What is important for me however, is the lease for the land for the battery project being finalised. We were told that was being finalised last week and once we have receipt of that it really is game on SP wise.
1. Grid connection has been secured with off take already agreed
2. Planning permission in place
3. Strong indication the lease for land has been finalised
All 3 = rerate of share price.
Burwell 50 MW battery storage will be one of the biggest in the UK. Massive interest has been or will be shown in this project of ours.
In response to your question Confounded the other day regarding the farm the council has bought.
I have done some digging. I am not saying that this land purchased from the council, is 100% for Corcel’s solar project but there are some interesting coincidences.
The Lower Portland Farm bought by Cambridgeshire Council is about 2 km from our Weirs Drove Burwell project.
50 MW Solar:
50MW solar site needs c.200+ acres
This farm bought by the Cambridgeshire Council is 241-acres and will provide “provide long term environmental and development opportunities”.
There is a possibility that the Council have bought this land and will act as the landowner and lease the land to us for our 50 MW solar part of the Burwell project.
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We have the following timelines:
1. January 26, 2021: News report saying Council bought 241-acres of land
2. January 31st Christian “wrap up securing the site in the NEXT WEEK”. Here, Christian is talking about the land for the Battery Storage side of the project.
3. February 4th: Scott Kaintz visits Burwell site.
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So what does this all mean?
1. With receipt of commercial terms agreement with Burwell landowner for the POWER PROJECT this means that there are NO MORE HURDLES for Corcel to jump over before financing/sale of project can take place.
2. IF the 241 acre The Lower Portland Farm, (2km away from our Batter Storage facility) is going to be used for our 50 MW solar, what has given the Cambridgeshire Council the confidence to make such a purchase in these current economic times???
Last podcast on 31st Jan 2021:
Christian Yates: “the solar project will not be all in one great big field, we will look at 3 or 4 different pockets potentially and build it out at 5, 10, 15 MW a time and we have already identified 3 sites and are in advanced discussions with landowners on those.”
Regarding recent sale of The Lower Portland Farm:
It was offered for sale in for lots:
Lot 1: 1.75 acres of land
Lot 2:141.3 acres of Land (52 acres located east of Heath Road, and 89 acres west of Heath Road divided into 4 fields.)
Lot 3: 68.06 acres
Lot 4: 28.66 acres
So the land was sold in 4 lots and we are looking at building out the solar in “3 or 4 different pockets”.
Christian Yates said build at 5 MW, 10 MW and 15 MW pockets.
200 acres for 50 MW.
So rough calculation of 4 acres per 1 MW.
Lot 1: unusable
Lot 2:
a) 52 acre piece can do 10 MW.
b) 89 acres piece split in to 4 fields. Assuming fields are of similar size = 22.25 hectares per field
So each of the 4 fields can do 5 MW. 5MW x 4 fields = 20 MW
Lot 3: 68 acres can do 15 MW
Lot 4: 28.66 acres can do 5 MW
So a combination of lots 2,3 and 4 = 50 MW bang on the dot.
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Again, this land bought by the council might not be for our solar project and there is plenty of other land available near the Burwell substation for our 50 MW solar.
What impresses me so much about the battery storage side of things are the people involved.
As we know, Christian Yates, our Burwell project director, has extensive links in this industry as previously posted.
Also we have Joseph Jayaraj.
FLEXIBLE GRID SOLUTIONS LIMITED
Joseph Jayaraj Director
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Joseph Jayaraj appointed to EsTeq board (Now named FLEXIBLE GRID SOLUTIONS LIMITED) to focus on strategy and business development, as well as negotiation and implementation.
- - - - -
Joseph Jayaraj has over 25 years’ experience in financial services, most notably as a Managing Director of the MACQUARIE GROUP, with a focus on European credit special situations and as Head of Macquarie Global Investments & Environmental Technology Assets.
His previous roles with Merrill Lynch’s M&A team in New York and RAB Capital’s Special Situations Fund in London. Joseph founded ORB Capital to lead principal investments in private equity and private debt opportunities, largely to SMEs.
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So he has worked as Managing Director of Macquire Group with some examples below of the funding they have delivered:
Energy storage provider Connected Energy has secured £3 million (US$4.13 million) of investment from Macquarie Group and Engie to fuel its growth plans in the UK and abroad.
https://www.energy-storage.news/news/engie-macquarie-invest-in-connected-energys-2nd-life-ev-pack-storage
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Storage technology market-leaders Arenko Cleantech had a landmark 125 megawatt UK battery energy storage joint venture with Macquarie Bank. It was heralded as the UK's largest multi-site energy storage development and Macquarie provided up to an initial £125 million of funding.
https://www.pinsentmasons.com/thinking/case-studies/blueprint-funding-battery-storage-projects
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I am so impressed with the team involved with Burwell and also the subsequent projects that they already have in the pipeline.
Funding will not be a problem whatsoever.
RMI (WoWo Gap) were up over 100% today on the ASX:
Nickel Project Acquisition in Tanzania
“While the WoWo Gap project in PNG has been the focus for RNI, the expansion in to Tanzania with the acquisition of the prospective KNP represents a significant step forward for the company”
https://hotcopper.com.au/threads/ann-nickel-project-acquisition-tanzania.5896180/
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Align Report for Corcel:
“Wowo Gap Nickel Cobalt Project In the fullness of time, it does look possible that Corcel will end up with a 100% INTEREST in the Wowo Gap Nickel Cobalt Project following forgiveness of the RMI debt and a swap for the WoWo project rights.”
Looks like RMI is moving in to Tanzania and increasingly likely that Corcel will get 100% of the Wowo Gap project as per Align’s report.
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ALSO... plenty to look forward to news wise as per Align’s recent report.…
1. “Mambare the results of GPR processing are expected in Q1 2021 with the Mining Lease outcome potentially coming as early as Q2.” 2021. (My thoughts: Environment Permit should be any time now)
2. “During this period (Q1 they are referring to), the market is expected to be given a taster of the deal with RMI concerning Wowo Gap.” “In the fullness of time, it does look possible that Corcel will end up with a 100% interest in the Wowo Gap Nickel Cobalt Project following forgiveness of the RMI debt and a swap for the WoWo project rights.” (My thoughts: Now this looks increasingly likely with RMI’s Tanzania news today.)
3. “Plus, there is planning and the financial close at Burwell to come probably in Q1 2021 as well as an ongoing expansion of the FGS pipeline. That is not to mention M&A or a potential early transaction involving Burwell. This is not just a one-off year as 4-5 deals in the FGS business per annum now look clearly on the cards along with a likely expansion of the battery metal exploration portfolio. So, investors will not be short of news going forward. In parallel, the FSG division is being carefully crafted to become the cash cow to fund corporate overheads and further value creation in this ever so hot battery metals space.”
“We initial coverage of Corcel with a Conviction Buy stance and a share price target of 3.19p.”
We should be trading around 2-3p at this moment in time.
Yes I agree with that very much and I am sure once it has be signed we will see much more communication regarding Burwell and lift off in SP.
Yes, I agree we should now currently be trading in the 2-3p range considering the projects we have especially Burwell.
Podcast January 31st 2021:
1. securing grid connection (arguably most important you need to do has already been done.)
2. securing the site we are hoping to wrap that up in the NEXT WEEK or so
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Tweet: Friday Feb 5th 2021:
Scott Kaintz: Tweets photo of him at the Burwell site on Thursday.
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So we have Christian Yates saying on January 31st “wrap that securing the site in the NEXT WEEK”
…and yesterday (Friday) photo of Scott Kaintz being at the Burwell site saying he was there on Thursday.
Very strong indication that the lease for Burwell site has now been finalised.
We successfully got planning permission last year and grid connection but this lease for the land is CRUCIAL.
Let’s not forget our Southport project did not progress because we were ‘unable to agree on commercial terms with the landowner and so ultimately walked away.”
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NOW we should have commercial terms agreed with the landowner of the Burwell site. Once we get this RNS then it is game on. The project can go ahead. Without commercial terms being agreed with the landowner means a Southport walk away could have happened.
Yes we need to sort out financing for the project but that will not be a problem as my previous post have shown with Christian Yates stating:
1. “all these funds don’t have their development arm and don’t have their own proprietary projects”
2. “so they will have to COMPETE WITH EACH OTHER to acquire assets”
3. “what we are doing at Burwell will have HUGE ATTRACTION for these funds should we not wish to hold this project long term or wish to seek co investors in these projects.”
- - - - -
With receipt of commercial terms agreement with Burwell landowner and subsequent RNS stating this means that there are NO MORE HURDLES for Corcel to jump over before financing/sale of project can take place and the market will price the project accordingly.
Our market cap is seriously undervalued and now with a clear path to development of Burwell the SP should react accordingly.
Of course funding will take the SP on to another level entirely but with all the regulatory hurldles achieved for Burwell and confirmation of the commercial terms agreed for lease of the Burwell land in an RNS we should see a nice rerate to a much healthier SP level.
2 to 3p is what we should be trading at now and then rising in anticipation of financial close for Burwell.
Feb 5th 2021:
The UK's battery storage pipeline has grown 50 per cent in the last 14 months amid soaring demand for projects that can balance an increasingly renewables-heavy grid, according to statistics published this morning by RenewableUK.
Legislation that came into force last December that lifted restrictions on the size of battery projects that local planning authorities are able approve will add momentum to the rapidly-growing market, Wharton predicted.
"We're already seeing grid-scale batteries of 50MW being built, providing valuable flexibility to the grid”
“SOARING DEMAND FOR PROJECTS’
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Initial DEMAND HAS EXCEEDED EXPECTATIONS for Mast Energy Developments Plc PLO news release today as well.
- - - - -
Christian Yates Burwell project director:
‘in this sector sector.. all these funds bar one are trading at premium’s to NAV. clearest indication for appetite and demand.”
“about $ 1 billion being raised”
“all these funds don’t have their development arm and don’t have their own proprietary projects”
“so they will have to COMPETE WITH EACH OTHER to acquire assets”
“what we are doing at Burwell will have HUGE ATTRACTION for these funds should we not wish to hold this project long term or wish to seek co investors in these projects.”
- - - - -
Clock is ticking until serious rerate here.
You're welcome mcfcnige.
Yes I agree about Christian. Him being involved with Burwell and that project too is the reason I am invested here. He's a veteran of this sector and will help us get the best deal possible with his great contacts.
Congrats Kibo holders. Mast Energy Developments Plc will be be huge.
"This confirms Kibo's belief that the UK clean energy sector is an exciting investment case going forward."
It's such a hot sector to be in with plenty of opportunities to make serious cash. Of the funds investing in this sector pretty much all are at premium’s to NAV. Clear indication for appetite and demand and why initial demand for MED's IPO has exceeded expectations.
So MED is being valued at £23 million with an initial 9 MW in production when they IPO, 20 MW to come 6 months after that and another 20 MW 6 months after that.
We have 50 MW + 50 MW.
That's why Malik's calculations in previous posts are on the money.
We can see the attraction of the clean energy sector in the UK….
Today
“Kibo Energy PLC ('Kibo' or the 'Company'), is delighted to announce, further to the RNS dated 28th January 2021, Mast Energy Developments Plc (MED) has raised in excess of £5m through Clear Capital Markets Ltd for its upcoming IPO…which on listing will have a market capitalisation of c. £23 million.
Initial demand has exceeded expectations and the fundraise has now closed. This confirms Kibo's belief that the UK clean energy sector is an exciting investment case going forward. We look forward to further updates from MED regarding existing projects being brought into production in the very near term, as well as any acquisitions of further projects, on their way to becoming a significant contributor to the growing reserve power market.”
So MED will have 9MW in immediate production when they IPO and c.20 MW in production within the first six months from listing and adding another c.20 MW in production over the next 6 months. Their market capitalisation will be c. £23 million.
Burwell is 50MW battery storage and 50MW solar.
The market has totally missed the importance of Burwell and there will be an almighty scramble when people figure it out.
Hi mcfcnige. Apologies for not replying to your first post a couple of days ago I missed that.
Of course Corcel may not be selling the Burwell project.
If we do decide to go it alone then the battery storage could be worth as high as £120k per MW a Malik quite rightly states. Even if we discount this to £80k per MW then that is £4 million per year to Corcel. A modest PE ratio of 10 would value Burwell at £40 million and multiples to our current market cap.
In response to your question I think IMO they would be more likely to flip the Burwell project first to generate funds in buying more projects they currently have going on behind the scenes.
Burwell is of high value too as they have obtained the final 100 MW of the Burwell substation and have planning permission in place as well.
Valuation of our Burwell project now:
Battery storage side: £1 million - £2.5 million
Solar: circa £3 million
Total: £4 million - £5.5 million.
I would lean on the higher end of this valuation due to the fact that many investment funds in this field don’t have their own development arm and don’t have their own proprietary projects.
Financing for Burwell or sale of the project, either or, will significantly rerate us here.
Dec 1st 2020:
“Corcel said that after a review of revenue projections it had sanctioned the project to PROCEED TO “SHOVEL READY“ status and thereafter FINANCIAL CLOSE.”
Hi maddogmcree
Burwell is expected to begin operations in 2022 however the upcoming financial close is what will cause us to re rate here.
As per 22 September 2020 RNS:
Corcel Plc, ("Corcel" or "the Company"), the natural resource exploration and development company with interests in battery metals and flexible grid solutions, announces the receipt of both PLANNING PERMISSION and a GRID CONNECTION for the Burwell energy project.
So planning permission and grid connection in place.
Dec 1st 2020:
“Corcel said that after a review of revenue projections it had sanctioned the project to PROCEED TO “SHOVEL READY“ status and thereafter FINANCIAL CLOSE.”
Webinar:
Scott Kaintz: “Once the project is “SHOVEL READY” numerous development options exist from bringing in partners to flipping the project in its entirety or to taking it through to construction”
Christian Yates has great links and will help facilitate any deal.
With the battery storage market being so hot and also as per Christian Yates saying “all these funds (investing in this space) don’t have their development arm and don’t have their own proprietary projects, so they will have to COMPETE WITH EACH OTHER to acquire assets” we will be highly sought after for Burwell.
“What we are doing at Burwell will have HUGE ATTRACTION for these funds should we not wish to hold this project long term or wish to seek co investors in these projects.”
So we are waiting on financing for Burwell or sale of project and either of those will be company making for Corcel.
Great analysis Malik.
I completely agree. I am here for Burwell only (and any subsequent battery storage projects).
The numbers are incredible as you say and also another factor that I am here as well is because of Christian Yates as the project director of Burwell.
Christian Yates is a serious player in the batter storage industry in the UK and is Chairman of GRESHAM HOUSE Renewable Energy VCT 2 plc, a listed investment company.
As per last podcast:
“15 investment trusts investing in this space” (namechecks Gresham House as per previous post)
‘in this sector sector.. all these funds bar one are trading at premium’s to NAV. clearest indication for appetite and demand.”
“about $ 1 billion being raised”
“all these funds don’t have their development arm and don’t have their own proprietary projects”
“so they will have to COMPETE WITH EACH OTHER to acquire assets”
“what we are doing at Burwell will have HUGE ATTRACTION for these funds should we not wish to hold this project long term or wish to seek co investors in these projects.”
Burwell alone as Malik quite rightly points out is a company making project. We are so undervalued on Burwell alone. We should be multiples from here from this 50 MW batter storage /50 MW solar project.
Serious interest will be and I expect has already been taken in this project by a number of the big investment funds in the UK and "they will have to COMPETE WITH EACH OTHER to acquire assets”
Christian Yates being a director at Gresham House and also project manager at our Burwell site.
February 1 (Renewables Now) - Gresham House Energy Storage Fund plc (LON:GRID) has acquired a 45-MW portfolio of battery storage systems in England, growing its operational fleet to 395 MW.
“These latest projects boost operational capacity by a further 13%, thereby underpinning dividend cover and representing a further step in our portfolio growth ambitions,” said chairman John Leggate. He added that they are the first two of the fund’s new 485-MW pipeline that will be financed with the GBP 120 million (USD 133m/EUR135.9m) it raised in November.
Including the new assets, Gresham House owns 15 battery storage projects in 12 counties. Last month, it bought a 25-MW battery-only project in North East England from Enel Global Thermal Generation SRL and also completed a previously announced 10-MW expansion of its Glassenbury project in Kent.
https://renewablesnow.com/news/gresham-house-unveils-45-mw-battery-storage-purchase-729687/
In the recent podcast Christian Yates states…
“15 investment trusts investing in this space” (namechecks Gresham House as per previous post)
‘in this sector sector.. all these funds bar one are trading at premium’s to NAV. clearest indication for appetite and demand.”
“about $ 1 billion being raised”
“all these funds don’t have their development arm and don’t have their own proprietary projects”
“so they will have to COMPETE WITH EACH OTHER to acquire assets”
“what we are doing at Burwell will have HUGE ATTRACTION for these funds should we not wish to hold this project long term or wish to seek co investors in these projects.”
Not long until we get the FINANCIAL CLOSE for Burwell.
RECAP:
So Christian Yates who is our Burwell Project Director also has links to Gresham House who are investing heavily in the UK solar sector.
1 December 2020
“As future shareholders of Corcel, the Board is also delighted to maintain Tim and Christian's support with both indicating that they are available to the Company to ASSIST WITH THE FUNDING of Burwell and origination of other sites as required.”
“We expect to be initiating discussions with project funders (likely at an SPV level) shortly whilst also remaining open to the potential for a QUICK SALE of the project to a third party."
Hi Fuse,
Thanks for the message and the link.
I completely agree with your assessment in that with more housing being planned there will be a greater need for electricity.
However, we must not move away from the fact that Burwell will be a strategic asset in the solar/battery storage network in the UK.
We need to think bigger than Cambridgeshire County Council and more towards the leading funds in this country.
Massive rerate on the cards here just from Burwell.
Cheers
In the recent podcast Christian Yates states…
“15 investment trusts investing in this space” (name checks Gresham House as per previous post)
‘in this sector sector... all these funds bar one are trading at premium’s to NAV. clearest indication for appetite and demand.”
“about $ 1 billion being raised”
“all these funds don’t have their development arm and don’t have their own proprietary projects”
“so they will have to COMPETE WITH EACH OTHER to acquire assets”
“what we are doing at Burwell will have HUGE ATTRACTION for these funds should we not wish to hold this project long term or wish to seek co investors in these projects.”
I am expecting Burwell news to rerate share price here in the very near term.
VERY INTERESTING....
21 Jan 2021
“Anesco signs deal with Gresham House for 200MW solar portfolio
Anesco is partnering with GRESHAM HOUSE for the development of a 200MW solar PV portfolio.
Whilst Gresham House will fund the portfolio – which consists of assets ranging from 20MW to 50MW – all engineering, procurement and construction (EPC) will be handled by Anesco, which is also to provide long-term operations and maintenance following energisation of the sites.
The development and construction partnership is to last three years, with the transaction - which has a value in excess of £100 million - being Anesco's largest to date.”
https://www.solarpowerportal.co.uk/news/anesco_signs_deal_with_gresham_house_for_200mw_solar_portfolio
Wiers Drove Development Director is Christian Yates.
WDD portfolio:
Our storage project in Burwell, outside of Cambridge and in close proximity to the Burwell substation.
Christian Yates is Chairman of GRESHAM HOUSE Renewable Energy VCT 2 plc, a listed investment company. He co-founded and established GRESHAM HOUSE Renewable Energy VCTs in 2010, while a partner at Hazel Capital LLP.
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So Christian Yates who is our Burwell Project Director also has links to Gresham House who are investing heavily in the UK solar sector.
1 December 2020
“As future shareholders of Corcel, the Board is also delighted to maintain Tim and Christian's support with both indicating that they are available to the Company to ASSIST WITH THE FUNDING of Burwell and origination of other sites as required.”
“We expect to be initiating discussions with project funders (likely at an SPV level) SHORTLY whilst also remaining open to the potential for a quick sale of the project to a third party."
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January 13th 2021
Battery storage portfolio investor Gresham House Energy Storage Fund has acquired 55MW of UK projects in the past few weeks and completed a 10MW extension to an existing project.
Ben Guest, fund manager of Gresham House Energy Storage Fund, pointed to recent wholesale power price short term spikes in the UK - with prices in the Nord Pool N2EX Day Ahead auction hitting £1,000.04/MWh last week, the highest hourly price seen on the trading market’s auction - highlighting the "urgent need for more energy storage capacity in the UK".
He added that the company is “MOVING SWIFTLY to deploy the £120 million we raised in November into our near-term pipeline and look forward to updating shareholders on our continued progress".
https://www.energy-storage.news/news/london-stock-exchange-listed-gresham-house-energy-storage-fund-adds-65mw-to