TIDMGSEO
RNS Number : 1864L
VH Global Sustainable Energy Oppt.
09 September 2021
VH Global Sustainable Energy Opportunities plc (the
"Company")
09 September 2021
VH Global Sustainable Energy Opportunities commits GBP78m to UK
flexible power projects
Commitment to two carbon capture and re-use flexible heat and
power projects that support the UK's energy transition plans to net
zero
VH Global Sustainable Energy Opportunities plc ("GSEO", the
"Company") - a London-listed investment company advised by Victory
Hill Capital Advisors LLP ("Victory Hill") - is pleased to announce
a GBP78m programme commitment to fund innovative net zero flexible
power generation projects in the UK, which support the energy
transition towards more renewable power generation.
GSEO's investment will fund the construction of two combined
heat and power plants which bring together high-efficiency,
gas-fired engines technology with a carbon capture and re-use
system to provide a clean, net-zero, flexible and dependable
electricity solution for the UK. The combined capacity will be
45MW, with assets at the ready-to-build stage, with full planning
permissions and commercialisation plans in place.
The first plant will begin construction in Q4 2021 in
Nottinghamshire, with a second plant in County Durham expected to
be begin construction by Q2 2022. Once operational, the plants will
be contracted under long term Power Purchase Agreements (PPAs) with
well-known energy companies for the power output, and long-term CO2
offtake contracts with large industrial companies for the carbon.
Together, these revenue arrangements will provide the plants with
downside risk protection and visibility of revenues for the
medium-to-long term. The unlevered returns are expected to exceed
the Company's target return of 10% and target annual dividend yield
of 5%.
The plants' construction will incorporate a range of
well-established and proven technologies which, when combined,
materially increase the efficiency of the plants. The plants will
benefit from the involvement and expertise of some of the world's
leading industrial technology companies including Rolls Royce
(Ticker: RR:LN), Swedish industrial group, Climeon (Ticker:
CLIMEB:SS), Mitsubishi Heavy Industries Group subsidiary Turboden
based in Italy (Ticker: 7011:JP) and privately-held Swiss Carbon
Capture technology manufacturer, ASCO Carbon Dioxide Ltd.
Once operational, the projects will produce highly efficient
flexible power, which will help secure the supply of power within
the UK electricity grid and contribute to the growth in renewable
generation capacity. At present, energy security is predominantly
provided by higher carbon unabated sources such as coal fired power
plants and large, gas fired generators. The projects will therefore
play an important role in the development of a more resilient and
sustainable power infrastructure in the UK for years to come.
Victory Hill will be partnering with Landmark Power Holdings
Ltd. a specialised developer and operator of gas-fired power
plants, and the owner of these unique and highly differentiated
plant designs. The Team's principals bring a wide range of
expertise from past roles at leading firms such as PowerGen, RWE,
Sterling & Wilson, British Energy and JP Morgan.
The projects will be supported by the established engineering,
procurement, and construction capabilities of UK-based Smith
Brothers Contracting Limited a specialist high voltage engineering
and contracting group.
An independent assessment of the projects, as per the process,
has concluded that they are compliant with the Company's six
Sustainable Development Goals - goals 3, 7, 8, 9 13 and 17 - and
will do no harm in the context of the remaining eleven goals.
To date, 92% of the net proceeds raised on IPO have been
committed or deployed.
Richard Lum, Co-CIO of Victory Hill Capital Advisors LLP,
investment adviser to GSEO, said:
"The UK harbours ambitious plans to hit net zero carbon
emissions by 2050 and is rightly increasing capacity for renewable
power generation. At the same time, fossil fuel generators continue
to leave the system. While admirable, the situation risks creating
a perfect storm for system interruptions if supply from
weather-dependent renewable sources is unable keep-up with
accelerating demand for electricity in the coming decades. GSEO's
aim is to ensure the UK electricity grid can meet growing demand
and keep the lights on without resorting to excessive levels of
harmful fossil fuels, as it becomes increasingly reliant on
renewable power. These projects will provide a highly efficient,
flexible source of power that can be called upon when needed, and
at short notice, to plug any shortfall in power generation from
wind or solar."
Michael Avison, CEO of Landmark Power Holdings Ltd, project
developer and operating partner of Victory Hill said:
"We are delighted to be partnering with the very experienced
Victory Hill Team on what is a very important program of projects.
Our organisations share the same perspectives on the UK's power
markets. The Landmark Power Team have also benefitted from the
support of Swedish company Climeon, to help design and optimize the
UK's first decarbonised gas fired power plants that are able to
materially support the grid through the provision of both base load
power as well as supplying the balancing and capacity markets. In
addition, when combined with carbon capture and re-use technology,
the footprint of the plant is effectively net zero carbon. This
makes our plants highly efficient and carbon neutral in their own
right".
Background of the deal
Project partners:
Landmark Power Limited (LPL): A UK based electricity generation
firm which has assembled an array of well-established technologies
which together increase the efficiency of the plant to 50% in its
provision of flexible power.
Rolls Royce: Providing gas powered MTU reciprocating engines -
the main driver of the new plants
Climeon: Swedish company, providing Organic Rankine Cycle
("ORC") low-temperature waste heat capture technology.
Turboden Mitsubishi: Providing Organic Rankine Cycle ("ORC")
high-temperature waste heat capture technology.
ASCO: Providing the carbon capture & re-use ("CCR")
technology to the project.
Smith Brothers: providing engineering, procurement, and
construction ("EPC") expertise to the project. Smith Brothers are
specialist high voltage engineers and contractors.
www.vh-gseo.com
The Company's LEI is 213800RFHAOF372UU580.
For further information, please contact:
Edelman Smithfield (PR Adviser)
Ged Brumby / Andrew McLagan
Tel: + 44 (0)7540 412301 / +44 (0)7817 998161
Email: victoryhill@edelmansmithfield.com
Numis Securities Limited (Corporate Broker)
David Benda / Matt Goss / Tod Davis
Tel: +44 (0)20 7260 1000
G10 Capital Limited (AIFM)
Mohammed Rahman / Paul Cowland
Tel: + 44 (0)20 3696 1302
Apex Fund and Corporate Services (UK) Limited (Company
Secretary)
Anthony Lee
Tel: +44 7435 829323
About Victory Hill Capital Advisors LLP
Victory Hill Capital Advisers LLP is the investment-focused
subsidiary of Victory Hill Capital Group LLP. Victory Hill Capital
Advisors LLP (FRN 938594) is an Appointed Representative of G10
Capital Limited, which is authorised and regulated by the Financial
Conduct Authority (FRN 648953).
Victory Hill is based in London and was founded in May 2020 by
an experienced team of energy financiers that have spun-out of a
large established global project finance banking group. The team
have an established track record built over six years while working
together in their previous roles and participating in over $37.1bn
in sustainable energy project transaction values, generating over
24.2 per cent. equity returns. In addition, the team has also
participated in more than $200bn in transaction values across 91
conventional and renewable energy-related transactions in over 30
jurisdictions worldwide, throughout their individual careers. The
average experience per individual is 21 years of relevant energy
finance experience. Victory Hill Capital Advisors LLP is the
investment adviser entity of the Victory Hill group.
The Victory Hill team deploys its experience across different
financial disciplines in order to holistically assess investments
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.
VHCA is a signatory of the United Nations Principles for
Responsible Investing (UN PRI), the United Nations Global Compact
(UN GC) and is a formal supporter of the Financial Stability
Board's Task-Force on Climate-related Disclosures (TFCD).
END
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQDVLFBFKLZBBK
(END) Dow Jones Newswires
September 09, 2021 02:00 ET (06:00 GMT)
Vh Global Sustainable En... (LSE:GSEO)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Vh Global Sustainable En... (LSE:GSEO)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024