31 Jan 2020 07:00
Regency Mines PLC
("Regency" or the "Company")
Launch of Flexible Grid Solutions Division
Board Approval to Progress First Project
31 January 2020
Regency Mines Plc (LON: RGM), the battery metals and energy storage development company, is pleased to confirm the rebranding of its "Energy Storage" division to "Flexible Grid Solutions" and Board approval to progress its first project to financial close with maiden revenues expected by the end of 2020.
Highlights:
o First project in Southport approved to progress to mid-year Financial Close with estimated project costs pre Financial Close to be covered from existing cash resources
o Local Planning Authority and SEC 11MW Grid Application in Progress
o Maiden Revenues expected by end of 2020
Scott Kaintz, CEO, commented: "I am delighted to report that having recently acquired 100% of the business, Regency is now focusing its Flexible Grid Solutions division on its first project at Southport with a view to securing near term revenues. The Southport project is fully aligned with the decarbonisation of the economy, the power grid and associated distribution networks. The project is also aligned with the requirement for flexible energy options to buttress an ever-increasing reliance on renewable power and the net zero emissions goal of the UK Government."
Division Rebranding:
The Company has elected to re-brand its UK energy storage business as Flexible Grid Solutions to better reflect the breadth of activity involved in supporting the transition from centralised large scale fossil fuel intensive plants to smaller distributed sites with flexibility to switch on and off as required, often buttressed by battery installations.
Sanction of First Project:
The Company views the use of "peaker plants" and the associated battery storage in support of the electricity system as a critical component of the energy transition as power networks and energy markets evolve to accommodate changing demand and supply profiles, decarbonisation and the emergence of EVs.
The first project is at a development site in Southport, near Liverpool, and will initially involve the installation of a gas fired "peaker plant" with 7.2MW generation capabilities. These plants ease pressure on power networks by levelling out imbalances in supply and demand, generating and selling electricity when prices are high. This will then be followed by up to 4MW installation of energy storage using containerised lithium ion batteries. This then provides the site with the ability to both produce power when appropriate and store it for onward sale into the grid during periods of peak demand. The purchase of inexpensive power from the grid during off-peak times or when renewable production is higher than expected is also then possible through use of the battery installation.
The Company is pleased to confirm that the Board has approved to progress, with initial costs covered from its existing cash resources, the first project from its Flexible Grid Solutions project portfolio for progress to Financial Close around mid-year. Financial close represents the contractual formalisation of the equity and debt funding required, allowing site construction to begin. It is expected that funding at Financial Close can largely be achieved with Project Finance and that maiden revenues will therefore follow around end of 2020.
The near term Southport priorities for the first half of 2020 include:
·; migrating the site lease exclusivity (awarded 20 September 2019) to a formal lease
·; the immediate application for and the installation of the electricity network connection (the type of connection granted will dictate the types and levels of electricity production, trading and storage possible)
·; finalising local planning authority consent required to proceed with the ultimate design of the site and to initiate construction activities.
·; continuing discussions with debt and equity finance providers
This project has been reviewed by the Company's strategic partner ion Ventures Limited, who will now focus on reviewing the other greenfield and brownfield projects in the Company's project pipeline.
In addition to developing its existing projects, Regency is also considering various bolt-on acquisitions with the goal of operating multiple revenue generating Flexible Grid Solutions facilities in the near term, and will update the markets further on these developments as appropriate.
Note to Editor:
Regency owns 100% of its Flexible Grid Solutions division through two intermediate subsidiaries, Allied Energy Services Ltd and EsTeq Ltd. Both subsidiary companies will be re-named to reflect the recent rebrand.
For further information, please contact:
Scott Kaintz 020 7747 9960 Director Regency Mines Plc
Roland Cornish/ Rosalind Hill Abrahams 020 7628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 020 7374 2212 Broker First Equity Limited
This announcement contains inside information under Article 7 of Regulation (EU) 596/2014.