REG - US Solar Fund PLC US Solar Fund - USFP - Update on Oregon RECs & Board Appointment

Us Solar FundAnnouncement

30/09/2024 07:00

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RNS Number : 0885G  US Solar Fund PLC  30 September 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

30 September 2024

 

US Solar Fund PLC

("USF", or the "Company")

 

 

 UPDATE ON THE OREGON RENEWABLE ENERGY CERTIFICATE CONTRACTS AND BOARD
APPOINTMENT

 

UPDATE ON OREGON RENEWABLE ENERGY CERTIFICATE CONTRACTS

Subsequent to the change in investment manager announced on 1 December 2023,
the Company's Board and Investment Manager, Amber Infrastructure Investment
Advisor, LLC ("AIIA"), have determined that the contracts to sell Renewable
Energy Certificates ("RECs") in relation to six of USF's Oregon projects
signed in November 2023, required termination.

RECs are tradeable certificates awarded to generators of renewable energy to
incentivise production that can be sold in conjunction with, or separate to,
the electricity.

The contracts to sell the Oregon RECs were entered into in November 2023 under
the delegated authority of  the Company's previous investment manager in line
with the investment management agreement, on terms that would have been cash
flow accretive for the Company.

Consequent reductions in cash flow assumptions for the expected revenue
arising from the termination of these REC contracts amount to approximately $8
million. In addition, the Company's subsidiaries incurred costs in connection
with the termination of these contracts. These factors are reflected in the
Company's 30 June 2024 reporting.

AIIA has worked closely with the Company's advisers and energy customers to
resolve this matter. A detailed review is being conducted by USF's retained
legal counsel, and the Company will consider all remedies available to it to
recover the losses associated with the termination of the Oregon REC
contracts.

Gill Nott, Chair of US Solar Fund plc, commented: "In line with our prior
communications with shareholders, AIIA has been proactive in reviewing all
aspects of USF's operations since it took over the role of Investment Manager
on 1 December 2023. We are disappointed that these REC contracts have had to
be terminated and have prioritised resolving this matter in the best interests
of the Company and its shareholders.  Our efforts are now focused on
establishing an appropriate allocation of responsibility for the termination
costs incurred by the Company. We will keep shareholders updated in due course
as appropriate."

 

BOARD APPOINTMENT

The Company is pleased to announce the appointment of Mark Lerdal as an
independent non-executive director of the Company with effect from 1 October
2024. This follows Rachael Nutter standing down after five years at the
Company's AGM on 21 May 2024.

 

Mark is based in San Franscisco, and is an experienced board director with
over thirty years' experience in the energy and renewables sectors. Mark began
his career working with developers, including as CEO of Kenetech, a large wind
and alternative energy developer, constructor and operator. He has held
several other senior renewables roles including Executive Chair at Leaf Clean
Energy, a renewable energy and sustainable technology investment firm formerly
listed on the AIM division of the London Stock Exchange. Mark maintains a
number of other board/advisory roles including as adviser to Adapture
Renewables and a board member of BluePath Finance.

 

Jamie Richards, Chair of the Remuneration and Nomination Committee,
commented: "We are delighted to welcome Mark to the USF Board. Mark has a
long-standing track record of realising value in the US solar sector and we
look forward to benefiting from this experience as the Board continues to
pursue opportunities to improve Company performance and maximise shareholder
value."

 

Mark does not own any shares in the Company. There are no other disclosures to
be made pursuant to UK Listing Rule 6.4.8.

 

- - - - - - - - - - - - - - - - - - - - - -

For further information, please contact:

 

 US Solar Fund                      +44 20 7939 0550

 Meredith Frost (Amber)
 Cavendish Capital Markets Limited  +44 20 7397 8900

 Tunga Chigovanyika

 James King

 KL Communications                  +44 20 3882 6644

 Charles Gorman

 Charlotte Francis

 Amy Levingston Smith

About US Solar Fund plc

US Solar Fund plc, established in 2019, listed on the premium segment of the
London Stock Exchange in April 2019. The Company's investment objective is to
provide investors with attractive and sustainable dividends with an element of
capital growth by owning and operating solar power assets in North America and
other OECD countries in the Americas.

The solar power assets that the Company acquires or constructs are expected to
have an asset life of at least 30 years and generate stable and uncorrelated
cashflows by selling electricity to creditworthy offtakers under long-term
power purchase agreements (or PPAs). The Company's portfolio currently
consists of 41 operational solar projects with a total capacity of 443MWDC,
all located in the United States.

Further information on the Company can be found on its website at
http://www.ussolarfund.co.uk (http://www.ussolarfund.co.uk) .

 

About Amber Infrastructure Group

Amber Infrastructure Investment Advisor LLC, a subsidiary of the Amber
Infrastructure Group, was appointed as the Company's Investment Manager on 1
December 2023.

Amber Infrastructure Group (Amber) is an international infrastructure
specialist, focused on investment origination, development, asset management
and in Europe, fund management. Amber's core business focuses on
infrastructure assets across the public, transport, energy, digital and
demographic infrastructure sectors that support the lives of people, homes and
businesses internationally.

Among other funds, Amber advises International Public Partnerships, a FTSE
250-listed Company with a market cap of £2.4billion and 15-year track record
of long-term investment in infrastructure assets globally. Amber is
headquartered in London with offices in Europe, North America and Australia
and employs c.180 infrastructure professionals. Amber has had a strategic
partnership with Hunt Companies, Inc. in the US since 2015 and completed their
previously-announced strategic combination with Boyd Watterson in August 2024.

Learn more at www.amberinfrastructure.com (http://www.amberinfrastructure.com)
.

 

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