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(Alliance News) - Corcel PLC shares plunged on Wednesday, as the company tanked its plans in Avonmouth, as fossil fuel investments fall out of fashion with investors.
The London-based mining and mineral resource development company said it has agreed to end its marketing rights and funding efforts associated with the Avonmouth 50 megawatt gas peaking project outside of Bristol.
Shares in Corcel dropped 13% to 0.90 pence each in London on Wednesday morning.
The move follows discussions with the landlord of the site, Altana Social Impact Partnership and Corcel.
Altana is a UK-based investment fund which invests in asset classes with a "social and ethical agenda". Corcel and Altana signed a head of terms back in April to jointly fund and develop Corcel's UK energy storage and generation project pipeline.
Corcel noted the "strong bias of Altana and investors more generally towards non-fossil fuel projects", and will now focus on energy storage opportunities across the UK. Both parties believe these to be "significantly more fundable in the present environment".
Chief Executive Officer Scott Kaintz commented: "Whilst it is of course disappointing to end our negotiations on Avonmouth after many months of effort, we recognize the practical dominance of [environmental, social, and governance] sentiments with infrastructure and energy investors and see significant value from our peaker project efforts having identified our funding partnership with Altana. We expect to have further news on our battery storage portfolio shortly."
In more positive news for Corcel, discussions are progressing within Shandong New Powder Cosmo AM&T regarding its memorandum of understanding for the purchase of Nickel from Corcel's Mambare and Wowo Gap nickel projects.
Corcel management has been invited to Korea to advance discussions with Cosmo AM&T into a binding agreement.
"We much look forward to meeting Cosmos over the summer to take forward these discussions on offtake and working together more broadly," Kaintz said.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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