EPC contract signed and 14m new shares issued

Gore Street Energy Storage Fund PLC

19 December 2023

 

19 December 2023

Gore Street Energy Storage Fund plc

(the "Company" or "Gore Street")

EPC contract signed for Texas asset

14 million new Ordinary Shares to be issued to Nidec Motor Corporation

Gore Street Energy Storage Fund plc, the internationally diversified energy storage fund, is pleased to confirm the selection of Nidec Motor Corporation ("Nidec") as the Engineering, Procurement, and Construction (EPC) contractor for its Texas-based energy storage asset "Dogfish". The 75 MW asset will initially be built with a one-hour duration, while the design allows for future retrofitting to extend the duration should it be determined in the future that the additional potential revenue from a two-hour system justifies the related additional cost.

The contracts include the EPC agreements and Operations and Maintenance (O&M) contracts. The contract is fully wrapped, including warranties for availability and energy capacity.

The asset will integrate into the ERCOT grid network with a target energisation date of December 2024. The asset will participate in RRS, Wholesale trading, the recently introduced ECRS market, and any subsequent services introduced within the ERCOT market.

Nidec Strategic Partnership and Subscription for Ordinary Shares

The Company is pleased to announce that, as part of the long-term strategic partnership with Nidec, Nidec will be subscribing for 14,000,000 new ordinary shares in the capital of the Company (the "Ordinary Shares") at 112.9 pence per Ordinary Share, being the 30 September 2023 NAV announced on 14 December 2023, resulting in gross proceeds of £15,806,000 to the Company. Nidec's Ordinary Shares will be subject to a lock-up arrangement which prevents it, save in certain specified circumstances, from disposing of any of its Ordinary Shares for the six-month period after Admission (defined below). After the end of this period, Nidec is able to dispose of up to 50% of its Ordinary Shares. After twelve months from Admission, Nidec would then be able to dispose of any remaining amount of its Ordinary Shares held at such time.

This strategic partnership between Nidec and the Company builds upon their established relationship, with Nidec having previously been appointed as EPC contractor for the Company's Ferrymuir (49.9MW) and Stony (79.9MW) assets.

Under the terms of this strategic partnership, Nidec will, for a period of five years following Admission, be entitled to participate in upcoming competitive bids for EPC contracts in respect of qualifying projects with the Company. Additionally, Nidec shall be guaranteed participation in the second stage of the process on the proviso that they can either match or enhance the terms offered by other contenders in the strictly competitive process.

The Board maintains its confidence in the Company's competitive EPC contractor selection process, which can include multiple iterative stages. This ensures the Company's continued ability to consistently secure competitively priced contracts, enabling it to build out its construction portfolio at one of the industry's lowest prices per MW fully installed.

Applications have been made to the FCA for the 14,000,000 new Ordinary Shares, which are being issued under the share issuance authority approved by shareholders at the Company's Annual General Meeting held on 21 September 2023, to be admitted to the premium segment of the Official List and to the London Stock Exchange for the new Ordinary Shares to be admitted to trading on its main market for listed securities. Admission is expected to become effective, and dealings in the new Ordinary Shares are expected to commence at 8.00 a.m. on 20 December 2023. Following Admission, the new Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares.

Immediately following Admission, the Company's issued share capital will comprise 495,399,478 Ordinary Shares, with no shares held in treasury. Accordingly, the total number of voting rights in the Company on Admission will be 495,399,478. Shareholders and other investors may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

Pat Cox, Chair of the Company's Board, commented: 

"We are pleased to see a large strategic corporation within the energy storage value chain like Nidec taking a material position in the Company. The Company's register now comprises wealth managers, institutional investors, retail and a growing number of strategic corporations like Nidec. This diverse mix of holders has enabled the Company to form strong strategic partnerships across the energy storage value chain whilst ensuring the stock benefits from good liquidity, with an average of c4.5m shares traded weekly over the last 12 months."

Alex O'Cinneide, CEO of Gore Street Capital Limited, the Company's investment manager, commented: 

"We are delighted to strengthen the existing relationship between Nidec and Gore Street with this strategic partnership and share issuance. During the current market dynamics, we are pleased to see a TOPIX 100 Company with a deep understanding of the sector take a material position in GSF. We look forward to working closely with Nidec over the coming periods."

Michael Briggs, Senior Vice President and President of the Motion & Energy Business Unit at Nidec, commented:

"Strategic partnerships with leading players are essential in achieving the scope and efficiency needed to address global demand for energy storage solutions. For this reason, we are proud to continue and evolve our strategic partnership with Gore Street Capital in a way that furthers our shared mission to accelerate global adoption of sustainable energy technologies. This project represents Nidec's largest US-based BESS installation yet, and this partnership confirms our position as a global leader in this key market".  

About Nidec

With headquarters in Kyoto, Japan, and its Motion & Energy business headquarter in St. Louis, Missouri, Nidec is the world's leading electric motor manufacturer, comprised of 340 group companies and 100,000 employees.  A pioneer in electrification, Nidec has worked across a wide array of industries ranging from information technology, automotive, appliance, commercial, industrial and machinery since its foundation in 1973. Nidec is a trusted development partner in multiple high-growth spaces including industrial automation, vehicle electrification and energy storage, providing world-class technology, support, and localized manufacturing to support industry leaders across the globe.

For further information: 

Gore Street Capital Limited          

Alex O'Cinneide / Paula Travesso                                                                              Tel: [phone] 

Shore Capital (Joint Corporate Broker)   

Anita Ghanekar / Rose Ramsden / Iain Sexton (Corporate Advisory)        Tel: [phone] 

Fiona Conroy (Corporate Broking)             

J.P. Morgan Cazenove (Joint Corporate Broker)                                                 Tel: [phone]

William Simmonds / Jérémie Birnbaum (Corporate Finance)                        Tel: [phone] 

Buchanan (Media Enquiries)       

Charles Ryland / Henry Wilson / George Beale                                                   Tel: [phone] 

Email: [e-mail] 

Notes to Editors 

About Gore Street Energy Storage Fund plc 

Gore Street is London's first listed and internationally diversified energy storage fund dedicated to the low-carbon transition. It seeks to provide Shareholders with sustainable returns from their investment in a diversified portfolio of utility-scale energy storage projects. In addition to growth through increasing operational capacity and a considerable pipeline, the Company aims to deliver consistent and robust dividend yield as income distributions to its Shareholders. 

https://www.gsenergystoragefund.com 

 

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