21 November 2018
Gore Street Energy Storage Fund plc
(the "Company" or "Gore Street")
EPC Contracts Confirmation
EPC Contracts Secured for Two Most Recent Project Acquisitions
Gore Street Energy Storage Fund (ticker: GSF), London's first listed energy storage fund investing in income producing assets in the UK and internationally, is pleased to announce further progress, having now finalised fully-wrapped Engineering, Procurement and Construction ("EPC") contracts for its two UK energy storage projects. The Company is therefore pleased to confirm that the provider is NEC Energy Solutions with the support from Nippon Koei- strategic partners and cornerstone investors in the Company.
As outlined in the announcement regarding the acquisition of the two projects on 20 September 2018, Lower Road will be a 10MW "front of the meter" project and Port of Tilbury will be a 9MW "behind the meter" project co-located with London's Port of Tilbury industrial port facility. Given the concluded terms of the EPC contracts, it is expected that these projects will deliver IRRs in line with the targets set out in the Company's IPO prospectus ("Prospectus") which is in the range of 10%-12%. Construction will commence at Port of Tilbury in December 2018 and at Lower Road in January 2019 and both projects will become commercially operational in mid-2019.
As stated in the Prospectus, Gore Street has paid an advance of £4.5m to NEC Energy Solutions to use in connection with the purchase of products, equipment and/or services from NEC Energy Solutions. This advanced payment will part finance the total EPC contract value in return for products, equipment and services.
Under these EPC contracts, NEC Energy Solutions would be providing a 15-year warranty as well as capacity and availability assurance plans.
Gore Street is pleased to confirm that over 50% of funds are now committed.
Alex O'Cinneide, CEO of Gore Street Capital, the Company's investment adviser, commented:
"We are delighted by the strong progress that Gore Street has achieved in continuing to build the UK's first listed diversified portfolio of energy storage opportunities. The EPC contracts are an important milestone in the commercialisation process and we are delighted to have secured such a highly regarded partner. In addition, as previously stated, we are in negotiation on a significant number of other projects several of which are under exclusivity and we look forward updating shareholders on further progress in due course."
For further information:
Gore Street Capital Limited |
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Alex O'Cinneide |
Tel: +44 (0) 20 3826 0290 |
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Stockdale Securities Limited |
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Daniel Harris / Rose Ramsden (Corporate Finance) |
Tel: +44 (0) 20 7601 6000 |
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Henry Willcocks / Fiona Conroy (Corporate Broking) |
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Media Enquiries |
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Buchanan |
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Charles Ryland / Steph Watson / Henry Wilson |
Tel: +44 (0) 20 7466 5000 |
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Email: [email protected] |
Company Secretary |
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JTC (UK) Limited |
Tel: +44 (0) 20 7409 0181 |
The Legal Entity Identifier of the Company is 213800GPUNVGG81G4O21.
Notes to Editors
About Gore Street Energy Storage Fund plc
Gore Street is London's first listed energy storage fund and seeks to provide shareholders with a significant opportunity to invest in a diversified portfolio of utility scale energy storage projects. In addition to growth through exploiting its considerable pipeline, the Company aims to deliver consistent and robust dividend yield as income distributions to its shareholders.
For more information please visit our website at: www.gorestreetcap.com
