Important information

Gore Street Energy Storage Fund (ticker: GSF), London's first listed energy storage fund investing in income producing assets in the UK and internationally, has awarded to NEC Energy Solutions fixed-price[1] Engineering, Procurement and Construction ("EPC") contracts and long-term Operations and Maintenance (O&M) contracts for 100MW of energy storage projects in Northern Ireland ("NI assets).

As outlined our acquisition announcement  on 5 June 2019, the two 50MW projects, at Drumkee, County Tyrone and Mullavilly, County Armagh, are among the largest in Ireland and are expected to derive revenue from the new "Delivering a Secure Sustainable Electricity System" (DS3) program. These projects, alongside the two 30MW projects owned by the Company, in the Republic of Ireland, will participate in the DS3 market and will make a significant contribution to Ireland's climate change goals.

Under the EPC and O&M contracts, NEC Energy Solutions has committed to construct the projects at a fixed price¹ by a specified completion date, to provide for performance and availability warranties and to operate the projects for up to 15 years. The combination of fixed prices¹, warranties backed by liquidated damages and guaranteed completion dates further de-risk these projects. As both projects progress to operation, the Investment Manager believes the NI Assets will present an opportunity to increase projects' valuations.

In-line with previous guidance, the projects are on track to be commissioned in Q1 2021 as expected.

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

"We are pleased to deliver this significant positive news and major milestone in the development of our important Northern Irish assets on schedule. We look forward to working with our partners NEC Energy Solutions again and collaborating on our first tranche of projects with the developer, Low Carbon.

Gore Street continues to be the frontrunner in UK and International energy storage investment, our 6MW Boulby asset was the largest project of its kind in the UK at the time of energization in 2017 and now our two 50MW Northern Irish assets are among the largest projects in Ireland and the UK, becoming part of the Company's overall portfolio of 189MW. We have one of the largest portfolios of its kind and we also have a portfolio which is made up of the newest, most technologically advanced and therefore the most cost effective assets. We look forward to further updating shareholders on the progress of these important projects in due course."

The Legal Entity Identifier of the Company is 213800GPUNVGG81G4O21.

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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.   

Further information below, on the two energy storage projects in Northern Ireland, as contained in Gore Street's interim results for the six months ended 30 September 2019, announced in December 2019.

Mullavilly Project

On 4 June 2019, the Company acquired 51% of Mullavilly Project in Northern Ireland with a total installed capacity of 50.0 MW. Low Carbon, the seller and developer, maintains 49% ownership of the Project.

The estimated total capex required for the Mullavilly Project is c. £ 20 million. The capex will be funded either from operating cash flow from the asset or by GSF by way of a shareholder loan (SHL) carrying 10% interest, stepping down to 9% upon commissioning. GSF will share excess profits (following loan repayment) with Low Carbon.

The Mullavilly Project is expected to derive revenues from the "DS3" or "Delivery Secure Sustainable Electricity System" Programme operated in Northern Ireland as well as the Irish Capacity Remuneration Mechanism and wholesale trading revenues (the latter after the end of DS3 services). The Company intends to participate under the DS3 Standard Contracts tender in October 2020 and proceed with testing throughout December and January.  Operations are estimated to start at the end of Q4 2020. 

The project is on track and in its design stage.

Drumkee Project

On 4 June 2019, the Company acquired 51% of Drumkee Project in Northern Ireland with a total installed capacity of 50.0 MW. Low Carbon was the Projects' seller and developer; and are 49% equity partner is each Project.

The estimated total capex required for the Drumkee Project is c. £ 20 million. The capex will be funded either from operating cash flow from the asset or by GSF by way of a shareholder loan (SHL) carrying 10% interest, stepping down to 9% upon commissioning. GSF will share excess profits (following loan repayment) with Low Carbon.

Similarly to Mullavilly the project, the Drumkee Project is expected to derive revenues from the "DS3" Programme as well as the Irish Capacity Remuneration Mechanism and wholesale trading revenues (the latter after the end of DS3 services). The Company intends to participate under the DS3 Standard Contracts tender in October 2020 and proceed with testing throughout December and January.  Operations are estimated to start at the end of Q1 2021. 

The project is on track and in its design stage.

The fair market value of the Company's 51% share (inclusive of equity and debt) of the Northern Ireland Portfolio was £10,973,092 calculated using the discounted cash flow methodology.