The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
To date, PPG has arranged funding of around £34 million from Rockpool and a further / potential £25 million from Lombard, totalling £59 million for nine 20MW flexible generation sites. Of the 220MW under development, 20MW (1 site) is operational, 120MW (6 sites including the operational site) have secured planning permission and 100MW (5 sites) have been submitted for planning. We continue to develop our remaining pipeline together with our partners, which now includes a diversification towards gas-powered sites, two of which are in the process of submission for planning. · Maiden profit of £3,035 for the period compared with a loss of £189,937 in the same period last year · 86% increase in revenues - £675,000 delivered during the period compared with £362,500 in the same period last year · £3 million asset financing facility committed for Attune Energy Limited, which holds the operational 20MW site, by Lombard North Central plc ("Lombard") · Annualised management fees of £1.35 million from nine funded FlexGen projects, representing 180MW of capacity · Targeting at least 120 MW to be operational and an additional 120 MW post planning by the end of 2017, including new initiative with gas fuelled plants · Sites under management with capacity of 180MW to date · Success in the Capacity Market Auction post period end for a further three 20MW sites with planning, bringing the total Capacity Market contracts awarded to 120MW · Post-period end, indicative partnership agreed with Big Six utility company to fund 20% of future renewable fuel and gas powered projects · Total pipeline (including FlexGen and Gas) remains at over 700MW · 150 MW of Gas sites under review and two in the planning process Non-dilutive finance model By setting up a dedicated entity for each site as part of our bottom up investment strategy, we limit medium-term dilution to existing shareholders. The first nine sites have been financed with equity from clients of Rockpool in each of the nine investment entities established for this purpose, and have advance assurance from Her Majesty's Revenue and Customs to benefit from EIS-related tax benefits. PPG has a 45% stake in each of these entities, and currently derives revenue from a management contract with each site. From November 2015, EIS was closed off to new standby power generation projects. Future projects will be held in separate subsidiary companies, in which PPG will seek to obtain an interest of 80%.
Fiah, just scroll back to Wednesday and you will see my posts
Omg what is the matter with you guys, you seemed to be blinded by the smallest of things. What about the 150 MW gas sites the RNS talks about plus look back at my recent posts on all the good value added facts that makes this investment a huge opportunity for anyone invested, stop being so myopic and look at what has been achieved to date and what the future holds. Re options I am pretty sure they had the option three years ago to take up their options at at least 50% less than at today's price
To date, PPG has arranged funding of around £34 million from Rockpool and a further / potential £25 million from Lombard, totalling £59 million for nine 20MW flexible generation sites. Of the 220MW under development, 20MW (1 site) is operational, 120MW (6 sites including the operational site) have secured planning permission and 100MW (5 sites) have been submitted for planning. We continue to develop our remaining pipeline together with our partners, which now includes a diversification towards gas-powered sites, two of which are in the process of submission for planning. · Maiden profit of £3,035 for the period compared with a loss of £189,937 in the same period last year · 86% increase in revenues - £675,000 delivered during the period compared with £362,500 in the same period last year · £3 million asset financing facility committed for Attune Energy Limited, which holds the operational 20MW site, by Lombard North Central plc ("Lombard") · Annualised management fees of £1.35 million from nine funded FlexGen projects, representing 180MW of capacity · Targeting at least 120 MW to be operational and an additional 120 MW post planning by the end of 2017, including new initiative with gas fuelled plants · Sites under management with capacity of 180MW to date · Success in the Capacity Market Auction post period end for a further three 20MW sites with planning, bringing the total Capacity Market contracts awarded to 120MW · Post-period end, indicative partnership agreed with Big Six utility company to fund 20% of future renewable fuel and gas powered projects · Total pipeline (including FlexGen and Gas) remains at over 700MW · Gas sites being sought - several under review and two in the planning process Non-dilutive finance model By setting up a dedicated entity for each site as part of our bottom up investment strategy, we limit medium-term dilution to existing shareholders. The first nine sites have been financed with equity from clients of Rockpool in each of the nine investment entities established for this purpose, and have advance assurance from Her Majesty's Revenue and Customs to benefit from EIS-related tax benefits. PPG has a 45% stake in each of these entities, and currently derives revenue from a management contract with each site. From November 2015, EIS was closed off to new standby power generation projects. Future projects will be held in separate subsidiary companies, in which PPG will seek to obtain an interest of 80%.
Did PPG, or related companies, got any applications in the 2016 Capacity Market Auction? A further three 20MW sites with planning, totalling 60MW, were awarded Capacity Mechanism Contracts in December 2016. The Company will be entering its operational site in Plymouth into the Early Year Auction in January 2017 being held for the delivery year 2017/2018. How many plants are already running and how many have approval but are yet to be built/turned on? The Company has one 20MW project in operation. A further 6 projects (120MW) have planning permission, with 3 more sites in planning (60MW). One project (20MW) is stalled at planning. PPG has secured rights over a further 80MW which will shortly go into planning, with a further c.700MW of pipeline which require further analysis. How did the Plymouth site perform" during the past winter? April 2017 The Plymouth site is performing very well. Additionally, valuable lessons have been learnt that are assisting in both the execution of the build-out of further sites and which will increase their efficiency once operational. Are the nine Rockpool sites going ahead as planned? Will asset finance or other funding be available to Plutus? April 2017 As previously announced by the company, Rockpool funded sites are being built out as planned and funding is available for the completion of this process
especially as the diesel used passes all criteria for a renewable fuel and therefore attracts ROCs. The fact that PPG’s projects are able to provide the cheapest source of flexible power is also important. By keeping balancing costs low, PPG positively impact the consumer bill with little or no impact on emissions due to the low running hours. If alternative projects to meet the flexible energy demand to balance renewable sources are more expensive to run, then these costs would simply be passed on – directly – to the consumer through the bill. As you can see, this topic is not black and white and there are many sides of the argument to think about. What is your stance on the ongoing Embedded Generation review currently being undertaken by Ofgem? Given the absolute fragility of the UK’s evolving energy environment currently, it is unclear why any agency would look to create further uncertainty at this critical point in time nor would it make sense to propose piecemeal solutions – this is supported by National Grid themselves whose CEO recently suggested a full review is required to arrive at the right solution for both industry, consumers and investors. PPG strongly supports the CUSC proposals in front of the industry and OFGEM at the moment which seek to cap embedded costs for three years while this review happens. However, the Company is ideally positioned to cope with the anticipated changes. What benefits accrue to PPG via the Enterprise Investment Scheme from the plants? How many of the plants are eligible? The Company has nine projects (180MW) which are receiving funding via EIS. One of these 20MW plants is now operational and the other 160MW are at varying stages of development. These projects were established with funding from Rockpool Investments LLP prior to the Government’s decision in October last year to cut EIS funding for ANY energy generation projects. This decision was not retrospective; it was made largely due to the fact that the UK Government recognised that flexible energy projects such as PPGs are generally asset-backed and benefit from a less risky income streams, therefore mainstream investment can support the projects, removing the need for tax-advantaged investment. Therefore, as publicly stated, the Company did not believe that the amendment to EIS funding would adversely affect the business and this confidence was validated by a recent agreement with a Big 6 utility to fund up to 20% of future assets
What role does flexible energy generation play in the UK’s energy mix today? Flexible energy is becoming increasingly necessary and prominent in the UK as our energy mix changes to include renewables, which by their very nature provide power intermittently; wind turbines provide power when the wind blows, and solar when the sun shines. Combined with this intermittency, larger carbon intensive sources of generation are being retired, meaning that the supply-demand margin is tightening. Therefore, National Grid and the Big 6 need consistent and reliable sources of generation to balance the grid when intermittent generation is unable to meet the demand and therefore prevent brownout/ blackouts as the UK’s supply margin tightens The following demonstrates the evolving nature of the UK’s energy market: Renewable electricity generation was 83.3 TWh in 2015, an increase of 28.9 per cent on the 64.7 TWh in 2014, with bioenergy up by 27.8 per cent and wind generation up 26.4 per cent. Renewables’ share of electricity generation was a record 24.7 per cent in 2015, an increase of 5.6 percentage points on the 19.1 per cent in 2014. Renewable electricity capacity was 30.0 GW at the end of 2015, a 21.9 per cent increase (5.4 GW) on a year earlier. What are Plutus PowerGen’s (PPG) flexible energy generators run on? PPG has an MOU with UK based Green Biofuels Limited for the supply of its proprietary renewable fuel 'Green D+' for use across the Company's portfolio. This biofuel is made from waste or end of life oils which are processed into a synthetic mineral diesel. It burns quickly, has low emissions and is smokeless. Noise pollution may be an issue, but please note that land used to develop a project is industrial wasteland – brownfield land. Additionally, projects are only operational for between 100 – 200 hours per year. What would happen to the waste oil if it wasn’t used for creating biofuels? There are very limited uses for waste or end of life oils, and the processing of these oils into synthetic diesel is therefore considered renewable by most European countries’ standards. As such, this fuel attracts Renewable Obligation Certificates (ROCs) in the UK. PPG does not claim these ROCs. The process to create Green D+ converts the waste oils into a mineral paraffin. What are the benefits of diesel flexible energy projects? Flexible power is only required during periods of peak demand and Plutus’ projects are on standby to deliver energy during critical periods. By remotely switching them on, they can be up and running in 30 seconds. Importantly, the plants are quick and cheap to construct. Given the very limited amount of time that these projects are in use, it could be considered a significant waste of government funds to spend billions on an even greener and more complex power project to solve the problem PPG is already part of solving; especially as the diesel use
Don't let his pathetic semantics defeat you and wind you up this is what he wants, just ignore him and carry on being a valued poster of this board
I really don't think I have come across such a childish, immature correspondence in my life. This is supposed to be serious and respectful chat room, sadly it seems to be turning out to be a place where one person just insults, aggravates and vents his pent up anger and jealousy like a churlish scolded child, it truly is pathetic and doesn't warrant anyone's time. So can I suggest that no one replies / reacts to this persons idiotic posts any more.
Just to be very clear, the OFGEM announcement is totally unconnected with the election
The announcement is sometime mid May. My gut feeling is that this is going to an Industry consultation/review which could take 18-24 months before they make a dertermination and that's all we will hear. If this is the outcome it will have no affect on PPG / profits for said period and I am sure in that time frame, there will be commercial diversification that will enable the company to be totally unaffected by the outcome of the report and most likely he company will become a more profitable and less risk adverse business, carrying a lot more value for its share holders What is everyone else's view and what do you think the share price is going to do off the back of the mid May response from OFGEM?
How did the Plymouth site perform" during the past winter? April 2017 The Plymouth site is performing very well. Additionally, valuable lessons have been learnt that are assisting in both the execution of the build-out of further sites and which will increase their efficiency once operational. Are the nine Rockpool sites going ahead as planned? Will asset finance or other funding be available to Plutus? April 2017. As previously announced by the company, Rockpool funded sites are being built out as planned and funding is available for the completion of this process.
How did the Plymouth site perform" during the past winter? April 2017 The Plymouth site is performing very well. Additionally, valuable lessons have been learnt that are assisting in both the execution of the build-out of further sites and which will increase their efficiency once operational. Are the nine Rockpool sites going ahead as planned? Will asset finance or other funding be available to Plutus? April 2017. As previously announced by the company, Rockpool funded sites are being built out as planned and funding is available for the completion of this process.
Hi Tasha, Great first post. Any chance you putting up some links to those said reports?
To put this into perspective I think the industry expected a reduction in Triad but something positive, thus neutral over all, which I think will happen, a fair and sensible compromise to benefit all The National Grid are definitely fuming and warning there is and will be whopper security supply issues !!! The Ofgem proposals are far from sensible, their report/suggestions won't stand . It guarantees power blackouts in the future & that brings Govt. downfall and no Govt is going to allow that to happen on their watch Interesting email from a contact at Rockpool who have funded sites to the region of £34 million. It was asked whether the announcement would be disastrous for the business model. Here is the response: "We've been expecting a reduction in Triad payments, although this is at the bottom end of the range of outcomes. It doesn't destroy the business model as the companies have capacity payments (which we always viewed as upside) and balancing services (STOR, FFR etc). Furthermore the changes in Triad are being phased in and won't be fully effective until the winter of 2020/21. Our current expectation is that all the peak power companies can achieve a return in-line with the base case in the original blueprints." Which I am sure the investor community will find exceptionally re-assuring
You really do talk absolute rubbish. Your comments are not worth taking any notice of at all. If anyone is doing their due diligence, they will see and understand the opportunity at hand. Quite simply PPG is over sold. Triad is not the only revenue stream, just a small %age in the grand scheme of things. Rockpool sites for example, will still be very profitable, just not as profitable as it could be if the OFGEM report was put in place in 2018, which it will not be, especially in the format reported. The thing is the OFGEM report is just a report and there will be a sensible compromise, so that all (Gov, the UK, consumer, producer, energy development) concerned benefit from it. If you aren't interested in PPG or making money from PPG, then why are you here. All you are doing is scaremongering for your benefit.
A totally honourable and truthful response, thanks Lowrisktrader
To date, PPG has arranged funding of around £34 million from Rockpool and a further / potential £25 million from Lombard, totalling £59 million for nine 20MW flexible generation sites. Of the 220MW under development, 20MW (1 site) is operational, 120MW (6 sites including the operational site) have secured planning permission and 100MW (5 sites) have been submitted for planning. We continue to develop our remaining pipeline together with our partners, which now includes a diversification towards gas-powered sites, two of which are in the process of submission for planning. · Maiden profit of £3,035 for the period compared with a loss of £189,937 in the same period last year · 86% increase in revenues - £675,000 delivered during the period compared with £362,500 in the same period last year · £3 million asset financing facility committed for Attune Energy Limited, which holds the operational 20MW site, by Lombard North Central plc ("Lombard") · Annualised management fees of £1.35 million from nine funded FlexGen projects, representing 180MW of capacity · Targeting at least 120 MW to be operational and an additional 120 MW post planning by the end of 2017, including new initiative with gas fuelled plants · Sites under management with capacity of 180MW to date · Success in the Capacity Market Auction post period end for a further three 20MW sites with planning, bringing the total Capacity Market contracts awarded to 120MW · Post-period end, indicative partnership agreed with Big Six utility company to fund 20% of future renewable fuel and gas powered projects · Total pipeline (including FlexGen and Gas) remains at over 700MW · Gas sites being sought - several under review and two in the planning process Non-dilutive finance model By setting up a dedicated entity for each site as part of our bottom up investment strategy, we limit medium-term dilution to existing shareholders. The first nine sites have been financed with equity from clients of Rockpool in each of the nine investment entities established for this purpose, and have advance assurance from Her Majesty's Revenue and Customs to benefit from EIS-related tax benefits. PPG has a 45% stake in each of these entities, and currently derives revenue from a management contract with each site. From November 2015, EIS was closed off to new standby power generation projects. Future projects will be held in separate subsidiary companies, in which PPG will seek to obtain an interest of 80%.
This is now so over sold, it is a joke Rockpool assets / sites alone should reflect a way higher share price / company value Pipe line is so strong and funding in place Huge opportunity to add more shares at this price
Further continuation of previous posts: Tim Rotheray, director, ADE: “Ofgem’s proposal will support increased coal generation at the expense of the smarter, more flexible and innovative energy solutions we should be supporting. “Ofgem has depended on a rushed industry review, led by large coal and gas generation interests, and has not undertaken the kind of robust evidence gathering that we would expect for a decision worth hundreds of millions of pounds. Ofgem’s assumptions for consumer savings are entirely dependent on new large gas power stations being built, an assumption which was not born out by the last Capacity Market auction. “Ofgem’s approach could just as easily result in higher energy costs for everyday householders, and the consequences for industrial manufacturers, hospitals, and local authorities who generate their own power could be devastating.” Of course there will be change in time and it will benefit everyone, so there will be compromise. No Government is going to allow power shortages or any black out scenario on their watch and power shortages are definitely real and a huge problem going forward for the UK. PPG is in a strong position to deliver what is required and needed for this country now and into the future Do your own research, read the RNS’s and gain the truth about this company’s very real opportunity