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Gore Street Energy buys Ferrymuir project in Scotland

By Josh White

Date: Monday 22 Jun 2020

Gore Street Energy buys Ferrymuir project in Scotland

(Sharecast News) - Energy storage fund Gore Street Energy announced on Monday that it has agreed to acquire a 100% interest in Ferrymuir Energy Storage - a 50MW energy storage project.
The London-listed firm made the announcement following its revealing of Japan's largest petroleum company, JXTG Nippon Oil & Energy Corporation, as its new strategic investor on Friday, subscribing for £2.9m in shares.

It also announced an interim dividend of 1p per ordinary share for the period from 1 January to 31 March at the same time, bringing the total dividend distribution for the year to the target of 7p per share.

The board proposed an issue of new ordinary shares at a price of 96.1p per share, by way of a non-pre-emptive placing under its placing programme.

On Monday it said the project, which was acquired from a group of investors comprising Abbey Properties, Yoogen and Intelligent Land Investments, consisted of a 50MW energy storage system in Fife, Scotland, for which all land rights, grid connections and planning consents had already been secured.

The company said it would arrange and manage construction of the project, which was scheduled to become operational in 2022.

Gore Street said its investment adviser, Gore Street Capital, estimated the project would have an unlevered internal rate of return in line with its target range.

This project would bring Gore Street's total portfolio size to 239MW - the largest of any UK-based manager - with the board adding that it was part of the 140MW storage pipeline in Scotland, for which it announced exclusivity on 28 February.

As it had previously indicated, it had also secured exclusivity on a new 20MW asset near London, which was undergoing due diligence, with a view to acquisition in the near term.

In total, the firm now had an additional 900MW in exclusivity, or pipeline.

"We are extremely pleased to announce the acquisition of Ferrymuir which adds a significant asset to our already substantial portfolio of projects," said Alex O'Cinneide, chief executive officer of Gore Street Capital, the fund's adviser.

"The acquisition highlights Gore Street's continued delivery against the company's goals and proves out the extensive growth potential in front of the company, with a total of 900MW's of future projects in or due to begin construction."

O'Cinneide noted the project was the fund;s first in Scotland, describing it as a "very attractive market" for energy storage, adding to a portfolio diversified in markets, assets and counter parties.

"We are proud to be part of the transition to a low carbon economy, and at the forefront of energy storage as an asset class.

"We expect to update the market on further acquisitions in Scotland, and England in due course."

At 1233 BST, shares in Gore Street Energy Storage Fund were up 2.3% at 100p.

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