Plutus PowerGen PLC Agreement for Gas Site Funding and Rockpool update (4814K)
29 Agosto 2019 - 1:00AM
UK Regulatory
TIDMPPG
RNS Number : 4814K
Plutus PowerGen PLC
29 August 2019
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via a Regulatory Information
Service, this inside information is now considered to be in the
public domain.
Plutus PowerGen Plc / Ticker: PPG / Index: AIM
29 August 2019
PLUTUS POWERGEN PLC
("Plutus", the "Group" or the "Company")
Collaboration Agreement for Equity Funding of Gas Site Portfolio
& FlexGen Site Update
Notice of Termination of agreement with Rockpool Investments
LLP
Collaboration Agreement for Equity Funding of Gas Site Portfolio
& FlexGen Site Update
Plutus PowerGen (AIM: PPG), the AIM quoted power company focused
on the development and operation of flexible energy generation
('FlexGen') projects in the UK, is pleased to announce that it has
entered into a collaboration agreement (the 'Collaboration
Agreement') for the equity funding portion of its proposed initial
80MW and contemplated further portfolio of 160MW of Peaker gas
sites in the UK.
The Collaboration Agreement has been signed with an FCA
regulated and accredited investment adviser whose leadership team
has a strong track record in sizeable civil project funding in the
energy generation space and has recognised the potential of the
Plutus portfolio, understands the current UK power dynamics and the
need for UK Peaker sites. Plutus has agreed to give the
counterparty to the Collaboration Agreement a first right of
refusal on the funding for both its proposed as well as its
contemplated gas site portfolio on an ongoing basis which currently
totals 240 MW.
The Company anticipates that it will maintain a majority equity
interest in its portfolio of gas powered Peaker sites, which the
Board expects to be ultimately significantly larger than its
interests in the current six FlexGen and one gas site portfolio
which have been funded by EIS investors through Rockpool
Investments LLP ("Rockpool"). The new funding for the Peaker gas
sites will be provided on a site-by-site basis and is subject,
inter alia, to completion of full due diligence and investment
committee approval.
Plutus and the counterparty intend to work together to initially
develop and fund a pipeline of four identified projects totalling
c.80MW and the counterparty have been granted exclusivity over
these projects until 31 December 2019. The counterparty and Plutus
intend to agree heads of terms for each project.
The role of Plutus in the development of these projects is
expected to cover Plutus being responsible for: (i) continuing the
development and evaluation of these sites in respect of planning,
other consents and power and gas connections; (ii) inputting into
the technical solution at each site, assembling appropriate
professional teams and developing draft contractual documentation
with key counterparties; and (iii) developing a standard project
operating contract under which Plutus will subcontract certain key
services in respect of merchant trading and plant maintenance.
The gas site portfolio will run Merchant (i.e. within day, day
ahead and balancing mechanism markets) which the Company recognises
as a major advancement in progressing in the energy provision
space. Moreover, the Company is currently in talks regarding
support of asset financing to complement equity funding where we
have expressions of interest and, as such, Plutus intends to inform
the market in due course of the determination of a preferred
partner.
Until the execution of binding terms for the initially
contemplated site build out, the name of the counterparty to the
Collaboration Agreement shall remain confidential.
Notice of termination of agreement with Rockpool Investments
LLP
Additionally, the Company announces that it received notice on
27 August 2019 from the non-executive directors of Rockpool that
its management of the existing Rockpool EIS funded sites is to be
terminated, on a six month notice period. The Board believes this
will assist in accelerating the sale of the portfolio of six 20MW
diesel sites, and one gas site in development, in which the Company
retains a 44.5% equity stake. The Company will continue to retain
the management of Attune Energy.
Plutus, through its subsidiary, Plutus Energy Limited, is
currently owed GBP507,809 in accrued and deferred fees from the six
co-invested companies. Plutus anticipates accruing, under the
existing management agreements, a further GBP312,498 in management
fees during the six month notice period in addition to receiving
ongoing management fees. The directors of Plutus expect that the
ending of these management contracts will dovetail with the
commencement of the development of the new gas Peakers
portfolio.
Interim CEO, James Longley, commented: "The collaboration
agreement for the equity funding portion of our gas powered Peaker
portfolio is a milestone development for Plutus and is the
culmination of extensive negotiations over a long period. The
counterparty is highly experienced in the energy generation space
and the agreement recognises the potential of the current proposed
and contemplated portfolio. The financial metrics for the gas sites
are superior to that of the existing portfolio, and with an
established entity who understands the demand and potential of the
Peaker market. The asset financing negotiations are progressing
well and we are therefore very positive about the future of the
Company. With regard to the Rockpool sites we believe the ending of
the management contracts will assist in the facilitation of the
sale of the assets which should generate significant profit and
have an attractive yield potential for investors and potential
buyers once Capacity Mechanism is reinstated. We look forward to
updating shareholders with details of our progress in due
course."
**ENDS**
For further information, please visit www.plutuspowergen.com, or
contact:
+44 (0) 20 8720
Plutus PowerGen Plc 6562
Charles Tatnall, Executive Chairman
Allenby Capital Limited (Nominated Adviser +44 (0)20 3328
and Joint Broker) 5656
Nick Athanas
James Hornigold
Turner Pope Investments (TPI) Limited +44 (0)20 3621
(Joint Broker) 4120
Andy Thacker
St Brides Partners Limited (Financial +44 (0)20 7236
PR) 1177
Isabel de Salis
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END
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