Last checked at 28 May 2021 07:00
Corcel PLC
("Corcel" or the "Company")
Acquisition of Third 50MW Flexible Energy Project
28 May 2021
Corcel Plc, ("Corcel" or "the Company"), the natural resource exploration and development company with interests in battery metals and flexible grid solutions, announces exclusive rights over the acquisition of the "shovel ready" Avonmouth 50MW gas peaking project outside of Bristol from FPC Electric Land Limited ("Electric Land" or "EL").
Highlights:
o CRCL acquires exclusive rights to 100% of the Avonmouth gas peaking project further expanding its growing Flexible Grid Solutions project portfolio
o CRCL also acquires the rights over an additional 15MW of potential grid connection capacity and associated land at the Avonmouth complex
o Purchase consideration is £72,000 payable now and a further £72,000 payable at financial close as well as agreement with EL on a 30-year project land lease
o CRCL to take Avonmouth through to financial close, alongside Burwell and Tring Road, during 2021
Chief Executive Officer, Scott Kaintz commented: "Following closely behind our recent acquisition of the Tring Road gas peaking complex, we have now added a further 50MW of flexible energy generation at Avonmouth. Avonmouth is already "shovel ready". Our expanding partnership with Electric Land brings with it a dovetailing of capabilities and interests; ours in the underlying energy projects themselves and theirs in the land ownership and ongoing land lease revenue. Our present intention is to seek to bring Avonmouth to financial close during the course of 2021 leveraging the existing efforts already underway for Tring Road and Burwell, marketing the project portfolio jointly."
Transaction Details
Corcel has acquired six months of exclusivity over a 100% interest in the Avonmouth gas peaker project from Electric Land Ltd, located outside of Bristol, England. Consideration for the acquisition is £72,000 payable immediately, and a further £72,000 payable at financial close at the time of entering into the formal lease over the project site. Corcel also receives exclusivity over an additional 15MW grid connection and associated land at the site, giving it the rights to take on the connection for use in a potential generation or battery project on similar terms.
Avonmouth Project
The Avonmouth project is a 50MW gas peaking project located approximately 7 miles Northwest of Bristol. The site location is an area of greenfield land within an established industrial estate and comprising a total of 4.36 acres. The project is "shovel ready" with a 50MW grid connection, gas connection, planning permission and land rights. Co-located at the site are two other projects, a 33MW site being developed by a third party, and a 15MW site expected to be made available for a generation or battery installation over 1.38 acres.
The Company, following comprehensive due diligence on the project, has received third party estimates of annual gross margins of between £67-101k per MW/per annum once the project is operational.
The site is expected to consist of 25 x 2MW generating units, switchgear and welfare cabins, workshop, gas pressure reduction installation, customer compound, DNO substation, comms tower, balancing pond and landscaping. Opportunities for enhanced offtake and private wire connections are currently under discussion with several industrial and commercial customers located in the area. Following financial close, the project is expected to be commissioned in approximately 12 months.
Scott Kaintz 020 7747 9960 CEO Corcel Plc
Roland Cornish/ Rosalind Hill Abrahams 020 7628 3396 NOMAD Beaumont Cornish Limited
Thomas Smith 020 7392 1432 Broker Monecor (London) Ltd (ETX Capital)
Simon Woods 0207 3900 230 IR Vigo Communications
This announcement contains inside information under Article 7 of Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
About FPC Electric Land Limited
Electric Land is a specialist promoter, developer and investor in grid-connected land for renewable and renewable supporting energy infrastructure use. Electric Land creates and leases shovel ready flexible energy sites for operators to develop for all technologies, and buys ground rents of land with operational flexible energy projects in place. It is a division of the Foundation Property & Capital Group.