Plutus PowerGen PLC Management Contracts - Two Further 20MW Projects (9766C)
October 21 2015 - 7:30AM
UK Regulatory
TIDMPPG
RNS Number : 9766C
Plutus PowerGen PLC
21 October 2015
Plutus PowerGen plc / Ticker: PPG / Index: AIM
21 October 2015
Plutus PowerGen plc ('PPG' or 'the Company')
Management Contracts Awarded for Two Further 20MW Projects
Plutus PowerGen plc, the flexible standby power generation
developer and operator in the UK, is pleased to announce that it
has been awarded further management contracts, for the construction
and operation of 20MW flexible stand-by electricity plants, by
Portman Power Limited and Valence Power Limited being two major
customers of Rockpool Investments LLP ("Rockpool"). Rockpool has
invested GBP3.6 million of equity into each company, which brings
the total invested by Rockpool's investors into companies to be
managed by PPG to GBP25 million.
This agreement increases the number of management contracts
granted to PPG to seven, equivalent to 140MW. Under the agreements,
PPG will be paid an additional combined GBP300,000 per annum for
the management services in addition to an equity stake of 45% in
the capital of each company. This lifts PPG's committed annual
revenues from these management agreements to just over GBP1m.
Additionally, the Company is pleased to report that nine sites
have been provisionally entered for the Capacity Mechanism ('CM')
auction. However, on account of the terms and conditions of the CM
auction, no assurance can be made whether all nine will meet the
required criteria in the stipulated timeframe.
Also, the Company has been in receipt of numerous offers of
funding for the development of its portfolio, none of which involve
the issuance of shares in the Company but rather in the form of
debt and/ or an equity share in the underlying sites. These will be
evaluated and in the event of formal agreement, the Company will
make an announcement.
Phil Stephens, CEO of PPG said, "While increasing our committed
annual revenues, these contracts also represent an important
milestone in line with our strategy to deliver 200MW of power as
quickly as practicable. We now have management contracts and
non-dilutive equity funding secured for seven projects and, as
demonstrated by our recent activities and discussions, we continue
to progress planning, asset financing and capacity agreement
negotiations to facilitate the advancement of our portfolio."
**ENDS**
For further information, please visit, or contact:
Charles Tatnell Plutus PowerGen plc Tel: +44 (0) 20 8720
6562
----------------- --------------------------- ---------------------
Phil Stephens Plutus PowerGen plc Tel: +44 (0) 20 8720
6562
----------------- --------------------------- ---------------------
Ewan Leggat SP Angel Corporate Finance Tel: +44 (0) 20 3470
LLP 0470
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Laura Harrison SP Angel Corporate Finance Tel: +44 (0) 20 3470
LLP 0470
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Felicity Winkles St Brides Partners Tel: +44 (0) 20 7236
1177
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Elisabeth Cowell St Brides Partners Tel: +44 (0) 20 7236
1177
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Notes to Editors
Plutus PowerGen plc is an AIM listed company focused on the
development, construction and operation of flexible stand-by power
generation sites in the UK. At present, the market dynamics for
flexible power generation are positive as a result of the continued
downward pressure on capacity available to National Grid to balance
supply and demand, leading to their announcements about possible
power shortages over the next few years.
Flexible power generators such as PPG offer a viable and timely
solution to the power capacity shortfall in the UK. To this end,
PPG is initially focusing on delivering 200MW of capacity over the
next three years and currently has a project pipeline of potential
development sites with over 500MW of power generation capacity.
PPG has a straightforward multi-revenue stream model with large
and stable counter-parties and is using project/EIS funding through
SPVs to finance construction of the generation assets. This
structure has the benefit of limiting dilution to plc shareholders
as the assets are financed and built.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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