Last checked at 22 Mar 2021 07:00
Dukemount Capital Plc
22 March 2021
Dukemount Capital Plc
("Dukemount" or the "Company")
Environmental Energy Project
Dukemount Capital plc, the property management and long dated income specialist is pleased to announce that it has agreed outline terms for a joint venture in the flexibility power sector. Once due diligence and definitive agreements have been completed, Dukemount will own 50% of the joint venture vehicle, HSKB Limited ("HSKB"). HSKB is currently owned by Matthew Clare, who has a well established expertise in the sector. Paul Gazzard, a non-executive director of Dukemount, who has worked with Mr Clare on power sector transactions in the past, introduced the opportunity for the joint venture to the Company. The joint venture will develop two 11KV gas peaking facilities which together will produce around 10MW of power for a total cost of approx. £6.25million. Dukemount believes that this joint venture represents the next steps to meeting its target of growing to a £100m plus business.
Dukemount will manage the construction of the two sites and provide its knowledge of long-dated income funding and financing, HSKB brings its technical, operational and market expertise of the UK flexibility power market as well as access to a pipeline of further deals and will provide yield management of each site.
HSKB is targeting Capacity Market contracts for the two sites which will secure a 15-year, CPI-linked long-dated income. Dukemount expects the project to generate revenues for more than fifteen years.
Gas peaking and battery storage assets are hugely important to the UK Government's policy of net zero emissions by 2050. As the grid transitions from legacy fossil fuel to more environmentally friendly sources of generating electricity, such as wind and solar, the intermittent nature of the generation of electricity rises. If there is a drop in generation during peak demands, instead of relying on coal or nuclear to bridge the gap, battery storage sites react immediately shortly followed by gas peaking facilities which can operate for as long as required to satisfy demand.
HSKB in all of their operations are fully compliant with current Environmental, Social and Governance ("ESG") guidelines and legislation.
Executive chairman, Geoffrey Dart said, "Renewable energy has been making significant strides towards the UK's goal of zero-net emissions by 2050, but its intermittent nature on the national grid is growing as fast. Gas peaking is an important tool in efficiently and cost effectively controlling this. Our business model provides us the flexibility to investigate other sources of long-dated income and the UK's green energy initiative is ideal for our plans. The UK has set out ambitious targets for cleaner energy and we are proud to be able to play a part in this achievement.
HSKB Founder and Director, Matthew Clare said, "I believe the Joint Venture between HSKB and Dukemount will provide excellent income potential for investment funds, especially those which are looking at more environmentally conscious investments. The combination of our skills should lead to good growth in this fast moving and essential business."
Market Abuse Regulation (MAR) disclosure
Certain statements in this announcement contain inside information for the purpose of Article 7 of EU Regulation 596/2014.
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