VH Global Sustainable Energy Opportunities plc

11 July 2023

Construction completed for the first hybrid solar and storage project in Australia

VH Global Sustainable Energy Opportunities plc (the "Company" or "GSEO") - the London-listed company managed by Victory Hill Capital Partners LLP focused on the energy infrastructure that is essential for the global transition towards net zero - is pleased to announce that it has completed the construction of its first solar and storage hybrid system in Australia. This has been achieved through the addition of a 2 hours 4.95MW battery energy storage system ("BESS") on its existing operational solar PV site in South Australia. 

The Australian energy transition programme (the "Australian Programme") was originally announced in August 2021 with Phase I consisting of the acquisition of two operating solar PV sites with a combined capacity of 17MW. Phase II incorporated the construction of co-located BESS. This has now been completed on the first of the two sites, while work is ongoing towards optimising the grid connection of the battery system for the second site.

The Company's operating partner, Birdwood Energy, has worked closely with the contractors to ensure the timely delivery of this project.

This represents one of the first hybrid renewable energy plants in Australia and is a key milestone in the Australian Programme, it provides the system with additional renewable energy and supports grid stability with the storage solution. Coupling both technologies should allow optimisation of each technology to better serve the needs of the Australian market in its energy transition. Notably, GSEO expects to gain access to additional energy arbitrage and frequency stability services revenue streams from the co-located BESS.

The Company expects additional co-located batteries to be installed on its other three solar sites currently under construction in New South Wales. In line with previously stated plans, these three solar sites are expected to be commissioned in Q3 2023.

GSEO shareholders continue to support the global energy transition, with investors benefiting further from NAV growth and a progressive income stream. The Company targets a total and unlevered NAV return of 10%, net of fees, and a progressive annual dividend per share, covered 1.3x, paid quarterly (currently targeting 5.52p for the year ended 31 December 2023). As further projects achieve operational status, the dividend coverage is expected to further strengthen. The Company's operational assets benefit from over 90% of contracted revenues. Total leverage of the Company is 2% of NAV, which only includes asset-level leverage to its US asset. 

Richard Lum, Co-CIO of Victory Hill Capital Partners commented:

"GSEO's first co-located battery site at the South Australia solar farm marks another key milestone for the company. The complexity of managing the grid and ensuring stability when there is already such a high penetration of intermittent solar power generation in Australia is a real challenge. Its demands can only be faced with greater energy storage that will help provide smooth availability of power from renewable sources. Improving stability is also important to avoid curtailment of renewable energy."

www.vh-gseo.com

The Company's LEI is 213800RFHAOF372UU580.

For further information:

Edelman Smithfield (PR Adviser)

Ged Brumby                         + 44 (0)7540 412 301

Kanayo Agwunobi               +44 (0)758 101 0560

Victory Hill Capital Partners LLP (Investment Manager)

Navin Chauhan                   [email protected]

Numis (Corporate Broker)

David Benda                        +44 (0)20 7260 1000

Matt Goss

Apex Fund and Corporate Services (UK) Limited (Company Secretary)

[email protected]

About Victory Hill Capital Partners LLP

Victory Hill Capital Partners LLP ("Victory Hill") is authorised and regulated by the Financial Conduct Authority (FRN 961570).               

Victory Hill is based in London and was founded in May 2020 by an experienced team of energy financiers that spun-out of a large established global project finance banking group. The team has participated in more than $200bn in transaction values across 91 conventional and renewable energy-related transactions in over 30 jurisdictions worldwide. Victory Hill is the investment manager of the Company.

The Victory Hill team deploys its experience across different financial disciplines in order to assess investments holistically from multiple points of view. The firm pursues operational stability and well-designed corporate governance to generate sustainable positive returns for investors. It focuses on supporting and accelerating the energy transition and the attainment of the UN sustainable development goals.

Victory Hill is a signatory of the United Nations Principles for Responsible Investing (UN PRI), the United Nations Global Compact (UN GC), Net Zero Asset Managers Initiative (NZAMI), a member of the Global Impact Investing Network (GIIN) and is a formal supporter of the Financial Stability Board's Task-Force on Climate-related Disclosures (TCFD).