3 Dec 2014 07:00
Plutus PowerGen Plc / Ticker: PPG / Index: AIM
3 December 2014
Plutus PowerGen plc ('PPG' or 'the Company')
Secures agreement for multiple power generation sites with established commercial landlord for the South West and South Wales
Plutus PowerGen plc, the AIM listed power company focused on the development, construction and operation of flexible stand-by electricity generation in the UK, announces that its wholly owned subsidiary, Plutus Energy Ltd ("Plutus Energy"), has successfully completed an agreement with London & Devonshire Trust ("LDT"), a leading independent property developer in the South West of England, to source land with connection capacity suitable for the construction of a number of individual 20MW flexible generation facilities and under pre-agreed lease terms.
This agreement, which follows a Letter of Intent ('LOI') signed with LDT outlined in the Company's Admission Document, is in line with PPG's strategy to develop 200 MW of flexible stand-by power generation sites over the next three years.
Both LDT and Plutus Energy have been working to the spirit of the LOI and accordingly, the Company announces that it has successfully completed the first lease with LDT in the South West that will support 20MW of flexible generation. Furthermore, LDT has submitted grid connection requests on land capable of supporting 140MW of flexible generation in the South West of England and South Wales on behalf of Plutus Energy.
PPG CEO Phil Stephens said, "Plutus Energy is delighted to conclude this formal arrangement with LDT, which represents a very strong partnership in a key region. In particular, we believe that by signing the first lease for 20MW and submitting connection applications with a high likelihood of success, we are proving the value of our approach of partnering with reputable landlords as the basis for managing the key risks within our business model."
Daniel Stephenson, Managing Director of LDT, commented "LDT is equally pleased to conclude this arrangement with Plutus Energy, as energy represents a key strategic driver for successful development of land and assets in our core region. We believe that the new energy market, and the need for security of supply, is an opportunity for businesses in the South West."
**ENDS**
For further information, please visit www.plutuspowergen.com, or contact:
Charles Tatnell | Plutus PowerGen Plc | Tel: +44 (0) 20 8720 6562 |
Phil Stephens | Plutus PowerGen Plc | Tel: +44 (0) 20 8720 6562 |
Ewan Leggat | SP Angel Corporate Finance LLP | Tel: +44 (0) 20 3463 2260 |
Katy Birkin | SP Angel Corporate Finance LLP | Tel: +44 (0) 20 3463 2260 |
Felicity Winkles | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
Elisabeth Cowell | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
Notes to Editors
Plutus PowerGen plc is an AIM listed company focused on the development, construction and operation of flexible stand-by power generation sites in the UK. At present, the market dynamics for flexible power generation are positive as a result of the continued downward pressure on capacity available to National Grid to balance supply and demand, leading to their announcements about possible power shortages over the next few years.
Flexible Power generators such as PPG offer a viable and timely solution to the power capacity shortfall in the UK. To this end, PPG is initially focusing on delivering 200MW of capacity over the next three years.
PPG has a straightforward multi-revenue stream model with large and stable counter-parties and is using project/EIS funding through SPVs to finance construction of the generation assets. This structure has the benefit of limiting dilution to plc shareholders as the assets are financed and built.
Established in 1984, London & Devonshire Trust is one of the strongest independent residential and commercial developers in the South West. LDT has an impressive record in property development with a reputation for proactively managing the development risk, covering all aspects of the development process, including identification of suitable development opportunities, evaluation of the highest use value for the property, oversight of the acquisition process, lease negotiations and investment sale.
LDT's portfolio demonstrates its ability to successfully develop commercial, residential and leisure property, managing risk and producing exceptional returns. The company's aim is to build on this impressive performance and to provide similar opportunities to its clients and partners.