further information on the Company can be found on its website:
www.tpenergytransition.com (http://www.tpenergytransition.com)

 

NOTES:

 

The Company is an investment trust which aims to invest in assets that support
the transition to a lower carbon, more efficient energy system and help the UK
achieve Net Zero.

Since its IPO in October 2020, the Company has made the following investments
and commitments:

 

·    Harvest and Glasshouse: provision of £21m of senior debt finance to
two established combined heat and power ("CHP") assets, located on the Isle of
Wight, supplying heat, electricity and carbon dioxide to the UK's largest
tomato grower, APS Salads ("APS") - March 2021

·    Spark Steam: provision of £8m of senior debt finance to an
established CHP asset in Teesside supplying APS, as well as a further power
purchase agreement through a private wire arrangement with another food
manufacturer - June 2021

·    Hydroelectric Portfolio (1): acquisition of six operational, Feed in
Tariff ("FiT") accredited, "run of the river" hydroelectric power projects in
Scotland, with total installed capacity of 4.1MW, for an aggregate
consideration of £26.6m (excluding costs) - November 2021

·    Hydroelectric Portfolio (2): acquisition of a further three
operational, FiT accredited, "run of the river" hydroelectric power projects
in Scotland, with total installed capacity of 2.5MW, for an aggregate
consideration of £19.6m (excluding costs) - December 2021

·    BESS Portfolio: commitment to provide a debt facility of £45.6m to a
subsidiary of Virmati Energy Ltd (trading as "Field"), for the purposes of
building a portfolio of four geographically diverse Battery Energy Storage
System ("BESS") assets in the UK with a total capacity of 110MW - March 2022

·    Energy Efficient Lighting (1): Funding of c.£1m to a lighting
solutions provider to install efficient lighting and controls at a leading
logistics company - September 2022.

·    Energy Efficient Lighting (2): Commitment of c.£1m to a lighting
solutions provider to install efficient lighting and controls at a leading
logistics company, of which £0.3m invested to date - November 2022.

 

The Investment Manager is Triple Point Investment Management LLP ("Triple
Point") which is authorised and regulated by the Financial Conduct Authority.
Triple Point manages private, institutional, and public capital, and has a
proven track record of investment in Energy Efficiency and decentralised
energy projects.

 

Following its IPO on 19 October 2020, the Company was admitted on the premium
listing segment of the Official List of the Financial Conduct Authority and
was admitted to trading on the Premium Segment of the Main Market of the
London Stock Exchange on 28 October 2022. The Company was also awarded the
London Stock Exchange's Green Economy Mark.

 

 

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